24 June 2014
CITY COUNCIL WELCOMES REPORT ON TABLE-TOPPING SMALL BUSINESSES
Cambridge City Council today welcomed the launch of a new report which
shows that more small businesses in Cambridge are pursuing a high-growth
strategy than anywhere else in the UK.
Cllr Lewis Herbert, Leader of Cambridge City Council, said: “This
report highlights that our innovative smaller businesses in Cambridge
have a greater appetite for growth than in any UK city. We know that
the Cambridge Cluster creates an all-important support system that helps
businesses invest and grow, and provide jobs for local people.
“But we are not complacent. We are working with our partners through
the City Deal to secure and invest new Government money in the Greater
Cambridge area to ensure that the conditions for growth are sustained.
And as the City Council we are determined that the benefits of growth
should be shared by everyone in Cambridge.”
The Centre for Cities’ annual Small Business Outlook puts Cambridge
small businesses at the top of the table. More of them are investing in
high growth strategies, and this makes them more likely to be more
productive and more profitable.
That means more Cambridge small businesses are focussing on quality
products, innovation, training and developing their workforce, offering
customised goods and services and operating in competitive market.
The report shows that small and medium-sized enterprises (SMEs) are
becoming an increasingly important driver of productivity growth, with
productivity rising faster in SMEs than in large firms. The ones that
adopt high-growth strategies are more likely to create more jobs, and to
be more profitable and productive in the longer term. They are more in
tune with their clients’ needs, and innovate to provide new and better
goods and services.
The report also shows that firms pursing high growth strategies also
invest more in training and developing their workforce, which helps
boost productivity, staff retention and their adaptability to changing
The Cambridge cluster effect helps ensure small businesses have access
to skills, advice and finance, which are key to success and makes
business growth more sustainable.
The report concludes by suggesting that cities such as Cambridge should
have greater control over economic development, and the ability to
target policies according to their needs.