We were asked to produced an analysis of the economic and social benefits derived from the creation of Containerville, a business workspace built from disused freight containers and based in a derelict site in east London.
We aggregated their records of the number of business that have set up, the number of people employed and put together a dataset on wage income, supply chain value and tax paid. We found that almost 350 jobs have been created by the companies at Containerville since it started in 2015, which have in turn helped to sustain other jobs in the area.
Using input-output tables from the Office for National Statistics, that translated into total annual earnings of £10.35m for a workforce that is made up predominantly of local residents. We estimate gross annual turnover of £78.8m coming into Containerville’s resident companies. Using an ONS multiplier of 1.54, we estimate that that activity brings a further £42.6m in indirect and induced benefit.
Containerville firms’ procurement budget is estimated at £35.2 m or £54.2m after applying the multiplier. Containerville also generates tax revenues. Income tax from workers is estimated at £2.07m a year while VAT receipts from businesses’ and employees spending amounts to another £2.07m.
There were also social benefits including supporting local shops and bringing life and spice to a formerly derelict land dominated by disused gasholders. Helping small businesses thrive is essential for creating jobs that are vital for people’s wellbeing and the establishment of strong and stable communities. It is easy to forget that giant corporations such as Amazon and Apple were themselves built on the success of small businesses using their platforms to sell their wares.
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