UK Government Tempts Startups to Stay Close to Home

The role played by entrepreneurship in bolstering the UK economy has been the subject of much interest and debate over the course of recent months. A number of new initiatives designed to promote and encourage entrepreneurial activity have been unveiled, including tax breaks, visas for entrepreneurs and the re-development of London's Olympic site into a technology city to rival the Valley.

East London is already home to the "Silicon Roundabout", an area boasting a high concentration of start-up and maturing technology companies. Following the announcement of the UK government's plans for the Olympic site post-2012, this former industrial zone is becoming increasingly prominent, and is rebranding itself as the obvious choice for young, edgy and forward-thinking companies looking for a reasonably-priced and trendy alternative to the West End. With the Tech City project on the Olympic site even further east, supported by big players like Google, Microsoft and IBM, London is well on its way to becoming a viable alternative to Silicon Valley — to the extent that European tech entrepreneurs are increasingly deciding to stay put, rather than head Stateside as they have done traditionally.

The geographical incentives outlined above are representative of the government's belief that entrepreneurs are at the forefront of sustainable economic development. Put simply, new companies create jobs; in the US, where Obama's Startup America initiative is enthusiastically promoting entrepreneurship and innovation as the key to growth and job creation, new businesses in their first year contribute an average of 3 million jobs a year. Here in the UK, a recent report, quoted by David Cameron, referred to the "vital 6 per cent" — fast growth businesses driving over 50% of the jobs in our economy. An increasingly sophisticated network of resources is available to fledgling entrepreneurs, providing advice and support to those aspiring to become the next Facebook or Twitter. A number of networking and idea-sharing organisations exist to help new companies flourish, and low startup costs and accessible property contribute towards a climate that is increasingly favourable to innovation.

Taking its cue from StartUp America, the StartUp Britain scheme was launched at the end of March. Unlike its US namesake, it is not a government initiative, but rather a response from the private sector to the government's call for an "enterprise-led" recovery from the recession that has left the UK economy weakened. StartUp Britain is, essentially, a support network for entrepreneurs led by entrepreneurs, pledging to provide access to services and benefits including advertising and marketing, events, office space, broadband, financing and mentoring support to the 270,000 companies that start up in the UK each year.

SVB is committed to promoting entrepreneurship globally, and are proud to be taking an active role in supporting both the StartUp America and StartUp Britain initiatives. In the US, we are collaborating with other prominent organisations in the Valley on the Irish Technology Leadership Group's Silicon Valley Mentorship Programme, a scheme conceived to offer promising Irish graduates the chance to receive mentoring and invaluable hands-on experience in US technology corporations or VC firms. SVB is a passionate supporter of entrepreneurs, and has long believed in the value of providing the founders of startups with the tools that will allow them to grow and thrive in an admittedly challenging sector. Our Entrepreneur Services Group was set up to support young companies throughout their early years by introducing them to our network of investors, business partners and other entrepreneurs, and sharing the experience that has been garnered over the course of several decades working with fledgling businesses. We are keen to engage with young companies on both sides of the Atlantic, and are hopeful that, in participating in StartUp Britain's mentorship programme, we will have the opportunity to share the lessons that we have learnt through our involvement with prestigious global tech companies like Twitter, Wonga and Icera.