A survey of more than 800 entrepreneurs launching businesses across London found that:

• 54% don’t have a business plan
• 49% haven’t reviewed their competition
• 46% didn’t conduct any market research before launching

These trends reflect a broader UK pattern:

• 59% of small business employers nationwide lack a business plan
• Among solo entrepreneurs, that figure rises to 77%

Small businesses make up 99% of all companies in London and account for over half of the city’s employment. They are the backbone of London’s economy and a driving force behind local communities.

Business support organisations warn that these gaps are more than just missing paperwork, they can significantly impact-decision-making, operational efficiency, and the long-term success of a business.

Commenting on the findings, Vanesa Perez Sanchez, Director of Small Business Service Delivery at London & Partners, said: “Starting a business requires huge amounts of passion and determination. Market research and business planning are essential to build solid foundations and growth. The good news is that there’s support out there to help small businesses to start and thrive.”

Grow London Local, a service from London & Partners, offers free, tailored support to help founders succeed. Whether it’s writing a business plan, finding funding, or getting expert advice, the support is local to each borough, so it’s easier for entrepreneurs to access what they need.

One organisation stepping in to help is Hatch Enterprise. It supports underrepresented founders and has seen a 92% rise in applications to its programmes over the last year, including a huge increase in people seeking early-stage support.

Rebekah Sun, Managing Director at Hatch Enterprise, adds: “Even if you’re short on time, investing in your business now will save you trouble later. It’s vital we make planning tools and support easy to access, especially for new founders.”

Laurelle Kamara, a business owner supported by Hatch, says: “Prior to Hatch, I had never had any professional guidance, input or even courses to help me level up. It was very much me, myself, and I.”

After learning from experts, she now feels she can scale her business properly. As a result, she has reached more customers, increased her business’s impact, and brought on additional paid freelancers.

Uto Patrick, Business & IP Centre London Network Project Manager, explains: “Many new founders take the plunge before ensuring that they have the fundamental information, advice, and networks that they need – causing up to 50% to fail in the first 3 years of trading. Businesses who start with the support of the British Library's network of Business & IP Centres, based in libraries around the UK, are far more likely to succeed with over 90% of them still trading after the crucial third year.”

Marjorie Gutierrez, founder of Smart Business Designs, who got help from Grow London Local, shares: “I’d been running my business for years, but never made a proper business plan. After a Grow London Local event, I got connected to a business support manager who helped me bring my plan to life.”

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