At a glance
- High-growth businesses invest early in scalable technology and data
- Strategic financial management goes beyond compliance
- Access to government schemes and professional advice accelerates growth trajectories
Many regard the UK’s 5.5 million SMEs as the backbone of the economy; they generate 52% of private sector turnover and employ 16.6 million people. Recent data shows these businesses achieved an average growth of 27% in 2024, with the health sector leading at 4.3% and Northern Ireland topping regional performance at 0.6%.
But what drives the businesses that manage to sustain growth year after year? Dr Vicki Belt, Director of Engagement and Impact at the Enterprise Research Centre, Warwick Business School, says research shows particular behaviours and capabilities linked to growth.
“These include seeking and obtaining external finance (debt and equity), seeking and using business support and advice, innovation activity, the adoption of digital technologies, and the adoption of high-performance work practices,” she says.
Digital-first
High-growth businesses don’t treat technology as an add-on; they build it into their operations from day one.
Amy Knight, co-founder of e-commerce business Must Have Ideas, says early investment in data systems and custom technology created the foundation for expansion.
“Data has been key to our success and the way that we’ve scaled to a £65 million revenue, from very early on we used data to identify our target audience and we’re able to use trial-and-error and data to work out what they wanted to hear,” she says.
Her approach has grown beyond using existing tools.
“Developing our own in-house technology was another huge part of our scaling success, our bespoke technology is something that gives us a competitive edge, all while having a major positive impact on the enhancement of the customer experience,” she says.
If you’re working with tech-forward clients, make sure you understand their digital roadmap so you can evaluate which systems deliver genuine ROI, structure funding for major investments, and maximise R&D credit use for custom development.
Smart cash management
Growth businesses tend to treat financial planning as a competitive advantage, not just compliance.
Todd Davison, managing director at Purbeck Insurance Services, says fast-scaling companies will model the best, worst and expected outcomes to prepare for uncertainty, manage cash flow tightly and use monthly or quarterly forecasts to stay agile and reallocate resources quickly.
Hiring tomorrow’s team today
Balancing the need for senior expertise with a lack of resources to hire full teams is an issue many founders struggle with. Davison notes that the smartest operators solve this by thinking about the future and using fractional expertise.
“They invest in senior hires ahead of the curve to pre-empt growth of the business or expansion where additional expertise is required.
Many also leverage the use of CFOs, CMOs, CTOs on a fractional basis to bring in part-time experts to help bridge the skills gap and help to manage the costs associated by doing so on a fractional basis,” he says.
Staying customer-centric
Most businesses lose customer connection as they grow, adding layers between leadership and the market that originally drove their success. Davison says the standout performers obsess over customer feedback and iterate quickly.
Knight notes keeping customer-facing functions close can also be financially beneficial.
“We do everything in-house, from content creation, ads management to fulfilment and customer services, none of it is outsourced. This allows us to hold on to more of the profits from each sale rather than giving them away to third parties,” she says.
External support
Experts agree the fastest-growing businesses don’t try to do everything alone. They strategically leverage government schemes and external expertise to accelerate expansion.
Alex Mearns, Head of Start Up Lending at GC Business Finance, says well-structured government initiatives, such as the Start Up Loans programme, can reduce risk while providing crucial business support to ambitious start-ups that can’t always access traditional funding.
“The programme also offers one-to-one support from expert business advisors, helping entrepreneurs develop a business plan and a financial forecast. Support…also includes a comprehensive post-loan package, including access to a wealth of information, toolkits, workshops and support from business mentors,” he says.
Natasha Millward, Client Services Director & Business Advisor at DJH, has seen firsthand how the right external support, from non-executive leaders to professional advisors, can help businesses achieve dramatic growth. Her firm recently supported a client’s revenue expansion from £3m to £12.7m in just twelve months.
“Having the right advisors around you to support you through the growth period is important. This can help you put in place the correct structure and, importantly, ensure all tax implications are considered,” she says.
Dr Belt emphasises effective support shouldn’t be exclusive.
“It is important that business support should not be biased towards an exclusive and elusive group of ‘high growth’ firms, but be inclusive and focused on enabling growth episodes and behaviours at different points of the business lifecycle. Fundamental to this will be ensuring that the UK’s small businesses are better informed about the finance options available to them, and that finance is more inclusive and accessible,” she says.
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