Moving on from the ‘Vital 6%’

ERC Insight Paper

Associated Themes
  • Business Growth

High-Growth Firms (HGFs) represent only a small minority – the ‘Vital 6%’ – of the UK business population yet they have a disproportionate impact on job creation and innovation. This paper confirms the headline conclusion for job creation: that is, a small number of job creating firms (mostly small firms) are responsible for a significant amount of net job creation in the UK. It also suggests the existence of a smaller group of ‘extraordinarily prolific job creating firms’ who were micro firms in 1998 and now employ almost 100,000 people.