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Productivity & Growth

Business schools are critical to the Government’s growth mission and are pivotal anchor institutions in their local economies, attracting other businesses, investors, and talent to our cities, regions, and nations.  

Our members play a vital role in addressing key economic challenges across the UK economy, from addressing regional inequality and a lack of productivity, to upskilling management. They are a key resource of expertise for government, regional stakeholders, and businesses in delivering place based economic growth, raising productivity, and supporting growth.

The UK productivity gap and the link with management skills 

The UK has a long-standing productivity gap compared to other G7 countries, with the ONS estimating that labour productivity was on average 18% higher in the other six members of the G7 relative to the UK. There are a number of factors behind this productivity lag, notably the lack of awareness of the behavioural characteristics of successful leadership and comparatively low levels of investment in management training by organisations.

These gaps particularly affect Small and Medium Sized Enterprises (SMEs), who are more likely to have low productivity compared to their larger counterparts and are less likely to adopt modern or structured management techniques and business technologies. SMEs also tend to have the lowest scores on surveys designed to measure the quality of business management and leadership.

Economic growth and the Small Business Charter 

In 2014 the Chartered ABS launched the Small Business Charter (SBC). Developed by Lord Young, the Department for Business, Innovation and Skills, and the Chartered ABS, the SBC was established to signpost entrepreneurs, small businesses, and local economic stakeholders to business schools in their region with the expertise to help them thrive.

The SBC’s mission is to power economic growth through business schools who excel in supporting small businesses, supporting student entrepreneurship and supporting local economies. The SBC and accredited business schools offer high-quality business support within reach of SMEs in every region and nation of the UK.

There are 68 accredited business schools across the UK that have undergone rigorous assessment of their support for small businesses and entrepreneurs.  

SBC business schools are a key gateway to enduring entrepreneurial support 

  • Our research shows that business schools are the primary institutions business leaders turn to for support, with 81% of respondents stating their first interaction with a university was through a business school. 

  • These initial connections often lead to a deeper engagement, with over half (52%) of small businesses continuing to have further engagements with their local business school or the wider university, averaging 4.5 follow-up interactions. 

  • By being brought into the business school and university ecosystem, these ongoing engagements unlock further value by producing further benefits for businesses and their leaders’ personal development.

  • Government-backed initiatives, such as the Help to Grow: Management Course, are the most common first point of contact, indicating that public investment in business support schemes is generating long-term value for SMEs.

  • Beyond funded activity, business leaders access a range of business support from business schools and the wider university. These include executive education, networking events, student placements, and knowledge transfer partnerships.  

  • Amidst an uncertain backdrop domestically and internationally, the survey shows that leaders are clearly looking for ways business schools can support them in developing their leadership and management capabilities (56.5%), diversification strategies (45.3%), and their AI and digital adoption strategies (42.9%) 

Productivity and the impact of the Help to Grow: Management Course 

In 2021, the Chartered ABS, through our Small Business Charter accreditation, became the government's delivery partner for the Help to Grow: Management Course. The course is designed to help SME business leaders and senior managers to increase productivity, innovation and growth within their organisations. Delivered by Small Business Charter accredited business schools, the 12-week course is available in more than 60 locations across the UK and Ireland, with 90% of the fee participants pay covered by the government.

The course had enrolled over 11,850 business leaders by May 2025. According to the independent evaluation undertaken by Ipsos, participants have reported improvements in their management and leadership capabilities:

  • 91% reported increased awareness of factors that drive business productivity and growth  

  • 91% reported improved leadership and management skills  

  • 87% reported improved understanding of employee engagement  

  • 74% reported increased resilience

  • 62% reported increased sales  

 

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