Member Article

The view from Europe: Continental entrepreneurs cool on London following Brexit

New figures released by growth acceleration programme NUMA Barcelona has found that the growing cost of Brexit is causing continental entrepreneurs to think twice about setting up businesses in the capital.

According to the Spanish initiative, 42% of the 142 entrepreneurs who were surveyed said they were not planning to base their startups in London, and that only 18% believed that the benefits of setting up shop in the capital outweighed any potential Brexit drawbacks.

Citing concerns about immigration and the availability of funding, over 40% said that the fallout from the Brexit vote had put them off basing their startups in London, providing a potential boon to rival hubs such as Paris, Barcelona and Berlin.

However, 41% of those surveyed still thought that it was too early to say what the impact would be for London once the UK had left the European Union, suggesting that some were still keeping open minded about any potential fall-out.

While taken from a relatively small sample, the figures provide interesting insight into the changing perception of London among Europe’s founders, despite the best efforts of the Mayor’s office to promote the capital as still being open for business.

Pep Gomez, NUMA Barcelona’s Chairman and Managing Director, commented: “Companies continue to see the benefits of being located in a financial hub with powerful connections and home to venture capitalists, but this won’t be enough to make all parts of a business stay.

“Brexit has put overseas firms off UK commercial properties so companies are likely to want to move their developer teams to other European cities for a better quality of life and cheaper labour costs.

“However, C-level executive teams are likely to remain in London to make the most of the still very appealing networking opportunities, management schemes and tax advantages.”