Scaleups are the UK’s powerhouse businesses, generating around £1.4 trillion in revenue and employing 3.2 million people. These high-growth companies are vital to the economy, yet they continue to face challenges that limit their growth. The Scaleup Institute’s 2024 Annual Review highlights the key barriers preventing scaleups from accelerating their success – and, more importantly, how our business community can help.

Today, as the UK rebounds from the post-pandemic slowdown, the number of scaleups has grown to 34,180 – an increase of 27% since 2013. An additional 16,450 businesses are in the pipeline, spanning all regions and sectors. Despite making up just 0.6% of UK businesses, scaleups now contribute over half of SME output, highlighting their outsized impact on the economy. So what are the key takeways?

 

Key Findings

  • Scaleups drive economic impact: They contribute over half of SME turnover and are responsible for 3.2 million jobs nationwide.
  • International expansion is a priority: 50% trade internationally, and 70% plan further global expansion, particularly in emerging markets.
  • Innovation is a core strength: 9 in 10 have introduced or improved a product, service, or process in the past three years, making them twice as innovative as larger firms.
  • Strong growth expectations: 90% expect growth in the next 12 months, with 25% forecasting over 50% growth in turnover or employment.
  • A focus on social responsibility: 60% operate as social businesses, contribute to the green economy, or meet ESG goals. 70% support young talent through apprenticeships and internships, and 20% offer returnerships for those re-entering the workforce.
  • Progress in leadership diversity: 37% of scaleups have at least one female director, indicating positive change at the executive level.
  • High productivity: Scaleups generate £449,317 in turnover per employee, outpacing their peers in efficiency.

 

What are the main challenges faced by Scaleups?

  • Access to Markets: For the third year running, scaleups say their biggest headache is getting into the right markets. Whether it’s cracking corporate supply chains or expanding internationally, they need better access to opportunities.
  • Finding the Right Talent: More than half (58%) of scaleups struggle to hire and keep the right people. The demand for skilled talent is high, and many businesses are finding it hard to compete.
  • Growth Capital Bottlenecks: Despite their success, many scaleups say funding is still too London-centric, making it tough for businesses outside the capital to access the investment they need to grow.
  • Leadership & Infrastructure: Having the resources and support to build strong leadership teams and having access to the right workspaces & local community networks are key factors in helping scaleups grow sustainably.

 

How We Can Help and What are the Recommendations?

To unlock the full potential of scaleups, we need to take action. One of the recommended ways to support these businesses is by improving access to key markets. Initiatives such as ‘meet the buyer’ events can help scaleups connect with major corporations and government contracts, giving them the opportunities they need to grow. Sussex Innovation is exploring new models to make these introductions with industry experts more accessible and to help foster connections across different sectors – find out more about joining our members community and accessing the benefits of our network here.

Attracting and retaining skilled talent is also identified as a crucial challenge. Programs that connect businesses with the right people can ease recruitment pressures, ensuring scaleups have the expertise they need to thrive. Expanding access to investment beyond London is equally important – by decentralising funding opportunities, scaleups across the UK can secure the backing they need to scale successfully. If you’re looking to recruit top talent, why not join us at our latest ‘future of tech talent‘ event, or explore opportunities to hire young talent from the University of Sussex here.

Leadership development and collaborative workspaces also play a vital role in sustaining scaleup growth. Tailored training programs can help founders build strong, resilient teams, while well-equipped spaces and local networks provide the infrastructure needed for long-term success. If you’re a Sussex business seeking investment, get in touch to learn more about the University of Sussex Business Angels Investor Network here and find out more about our smart spaces for scaleups.

Startup culture is often celebrated for its potential to drive innovation, but scaleups represent an even greater economic opportunity. The ScaleUp Institute’s work highlights key policy interventions that can accelerate their success. As the government advances its industrial strategy to create a more resilient and innovative economy, scaleups must be at the heart of the UK’s economic agenda.

These businesses are not just growing; they are creating jobs, driving innovation, and building a more sustainable future. Supporting them isn’t just good business – it’s essential for the UK’s economic growth.

Read the Full 2024 Annual Review here