London’s small and medium sized businesses are missing out on an estimated £28 billion in revenue a year because of slow and unreliable broadband in the capital, a new report claims today.
The high costs and complex bureaucracy involved in accessing high speed connectivity are deterring many putting many firms leaving them less productive and competitive.
Analysis and polling of business leaders and owners carried out for fibre provider G.Network by market researchers Censuswide and consultants Development Economics found the sub-standard broadband has affected the productivity of around a quarter of workers at the capital’s SMEs over the past three months.
The annual lost output due to these broadband failings is estimated at £5.34 billion Gross Value Added (GVA)..
The study also showed that more than half of senior leaders and business owners of London SMEs have considered moving office location in order to get better access to faster and more reliable workplace internet, with four in 10 stating they cannot serve clients in the way they would like due to problems with slow or unreliable office internet.
A quarter admitted that problems with slow or unreliable broadband have caused them to lose business and over 40% said that their ability to serve customers had suffered.
SMEs identified quicker response times to clients and customers as two of the key benefits they could reap from improved office broadband connectivity.
Kevin Murphy, CEO of G.Network, said: “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.”
