Ranking 23 cities based on costs when wages, redundancies, work space overheads and the cost of living were taken into account, the FSB’s Small Business Cities Index found London was second only to Tokyo.
The UK capital ranked highly for its available pool of talent and access to markets, but poorly in terms of transport congestion and access to finance (despite the government’s Funding for Lending scheme).
Singapore was ranked as the best performing city, closely followed by New York.
Sue Terpilowski, London policy chairman for the FSB, said “The report highlights some of the issues that members of the FSB voice regularly. Investment intentions can be stifled without sufficient access to finance and ever-increasing business rates put further pressure on cash flow.”