In April 2026, London Development Agency and the Mayor of London jointly released the "London Business Support Strategy." This strategy aims to address a long-standing pain point for SMEs—abundant resources yet limited access—and plans to establish a world-leading business support system by 2035, ensuring every SME has the support it needs to start up, grow, and sustain its operations.
Business Confidence Rebounds, but Growth Faces Obstacles
In January 2026, Lloyds Bank's "Business Barometer" showed that London, with a business confidence level of 69%, was the most confident region in the UK, a 6 percentage point increase from the previous month. 53% of businesses expected to hire more staff in the coming year, a 3 percentage point increase from the previous month, demonstrating stronger growth confidence among SMEs. However, the rebound in business confidence does not directly translate into actual expansion. The "London Business Support Strategy" report points out that despite London's extensive business support resources, less than half of the SMEs that truly need support are still receiving it.
London has approximately one million SMEs, accounting for 99.8% of all businesses in the city, making them the backbone of the city's economy. However, facing multiple challenges, including the accelerated entry of artificial intelligence into commercial scenarios, increased requirements for net-zero transformation, and pressure on the financing environment, many companies, while willing to grow, lack effective support.
Strategic Pillar One: Creating a Clear Business Support Portal
Addressing the problem of fragmented resources is the primary goal of this strategy. Currently, London's business support resources are distributed across university startup programs, district services, and industry accelerators, making it difficult for companies to find suitable support. To address this, the strategy proposes a London-wide digital navigation system to facilitate seamless connections between businesses and suitable resources. The "Grow London Local" project will continue to serve as a crucial entry point into London's business support system. Funded by the Mayor of London and operated by London Development Agency, this project has supported over 37,000 companies since its launch in 2023 through one-on-one services and digital tools. In the future, "Grow London Local" will evolve into a unified digital platform connecting various types of support resources, including community organizations, university startup programs, and district services.
Regarding financing, the strategy proposes launching a new London-wide SME Finance Hub in 2026 to help companies understand various financing options. Data shows that 78% of businesses are seeking financing; and research by the British Business Bank indicates that 72% of SMEs will postpone their growth plans if they cannot secure funding. The newly established Business Support Investment Coordination Group will bring together various funders to coordinate resources and focus investment in key areas.
Strategic Pillar Two: Providing Diverse Support for Different Businesses
The diversity of London's SMEs necessitates a precisely tailored support program. The strategy responds to the internationalization needs of high-growth businesses – the "Grow London Global" project continues to support London's high-growth businesses in expanding into overseas markets. Currently, the project has supported over 700 companies, resulting in international business orders worth over £377 million, with every £1 of public spending contributing £20 to the London economy.
For groups such as female entrepreneurs, entrepreneurs from minority backgrounds, and entrepreneurs with disabilities, access to financing, business networks, and high-quality mentorship remains a barrier. The strategy proposes to help more entrepreneurs enter London's business support system through targeted projects and community co-creation service models.
For companies in key sectors of the Decade of Growth Plan, such as life sciences, quantum computing, artificial intelligence, and green innovation, they face longer R&D cycles, higher capital requirements, and a more complex regulatory environment. London Development Agency will collaborate with various parties to identify support gaps in these cutting-edge industries and promote more targeted resource allocation.
Strategic Pillar Three: Providing Long-Term Stability
The strategy points out that a healthy business support system requires long-term, stable, and sustainable funding mechanisms. With the UK Shared Prosperity Fund ending in 2026, London's business support system is expected to face a funding gap of approximately £22 million annually. London Development Agency will lead the establishment of a "Business Support Investment Coordination Group" for SMEs, bringing together various funders and support institutions to provide SMEs with a long-term and stable support system.
Opportunities for Chinese Companies in London
Data from London Development Agency shows that in the past six years, the agency has supported 119 Chinese companies to develop their businesses in London, covering industries such as creative technology, enterprise technology, green innovation, fintech and cybersecurity, and life sciences. London is the European city that attracts the most Chinese investment, with nearly 1,000 Chinese companies or Chinese-funded enterprises currently operating in the UK. As the London Business Support Strategy is gradually implemented, a clearer, more precise, and more sustainable business support system will provide a solid growth platform for global entrepreneurs, including Chinese companies.
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