NESTA puts high-growth UK businesses on the map

4/9/2011

New comprehensive analysis from the National Endowment for Science, Technology and the Arts (NESTA) into the UK's high-growth* firms is released today.

This new data, compiled with researchers at Aston University using data from the ONS Business Structure Database, maps the geography of high growth firms and details the number of high-growth firms, where they are based in the UK and in which sectors they are found.

This is the latest in NESTA's series of work analysing high-growth businesses. It shows the importance of these high-growth businesses to future economic growth, demonstrating that although they make up just 7% of all UK firms, they generate around half of all new jobs and are particularly resilient during a recession.  Today's research further explores the nature of these businesses and shows that they can be found across all UK cities and across all sectors.

Geoff Mulgan, Chief Executive of NESTA, says: 'Creating the right conditions for high growth firms to flourish is vital to the UK's future - and our ability to create jobs.   But many of them face serious barriers - on finance, recruitment and planning - that hold them back.  Every part of the country needs to understand more about these businesses, what makes them tick and what they need in order to flourish. Today's research is an important step in that direction.'

As part of this work NESTA is publishing a database which gives a full picture of the UK's high growth firms as well as a series of 'infographics' which graphically illustrate the characteristics and regional breakdown of these vital businesses. To view the inforgraphics and to download the dataset, which includes a breakdown by city-level, visit www.nesta.org.uk

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*The OECD definition is those companies with 10 or more employees which experience employment growth averaging 20% or more per year over a three year period. NESTA's 2009 research summary The Vital 6 Per Cent analysed the records of all UK companies between 2002 and 2008 and showed that the 11,000 businesses that generated 20 per cent or higher average annual employment growth over a three-year period were responsible for creating 54 per cent of new jobs.

For further information please contact Jan Singleton on 020 7438 2606/ 07748 708 772/ jan.singleton@nesta.org.uk

About NESTA:

NESTA is the UK's foremost independent expert on how innovation can solve some of the country's major economic and social challenges. Its work is enabled by an endowment, funded by the National Lottery, and it operates at no cost to the taxpayer. 

NESTA is a world leader in its field and carries out its work through a blend of experimental programmes, analytical research and investment in early-stage companies. www.nesta.org.uk

About the data:

Detailed business registry information for all UK business up to the year 2010 was extracted from the Office for National Statistics' Business Structure Database. This work was undertaken on behalf of NESTA by a research team from Aston University (Michael Anyadike-Danes, Karen Bonner and Mark Hart).

The database includes all businesses in all parts of the economy, missing some very small businesses operating without VAT or PAYE schemes (self employed and those with low turnover and without employees) and some non-profit organisations, representing nearly 99 per cent of UK economic activity (or over 2million businesses).  For further information on the source of the data, see http://www.statistics.gov.uk/idbr/idbr.asp