Yorkshire’s medium sized businesses help drive recovery – Deloitte
BRITAIN’S 1,000 fastest growing medium-sized businesses have collectively increased revenues by £45bn in the past four years, 76 of which are based in Yorkshire and the Humber, according to new research from Deloitte.
The research, Businesses Leading Britain, was published today to coincide with the launch of the Government’s latest GREAT Britain campaign. It found that the top 50 of this group grew at a rate 73 times faster than the national average. These companies, all generating between £30m and £1bn in revenue, increased employment in this period by 25%, with the top 50 increasing by 54%.
The analysis found a series of common denominators between these businesses which point to three rules for growth. Firstly, 60% are business-to-business organisations and show real innovation by operating in niche markets. Secondly, the majority boast a visionary leader at the heart of the business, who excels at hiring and retaining the right people. Thirdly, the ability to spot export opportunities has been vital to their success, with CEO’s spending weeks or even months abroad seeking out new markets.
Martin Jenkins, practice senior partner for Yorkshire and the North East at Deloitte, said: “Medium-sized businesses are especially well placed to influence UK growth as they are equipped with both the flexibility and long-term aspirations needed to develop innovative strategies to drive their businesses forward.
“Our analysis demonstrates how even during the economic downturn, a core of these companies have continued to deliver exceptional growth. Understanding the success factors of these companies is critical to the UK’s continued economic revival.
“Small and medium-sized businesses make up the vast majority of businesses in Yorkshire and the Humber and we are seeing confidence and optimism levels for growth and investment at a post 2008 high in this segment. We believe these businesses, and the lessons that can be learnt from their successes, are key drivers to the recovery in our region.
“Our Businesses Leading Britain research shows that three of the Leading 50 companies are based in Yorkshire and the Humber, thus aligning us with other regions outside of London.”
Deloitte said the report provides some evidence of rebalancing in the British economy, but also the continued success for some of our traditionally strong industries.
Technology, media and telecoms companies account for 8% of the 1,000 but 16% of the top 50, whilst healthcare and life sciences account for 12% of the top 50 and 5% overall. The sectors with the largest proportion of companies are consumer business (33% of 1,000, 20% of top 50) and business and professional services (18% and 24%).
The report makes the case for government and business to work together to provide medium-sized companies with targeted financial and professional support. This call to action includes:
• A proposal to consolidate the support provided by Government to smaller business. There are around 700 schemes for small and medium-sized businesses but few are in a position to monitor or properly utilise them;
• Tailored support for the CEOs of smaller businesses, helping them to develop relationships with new suppliers and clients, or in new markets, transforming these companies as they move from having £30m in revenue to £200m.
Jenkins added: “In order for the success of some to become that of many, both government and businesses need to reinforce their role in supporting those companies with the potential to strengthen the British economy. British companies retain a reputation for quality and innovation. Our brands hold cachet with international customers. We are world leaders in a number of industries. Now, after more than five years of economic struggle, recovery is taking hold. The companies behind our analysis will be critical in moving Britain’s economy beyond recovery into a new era of sustainable growth.”
