London is a bustling city in the United Kingdom and it also has the title of being the capital city. Standing on the Thames it has been a major settlement for at least two millennia. London is also one of the most important cities in the world and is also quite desirable. It has four world heritage sites and has quite a bit of history on its side. There are major business districts with office space up to 27 million square meters as noted in 2001. This shows how many businesses operate here in offices. Then there are shops and establishments that provide food and lodging services that add to the total business. In 2015, there were 5.5 million jobs in London. The job growth in areas such as technical activities, real estate and scientific activities has been the highest over the years. Here are five businesses that are a big part of London's economy
The banking and finance sector has literally been the backbone of the British economy. Finance, banking and insurance services provide critical solutions for risk mitigation, credit, savings or payment options. British financial companies are involved in the economic cycle and money flows in the country and the world. The UK also has quite a large number of finance and insurance tech startups. Although companies face stiff competition from foreign players in finance and banking, they are still standing strong and going on. Despite new challenges, these British companies are financial powerhouses. They employ thousands of people and flush money into the economy. Some of them are – Lloyds, Barclays, Royal Bank of Scotland, Standard Chartered, Hargreaves and Prudential to name a few. Some companies like the Royal Bank of Scotland have the Queen's backing and have branches everywhere. Employment plus adding capital into the economy, has made these companies big contributors. If you walk in London, you will surely see some of these companies' branches on every street you visit.
Retail has always been an important part of London and records 40% of all money spent in London. Even though the manufacturing business is showing a decline, the retail sector is going strong. Sainsbury's, Tesco, Marks&Spencer are some of the big names in the retail sector. From fashion to grocery, these retail outlets have a huge demand. They employ upwards of 400,000 people and hence are big contributors to the economy. Chemists, bookshops, food shops, hardware and furniture shops are also a part of this sector. Then there are independent retailers for designer clothes and jewellery too. These are relatively smaller businesses and don't have a chain, but do have a loyal base of customers. These shops fulfil certain necessities and requirements and hence are in demand. For example, Hatton Garden is a lively market with so much to offer. People often search for Hatton Gardens Engagement Rings as it is a diamond hub and you can find some great deals here.
London is one of the largest cities in the world and is home to a large real estate market. Property has to be maintained, while being bought, rented or sold. It is one of the key industries to be a part of the London economy. Because London is today a service economy, a lot of properties have been converted into office spaces and homes. This industry caters to two major areas – residential and commercial. Commercial property is any space that is used to produce revenue. For example, a retail store occupying a space is considered as commercial space. It isn't for personal use and no one actually resides there. Residential property is for personal use and people live there and use the property as a home. The area has been commercial for a while now and because employment is high in London, the demand for office space or commercial space is also high. Plus, more and more move to the city for employment so there is a demand for living quarters too. Because of this cycle, real estate is always in demand and in turn, it offers employment to thousands.
Information and Technology
Being one of the technologically advanced cities in the world, London's tech space is quite advanced. Its financial industry is heavily dependent on IT for electronic financial transactions that take place everyday. Because of the same reason, London has made investments in the communications sector as well. The technology sector does support other sectors, but it is quite a major player on its own as well. The Tech Hub has well-known companies such as Cisco, Google and Facebook too. Smaller companies that delve in web or app development, ISP providers and tech hardware businesses can also be found in large numbers. These businesses too contribute a good chunk to the economy.
London is one of the most popular tourist places in the world. There are more than 30 million visitors that the city attracts every year. Tourism revenues make up around ten percent of London's gross value added income. Tourism has spurred multiple business ventures in the field of food, accommodation, shopping, landmark tours and 13 percent of the working population of London is employed by this sector. The vast number of historic monuments and nightlife are major attractions and call out to people from all over the world. The Buckingham Palace and St. James' Park is one of the most popular travel places in London, with the palace having 15 million visitors a year! The tourism sector is projected to grow more and this will definitely bring more employment and income for London.