LONDON SMEs LOSING £28 BILLION ANNUALLY DUE TO INADEQUATE BROADBAND
Despite the widespread availability of gigabit connectivity across London, small and medium-sized enterprises (SMEs) in the capital continue to struggle with slow and unreliable broadband. High costs and complex procurement processes are deterring many SMEs from securing the reliable internet services they need, creating a significant barrier to productivity, innovation, and competitiveness.
In 2023, London SMEs generated £683 billion in annual turnover, according to the Office for National Statistics (ONS), underscoring their crucial role in the city’s economy. However, new analysis from G.Network, a leading full fibre provider in London, reveals that SMEs are missing out on an estimated £28 billion in revenue each year due to inadequate broadband services. The research, conducted in collaboration with Censuswide and Development Economics, combined polling data from SME leaders and business owners with ONS statistics to quantify the financial impact of poor connectivity.
The survey found that broadband issues have negatively impacted productivity for a quarter of employees at London’s SMEs over the past three months, leading to an estimated annual loss of £5.34 billion in Gross Value Added (GVA)*. More than half (52%) of senior leaders and business owners said they have considered relocating their offices to gain access to faster and more reliable internet, while 40% reported being unable to serve clients effectively due to connectivity problems.
The findings highlight the severe impact that slow or unreliable broadband is having on London’s SMEs. A quarter of businesses reported losing clients because of these connectivity challenges, and nearly half (47%) of SME leaders identified poor employee connectivity as a critical issue. Additionally, over 40% noted that their ability to serve customers was compromised. Improved broadband could enable quicker response times to clients and customers, which are seen as key benefits by business leaders.
Looking ahead, the productivity gap for SMEs is expected to widen as poor connectivity hampers their ability to leverage emerging technologies and maintain a competitive edge in an increasingly digital economy.
Kevin Murphy, CEO of G.Network, stated: “Digital connectivity is at the heart of London’s economy, but despite extensive availability, the SMEs we spoke to for the research are still suffering because connections are too costly and complicated. As an SME ourselves, we understand the challenges they’re facing, and we’re determined to put an end to slow internet speeds. Whether we are serving a hairdresser or a hedge fund, our mission is to provide businesses of all sizes with the reliable gigabit connectivity essential for their success.”
John Dickie, CEO of BusinessLDN, added: “London’s SMEs play a key role in powering growth and productivity in the capital. This important research from G.Network not only underlines the connectivity challenges that businesses in the capital are facing but also shines a light on the fantastic growth opportunity that lies ahead, for London and the wider UK, should access to fast and reliable broadband be improved for the city’s SMEs.”
