GROWTH RATES ANALYSIS FOR SCALEUPS AND SCALING PIPELINE BUSINESSES

For the first time in 2022 we are looking at the data through different lenses to understand how growth spreads across all businesses. In this analysis we break down all businesses in growth segments of 10% for those growing over the scaleup threshold of 20% and separate out the scaling pipeline to show businesses growing between 10-14.999% and 15-19.999%. The aim is to better understand how these businesses grow and what sectoral and regional trends can be found in the different growth phases of the pipeline and the scaleup journey.

Analytical Notes: 

• The overall number of scaleups in this part does not align with the overall number of scaleups shown previously, as scaleups growing by both turnover and employment at different growth rates are double counted (i.e. a business scaling employment between 20-29.999% and turnover between 50-59.999% will be counted both in the 20-20.999% growth segment as an employment scaleup and in the 50-59.999% segment as a turnover scaleup). 

• Sector Classification: In this section the analysis was created using Industry Group classification of the 2007 Standard Industrial Classification (UKSIC(2007)), in order to make the small segmentation of the data more robust. The Production sector is a combination of Manufacturing combined with Mining and quarrying and Energy and  power generation.

SCALEUP AND SCALING PIPELINE GROWTH SEGMENTS – BY SECTOR

When looking at the overall numbers of businesses growing in turnover and/or employment by more than 10% in 2020, the following patterns emerge: 

• Business admin & support services; Professional, Scientific & Tech; and Info & Communication are the sectors with the most businesses scaling over 60% in their turnover and/or employment.
• Production; Accommodation & Food Services; and Professional, Scientific & Tech are the sectors with the most pipeline businesses growing between 10 and 19.99%.

SECTORAL CONTRIBUTION TO EMPLOYMENT & TURNOVER

In order to understand the contribution that scaleups and pipeline businesses make towards their sector’s turnover and employment we have analysed each growth segment against the total turnover and employment of all UK businesses with a minimum of 10 employees in 2017  (when these businesses started their current scaling period of 3 years growth) and growing on average by at least 10%. 

• Scaling and scaleup businesses in 6 sectors – Info & Communication; Professional scientific & tech; Wholesale; Business admin & support services; Construction; and Arts / Creative – contribute more than 50% of the total turnover generated by all UK businesses in these sectors with more than 10 employees 3 years ago. 
• In the Motor Trades; Business admin & support services; Property; Health; and Education scaling and scaleup businesses employ more than 50% of the total people working in these sectors (of all UK businesses with more than 10 employees 3 years ago).
• Although Finance and Insurance has the highest absolute contribution to turnover for businesses growing by more than 10%, Information & Communications contributes the most when compared to all businesses with more than 10 employees in the same sector.

SCALEUP AND SCALING PIPELINE GROWTH SEGMENTS – BY REGION/DEVOLVED NATION

When looking at overall numbers of businesses growing (turnover and/or employment) by more than 10% we are able to see with greater clarity the disparities that exist across the UK: 

• As shown in the analysis in previous sections London and the South East have the greatest number of scaleups and pipeline businesses. 
• Most parts of England after London and South East and Scotland have a similar growth rate distribution.
• However, Wales, Northern Ireland and North East England are lagging behind the rest of the UK