Cllr Lewis Herbert, Leader of Cambridge City Council, said:
“This report highlights that our innovative smaller businesses in Cambridge have a greater appetite for growth than in any UK city. We know that the Cambridge Cluster creates an all-important support system that helps businesses invest and grow, and provide jobs for local people.
“But we are not complacent. We are working with our partners through the City Deal to secure and invest new Government money in the Greater Cambridge area to ensure that the conditions for growth are sustained. And as the City Council we are determined that the benefits of growth should be shared by everyone in Cambridge.”
The Centre for Cities’ annual Small Business Outlook puts Cambridge small businesses at the top of the table. More of them are investing in high growth strategies, and this makes them more likely to be more productive and more profitable.
That means more Cambridge small businesses are focussing on quality products, innovation, training and developing their workforce, offering customised goods and services and operating in competitive market.
The report shows that small and medium-sized enterprises (SMEs) are becoming an increasingly important driver of productivity growth, with productivity rising faster in SMEs than in large firms. The ones that adopt high-growth strategies are more likely to create more jobs, and to be more profitable and productive in the longer term. They are more in tune with their clients’ needs, and innovate to provide new and better goods and services.
The report also shows that firms pursing high growth strategies also invest more in training and developing their workforce, which helps boost productivity, staff retention and their adaptability to changing market conditions.
The Cambridge cluster effect helps ensure small businesses have access to skills, advice and finance, which are key to success and makes business growth more sustainable.
The report concludes by suggesting that cities such as Cambridge should have greater control over economic development, and the ability to target policies according to their needs.
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