Beauhurst (professional platform for information on the UK’s most ambitious companies) currently tracks over 5,000 companies that have visibly met the OCED’s definition of a scale-up: an enterprise with average annual growth in employees or turnover greater that 20% per annum over a three year period, and with more than 10 employees at the beginning of the period.
One in ten of those companies are based in the North West. Manchester is particularly densely populated, with over 200 scale-ups comprising one fifth of the high-growth businesses in the Local Enterprise Partnership (LEP) These figures place high in the national rankings for absolute and percentage terms outside of London, only falling behind Leeds City Region and South East LEP.
This is surprising when we consider the age and history of the market in the North West. 26% of high-growth companies in Manchester are considered to be around 15 years old with multiple offices and a lot of traction. This is a significantly higher proportion than other areas in the UK, with twice as many as in London, but notably less than in Leeds (33%).
The area does boast a large portion of firms that are creating Manchester their Northern Powerhouse – recently moved include Freshfields, Bryan Cave Leighton Paisner and Clyde and co. Law firms take up a whopping 13% of the office space in Manchester as a result modern new office driving law firms forward.
In keeping-with the North West’s reputation as an industrial powerhouse as well, the scale-ups in the region are most likely to be in the industrial sector (40%) and business and professional services (41%). Whilst only 12% of UK scale-ups are in tech sectors, Manchester has a particularly small tech scale-up population at jus t around (7%).
Whilst only 2% of Manchester scale-up have a female founder (half that of the national average), an encouraging 58% have at least one female c-suite employee, vastly exceeding the national average of 41%. These figures show that Manchester is undoubtedly a driving force in the Northern powerhouse, showing fast and sustained growth over time. Making it a suitable place to practice law, and recruit the best talent the North can offer.
Written by Joseph Kersey - Senior Recruitment Consultant (Manchester, Leeds, York).
Data Findings - about.beauhurst.com
Story feature - May - June edition of Business Leader magazine