Hackney in east London topped the rankings as the most entrepreneurial borough based on the volume of Start Up Loans drawn.
The data has been released by Start Up Loans, part of the British Business Bank.
It shows that more than £250 million has been lent to over 25,000 entrepreneurs across the city since the scheme began in 2012.
Louise McCoy, managing director of Start Up Loans products at the British Business Bank, said: “Entrepreneurship is in London’s DNA.
“The city’s diversity, creativity and resilience continue to drive innovation and growth.
“At Start Up Loans, we’re proud to support so many ambitious founders who are building the next generation of businesses that make London, and the UK, such a dynamic place to live and work.
“Wherever people have the ambition to start a business, we want to be there to help them turn that dream into a reality with finance and post-loan support such as mentoring.”
So far in 2025, 1,500 loans valued at £20m have been taken, demonstrating the city’s enduring entrepreneurial drive.
The 10 most entrepreneurial boroughs, based on the total number of loans since 2012, are: Hackney, Lambeth, Lewisham, Southwark, Croydon, Barnet, Newham, Haringey, Wandsworth, and Enfield.
Hackney took the top spot, with 1,309 loans totalling £11.4m, followed closely by Lambeth with 1,289 loans (£11.8m) and Lewisham with 1,289 loans (£11.1m).
In comparison, the City of London ranked as the least entrepreneurial, with just 19 loans totalling £212,400.
A north-south divide is evident in the figures, with Hackney, Barnet, Newham, Haringey and Enfield leading in the north.
Meanwhile, Lambeth, Lewisham, Southwark, Croydon and Wandsworth dominate the south.
The Start Up Loans scheme aims to widen access to funding for underrepresented and underserved groups.
Of the 25,000 loans issued in London, 42 per cent went to female founders, while 44 per cent were taken out by individuals from Black, Asian, and other ethnic minority backgrounds (excluding white minorities).
The data also shows that 13 per cent of loans went to Gen Z founders, and 10 per cent to entrepreneurs over the age of 50.
Almost a quarter (23 per cent) of recipients in London were unemployed at the time of application.
One of those who benefited from the programme is Yandis Ying, founder of Dot Dot Tea.
She used the funding to develop her brand, packaging, and secure natural ingredients.
Ms Ying said: “Dot Dot Tea is an ode to our native Hong Kong, brewed locally with natural, premium ingredients at our bubble tea brewery in Walthamstow.
“The Start Up Loan with support from the Business Enterprise Fund was fundamental to Dot Dot Tea’s success.”
Dot Dot Tea now supplies major retailers including Harvey Nichols, Selfridges, and Ocado.
Nationally, the Start Up Loans programme has delivered more than 125,000 loans worth £1.25bn.
The Government plans to expand the scheme further, targeting 69,000 additional loans over the next spending period.
The average loan size is expected to rise from £12,000 to £15,000.
The British Business Bank estimates that the expanded programme could generate £1.3bn in economic output.
It could also deliver £3.1bn in turnover and create 12,600 new jobs.
