A new report reveals that the impact of the Professional Business Services (PBS) sector on the Liverpool City Region’s economy is massively underplayed.
This comprehensive Baseline Review carried out by Edge Hill University uncovers that the PBS sector — which encompasses firms that provide support services to other businesses, including legal, accounting, consulting, advertising, and management services — is far more significant than previously acknowledged and plays an essential role in fostering growth across various key sectors.
The review — which uses Edge Hill’s unique advanced algorithm — has also identified high-growth potential businesses within the PBS sector. It states these firms, if given targeted support, could drive significant economic expansion. A copy of the report is available via a link at the end of this article.
Key findings from the report indicate that an investment of £1.6 million annually over five years could yield a remarkable return of £480,000 for every pound spent. It has also identified the potential to create between 1,000 and 1,500 new jobs.
The report’s authors say that PBS firms in the region, collectively generating a turnover of £36.98 billion.
It emphasises the sector’s crucial support to the growth of the region’s Life Sciences, Advanced Manufacturing, Creative, and Digital industries.
Steve Stuart, Chair of the Professional Services Advisory Board of the Liverpool City Region, said:
“This is the first and most comprehensive report of its kind, shedding light on the pivotal role of Professional Business Services in our regional economy. The findings present a clear call to action for more targeted support. By investing strategically in the identified high-growth potential businesses, we can unlock immense economic benefits and secure a prosperous future for the Liverpool City Region.”
The report says there are approximately 2,285 companies with high growth and scale-up potential. It states that targeting these businesses would translate into a substantial economic boost.
Professor Simon Bolton, from Edge Hill University, said:
“The analysis underscores the vital importance of the PBS sector as a backbone of economic growth. Through our predictive models, we have identified the potential to create between 1,000 and 1,500 new jobs, contributing up to £500 million to the economy over a three to five-year period with an investment of £8.2 million.”
Key Highlights of the Review:
• The PBS sector’s £36.98 billion turnover makes it the most significant sector in the LCR.
• PBS can play a key role as a growth catalyst for all other sectors.
• There are 2,285 high-growth potential businesses.
• Focused business support can unlock further growth —with huge boost in jobs and ROI. Target increase in turnover per SME: £500K – £1 million.
The detailed report provides a comprehensive analysis of the existing support landscape, highlighting areas where additional efforts could maximize the growth potential of high-performing PBS firms. This targeted approach ensures that resources are effectively utilized to foster innovation and job creation in the region.
Access the report here.