Regional Variations in the generation and success of high growth businesses

Objectives
High Growth or Scale-up firms are those which grow at 20% or more in employment or turnover, over a consecutive 3-year period, with 10 or more employees at the start of this growth. The project should focus on a gap in extant research, by investigating why the provision of support varies across regions in the UK (and comparisons overseas if applicable); the circumstances that lead to the creation and sustain the growth of high growth firms; and the limitations or obstacles faced by both the firms themselves and the organisations that support them.

Background
In the D2N2 area (UK East Midlands) the proportion of Scale up or High Growth Businesses is disproportionately low when compared to other English LEP areas (Deloitte, 2014) and when considered per 100,000 population. Furthermore the UK lags behind the US and other leading economies in the rate at which businesses scale-up (Coutu, 2014). Research by Deloitte and Nesta shows that increasing the number of businesses capable of rapid growth could significantly increase job creation and GDP (Deloitte, 2014; Nesta, 2013), and evidence suggests that from 2010-13 UK Scale-ups accounted for 1% of jobcreating firms, but 18% of the jobs those firms created. However, the actual number of Scale-up jobs created has fallen since 2008 (Anyadike-Danes et al., 2014) and yet the D2N2 region, like others, lacks specific support for high growth businesses. The Scale-up report concurs that a focused approach is needed, targeting support to high-growth businesses and those with the potential to grow. One obstacle is that evidence of the nature and characteristics of such businesses is limited and/or dated (Smallbone et al., 1995; Anyadike-Danes et al., 2014).

Barriers to growth among the high growth business community are variously identified as effective leadership and management constrained by limited management time, capability, and access to external support; clear routes to market since effective management is a key factor in generating sales growth (Barclays, 2016); access to talent and skills, and those with the capacity to work within a high growth environment; and inadequate investment readiness among the target groups, in part because of a lack of financial support to SMEs wishing to grow, combined with limited capacity for small firms to generate internal or external sources of finance for growth (Coutu, 2014). One potential solution to these limitations is creation of an ecosystem that promotes the largest Scale-ups, raises awareness and enhances the talent pipeline and leadership and management development, as well as celebrating successes and actively promoting opportunities (Isenberg, 2016).

Methodology and Recommendations
Researchers could propose a number of methodologies for exploring issues surrounding the regional success or otherwise of scale-up firms, though well justified innovative approaches should be considered. Opportunities can be facilitated for successful candidates to liaise with a range of policy makers, businesses and delivery bodies, and their recommendations could be far reaching in influencing future business and economic growth.