As one would expect, London is a hotspot for leading-edge connectivity, yet a study from G.Network has warned that despite the widespread availability of gigabit services across the UK’s capital, the city’s small and medium-sized enterprises (SMEs) are still grappling with slow and unreliable broadband, and potentially missing out on an estimated £28bn in annual revenue due to slow and unreliable workplace broadband.
The research, undertaken by Censuswide in April and May 2024, comprised a survey of 250 senior executives or owners of SMEs – defined as businesses consisting of 250 employees or fewer – located in London. Working alongside Censuswide and Development Economics, senior leaders and business owners at the capital’s SMEs were surveyed, with polling used in conjunction with the UK’s Office for National Statistics (ONS) data to establish the overall economic impact on revenue.
According to the ONS, in 2023, London SMEs generated £683bn in annual turnover, significantly boosting the city’s economy and reinforcing its status as a global economic hub.
G.Network said the findings of its research laid bare the impact connectivity issues are currently having on London SMEs, with a quarter admitting that problems with slow or unreliable broadband have caused them to lose business.
High costs and complex processes involved in securing reliable services are prohibitive for many SMEs, and the survey noted the net result of this was creating a “significant” barrier to accessing fast and dependable connectivity, leaving many businesses at a disadvantage in terms of productivity, innovation and competitiveness.
According to the polling, these broadband issues have also negatively affected productivity for a quarter of all employees at the capital’s small and medium-sized businesses over the past three months. The estimated annual lost output due to these broadband issues is estimated at £5.34bn gross value added, a key economic metric that measures the value of goods and services produced in an area, industry or sector of an economy.
Moreover, the study showed that just more than half (52%) of senior leaders and business owners of London SMEs have considered moving office location to get better access to faster and more reliable workplace internet, with two-fifths stating they can’t serve clients in the way they’d like to due to problems with slow or unreliable office internet.
Just under half (47%) of SME business owners and senior leaders identified employee connectivity in the workplace as an area undermined by poor connectivity, while over 40% said their ability to serve customers suffered. SMEs identified quicker response times to clients and customers as two of the key benefits they could reap from improved office broadband connectivity.
Looking ahead, G.Network warned that the productivity gap experienced by SMEs is only likely to increase, with poor connectivity compromising their ability to leverage emerging technologies and remain competitive in an increasingly digital economy.
“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,” said G.Network CEO Kevin Murphy.
“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 London business advocacy group 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.”