Despite an extended period of uncertainty, exacerbated by the COVID-19 pandemic, AIM companies are driving productivity and business growth. Philip Secrett and Rob Turner share the key findings from our report.
AIM is the London Stock Exchange’s (LSE) international market for smaller-growing companies. It provides access to capital, as well as on-going and external finance to ambitious companies which enables them to make a step change in their development.
In 2023 AIM companies contributed £35.7 billion gross value added to UK GDP and directly supported more than 410,000 jobs. In addition, these companies made a corporation tax contribution of £5.4 billion to the Exchequer. These figures grow considerably when their supply chain expenditure is taken account of. Our report shows that AIM companies are generally more productive than the national average.
By enabling companies to raise external finance coupled with the IPO process that enhances and strengthens the business’s operations, AIM also supports the wider funding continuum and facilitates sustainable, long-term growth.
They're significantly outperforming private entities in fundraising and have generated four-times as much of their revenue from overseas exports.
You can read our full analysis of AIM companies' economic impact and key findings in our report.
What can the Government do?
These findings highlight the potential for AIM to make a valuable contribution to the Labour Government’s mission to support the economy through the creation of good jobs and productivity growth. However, if AIM is to play a part in this the Government needs to ensure that the comprehensive and well-calibrated package of fiscal and incentives and reliefs is maintained.
By committing to the ongoing availability of this targeted support, the Government can facilitate successful entrepreneurs and new businesses in identifying and delivering the industries and services of the future. This would support markets like AIM to help businesses secure funding and encourage a culture of innovation, investment, and enterprise across the UK which will be critical to delivering against the Government's mission.
For more insight and guidance, get in touch with Philip Secrett or Rob Turner.
