Apropos my earlier posting, here is a story from Saturday’s Telegraph on how fast-growth entrepreneurial companies could help drive UK recovery:
In a report out today from the Ernst & Young ITEM Club – Entrepreneurs: powering job creation in the UK – fast-growth companies are shown to have created 1.3m jobs in the last economic upturn between 2005 and 2008.
Studies by Nesta have already shown that while start-ups and micro enterprises are vital, representing 88pc of all UK enterprises, they contributed less than 20pc of the additional employment.
By far the biggest contributors to UK employment were fast-growth mid-size firms with more than 250 employees.
Academic studies, until recently, have concluded that start-up enterprises are the key promoters of the radical innovation that can underpin fast growth.
The Office of National Statistics’ new Business Structure Database supports the long-standing evidence that entrepreneurship is crucial to the promotion of new technology, investment, job creation and production growth.
All the evidence above shows that it is wrong to assume that the entrepreneurship and innovation that characterises a fast-growth company only exists at the smaller end of the market.
ITEM says that the most economically significant high-growth companies have typically been in business for several years and reached an intermediate size range from 250 to over 1,000 employees.