A small percentage of the British small business manufacturing population has consistently helped improve the stability of the economic system, new research has revealed.
The study found the manufacturing sector had significant untapped growth opportunities that could be exploited with more focused government support.
According to the Insight Report by Experian, a global information services company, there is a small percentage (10%) of the small and medium sized manufacturing population that has consistently helped to support the stability of the UK’s economic system. Furthermore, these small firms are described as ‘champions’ as they have had a large impact on job creation, creating at least two thirds of all new jobs in small companies, by consistently growing at 20% or more a year .
Simon Streat, managing director of SME Experian, said: “Our research shows that around one in 10 small businesses in manufacturing have the potential to grow by 20% or more in the next year. Identifying and nurturing these ‘champion’ manufacturers is fundamental to driving growth and employment opportunities in the industry.”
However, Experian has warned that while the ‘champion’ companies have the potential for high growth, just one in five actually succeed, and it has called on the government to address the issue.
Streat added: “The problem is that of all the businesses that have the potential needed to achieve high growth, just one in five actually do. Government support needs to be focused towards these potential champion manufacturers to help them overcome the barriers to growth they currently face.”
© Crimson Business Ltd. 2010