Professor Simon Bolton, Associate Dean (Enterprise, Skills and Employability), explains how a team at Edge Hill University launched a baseline review of the city region’s professional business services (PBS) sector — which generates a turnover of £36.98billion.
The review shows that the PBS sector is not just a support player but a cornerstone of the region’s economic framework and a driver for potential economic growth.
We show that the PBS sector is a critical enabler of growth for other key sectors within the region, such as life sciences, advanced manufacturing, and the creative and digital industries.
I’d go even further — it is clear to me that the health and vitality of the PBS sector will directly influence the broader economic landscape.
In short, the findings have significant implications for businesses, stakeholders, and policymakers looking to foster sustainable growth. For the latter, the report crucially identifies the businesses with scale-up potential.
High-growth potential identified
Edge Hill University’s SME Growth Observatory has a unique methodology to spot place and sector-based growth potential businesses. The Liverpool review identified approximately 2,285 high-growth potential businesses within the PBS sector. The modelling used within the review indicates that, if given targeted support, they could drive substantial economic expansion.
Modest, but targeted investments of scale-up support in the medium term could see a return of £480,000 for every pound invested. This could translate into an increase of £228.5million to £514.3 million in new revenue into the sector and the creation of 1,000 to 1,500 new jobs.
However, for the Liverpool City Region to take full advantage of this potential it requires businesses, local authorities and stakeholders to work together.
By aligning efforts and strategically investing in the PBS sector, unprecedented economic growth and a prosperous future are there for the taking. This collaborative approach will ensure that the identified high-growth potential businesses receive the support they need to flourish.
Are you sitting on hidden growth data?
The insights from this particular baseline review are limited to Liverpool City Region. However, the broader lesson here is clear: other regions across the UK are likely sitting on valuable data that, when analysed by a skilled team like ours at Edge Hill University, could reveal hidden potential growth areas.
I firmly believe that by harnessing the power of data many more regions can ensure strategic investment works to their strengths. They can uncover the hidden assets and drive sustainable growth. In short, our expertise in economic analysis and strategic planning can help regions fully realise their full potential.
We are happy to speak to local authorities and business leaders from other regions to consider how similar reviews could unlock significant economic opportunities in their areas. For those interested in delving deeper into our findings or exploring collaborative opportunities, I encourage you to connect with us.
For more information or to explore collaborative opportunities, go to: edgehill.ac.uk/departments/support/e3i/supporting-business/pic/
July 22, 2024
