A report from the Competition and Markets Authority (CMA) has highlighted the disproportionate contribution of high-growth firms to the UK economy. These businesses, despite representing a small share of the total, are significant drivers of employment, turnover, innovation, and economic growth.
The report, part of the Microeconomics Unit’s Growth Programme, aims to support the government's focus on economic growth and its modern Industrial Strategy. It delivers economic research on critical drivers and blockers of growth.
Key areas of investigation include how different definitions influence the identification of fast-growing firms, their characteristics, growth trajectories, and persistence over time. The report also uses experimental financial transactions data to compare the supply networks, financial relationships, and revenue patterns of high-growth firms with other businesses, and considers whether web-based growth signals could supplement traditional identification methods.