Fast-growing firms deserve to be recognised - Prof Dylan Jones-Evans

Fast-growth firms –note-0 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.

Considerable attention has been paid to the contribution that fast-growing scale-up firms can make to the economy and, more importantly, how such home-grown businesses can be supported to create wealth, innovation, and employment.

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, including a third-generation family-owned milk delivery business, McQueen’s Dairies.

Fast-growth companies can inspire others to new heights (Picture: stock.adobe.com)

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 technology-based sectors. This is amid a rising global obsession in the investor community with the idea of creating Unicorns or even Decacorns – those $1 billion or $10bn-valued businesses that emerge from Silicon Valley and leave European governments salivating at the thought of domestic equivalents.

To be clear, there’s nothing wrong with such dreams as fast-growth companies deliver local and national economic benefits such as employment, often with a mix of highly skilled, well paid roles, and often many other ancillary positions. Amazon would be a good example. These rapid-scale companies also pay taxes, especially once they are established and profitable. So you can see the appeal. But in most cases it is not the reality and it is important to shift perceptions, value and support the companies that don’t fit the mould but are delivering true economic benefit.

It is telling and important that the fastest-growing Scottish business in 2023 is Join Talent, which serves diverse businesses globally by offering unique expertise in modern talent acquisition, employer branding, and emerging technologies.

The average age of a fast-growing 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.

Professor Dylan Jones-Evans OBE is the founder of the UK Fast Growth 50 Index

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 such as during the pandemic, reminding other businesses 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, from construction to financial services to technology. 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 across the Scottish business community.

Professor Dylan Jones-Evans OBE is the founder of the UK Fast Growth 50 Index.