Out of the shadows: Growth from non-farm rural enterprises: ERC Evidence White Paper No. 10
Published: 4 September 2014
This White Paper contains summaries of presentations given at a workshop on rural, non-farm enterprise supported by the Enterprise Research Centre and hosted at Aston Business School on 27th February 2014. The final contribution by Roger Turner, who co-ordinated the event for ERC, provides a summary of the discussions from the day and some of the issues which arose.
The Enterprise Research Centre has a dual objective: to carry out leading- edge research on small business growth and development and to ensure that where evidence does exist it is made available as widely as possible. The ‘Out of the Shadows’ event was linked to the second objective, and brought together academics and other researchers conducting research on rural business development with those formulating policy for and directly supporting rural enterprises.
The ERC is grateful to all of the contributors for their input at the ‘Out of the Shadows’ event and their permission to include material in this summary report.
The report brings together a range of the latest data and insights on the growth and performance of UK SMEs. It sets out key SME trends based on a round-up of the latest research evidence including analysis of the Business Structures Database and the Longitudinal Small Business Survey. It also reports on the key findings from the ERC’s first Micro-business Britain survey, and from the 2018 UK Local Growth Dashboard – an annual publication which presents growth metrics for start-ups and existing firms across a range of sub-national geographies, including LEP areas.
Launched at the ERC’s Annual State of Small Business Britain Conference 2018.
Published: 20 June 2018
The OECD High-Growth Firm (HGF) measure was a pragmatic solution to a practical problem. It was designed to assist in identifying the small group of firms which contributed disproportionately to job creation. This statistic could be used to inform national policy and to make comparisons across countries, since it could be readily replicated using business register data. The decade since the measure was first published has seen increasing dissatisfaction amongst the academics and policymakers seeking to make use of it. There are two important criticisms. First, it focuses attention on relatively short ‘bursts’ of growth rendering invisible the reality of growth for the majority of businesses, and second, it does not in fact capture some important members of its target group the ‘relatively small proportion of firms that contribute disproportionately to job creation’.
We present a new analysis of job creation in the UK, using data on a cohort of start-ups born in 1998 to identify three different groups of high performing firms. Of these three groups we find that HGFs as defined by the OCED do not create the most jobs, in fact they grow more slowly and have a lower survival rate than the comparators. Notably, though, most of the observed growth in all three groups takes place within the first five years after start-up.
Published: 3 April 2017
High-Growth Firms (HGFs) are a very small proportion of the UK business population yet they have a disproportionate impact on job creation.
We present data at local economic area level over time to show that there is a very distinct geography emerging for the incidence rate of HGFs since the recession.
Published: 18 February 2016
Enterprise Research Centre
Warwick Business School
University of Warwick
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Enterprise Research Centre
Aston Business School
Birmingham B4 7ET
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