Which businesses are driving the UK jobs recovery?

 
Old Street tube at Silicon Roundabout London's technology hub is centred at "Silicon Roundabout"

Which businesses are driving the UK jobs recovery?

It appears that technology companies are among them. The total number of jobs in the tech sector is up by about one-fifth since the recession. They have provided 30% of jobs growth in London as the number of companies has doubled since 2009, according to a study by the City of London. That's when the UK capital launched Tech City, or what's colloquially known as Silicon Roundabout.

I paid a visit to London's technology hub to find out whether they are the unsung heroes of the recovery and what it takes to be an entrepreneur. Many of us think about it, but few of us take the plunge.

What does it take to start a company?

First, you need an idea. But, how does it go from an idea to a business? I went to see the incubators and accelerators in Tech City. Shared office space, mentors, and even a bootcamp help entrepreneurs make money from their ideas.

But, that's not all. You also need money. That's where venture capitalists come in. Angel investors offer cash for a stake in your company. How to attract an investor and then decide how much to sell and for what amount are key.

Many start-ups fail, but small businesses account for 99.9% of all private businesses in Britain and generate nearly 60% of all jobs. That's 4.9 million businesses that employ 24.3 million people, according to the Department for Business, Innovation, and Skills.

How to support entrepreneurship is therefore rather important. According to a McKinsey study, there are five key factors crucial to an eco-system for start-ups: it's not just money, but also having the right infrastructure, talent, networks, and reputation.

Right now, bucking the trend of low overall investment in the UK, London accounts for 20% of all tech investment in Europe. That may be something to be learned from not just London but also the tech clusters in the south east of the country for the overall recovery.

For more on Talking Business with Linda Yueh, see details of when to watch.

 
Linda Yueh Article written by Linda Yueh Linda Yueh Chief business correspondent

Will the debate over immigration affect London’s position?

London's Mayor is confident that Britain's tougher stance on immigrants will not impact the UK economy.

Read full article

More on This Story

Comments

This entry is now closed for comments

Jump to comments pagination
 
  • rate this
    0

    Comment number 8.

    Q: Which businesses are driving the UK jobs recovery?

    A: Technology companies

    == Unlike South Korea and China, this would never happen as the Gov. of this country lacks of a consistent and long-term strategy to support technology-based companies.

  • rate this
    +2

    Comment number 7.

    9 hours online to attract 6 comments on an article by the BBC's worst reporter.
    WHY do they keep persevering with the poor Ms Yueh ???????????????

  • rate this
    +2

    Comment number 6.

    UK is hamstrung.

    Officious parking in towns - local politics failure.
    Gold plated UK legislation, no regulation on imports - eg illegal imports of eggs & pork. Horse meat sold as beef.
    Gigantically Enormous amounts put into Aid and Charity.
    Politics & Media not fit for anything.

    Almost every policy created by UK politics in the last decade+ has been an abysmal failure.

  • rate this
    -1

    Comment number 5.

    Sorry to disagree re: SA economically crippled pre-the 1990 release of Mandela.

    Mrs Thatcher's thoughts on pre-1990 S A: It was rich even then because, unlike other 'socialist' African states, it was "run on free enterprise lines" and it "was why South Africans erected security fences to keep intended immigrants out, unlike the Berlin Wall which kept those blessed with a socialist system in."

  • rate this
    +1

    Comment number 4.

    "Which businesses are driving the UK jobs recovery?"

    Is there a jobs recovery?

    There is a retail recovery due to people spending savings.
    There is not a manufacturing recovery or is there likely to be.

    So there may be a few more shelf stacking jobs at Aldi Netto Lidl but not Tesco for a short time until peoples savings run out.
    The conclusion has to be recovery till the new year. After that ??

 

Comments 5 of 8

 

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.