Niche business-to-business firms among UK's most successful SMEs

Britain’s 1,000 fastest growing medium-sized businesses have collectively increased revenues by £45 billion in the past four years, according to new research from Deloitte.

The analysis found a series of common denominators between these businesses which point to three rules for growth.

Firstly, 60% are business-to-business organisations, and show real innovation by operating in niche markets.

Secondly, the majority boast a strong visionary leader at the heart of the business, who excels at hiring and retaining the right people.

Thirdly, the ability to spot export opportunities has been vital to their success, with CEOs spending weeks or even months abroad seeking out new markets.

Technology, media and telecoms companies account for 8% of the 1,000 but 16% of the top 50, whilst Healthcare & Life Sciences account for 12% of the top 50 and 5% overall.

The sectors with the largest proportion of companies are consumer business (33% of 1,000, 20% of top 50) and business & professional services (18% and 24%).

Paul Feechan, office senior partner at Deloitte in Newcastle, said: “Medium-sized businesses are especially well placed to influence UK growth as they are equipped with both the flexibility and long-term aspirations needed to push for innovative strategies.

“Our analysis demonstrates how even during the economic downturn, a core of these companies have continued to deliver exceptional growth. Understanding the success factors of these companies is critical to the UK’s continued economic revival.”