There are several key stages in the lifespan of a business which will have a major impact on its long-term health and stability.
The early years of any businesses tend to be all about survival with the vast majority struggling to stay afloat. But any successful business will reach a stage where it needs to start thinking about the need to expand its resources, systems and staffing to cope with the next stage of its development.
Traditionally businesses that have at least 10 employees and average annualised growth of 20 per cent or more a year over the last three years fit into the category. Momentum is everything and any business which fails to move forward is storing up trouble for the future. According to figures from the Office of National Statistics the total number of scaleups in the UK currently stands at around 36,510 businesses. These businesses are growing their turnover or employee numbers by more than 20% a year, an increase of 3.7% since 2016.
There are now 35% more scaleups in the UK than there were in 2013.
The top five Local Enterprise Partnerships for growth in turnover scaleups were Buckinghamshire Thames Valley, Thames Valley Berkshire, York, North Yorkshire and East Riding, Cheshire and Warrington and London.
The top five LEPs for growth in employment scaleups were Oxfordshire, Swindon and Wiltshire, Greater Cambridge and Greater Peterborough, Northern Ireland and Hertfordshire,
According to The Scaleup Institute companies which grown their turnover or employment by more than 20% annually over a three-year period can be defined as scaleups.