CfE Research team host event in House of Commons on North West Small firms

Yvonne Fovargue, MP for Wigan and Shadow Minister for Business Innovation and Skills introduced Growth Equals Success? Event showcasing Manchester Metropolitan University Centre for Enterprise research at the House of Commons.

 

The event was hosted by the research team from the Centre for Enterprise to highlight some research - commissioned by Private Sector Partners NW Ltd and led by Professor Sue Baines at the Centre for Enterprise - exploring the potential of the Northwest’s small firms to drive forward the UK’s economic recovery.

Yvonne Fovargue MP introduced the research and the event, saying "we were once called a nation of shopkeepers, when we are actually a nation of entrepreneurs" and this is shown in the research conducted by Sue, Dr Val Antcliff, and the team. The report produced is an in-depth study highlighting five 'invisible forms of growth' by small businesses. This six-month project undertaken by the Centre for Enterprise sought assess the conditions likely to support small firms ability to create new jobs in regions affected by public sector reduction.

The emphasis was on utilizing the expertise of small firms themselves to advance understanding of ways they can generate wealth and value, and create employment.

The generally accepted definition of a high growth firm is one with an average increase of at least 20% in turnover or number of employees over three consecutive years, with at least 10 employees in the first analysed year.

The ability for these “High Growth” businesses to generate a large number of jobs is well documented, but it is becoming clear, from an emerging body of statistical evidence, that exceptional high growth businesses are only part of the story.

The High Growth definition excludes firms that are either too young (less than 3 years old) or too small (fewer than 10 employees). These younger and smaller businesses are potentially generating new economic activity that does not fit the existing model, but has a large economic impact. Business leaders described a variety of alternative means of growth.

Some of these were highlighted at the event by the business panel, consisting of Abi Philips, managing director of the Cake Nest, Chris Webb of Nexus Point and Liz Whiteley of Dynamite Pink. These businesses gave some examples of how they are developing a large influence in non-traditional ways.

Liz Whiteley of Dynamite Pink, has taken on 200 people on self-employed contracts in the last few years. This way she provides many students with their first jobs, on a flexible basis that they can fit around their lives. However, as she only employs seven full time staff she does not qualify as a high growth firm.

Abi Philips, describes her business as a ‘small giant’ – a business that chooses to stay small and sustainable, but with an excellent reputation and quality services.  She emphasised the importance of a good work life balance for herself and her staff.

 Abi highlighted the fact that not all businesses use turnover and staff numbers as the benchmark of success. Rating sustainability, and making a positive impact on their community more highly.

The business owners all agreed that it is vital for a business to be a ‘small giant’ before they can become ‘high growth’, and so it is important for the advancement of the UK economy to offer support to these organisations. 

There is another event on the same topic taking place on March 10th 2016 at Manchester Metropolitan University. This is open to everyone. To register your attendance please click here and to read the full research report please click here.