DESPITE continuing uncertainties on the economic impact of Brexit, London’s Deputy Mayor for Business Rajesh Agrawal is remaining focused.
In early July, the new board of the Greater London Investment Fund, tasked with delivering the Mayor’s vision for supporting SMEs, was announced. Speaking exclusively to the GG2 Power List, Agrawal explains how the fund will strengthen the capital’s SME ecosystem.
“Small businesses are the lifeblood of London’s economy – there are more than a million in London, they account for 99 per cent of all businesses and around 49 per cent of jobs. The Mayor and I are committed to doing all we can to help small and medium-sized enterprises flourish.
“The Greater London Investment Fund is a £100 million fund providing finance for businesses which are ready to grow but finding it difficult to secure investment. As well as investing in 170 companies, the fund will secure at least £103 million in private sector investment and create 3,500 new jobs in London.
“As a small business-owner myself, I know accessing the finance needed to start and grow a business can be one of the biggest challenges, especially at a time of economic uncertainty.”
Agrawal likely derives motivation and inspiration from his own experience when, having arrived in the UK from India a year earlier, he was turned down for a bank loan to fund his fledgling money transfer business in 2001.
In order to secure the startup capital, he had to, instead, request a loan for a car, which was approved immediately.
His intention is for the GLIF to be only one of a number of initiatives aimed at creating a business-friendly environment for SMEs in the capital.
“Since Sadiq took office, we’ve launched the London Growth Hub, a one-stop- shop for business support, which has helped 1,722 businesses face-to-face, given more than 450 businesses support online and welcomed 835 new members. Later this year, it will have a physical presence for the first time through a central hub and four locations across London, so we can reach even more small businesses.
“I also chair the Mayor’s promotional agency, London & Partners, which has two dedicated business support programmes.
“In addition to all this, we have the London Co-Investment fund: an £85 million public-private venture capital fund. LCIF is the second-largest co-investment fund focused on early-stage VC investments in the UK and the companies funded by LCIF have created more than 2,000 new jobs and safeguarded at least 400 more.”
Agrawal, who was appointed Deputy Mayor for Business by Sadiq Khan in June 2016, bore witness, during the mayoral campaign, to concerted attempts by Conservative contender Zac Goldsmith to smear his friend and colleague by characterising him as a “closet extremist”.
Passionate about racial equality and promoting positive race relations - earlier this year, he became co-chair of the recently re-established Labour Friends of India.
“The Labour Party’s ties with India are historic and strong - from supporting India’s right to independence in the 1940s to challenging the present-day government’s immigration policy, which works against students and highly skilled people from India.
“LFIN’s primary aim is to strengthen the relationship with India and with Indians living in the UK. Our focus will be on listening to the community and engaging with them on the most important issues.”
He is also keen to ensure the current administration is supporting entrepreneurs from BAME backgrounds.
“The Mayor believes everyone should have the opportunity to succeed regardless of their background”, he says. “A key part of this is highlighting the inequality which still exists in businesses in terms of the gender pay gap and the BAME pay gap.
“In March, the London Economic Action Partnership (LEAP) hosted City Hall’s first-ever Diverse Entrepreneurs Summit, at which emerging entrepreneurs from diverse backgrounds could share their experiences and celebrate their achievements.”
For Agrawal, who holds a BA in Business and an MA in Business Administration from Indore’s Prestige Institute of Management and Research, Brexit is a thorny issue.
Like most Londoners, he was in favour of remaining and believes city-wide devolution should follow hot on the heels of new-won national sovereignty.
“There can be no doubt that greater devolution to cities and regions is vital if their economies are to continue to grow and if small businesses are to continue to thrive. The Mayor and I are calling on the government to devolve more powers and resources to London.
“Clearly, crucial decisions are best made closer to the people who they affect – from setting the skills agenda, to delivering more affordable housing.
“We work closely with other UK cities on this and many other shared priorities. This isn’t a zero-sum game. All cities and regions should benefit from greater devolution.”
Moving to London in 2000, Agarwal honed his business acumen with a job at a small foreign exchange company when he was 24.
After founding money transfer service RationalFX in 2005, the company went on to become a multi-million-pound concern, with offices in London, Birmingham, France and Spain.
He went on to set up Xendpay in 2014 - another international money transfer service, dealing in smaller remittances.
He was one of the first prominent businessmen to publicly defend the Labour party against accusations that it was anti-business during the 2015 election campaign.
