New data shows the Midlands is the UK’s growth hub – with more than a quarter of mid-sized firms posting more than 10 per cent sales rises.
The Midlands is home to the highest proportion of high-growth companies in the UK, according to the latest Barclays and BGF Entrepreneurs Index report.
A total of 26 per cent of the region’s firms turning over between £2.5 million and £100 million have seen turnover rise by 33 per cent in the last three years.
This represents a 54 per cent increase in the year to March 2013, compared to 44 per cent in the North West and 42 per cent in East Anglia.
Paul Keiser, regional director of Barclays Wealth and Investment Management in the Midlands, said: “The findings in this edition of the Entrepreneurs Index confirm that the economic recovery in the Midlands is gathering pace.
“We work closely with many entrepreneurs and this increase in the proportion of high growth companies evidences the strong entrepreneurial vision and leadership that we see across the Midlands. It is very positive to see that as a region we lead the way and we would expect this to continue across 2014 and beyond.”
The research uses data supplied by Experian and rhe requirement for “high growth” is a 33 per cent increase in turnover over three years, as well as 10 per cent year on year growth for a minimum of two of these years.
This Entrepreneurs Index also looks into the number of businesses selling shares in the firm.
The findings reveal that the Midlands saw a slight fall of one per cent in the number of active, growing companies recording share sales in the past year, to 665.
There was a 0.4 per cent rise in the total number of enterprisesin 2013, to 317,040 – the third highest in the country, after London, which saw a 3.5 per cent rise in the number of enterprises to 372,340, and the South-East, witnessing a 0.6 per cent boost to 339,980 enterprises.
Gavin Petken, regional director for the Midlands at BGF, said: “This latest Entrepreneurs Index clearly highlights the positive environment that exists in the Midlands for businesses of all sizes looking to grow. After London and the South-East, the Midlands has the highest number of active enterprises and it also has the highest percentage of high-growth companies out of any region. As long-term equity investors in growing UK companies, we are encouraged by the fact that there is this clear and addressable market in the Midlands, full of business owners who are keen to expand.”