A tiny group of UK small firms are making a significant contribution to UK economic growth and even reviving regions, according to a new report.
The Octopus High Growth Small Business Report 2015, commissioned by Octopus Investments and produced by the Centre for Economics and Business Research (CEBR), has highlighted the value of these fast-growing SMEs to the UK economy.
It has found that one in every three new jobs in the UK and almost 20% of economic growth was created by high growth small businesses (HGSBs) last year.
Representing less than 1% of UK businesses and less than 3% of the total UK economy, these 22,470 companies created on average 4,500 news jobs each week in 2014 - three times more than the entire FTSE 100.
These firms are located across the UK, with nearly three in every five of them based outside London and the South East. The research shows that more than 70% of HGSB turnover comes from outside London.
The report makes the case for increasing the number of HGSBs by 25% in every region in the next five years; it says HGSBs can play a significant role in reviving flagging regional economies. In particular, Northern Ireland, Wales and the North East are most reliant on HGSBs for their economic growth.
Simon Rogerson, ceo of Octopus, said: "High growth small businesses are a national opportunity - they can be found in every region of the UK and across every sector but are all too easily lost within the broader SME universe."
He added: "These are the companies that are making a real difference to people's lives through their innovation and tremendous contribution to our economy. We need to do everything we can to enable them to thrive. There is a real need for more of these extraordinary businesses to exist across the country to bring prosperity and growth to every region."