The majority of areas with lots of fast-growing companies are outside London

LAUNCHPAD: Capital-dwellers take note - stuff actually happens in places where you can't use your Oyster Card.

by Rachel Savage
Last Updated: 23 Oct 2014

London may like to think it’s the centre of the universe, but there’s actually a whole lot of business growth going on outside the M25. In fact, the majority of areas with lots of high-growth companies are actually outside the capital, according to new research.

Between 2009 and 2011, 23 of the 41 local authorities with 50 or more fast-growing businesses weren’t in London, according to a study conducted by Trampoline Systems for the SUMMIT: The Future of Growth conference. High-growth firms are defined by the Organisation for Economic Co-operation and Development as those starting out with 10 or more employees that grow at least 20% annually over three years.

The capital still topped the table for the sheer number of speedily-expanding companies during the two year period, with London accounting for 54.6% of those in local authorities with more than 50. Westminster had the most fast-growing businesses, at 589, Camden took second place with 284 and Birmingham came in third with 184, followed by Leeds. Just under half of high-growth businesses were concentrated in a mere 5.75% of electoral wards.

The research also found high-growth firms across the whole country delivered a net sales increase of £112bn from 2009 to 2011, despite the global recession, while all other companies suffered a net fall of £151bn. That helped the private sector grow in two-thirds of the UK.

MT gets sent a lot of thinly-sourced research, so it was particularly pleased to see the study crunched data for 2.37 million companies in all 8,422 of the 9,523 electoral wards for which they could get hold of the numbers.

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