The Vital 6% - the businesses making the greatest contribution to growth

The Vital 6 Per Cent. How high-growth innovative businesses generate prosperity and jobs  

Influential research by NESTA in the UK, published in 2009, highlighted that a small number of high-growth businesses are responsible for the lion’s share of job creation and prosperity, and that innovation is instrumental in the success of these businesses.

The researchers found that a small minority of high-growth businesses hold the key to job creation and wider prosperity, with 6% of UK businesses with the highest growth rates generated half of the new jobs created by existing businesses between 2002 and 2008.

Business development initiatives in other areas have found a similar pattern, for example, the economic development team behind Economic Gardening, which started in Littleton, Colorado, observed that just 3 - 5 % of the local businesses were creating the majority of the jobs.

This video interview highlights the importance of second stage growth companies to the growth of regional economies.

Colin Graham, is the founder of Causeway Innovation and has coached 300+ startups and innovative SMEs.