Broadband vouchers offer £3bn boost to London SMEs
The government’s now-closed Connection Voucher scheme could offer SMEs in London a 3 billion boost. According to a report carried out for the GLA by Adroit Economics and Point Topic, the broadband voucher scheme will enable smaller businesses to boost sales by 2 billion and achieve cost savings of almost 1 billion. Furthermore, it states that faster connectivity will lead to the creation of more than 32,000 new jobs across the capital.
Dr Steve Sheppard, Managing Director of Adroit Economics, believes the figures show how faster broadband can be “transformational” for businesses and the economy.
“Upgrading to faster broadband brings significant financial benefits to SMEs and results in substantial economic uplift,” he commented.
“The benefits to SMEs and resulting financial and economic impacts – locally, regionally and nationally – of the use of faster broadband are high, representing the equivalent of a third of current turnover.”
Dr Shepherd said this is much higher than current global broadband literature suggests. Oliver Johnson, Chief Executive of Point Topic, added that the survey changes “our understanding of the benefits of broadband”.
“We finally have some well researched, concrete and frankly very impressive inputs for business models around the country,” he observed. Mr Johnson added broadband has cemented its place as a “vital instrument in future growth”.