How can data change the way we think about growth?

Data is increasingly transforming how we deliver growth, but it should also transform how we define, recognise and celebrate it, too.

AI and data are changing how we live and work, and economic development is no exception. With increased responsibilities and limited resources, we need to use data to target interventions and support for businesses more effectively. But the opportunity goes further than that. Data can also challenge our assumptions about what growth means and help us celebrate success and best practice in more inclusive and meaningful ways.

In this article, Nathan Shoesmith explores how data is changing not just how we deliver growth, but how we think about and celebrate it.

Why are data-driven approaches to supporting growth important?

Data-driven economic development is not new, but it has advanced significantly in recent years. The sector has moved from using data primarily to measure outputs, through to storing often outdated or static information in CRMs, and now towards using timely data to understand local economies more clearly and target interventions more strategically.

In a keynote speech last week to the Westminster Business Forum, I outlined some of the reasons why data-driven approaches to identifying scale-ups can generate greater positive impacts, alongside practical examples of how such approaches are being used in local places.

Datasets are now being used not only for evaluation, but across the sector, including on the frontline for targeting, account management and personalised support, and behind the scenes for strategic development and planning.

New and emerging datasets use a range of algorithms to unlock additional insights. For example, Growth Flag identifies which businesses are likely to achieve high growth over the next year and which businesses have signals of financial risk.

Data-driven approaches should not simply sit within a strategy; they should inform how strategies are shaped, delivered and evaluated from start to finish.

How can data-driven approaches change the way we think about growth?

Key to using data-driven approaches in economic development is allowing existing assumptions to be challenged. The best-informed decisions combine historic, current and forward-looking data with on-the-ground knowledge and insight from businesses and local partners.

The latest data, combined with direct conversations with businesses, shows that growth means different things to different organisations. Across sectors, locations and business sizes, it is not always defined in the same way, so we should avoid restricting our understanding of growth to a narrow set of metrics. Headcount and turnover remain important, but they are not the whole picture.

Productivity, innovation, profitability, export activity and more are all important considerations, especially as business activities and the labour market continue to shift as a result of AI. For example, a business introducing automation may significantly increase output and profitability while creating relatively few additional jobs. Another may increase exports without rapidly increasing turnover. Both can be examples of success that might not be captured in traditional views of data. Episodic growth patterns also mean that many businesses may not grow in ways that have been traditionally measured, while lower levels of turnover and headcount growth are increasingly a pattern for businesses.

In our work, we need to consider a wide range of metrics in order to best support local growth. Doing so can reveal varied findings and growth opportunities, including in places we might not expect. Data shows that business growth potential can be found in every part of the UK, not just major cities. It is also found across a wide range of sectors, including the Industrial Strategy’s IS-8 focus areas and in the foundational economy. Our annual Growth Outlook report shows the areas with the strongest business growth potential.

Data-led approaches shouldn’t just provide more evidence, they can also highlight new and previously unconsidered opportunities.

How can data help us celebrate business growth – and inspire more action?

While data absolutely needs to be used more in the thinking about, planning and delivery of growth, its use should not stop there. We need to use data more to spotlight where regeneration, programmes and growth are successful. This task can naturally fall down the priority list, but it is one that is vital. By sharing stories of success, we can not only build business and local pride, but inspire more action, both in other businesses and in other areas across the country.

One platform that does this particularly well is the High Growth 50. Earlier this week, I had the pleasure of being at the London Stock Exchange for the launch of the 2026 High Growth 50: a report by MC2 highlighting ambitious businesses across the North of England. The businesses are identified through their performance across a range of growth metrics, with Growth Flag acting as the data partner to the initiative. While the data is important, the real value of the report lies in the stories of how businesses have achieved resilience, growth and success in a challenging economic climate. The interviews with business leaders offer plenty of inspiration, and these are the kinds of stories we need to share more often.

When we bring businesses together, we can facilitate collaboration, create communities and generate positive social and economic impacts. The High Growth 50 is not just a report but a community, with business leaders regularly meeting to discuss the latest opportunities and challenges. In local places across the country, co-working spaces, accelerators and other forums promote similar connections and impacts. In research and data analysis, the aim should not simply be to create ranking tables, but to uncover and share new, innovative and best practice approaches across the sector.

Data doesn’t just help in bringing initiatives together, it can also unlock stories. Stories that can share opportunities, inspire people, build confidence, attract investment into places, and evidence real-world impact.

As the use of data across economic development continues to grow, we need to keep experimenting, collaborating and sharing. The biggest opportunity is not simply to use data to find growth, but to redefine how we recognise it, support it and celebrate it in all its forms.

Nathan Shoesmith is a Consultant at GC Insight, Insights and Analysis Lead at Growth Flag, specialising in data, business growth, and place-based strategy. He was named the Institute of Economic Development (iED) Rising Star of the Year in 2025.

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