One in 10 small firms has high growth potential
But NESTA survey also reveals many are being held back by the same old problems
A new study from NESTA has revealed that one in 10 British small businesses has the potential to achieve high growth status.
The report, based on responses from 4,877 smaller firms, found that 13% of Britain’s new and growing companies display all the key characteristics of high growth enterprises – including ambition, innovation and a strong ownership structure.
However, the responses also illustrated that many firms with the tools for high growth are being held back by a number of common, long-standing problems.
Of those companies identified as having the potential for high growth, 16% cited access to finance as their main obstacle. A further 14% cited inter-sector competition as their biggest headache, while 11% pointed to red tape.
Geoff Mulgan, chief executive of NESTA, said: “We know a small number of high-growth businesses are vital to economic growth. Now we can begin to see the barriers that fast-growing firms, and firms with the potential to grow fast, face in today’s economy.
“Creating the right conditions for these businesses could make all the difference to our chances of creating plenty of new jobs in the years ahead.”