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What matters most to growing businesses?

Growing businesses - or 'scaleups' - are vital to the UK economy. They provide jobs and boost productivity throughout the country and across all sectors.

Alongside the ScaleUp Institute and using its research, we've pulled together this infographic which outlines what matters most to growing businesses in the UK, including:

  • the issues scaleups most often face and where they need the most support
  • the places in the UK where you're most likely to find scaleups
  • the funding that's helped those businesses get to where they are in their growth

Scaleups are growing businesses in the UK. They generate jobs and growth and are a vital part of the UK economy.

This article outlines what the landscape is like for Scaleups in the UK and what matters most to them.

What is a Scaleup business?

  • 36,510 scaleups in the UK
  • 13,165 grew by employees
  • 30,650 grew by turnover
  • 7,350 grew by both

[Source ScaleUp Institute research]

Scaleup - noun:

An enterprise with average annual growth in employees or turnover greater than 20 per cent per annum over a three year period, and with more than 10 employees at the beginning of the period.

Synonyms: Growing business

The Scaleup impact

Scaleup companies boost productivity across all parts of the country and across all sectors - Irene Graham CEO @ ScaleUp Institute

What do Scaleups need most?

  • Help securing talent
  • Access to markets
  • Access to leadership
  • Smart money - noun: Money which also brings knowledge, skills and customer and market connections with it. More than just cash.

People and Place matter most to Scaleups

Scaleup leaders most value locally-rooted resources to foster their growth. They want more local solutions tailored to their needs. Where there are national initiatives, they want those delivered locally in an easy-to-navigate manner. - Irene Graham CEO @ ScaleUp Institute

But Scaleups aren't home birds. They're trading internationally and are hungry for more:

  • 64% of Scaleups are involved in international trade

[Source: ScaleUp Institute research]

The regional split

Scaleups in London and the south-east are much more likely to be using equity finance than those based elsewhere in the UK.

  • 36% use equity finance in London and the south-east
  • 18% use equity finance in the rest of the UK
  • London received 54% of all equity deals by number
  • London received 41% of all equity deals by value
  • But only 19% of high-growth businesses are located in London

[Source: ScaleUp Institute research]

Funding confusion and equity success

There is a direct correlation between equity investment and growth. The more equity investment a company receives, the more likely it is to grow at a very fast rate. ScaleUp Institute

So why aren't more businesses accessing finance

  • 3 in 4 Scaleups use external finance but debt outweighs equity
  • 17% of Scaleups are unsure about which form of finance to apply for and/or provider to apply to

Are you looking to grow your business? Find suitable options for your business with our simple six-step tool.

Disclaimer: We make reasonable efforts to keep the content of this article up to date, but we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. This article is intended for general information purposes only and does not constitute advice of any kind, including legal, financial, tax or other professional advice. You should always seek professional or specialist advice or support before doing anything on the basis of the content of this article. 

Neither British Business Bank plc nor any of its subsidiaries are liable for any loss or damage (foreseeable or not) that may come from relying on this article, whether as result of our negligence, breach of contract or otherwise. “Loss” includes (but is not limited to) any direct, indirect or consequential loss, loss of income, revenue, benefits, profits, opportunity, anticipated savings, data. We do not exclude liability for any liability which cannot be excluded or limited under English law.

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