Economic growth sees more companies turn to London
More companies are choosing to do their business in London thanks to the improving economy, according to a new study.
Firms that regularly visit London for business have reported an increase in potential deals, with 10% of businesses questioned by Chevel Residences expecting 40% more work in the capital.
An additional 10% expect 20% more business in London while some 35% of the 200 companies questioned suggested that business was more likely this year than last.
The switching focus to the capital can be explained by the popularity of the city for meetings and conferences and for its links to Europe and the technology bases in the South of England.
London also represents an ideal location to showcase businesses, a key aspect of branding and advertising when searching for potential investment and new custom.
Deals with existing London businesses also represent a significant chance to see rising returns with business visits to the capital constantly increasing in number.
London’s wider importance to the UK
The high level of businesses visiting London represents a good level of growth in the UK economy and assists with the development of companies in other parts of the UK.
It is a sign of improving business confidence – which comes despite an increase in April inflation rates and the potential for greater financial pressures.
UK business confidence was reportedly up in Q1 2014, with several major sectors reporting widespread positivity.
However, there remains a need to be cautious as some businesses could still find themselves in financial difficulty should their sectors not see noticeable improvement.
Corporate insolvency methods could help to improve the situation, while anyone with cash flow difficulties is advised to seek advice and assistance.
Visits to London for business generate a huge amount for the UK economy, with 3.1 million international business visits in 2012 generating £2.7 billion in spending.
Therefore there is a large pool of finances available for businesses, provided that they can find an entry method into the diverse London marketplace.
By Phil Smith