In March 2013, a NESTA report was published which suggested that companies which experienced higher productivity were more likely to experience high growth in sales. And other experts confirmed that, in a self-reinforcing process, these high growth firms (HGFs) are also more likely to achieve higher productivity.
However, not all businesses are high growth - indeed, evidence suggests that this does not happen until a firm has been established for 5-10 years. But, while they account for only 1% of the business population, HGFs created 36% of new jobs between 2008 and 2013.
Recently, the FSB researched and funded a much-needed report into the productivity of SMEs by an All-Party group of MPs.
The 54-page document highlighted 7 obstacles to small business productivity and gave recommendations for their resolution. However, they miss off a couple of crucial challenges which continue to blight small businesses.
Here are the 7 obstacles from the Report: