30% Increase In UK High Growth Companies
The Entrepreneur Index, released by Barclays and the Business Growth Fund, has shown that the number of high growth businesses in the UK rose by 30% last year alone. In order to qualify as a high growth company, an organisation must have a turnover between £2.5m and £100m, it must have grown by 33% over the past three years, and it must have grown by a minimum of 10% per year for at least two consecutive years. While growth was experienced through the country and in many sectors and industries, it was the technology sector in London and the surrounding area that really saw significant increases.
The technology sector is a booming one, with more and more consumers and businesses turning to the use of technology in order to help them combat a variety of problems, make lives easier, and generally improve individuals and organisations. It is hardly surprising, then, that a growth in the number of technology companies is considered a positive sign, and a growth in the number of high growth technology companies is seen as being even more positive, although a university study by researchers at three Scottish universities suggest that technology companies are actually the least likely to experience high rates of growth.
The rise in the number of high growth companies is being touted as an improvement in the state of the UK economy. If business is booming, and profits are improving across the board, then the country must be heading steadily out of recession. This is why the Entrepreneurial Index is seen as being more important than a simple measure of how well Britain’s most rapidly developing countries are expanding.
The bi-annual report shows that Wales actually had the highest increase in the number of high growth organisations, where a 66% increase was witnessed. The Midlands and North West were next, with increases of 54% and 44% respectively. London saw just a 17% increase. More than a quarter of job growth in London came from the burgeoning technology sector, and the number of new tech companies in the capital grew by 76% between 2009 and 2012.