August 2, 2016 | Oliver Johnson
Point Topic has created an infographic that illustrates the highlights of the GLA’s superfast broadband voucher scheme.
Download it here.
Watch the video of CEO Oliver Johnson discussing the impact of bandwidth on business in 2016 and sharing some of the most interesting findings of the business surveys conducted in partnership with Adroit Economics, The Fifth Sector and Manchester University:
The use of faster broadband by London’s small and medium-sized enterprises (SMEs) taking up the Government’s Broadband Connection Voucher Scheme will enable them to generate GBP 2bn additional sales within the first two years, 32,000 new jobs and to achieve just under GBP 1bn cost savings, making London’s voucher firms considerably more competitive and profitable.
The combined sales increases and cost savings represent GBP 1.7bn GVA(1), just over a 20% (a one fifth) increase in GVA of London’s voucher firms (see notes to the editor explaining GVA).
The net benefits of this to the Greater London economy(2) are estimated to be an additional GBP 430m additional GVA and an additional 8,118 jobs.
This represents a very positive economic return on investment of public funds into the scheme of 23.7:1 (GBP 23.67 GVA per GBP 1 invested in the scheme) (3) and a cost-per-job of GBP 2,226(4)
These are the findings based on analysis of a comprehensive online survey of voucher scheme recipients carried out for the GLA by Adroit Economics with support from Point Topic, The Fifth Sector and the University of Manchester.
“Faster broadband is transformational for businesses and the economy,” says Dr Steve Sheppard, Managing Director of Adroit Economics, a specialist in economic development and regeneration. “Upgrading to faster broadband brings significant financial benefits to SMEs and results in substantial economic uplift. The findings of this survey, its analysis and assessment, provide strong evidence that 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. This is far higher than current global broadband literature suggests.”
Approximately 480 firms took part in the survey and of the respondents that answered, 50% said that faster broadband had a transformational impact on their business.
Benefits to SMEs include cost savings, staff time savings, increased sales, improved staff skills and proficiency, and increased productivity of home and mobile workers. The survey found that:
Iain Bennett, Managing Director of The Fifth Sector, a digital transformation agency, says, “Small businesses that adopt faster broadband see immediate changes in their way of working as people in the organisation seize on the opportunity to improve their skills and ‘work smarter’. The technology unleashes latent productivity, which provides a lasting and growing benefit to the individuals and firms concerned – a really important finding at a time when businesses and policy makers alike are striving to find new ways to boost economic performance, increase jobs and improve skills.”
Oliver Johnson, CEO at Point Topic, adds, “The survey and associated data change 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. Long to medium term it appears that there is at least an order of magnitude more to be gained than many projections had forecast and even short term there is a much stronger case for more bandwidth in business. As far as policy goes again broadband moves up the ranks and cements its place as a vital instrument in future growth.”
The full report entitled Economic Impact of London’s superfast broadband connection voucher scheme is available from Point Topic for GBP 495. An executive summary is available free of charge. Email Point Topic on firstname.lastname@example.org or tel: 44 (0)20 3301 3303.
NOTES FOR EDITORS
Simona Pranulyte 020 3301 3303 email@example.com
ABOUT THE AUTHORS
Adroit Economics Ltd, established in 2005, has developed a number of models and tools to help government, local and regional authorities create policy and programmes to address broadband gaps, including provision of faster broadband.
Point Topic Ltd has gathered, analysed and published broadband information data sets since 1998, used across industry and beyond as the foundation for reporting, planning and strategy. It provides insight, context, sourcing and transparent reporting so customers can follow data inputs through to information outputs with confidence.
The Fifth Sector offers businesses, universities, cultural and public sector organisations expert advice and help on strategic business cases, investor development, project management, research and feasibility studies focused on the Creative Economy, the impact of digitisation and developing human capital.