Nesta Working Paper 11/01
Issued: November 2011
JEL Classification: L0, D21, L2, L10
Keywords: High growth firms, barriers to growth, Gazelles

Abstract

A small proportion of high growth firms create the majority of all new jobs. For policymakers, it is important to know (1) what obstacles are faced by high growth firms and (2) what obstacles are faced by firms with the potential to achieve high growth, but which are yet to achieve this. This paper investigates these issues using the UK Small Business Survey. It highlights six areas where high growth firms experience problems: obtaining finance, cash flow, recruiting staff, skill shortages, managerial skills and the availability and cost of premises. Potential high growth firms argue that cash flow, recruiting, the availability and cost of premises and managerial skills are important.

Author

Neil Lee

The Nesta Working Paper Series is intended to make available early results of research undertaken or supported by Nesta and its partners in order to elicit comments and suggestions for revisions and to encourage discussion and further debate prior to publication (ISSN 2050-9820). The views expressed in this working paper are those of the author(s) and do not necessarily represent those of Nesta.