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Scaleups are the most innovative and productive SMEs. In 2020, the latest figures from the ONS, they contributed £1.2 trillion to the economy, 50% of the total contribution by all SMEs. This is despite being only 0.6% of the total SME population.  They are estimated to be 42% more productive than their peers.

According to 'Scaling Beyond Frontiers - Scaleup Annual Review 2022', the latest ONS figures from 2020 show that the scaleup economy actually managed to grow slightly, despite the impact of covid. Despite a myriad of concerns, in the ScaleUp Insitute's 2022 survey, an overwhelming majority of scaleup CEOs (90%) still expect to grow in 2023, 80% expect to grow turnover, and 70% expect to increase their workforce.

However, they also made clear that several barriers and pain points remain to scaling further. Three-quarters see Access to Markets, whether domestic or international, as the most significant challenge. It is closely followed by Access to Talent and Access to Growth Capital. They are clear that enterprise agencies and growth hubs have value, and want to further improve the engagement from financiers, advisors and universities.

The focus on exporting remains, with the majority currently exporting and wanting to export further, including to Australasia, the Middle East, China and India. They still need better help finding overseas partners and customers, and the joined up support required t make this happen.

Scaleups also want to achieve greater penetration into the public sector market, as well as improve collaboration with the government. They think that the current system still contains too much friction, is difficult to navigate, and lacks clarity.

Regarding finance, they remain much heavier users than their SME peers and, in particular, VCs and Angels are key sources of equity. Half still think they do not have sufficient capital to meet their current growth path and feel that too little funding is available outside London and the South East.