A report which is due out later this week has criticised the government’s strategy to support technology start-up companies throughout London, claiming that the plans were “potentially counter-productive”.
The report, compiled by the think-tank, Centre for London, claims that entrepreneurs within the Tech City area had been left “frustrated” by some policies that have been put in place, with some feeling that plans to encourage businesses to move into the Olympic Park area were “potentially counter-productive.”
It has also been claimed within the report that many of the businesses “knew little of their detailed nature” of the government’s policies which are intended to assist start-ups within the area; with the report adding that entrepreneurs in the area perhaps lacked the business know how to carry out the Tech City Investment Organisation’s (TCIO) ultimate aim of creating “the next Facebook.”
The report says: “Although there were many success stories, we found surprisingly little appetite for developing firms into global players.
“For more world-beating firms to emerge, more of them will need help and support from experienced managers adept at expanding businesses.”
In response to the report, the TCIO have claimed that there were “misconceptions” about their work, with a spokesperson for the TCIO saying in a statement: “We are not trying to create or even follow a formula.
“The cluster of tech, digital and creative companies was growing organically in east London and will continue to do so, regardless of government intervention.
“Our role is to provide help and support where we can to help ensure long-term, sustainable growth — whether that’s through policy initiatives from central government or through business support delivered by TCIO.”
The statement added: “We focus on helping businesses set up in the area that’s right for them – whether that’s in Shoreditch, Greenwich or Stratford.”
Accountant, Jon Stocker, specialises in offering advice, support and guidance on matters involving personal tax planning, business decision-making and business start-ups.