Small businesses across London will soon benefit from a new finance support hub designed to make it easier to find funding and investment opportunities.
The initiative, called Grow London Local Money, is set to launch in April and aims to simplify the process of accessing finance for small and medium-sized enterprises (SMEs). It is part of a wider effort to strengthen business support across the capital.
A New Solution to a Common Problem
The hub will be delivered by London & Partners through the existing Grow London Local programme, which already supports thousands of small businesses.
Its main goal is to provide:
- Clear information about available funding options
- Step-by-step guidance on applying for finance
- Support tailored to different business stages
This is important because many businesses struggle not with the lack of funding—but with understanding how to access it.
Why SMEs Need More Support
London is home to nearly one million SMEs, making up around 99% of all businesses in the city. These businesses play a major role in job creation and economic growth.
However, research shows:
- Around 78% of SMEs are currently looking for funding
- About 72% may delay growth plans if they cannot secure finance
- Nearly 69% are unaware of available funding options
These figures highlight a clear need for better guidance and support.
Understanding the Funding Challenges
For many business owners, the funding process can feel complicated due to:
- A wide range of finance options (loans, grants, investors)
- Complex application procedures
- Increased caution from lenders
- Rising business costs
The new hub aims to reduce confusion by acting as a single, trusted starting point for financial guidance.
Support Beyond Funding
The challenges faced by SMEs are not limited to finance. Many new businesses also struggle with:
- Tax rules and compliance requirements
- Understanding regulations from HM Revenue and Customs
- Managing operational costs
Data suggests that almost half of new businesses are unfamiliar with tax responsibilities, which can lead to penalties if not addressed.
Focus on Fair and Inclusive Access
The new strategy also aims to improve access to support for underrepresented groups, including:
- Women entrepreneurs
- Ethnic minority business owners
- Founders with disabilities
Studies show these groups often face additional barriers when trying to secure funding or grow their businesses. The new hub is expected to help reduce these gaps by offering clearer and more inclusive guidance.
Part of a Larger Business Strategy
The finance hub is part of a broader Business Support Strategy developed by:
- Greater London Authority
- London Councils
- London & Partners
The strategy focuses on improving coordination between support services and ensuring businesses receive relevant help at the right time.
New Investor Group to Strengthen Support
Alongside the hub, a new Business Support Investor Group will be created. This group will bring together funding organisations to:
- Improve collaboration
- Align investment priorities
- Support innovation areas like AI and digital technology
- Help businesses reduce carbon emissions
This coordinated approach is expected to make support more effective and easier to access.
What Leaders Are Saying
Sadiq Khan said small businesses are vital to the city’s economy and provide jobs for millions of people.
He emphasized that the new strategy will help businesses not only start but also grow successfully by giving them access to the right support at the right time.
What This Means for Businesses
For SMEs in London, this new hub could:
- Save time when searching for funding
- Increase chances of securing investment
- Provide clearer guidance on financial decisions
- Support long-term growth and stability
It also reflects a wider trend of governments and organisations investing in tools to support small businesses in a competitive economy.
Final Thoughts
The launch of Grow London Local Money marks an important step toward simplifying business finance in London. By offering clear, reliable, and accessible support, the initiative aims to help SMEs overcome common challenges and unlock new growth opportunities.
As small businesses continue to play a key role in the UK economy, improving access to finance and support services will remain a top priority.
