Measuring high growth firms
The Department of Enterprise Trade and Investment's Research Agenda 2012 to 2015 identified ‘encouraging business growth’ as a key theme.
In support of this theme, a research project was identified to apply an established OECD definition of High Growth Firms to NI with the aim of identifying the number and characteristics of businesses which underwent exceptional employment or turnover growth over the periods 1998-2001 to 2010-2013.
The latest bulletin is available:
The report is available to download below.
The High Growth Firm research identified a number of additional analytical questions which are subsequently being taken forward with the intention of providing them here on an ongoing basis as Update Bulletins.
Update Bulletin 1 - Same Difference? The Impact of Changing the Measure of High Growth
The High Growth Firm research had applied the OECD High Growth definition comprising a 20% High Growth rate in relation to business employment and turnover over a three year period in comparison to a baseline year. This additional analytical work investigated the impact of a wider range of ‘plausible’ High Growth rates (5%, 10%, 15%, 20%, 25%, and 30%) on both the number and characteristics of High Growth businesses identified between 1998 and 2013.
Update Bulletin 2 - 1998/01 to 2011/14
Bulletin 2 is an update to the first Northern Ireland High Growth report, originally published in June 2014. Bulletin 2 uses the latest 2014 IDBR data to provide High Growth figures on businesses for the most recent cohort period between 2011 and 2014, setting these in context with the previously published series of analytics on High Growth.
Update Bulletin 3 - Employment Growth and Contraction in NI Businesses
The presentation of figures for the level of employment within businesses or the numbers of jobs created typically reflects a static, moment-in time perspective. In reality, in any given period, some businesses expand their workforce, some businesses contract their workforce and the level of employment within any given business can remain unchanged. With an understandable focus on the total levels of employment within businesses and their distribution, or on the number of jobs created, this dynamism, the outworking of the forces of employment growth and contraction is often left hidden and unremarked.
Utilising the High Growth firm database and with a separate focus on both businesses and jobs, this Update Bulletin examines the business characteristics associated with employment growth or employment contraction in the thirteen four-year periods between 1998/01 and 2011/14 and the net effect of these competing business outcomes in each of the periods examined. A particular focus is given to the most recent 2011/14 period in terms of identifying the business characteristics which account for most business and job growth and contraction.
Update Bulletin 4 - Does Age Matter? The Relationship between Age and High Growth Businesses
Bulletin 4 presents analysis on High Growth firms by age group using the same database created for the original High Growth firm research. However, as information on the age of businesses in Northern Ireland was only available from 2006 onwards, the analysis covers each period between 2006-09 and 2011-14. Analytical work was completed looking at age differences between High Growth and non-High Growth businesses for firms employing 10 or more and for those employing between 1 and 9 staff. Five distinct age groups were examined including businesses aged: less than 2 years old; between 2 and 4 years old; between 5 and 9 years old; between 10 and 19 years old; and 20 years or older. The result of the analyses indicates that age does indeed matter in terms of the outcomes for High Growth businesses.
Update Bulletin 5 - Linking the IDBR High Growth Firms to Other Business Surveys
Bulletin 5 is the latest in the series of High Growth reports into analysing, assessing and attempting to better understand high growth businesses operating within the northern Ireland economy. Bulletin 5 explores the practicalities of linking the existing IDBR High Growth Firm database onto other Northern Ireland business survey databases and then attempts to assesses the relative successes and outcomes of this exercise. Initially, a number of business surveys over different periods were considered for linking, but in the end only two surveys were chosen – representing the greatest likelihood of producing meaningful and useful analysis. The two surveys chosen were the Northern Ireland Annual Business Inquiry (ABI) and the Manufacturing, Sales and Exports Survey (MSES). However, it is anticipated that developments in relation to a new enhanced Broad Economy Export measure for Northern Ireland, based on development of the ABI survey, will assist research on High Growth firms to reveal even more information in the future.
Update Bulletin 6 - 1998/01 to 2012/15
Bulletin 6 is the second update to the original Northern Ireland High Growth report, first published in June 2014 and which covered the period 1998-01 to 2010-13. The initial report was updated in November 2014 to include growth figures on businesses between 2011 and 2014. Bulletin 6 uses the latest IDBR data from September 2015 to provide High Growth figures on businesses for the most recent cohort period between 2012 and 2015, setting these in context with the previously published series of analytics on High Growth and extending the entire period covered from 1998-01 to 2012-2015.
Update Bulletin 7 - 1998/01 to 2013/16
Bulletin 7 is the third update to the original Northern Ireland High Growth report first published in June 2014 and which covered the period 1998-01 to 2010-13. Bulletin 7 uses the latest IDBR data from September 2016 to provide High Growth figures on businesses for the most recent cohort period between 2013 and 2016, setting these in context with the previously published series of analytics on High Growth and extending the entire period covered from 1998-01 to 2013-2016.
Update Bulletin 8 - 1998/01 to 2014/17
Bulletin 8 is the fourth update to the original Northern Ireland High Growth report first published in June 2014 and which covered the period 1998-01 to 2010-13. Bulletin 8 uses the latest IDBR data from September 2017 to provide High Growth figures on businesses for the most recent cohort period between 2013 and 2017, setting these in context with the previously published series of analytics on High Growth and extending the entire period covered from 1998-01 to 2014-2017.