Scale‑ups are the Real Economic Power‑houses of the UK
Think of the UK’s tiny businesses as a giant salad. 99 % of the veggies are just nice greens, but 1 % of the bowl—those high‑growth scale‑ups—is the chunky avocado that actually turns the dish into something worth bragging about. In fact, they’re pulling in almost £500 billion a year.
What’s a “Scale‑up” Anyway?
By definition, a scale‑up is a small‑or‑medium sized enterprise that’s grown at about 20 % per year from 2018 to 2021. They’re the swift‑hot‑style startups that went from zero to hero without ever letting the funding bullet get stuck.
Numbers That Speak Volumes
- Only 1 % of all UK SMEs fall into this high‑growth category.
- Collectively, they generate a staggering £497 billion—that’s roughly 22 % of all SME turnover.
- On average, a scale‑up employs more than a seventh the staff of a normal SME.
- Geography matters: 38 % of these workers are in London and the South East, 20 % in the North of England, but only 12 % spread across Scotland, Northern Ireland, and Wales.
Where They’re Thriving
- Health & Social Work – 17 % of scale‑up jobs.
- IT – a major player, but the exact share was cut slightly in our source.
- Wholesale & Retail Trade, Creative, Real Estate, Transport & Storage – together, they take up another 7 %.
Real estate, for example, currently accounts for only 2 % of scale‑up employment but has huge upside potential if the right policies are in place.
Why the Government Needs to Step In
Scientists at the Social Market Foundation say the lack of scale‑ups is holding the UK back. They build their future on three pillars:
- Grow sector hubs where the right businesses can thrive.
- Streamline visas to pull top talent from around the world.
- Invest in skills, infrastructure, and research so every hub can sustain itself.
Without tackling regulatory bottlenecks, planning restrictions, and a less entrepreneurial culture, the continent’s growth engine might just stall.
Voices From the Front Lines
John Asthana Gibson (Social Market Foundation researcher): “The UK’s inability to help businesses scale across all sectors and regions is holding the entire economy back. There’s no single fix— the entire business ecosystem and culture must evolve.”
Rishi Khosla (CEO of OakNorth Bank): “We’ve lent over £10 billion to scale‑ups, created 40,000 jobs, and helped build 29,000 homes—most of them affordable. Yet these companies still face serious hurdles. Removing those walls is key to keeping the UK leading in fintech, life sciences, and social care.”
Bottom line: if the UK wants to keep its pole position in innovation and growth, it must genuinely support the 1 % that’s propelling us toward the future.
