A member of the UK200Group of independent accountancy and law firms has commented on a new study from Octopus Investments.
According to the Octopus High Growth Small Business Report, last year one in every three new jobs in the UK and almost 20% of economic growth was created by high growth small businesses.
Representing less than 1% of UK firms and less than 3% of the total economy, the UK’s 22,470 HGSBs created an average of 4,500 new jobs each week during 2014.
The report also calls on the government to target a 25% increase in the number of HGSBs across every region in the UK during the next five years in order to create approximately 170,000 new jobs and around £22.5bn in additional turnover.
Duncan Montgomery, tax partner at UK200Group member firm Whittingham Riddell, said: “These figures demonstrate just how crucial SMEs are in generating growth for the economy. We could have forecast construction being the most prolific, given what the sector has been through, and growth there was inevitable as the economy moves forward.
“In many sectors, sales and admin support is crucial to keeping the growth moving. Support from the government is there in reduced corporation tax, R&D allowances and 100% capital allowances, plus UKTI and other advisory services, but the biggest factor in growth is normally the engagement level of the owners and top team. That drives behaviour throughout a business, and growth.”