More than a third of economic growth in 2013 was created by high growth small businesses (HGSBs), a report by Octopus Investments and the Centre for Economics and Business Research (Cebr) has found.
HGSBs are firms that have recorded annual turnover of £1-20 million and an average annual growth of more than 20% over 3 years.
The study found:
- HGSBs accounted for 36.2% of economic growth in 2013
- HGSBs created more than 250,000 jobs in 2012/13
- this is 68% of all employment growth in the UK
- the number of HGSBs increased by 18% to 30,000 between 2011 and 2013
- more than a third are located in London and the South East.
The report also made several policy recommendations to help HGSBs realise their full potential.
- allowing firms to defer their corporation tax payments to stimulate capital investment
- continuing to use tax breaks to encourage investment
- measures to combat the growing skills shortage
- a rethink of regional funding and infrastructure spending.
Graham Brough, CEO of the Cebr, said:
“The contribution of HGSBs to UK economic and employment growth is staggering – much higher than a first glance at their small size would suggest.”
Simon Rogerson, CEO of Octopus, said:
“This report shows just how vital these companies are to our economy – they are not just the lifeblood but the lifeline to our economic growth and recovery.”
Talk to the Jack Ross team about your business growth strategy today on 0161 832 4451.