High growth small businesses created two in three new jobs and generated 36 per cent of UK economic growth last year

 
Chris Papadopoullos
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Smaller companies generated 36 per cent of UK economic growth last year
Fast-growing smaller companies are fuelling a large part of economic growth despite representing just one per cent of UK firms.

Despite just making up 3.4 per cent of total UK output, smaller companies generated 36 per cent of UK economic growth last year, according to a report released today by the Centre for Economics and Business Research and commissioned by Octopus Investments.

These companies – called “high growth small businesses” (HGSBs) – have an annual turnover of between £1m and £20m with average annual growth greater than 20 per cent over a three-year period.

HGSBs created every two in three new jobs between 2012 and 2013. The UK was the fastest growing G7 economy in the year to June while unemployment fell rapidly.

“I don’t think enough people realise just how important this segment of our small business community is for jobs and growth in our country,” said Labour MP Chuka Umunna.

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