London top location for SME ‘gazelles’
The survey by Winning Pitch, a University Of Manchester incubator company, identified the number of ‘gazelle companies’ in each local authority area in the country. The term refers to firms that had a turnover of ┬ú1 million within their first three years, or those that already turn over ┬ú500,000 and are predicted to grow by 20 per cent year-on-year for the next three years.
The report states that the more gazelles in an area, the more likely it is to achieve economic growth.
London topped the list with 7%, followed by Yorkshire with 5.5%, Scotland with 5.5%, the East Midlands with 5.4%, the West Midlands with 5.3%, the East of England with 5.2%, and the North West with 5.1%. Wales was last with a score of 4.3%.
The survey claims that the London boroughs of Hounslow and Tower Hamlets, and the City of London, are the three local authorities with the greatest potential for economic growth.
According to the Business Desk, Dave Thomas, head of Winning Pitch’s research arm, The Observatory, said:
“At present, many authorities are focusing their support on companies with little or no growth potential, such as inexperienced start-up enterprises or larger businesses teetering on insolvency that risk mass redundancies.
“By identifying and supporting potential gazelles through specialist advice, training and grants, the North West’s local authorities can allow these companies, many of which are in a raw state, to realise their commercial aptitude and boost the wider economy.”
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