Sage: UK Scale-ups Achieve 43% Annual Revenue Growth

A new study by Sage, the accounting and business management software provider, has found that the UK's fastest-growing firms have achieved average annual revenue increases of 43% over the past three years. 

This growth rate is more than twice the benchmark set by the Organisation for Economic Co-operation and Development (OECD) for scale-up businesses.

The research, conducted in February in partnership with Strand, surveyed 500 senior executives from high-growth UK businesses. 

The study divided participants into two categories: 258 leaders from 'Scale-ups' - companies that have sustained 20% or more annual growth in employees or revenue over three years - and 242 leaders from 'Next-Gen Scale-ups' that have reached the 20% growth threshold in at least one of the past three years.

Technology Investment Fuels Growth

Technology adoption emerges as a central factor in this growth trajectory, with 90% of respondents identifying tech investment as a key accelerator for their businesses. 

Nearly a quarter (23%) report having fully integrated artificial intelligence into their operations, indicating the increasing role of AI in business processes across the scale-up sector.

This technological integration comes against a backdrop of economic pressures including inflation and constraints on funding. Nevertheless, 89% of these high-growth firms expect their growth to accelerate further in 2025.

“Scale-ups drive innovation, jobs, and global competitiveness, making them vital to the UK's economic future,” says Steve Hare, CEO at Sage. 

“With 94% of scale-up leaders seeing the UK as the best place to grow and most expecting faster revenue growth in 2025, our entrepreneurial spirit is clear.”

Steve adds: “We may not be tech leaders in the same way as the US and China, but the UK can lead in tech adoption and the progress it brings. 

“By placing scale-ups and SMBs at the heart of the forthcoming Industrial Strategy, we can unlock their potential, accelerate growth, and cement the UK's place as a leader in innovation for businesses of all sizes.”

Global Expansion While Maintaining UK Presence

The research indicates that UK scale-ups are increasingly international in their outlook, with 67% already operating in markets beyond the UK. More than a quarter (27%) have plans to expand their global footprint further.

Despite this international focus and growing competition from other countries, these businesses remain committed to the UK. 

The vast majority (94%) view the UK favourably as a base for their operations, and 95% plan to maintain their headquarters in the country.

Myles Stephenson, Founder and CEO of Modulr, a payment platform for digital businesses, says: “The UK's scale-up ecosystem is thriving, with technology and AI driving record growth. Businesses are scaling faster, expanding globally, and embracing innovation like never before. 

“At Modulr, we're powering this momentum with seamless, embedded payments—helping ambitious companies move money as fast as they grow.”

However, the research highlights that continued government support remains essential for these businesses. 

Access to finance, skilled talent and a competitive tax environment are identified as priority areas where policy intervention could enable further growth.

Irene Graham OBE, CEO of ScaleUp Institute, an organisation focused on making the UK the best place to scale a business, emphasises the economic significance of these firms: “Scaleup businesses, across sectors and localities, add over £1.4tn (US$1.8tn) a year and more than 3 million jobs to the UK economy, despite representing just 0.6% of the UK business population.”

Irene notes: “Scaleups are highly innovative and international and these survey results reinforce their growth and global aspirations and continued desire to scale at pace. 

“If we are to grow the economy then we need to enable our scaleups to flourish and turbo charge the numbers of businesses that scale to significant size.”

The research comes as the UK government prepares its industrial strategy, with calls for scale-ups to be central to this planning. Rt Hon Baroness Stowell of Beeston, Chair of Communications and Digital Select Committee 2022-2025, warns of potential consequences if appropriate support is not provided.

“It's great to see in this survey such positivity from scale-ups, and such a strong desire to stay in the UK as they continue to grow. It's vital that the Government puts in place the right policy framework to make sure they can fulfil their potential and succeed,” says Baroness Stowell.

She adds: "As the House of Lords Communications and Digital Select Committee said in our recent report on AI scale-ups, the risk of the Government not doing so is this country becoming an incubator economy, where our strongest performers have no choice but to leave the UK for them to grow. We can't afford for that to happen."

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