Business Growth Fund launches Growth Companies Barometer
RESEARCH commissioned by the Birmingham-based Business Growth Fund (BGF) has showed that 13% of mid-sized SMEs in the Midlands have demonstrated high levels of growth.
Its new Growth Companies Barometer reveals that these companies – all with turnovers of between £2.5m and £100m – have each expanded by at least 33% in the last three years and demonstrate the underlying resilience of UK entrepreneurism.
Of the 385 high growth companies identified in the Midlands, 196 are based in the West Midlands.
The BGF Growth Companies Barometer identifies a total of 25,533 UK companies with turnover in this range, 2,925 of which are based in the Midlands. Some 1,648 of these are based in the West Midlands.
The Barometer – based on research by Experian – tracks the performance of these SMEs over a ten year time period.
Richard Bishop, head of investments for BGF, said: “This data highlights that despite challenging market conditions, there is a steady base of SMEs that continues to thrive across the UK. It demonstrates the resilience of the group and the underlying quality of entrepreneurship in the UK.
“This is good news for the overall UK economy as these companies play a significant role in job creation and innovation and are a critical part of the economic recovery.
“As growth capital investors in high growth companies, we are encouraged by the fact that there is a clear addressable market. However we are also mindful that there is room for improvement. The question for us is how to expand the number of high growth companies and help those that are already demonstrating that level of growth move further, faster.”
The £2.5bn BGF was set up by the Government and the British Bankers’ Association in May 2011 to try and fill the equity gap for firms with a turnover of between £5m and £100m. Banks taking part include HSBC, Lloyds TSB, Barclays and RBS.
