11 September 2024

High costs and complex processes involved in securing reliable services are prohibitive for many SMEs. This creates 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 Office for National Statistics (ONS), in 2023 London SMEs generated £683 billion in annual turnover, significantly boosting the city's economy and reinforcing its status as a global economic hub.

New analysis from G.Network shows that SMEs are missing out on an estimated £28 billion in annual revenue due to slow and unreliable workplace broadband. Working alongside Censuswide and Development Economics, senior leaders and business owners at the capital’s SMEs were surveyed, with polling used in conjunction with ONS data to establish the overall economic impact on revenue.

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 last three months. The estimated annual lost output due to these broadband issues is estimated at £5.34 billion Gross Value Added (GVA).

The study showed that more than half of senior leaders and business owners of London SMEs (52%) have considered moving office location to get better access to faster and more reliable workplace internet, with four in 10 stating they can’t serve clients in the way they’d like due to problems with slow or unreliable office internet.

A quarter of London SMEs admit that problems with slow or unreliable broadband have caused them to lose business. 47% of SME business owners and senior leaders identified employee connectivity in the workplace as an area undermined by poor connectivity, whilst over 40% said that their ability to serve customers suffered.

SME’s identified quicker response times to clients and customers as two of the key benefits they could reap from improved office broadband connectivity. Looking ahead, 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. 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,” said Kevin Murphy, CEO of G.Network.

“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,” said John Dickie, CEO of BusinessLDN.