London’s small and medium-sized enterprises (SMEs) are set to benefit from a new finance navigation hub aimed at simplifying access to funding and investment as part of the city’s wider Business Support Strategy. The Grow London Local Money hub, launching in April and delivered by London & Partners, will provide businesses with a clear entry point to information and guidance on finance, helping entrepreneurs start, grow, and thrive. The hub is part of the Mayor of London-funded Grow London Local programme, which already supports thousands of micro and small businesses across the capital.
Despite being critical to London’s economy, access to finance remains a major growth barrier for SMEs. With nearly 981,000 SMEs representing 99.8% of businesses in the city, data shows that 78% of businesses are seeking funding, while 72% would delay growth plans if financing cannot be secured. Complex application processes, diverse finance options, and rising operational costs make navigating the funding landscape particularly challenging. Many businesses also lack awareness of available options, with 69% of SMEs reporting limited knowledge of financing opportunities.
Challenges are not evenly distributed, as women, minority ethnic entrepreneurs, and founders with disabilities face structural barriers in accessing finance. For example, 49% of Asian and other ethnic minority entrepreneurs report difficulties securing funding as a reason for pausing their business ideas. These disparities highlight the importance of targeted support and coordinated resources to ensure equitable access to finance across London’s business community.
The Grow London Local Money hub is part of the broader Business Support Strategy developed by London & Partners and the Greater London Authority with input from London Councils. The strategy brings together public and private partners to streamline business support, reduce duplication, and ensure resources match the needs of businesses at different stages of growth. A new Business Support Investor Group will coordinate funders, prioritizing underrepresented entrepreneurs, sustainability initiatives, and emerging technology adoption, including AI and digital tools.
Beyond finance, the strategy addresses broader business needs such as cybersecurity, resilience, talent development, and carbon reduction. Mayor Sadiq Khan emphasized the importance of supporting SMEs as the backbone of London’s economy, noting that the strategy aims to help businesses not only start but also grow and thrive. Leaders from London & Partners, borough councils, HSBC UK, and the London Chamber of Commerce and Industry expressed support for the initiative, highlighting its role in improving coordination, access to finance, and long-term economic resilience for the city’s SMEs.
