Growth Drivers Evidence Review

What determines growth in SMEs? What determines their productivity? This project focussed on developing a series of Evidence Reviews related to these two questions. In each case we consider a segmentation of the SME population and consider the evidence relevant to each specific group of firms.

What determines growth in SMEs?

Here we develop a four-way segmentation of the SME population and consider the drivers of growth for each group. We base our segmentation on the demographic characteristics (size, age) and growth ambition of firms each group (see Figure 1).

Alongside a conceptual and summary paper we also provide a demographic analysis of the contribution of SMEs of different types to job growth.

Figure 1 : Overview of firm categories and key contrasts

Growth Drivers Evidence Review

What determines productivity in SMEs?

There is very limited evidence on the drivers of productivity among Lone Rangers or the self-employed. There is also little specific evidence which distinguishes between productivity drivers in established which are growing (Leading Lights) or not growing (Steady Eddies). Here we therefore consider the evidence on the drivers of productivity in young firms and more established companies. We also provide estimates of the drivers of productivity changed based on a new analysis of the Business Structure Database.


CompletionJune 2016
KeywordsSME, growth, productivity, ambition, age, evidence
ThemeERC Projects 2016