Small high growth businesses could be the answer to higher employment in the region, according to Manchester Metropolitan University Centre for Enterprise.
A new report co-authored by Manchester Metropolitan University, entitled Stimulating Business Growth, reveals small businesses are key to job creation in the North West and getting the regional economy back on its feet. According to the report, high growth businesses represent just 1% of UK firms, yet generated 23% of all jobs between 2007 and 2010.
The report charts the rise of the first 250 enterprises to have completed the Goldman Sachs 10,000 Small Businesses programme, run in the North West in conjunction with the Centre for Enterprise at Manchester Metropolitan University.
The initiative, which is supported by Goldman Sachs and the Goldman Sachs Foundation, is designed for the leaders of established small businesses who have the appetite and potential to grow their enterprises. Participants benefit from a high quality, comprehensive package of support and expertise to help them take their businesses to the next level.
The progress report indicates that the participants are growing jobs and turnover.
- 77% reported that they were employing more people than 12 months previously
- 66% had increased their turnover year-on-year
- 53% had increased profitability
Professor Lynn Martin, co-author of the report and Director of the Manchester Metropolitan University Centre for Enterprise, said: “Small businesses are fundamental to economic growth and innovation, creating new jobs and generating wealth. In these tough trading times, alumni from the 10,000 Small Businesses are a beacon, showing how business can really be done.
"This is a programme that has brought them deep learning, from the course and from each other, new ideas, new ways to do things, new contacts and a strong set of relationships with regional and national entrepreneurs. They are bucking the trend, delivering additional jobs, revenue and benefits for communities in the Northwest and beyond.”
One of those to already benefit is Andy Southern, the second-generation business owner of Stockport-based Windmill Tapes and Labels.The business was one of the first participants in the small business programme at Manchester Metropolitan University and Mr Southern said it helped him develop a robust business plan, a strategy for growth and saw his workforce grow from 34 employees to 50. Mr Southern, 50, who started working for his father's business 25 years ago, said the course provided the "fresh impetus" he needed.
Manchester Metropolitan University is recruiting small businesses to the Goldman Sachs 10,000 Small Businesses programme.
Source: MMU
