The number of people employed by companies listed on London’s junior Aim market has increased 76 per cent over the last five years, to reach almost 390,000 people.
Revenues of Aim-listed businesses have also grown significantly, with an 86 per cent increase over five years, bringing total revenues to £58bn, according to accountancy firm BDO.
BDO’s managing partner Paul Eagland said. “Despite unusual economic conditions, well-run companies are succeeding on Aim.
“Almost 25 years since it was established, the market has grown and matured and is creating long-term gains for businesses and investors alike.
“Brexit uncertainty is having an impact on new listings but AIM has survived many downturns. Listed businesses, and importantly investors, seem prepared to weather the storm and take a slightly longer-term view than they perhaps would have 10 or 15 years ago.”
Job growth for Aim-listed businesses over five years hit 77 per cent in London, 97 per cent in the east midlands and 111 per cent in Yorkshire.
BDO said Aim-listed businesses are a key driving force behind the UK economy, alongside mid-sized organisation with turnover of between £10m and £300m and private equity backed businesses.
Although these businesses account for only 0.5 per cent of UK companies (29,000) they are responsible for over one third of UK revenue (£1.3tn) and almost one-in-three private sector jobs, BDO said.
Eagland said: “Businesses that fall into the ‘economic engine’ are often overlooked and undervalued but their contributions to the UK economy shouldn’t be underestimated.”