Universities of St Andrews, Glasgow & Stirling warn against bad public policy

New research that has come from the universities of St Andrews, Glasgow, and Stirling suggests that the UK needs to step up its public policy for high-growth firms, but why?

This new study suggests that policy makers are concentrating on entirely the wrong points when it comes to increasing productivity and growth within UK businesses. It outlines that the current perception points towards ‘techie’ startup companies as having the greatest potential, while in reality there is not much room for growth in these enterprises. It also states that even with the right company is targeted, there should be an availability of non-material yet very crucial support (such as advice for high-growth firms) instead of funding alone.

Another of the points made by the study is that high growth firms are especially pertinent in the north of the United Kingdom, particularly Scotland and Northern Ireland. The reason the writers concentrate on the north is that it is in this area where it is most crucial to create these jobs and support these companies as technology is not so ingrained into the working economy as it is in the south of England.

The report states that while high-growth firms may only consist of 6% of the business world in the UK, they support half of all job creation and are referred to as “the vital 6”. One writer of the report exclaims how “frustrating” it is that policy makers continue to push for high-tech funding rather than paying attention to this vital part of the economy.

The main goal of this report is to open the eyes of the people who create public policy and work towards greater funding and support for the firms that really do have the potential to be high-growth rather than the popular technology-based startups. The support of these firms means the support of more jobs in both Scotland and across the country, and therefore the bettering of the economy.

Image courtesy of cranfield.ac.uk