Research Paper

Productivity of the UK’s small and medium sized enterprises: insights from the Longitudinal Small Business Survey.

ERC Research Paper No 67

Associated Themes
  • Innovation
  • Productivity and performance

Since the 2007-08 Global Financial Crisis (GFC), the UK’s aggregate productivity growth, as measured by output per worker, has deteriorated. This deterioration is not only significant when compared to the UK’s previous experience, but also when compared to the performance of other advanced nations, such as the G7 nations, of which the UK is a member. Improvements in productivity performance are therefore a major economic challenge, especially in the context of ensuring the nation’s long-run wellbeing. Inspired by the UK’s recent productivity experience, in this study we seek to derive productivity insights from the firm-level micro data in the two waves of the UK’s Longitudinal Small Business Survey (LSBS).