Cheshire has most high growth companies in region says business specialist Winning Pitch

Nov 25 2009 by Neil Hodgson, Liverpool Daily Post

CHESHIRE has the highest concentration of “gazelles” – high growth businesses – in the North- West, according to research from enterprise growth specialist Winning Pitch.

The Plus-quoted company’s HiQ Index, designed to map the percentage of high growth businesses in each of the UK’s local authority areas, has revealed that gazelle companies make up 6% of Cheshire’s small and medium-sized enterprises (SMEs).

Greater Manchester had the second highest rating at 5.6%, trailed by Lancashire on 4.8%.

Merseyside scored just 4.4%, while Cumbria had the lowest rating of North West counties, at 4.1%.

Gazelles – so named because, like the animal, they run fast and jump high – are firms that have more than 10 staff and have grown to a turnover of £1m within their first three years, or already turn over £500,000 and are predicted to grow by 20% year-on-year for the next three years.

They are thought to contribute dramatically to regional economic wealth and create 70% of jobs in any given geographical area.

The north-west region had an overall rating of 5.1%, trailing five other regions and London, which has the highest concentration of gazelle businesses in the UK, with a rating of 7.0%.

Winning Pitch has identified 9,592 potential gazelles – 21% of north-west SMEs – which, through funding and business support, could become high growth businesses, and is calling on local authorities to back them and boost the region’s economy.

Dave Thomas, head of Winning Pitch’s research arm, The Observatory, said: “Cheshire has a strong concentration of high- growth companies, but it also has a significantly smaller sample of SMEs than Greater Manchester, whose performance is also highly respectable.

“However, the lack of established gazelles in the North- West is a problem that local authorities must address.

“At present, many authorities are focusing their support on companies with little or no growth potential, such as inexperienced start-up enterprises or larger businesses teetering on insolvency that risk mass redundancies.”

He said by identifying and supporting potential gazelles, local authorities can allow these companies, many of which are in a raw state, to realise their commercial potential and boost the wider economy.

Winning Pitch’s research also found that Warrington had the highest HiQ rating of the North West’s local authority areas, at 7.9%, and 16th nationally.