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Manchester found to have the most high-growth SMEs outside London
Posted by Richard Bell on 21 Oct 2015
A small group of companies in Manchester is making a big contribution to economic growth in the North West, according to a new report.
The latest Octopus High Growth Small Business Report, compiled by the Centre for Economics and Business Research on behalf of London-based investment firm Octopus Investments, found that the Manchester Central constituency has the largest number of high-growth small businesses, or HGSBs, outside the capital.
Furthermore, aside from London and the South East, the North West topped the regional rankings for HGSBs, with 1,900 in the region employing one in 57 people and adding 28% of gross value added growth in the region.
According to the report, the latest statistics show that around 57k people in the North West work for a HGSB.
The report’s authors claim that if the number of HGSBs in the North West had risen by 25% in 2014, more than 14k jobs and £606m would have been added to the region’s economy.
Manchester Central MP Lucy Powell said of the findings: “It is a testament to the people of Manchester that the city is seeing such a high number of small businesses grow so quickly.
“I am delighted and proud to represent such a great city and urge the government to do more to help these small businesses grow more in the future, so that the environment for growth matches the ambitions of the people of Manchester.“
The Octopus High Growth Small Business Report 2015 defines HGSBs as firms with a turnover of £1m to £20m that have shown an annual average growth in turnover of more than 20% over three years.
The policy recommendations in the report, which was launched at an event on Tuesday evening (October 20) at the House of Commons, include expanding the roles of Local Enterprise Partnerships to support HGSBs, improving access to funding, tackling the skills gap and accelerating the spread of strong mobile and broadband connections.