Fast-growing firms deserve recognition
Fast-growth firms – normally defined as achieving 20 per cent growth per annum – make up less than 1 per cent of the UK business population but represent 50 per cent of the total SME turnover output.
Collectively, Scotland’s 50 fastest growing companies generated a turnover of £892 million and employed 6,300 people in 2022. However, it’s their ability to produce an additional £510m in turnover during the period from 2020 to 2022, at an average growth rate of 134 per cent, that highlights their exceptional performance and impact on the Scottish economy.
Scotland’s Fast Growth 50 index for 2023 dispels many of the previously held notions around what a fast-growth company is. Instead the diversity of sectors featured reflects Scotland’s multifaceted economy. While there are knowledge-based firms on the Fast Growth 50 list, such as Staffscanner, X-design, and Quorum Cyber, business activities range from restaurants like Six by Nico to branded spandex costumes with Morphsuits, to knitwear design by ERIBÉ Knitwear.
For many years now, there has been a notion that fast growth for a company occurs mainly in the early stages of a firm’s existence. Another myth that has grown in the last decade is that businesses can only scale in technologybased sectors.
The average age of a fastgrowing Scottish firm in 2022 was 13 years, with only six of the firms aged five years or less. This indicates that achieving rapid growth can happen at various stages of a firm’s development and not just in the start-up phase.
As Scotland began to recover from the adverse effects of the Covid-19 pandemic, these businesses have led by example, creating 3,800 new jobs in just two years. This resilience is especially inspiring in times of economic uncertainty, reminding others that growth and success are possible even in the face of adversity.
Therefore, the businesses on the very first Fast Growth 50 list for Scotland not only demonstrate that a small number of fast-growth firms can make a substantial contribution to the economic landscape but also provide real examples of how innovation, enterprise, and sheer hard work can make a difference in all sectors. Their stories are a testament to the entrepreneurial prowess that defines Scotland, and by recognising their achievements, we are not only highlighting individual business success but also providing inspiration for the broader business community and encouraging further growth and innovation.
Professor Dylan Jones-evans OBE is the founder of the UK Fast Growth 50 Index