4 Innovation Process

4.11 Fast growing firms

Why is it significant?

Entrepreneurial activity is not just about business creation but also about business growth.  A relatively small number of fast growing enterprises or “gazelles” (companies with compound growth rates of at least 20 per cent per year for four years) tend to be the main source of innovation and job creation. 

How does the UK perform?

According to a study by Merrill Lynch in the period 1995-1999 the UK was second only to the US amongst its major competitors in terms of the percentage of listed companies which had doubled sales growth (Chart 4.11). 

Last updated on 12 March 2002