A report by accountancy firm Grant Thornton, has found that the UK has the highest proportion of 'super-growth' medium sized companies in Europe. The survey, which measured the turnover and headcount of 6300 companies, found that a quarter of the UK's medium sized businesses are classed as 'super-growth' firms. This is a rise of 5% on last years' figures, and is above the worldwide average of 17%, overtaking Sweden, where the proportion of super-growth companies fell from 24% to 13%. Medium sized organisations are classed as having between 50 and 249 staff, and account for 2.3% of all companies, generating 13.6% of employment.
Our view:
The UK is reacting to the fact that larger business is moving overseas as labour is cheaper. As such, small service companies and companies with skilled needs are sprouting up and in turn their suppliers and outsources get bigger. In addition, medium sized firms are merging for economies of scale to compete with overseas firms.