UK broadband and mobile have been on a roll in recent times, but research from VodafoneThree has highlighted persistent issues with connectivity and calculated that improved mobile connectivity could deliver a £6.6bn annual boost to the UK economy a through the creation of 49,000 new businesses by 2036.
The study, by consultancy firm WPI Strategy, estimated the potential gross value added (GVA) associated with entrepreneurial activity and business creation currently being held back as a result of poor mobile connectivity. A nationally representative survey of 2,000 UK residents aged over 18 was conducted to measure entrepreneurial intention linked to mobile connectivity constraints. It included existing and aspiring business owners.
Among a range of survey questions, responses to the following statement were used as a core analytical input: “If I had better mobile connectivity in my area, I would have been more likely to start a business.” Respondents who selected “strongly agree” with the above statement were used to derive regionally disaggregated estimates of latent entrepreneurial intent associated with mobile connectivity limitations.
VodafoneThree said that reliable mobile connectivity is now critical to day-to-day business operations, with six in 10 entrepreneurs saying they rely on connectivity to run their business. Almost nine in 10 founders said they have been affected by connectivity problems at some point, and many experiencing outages that disrupt trading.
Furthermore, for businesses, dependable mobile connectivity has become fundamental to everyday operations. From taking payments on the go and communicating with customers, to managing online marketing, social media and e-commerce, mobile networks underpin how modern businesses function. Entrepreneurs consistently highlight that when connectivity falters, work slows, customers are impacted and revenue is put at risk.
The survey found that poor mobile signal is a major obstacle to entrepreneurship throughout the UK. Almost two-thirds (62%) of potential founders reported that unreliable connectivity has stopped them from launching a business locally. Furthermore, a third (33%) believed improved signal would make their area more appealing for starting a business, and 26% said it would directly increase their willingness to establish a company in their local area.
Commenting on the survey, VodafoneThree business director Nick Gliddon noted that the standout finding was that when connectivity improves, entrepreneurship follows. “Founders move fast, and the infrastructure around them needs to keep up,” he said. “Strong and reliable connectivity helps startups win customers, build reputation and grow steadily. We’re focused on building the network that UK enterprise can count on. As improved mobile connectivity continues to reshape the business environment, we remain committed to supporting SMEs by investing in digital skills and literacy.
The survey also pointed to towards what it called “transformative” regional potential, with economic growth through enhanced connectivity. The North-West of England stood out as one of the biggest winners – with improved coverage expected to support the establishment of approximately 5,974 new businesses, contributing an estimated £807m to the annual economy in 10 years’ time. Similarly, the South-East could see the emergence of around 5,808 new businesses, resulting in an economic uplift of £784m.
The research also shows that connectivity challenges can be found in bigger cities. Even in London, would-be entrepreneurs strongly believe poor mobile signal is holding them back. Improved connectivity in the capital could enable the creation of 14,431 new businesses, contributing £1.9bn to the economy, with 22% of prospective founders saying they would start a business if mobile signal was better.
Westminster, London’s political heartland, represented the single biggest opportunity, with other boroughs also set to see significant gains, including Camden (£136m), Hackney (£93m), Barnet (£92m), the City of London (£87m) and Islington (£84m). Elsewhere, improved connectivity could unlock 1,008 new firms in Wales, worth £136m to the annual national economy in 10 years, while Scotland could see 2,152 new businesses launched, contributing £291m over the same period.
Places such as Newcastle-under-Lyme, situated in Staffordshire in the West Midlands, also stood to gain significantly, with the research suggesting that enhanced connectivity could result in a £9m boost to the local economy.
“Mobile connectivity is essential for helping businesses to work efficiently and stay competitive, be it contacting customers, organising stock, or speaking to staff, clients and stakeholders,” said Tina McKenzie, policy chair at the Federation of Small Businesses.
“If we want more people to take the leap into starting their own business, they need reliable connectivity to make it possible. Currently, the 5G roll-out has been uneven, particularly in rural areas and connectivity no-zones, including city centres. This limits business efficiency and stunts growth opportunities. We need the government to work with mobile operators to expand network coverage, making sure 5G is available to businesses across the UK.”
