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In an era where capitalism and the raison d’etre of business is constantly under review, stakeholders increasingly demand that businesses should not exist simply to maximise profits, but expect them to contribute to broader goals, particularly those focused on Environmental, Social and Governance (ESG). 

The report examines one crucial element of the “Social” aspect of ESG which all companies – and specifically companies with a recently issued IPO – can use to promote social mobility and wealth distribution. 

The key findings include: 

In the first 12 months after coming to market

  • Companies with a market capitalisation at listing of less than £1bn, on average, grew employee numbers by between 17% and 32%
  • In year two, this increased by a further 10% to 22%
  • Companies that started with a market capitalisation below £500m, on average, grew employee numbers by between 20% and 34%
  • In year two, this increased by a further 11% to 22%.
  • Longer-term perspectives show that the workforce doubles by year four

Read the full report .

Tim Ward, Chief Executive, Quoted Companies Alliance said:

“The results of this research suggest that IPOs are a catalyst for job creation. At a time where society is looking for business to support social mobility, equality and inclusion, we need to ensure that our equity markets remain attractive and open to growing companies across the UK at all times. The potential jobs created as a result of this are a crucial aspect of wealth distribution. Initiatives such as the Hill Review, being aimed at improving the listing environment, are very welcome. What we don’t want to see is job creation being threatened, and ultimately paralysed, by overburdensome regulation which puts off companies and directors from the stock market, such as many of the proposals contained in the recent BEIS consultation.”

Keith Hiscock, CEO, Hardman & Co said:

“Our research shows that IPOs create jobs as well as enabling a wide spread of investors to share in the wealth creation. The public markets provide access to the capital that ambitious companies need to turbocharge growth. Every help should be given by government to help aspiring companies along this path.”

– Ends –

Notes to the Editor: 


Data was collected, filtered and analysed from the London Stock Exchange dataset. Further detail on the methodology can be found within the report

About the QCA

The Quoted Companies Alliance is the independent membership organisation that champions the interests of small to mid-size quoted companies. See more information here.

There are around 1,250 small and mid-size quoted companies in the UK, representing 93% of all quoted companies. They employ approximately 3 million people, representing 11% of private sector employment in the UK, and contribute over £26bn in annual taxes (source).

About Hardman & Co 

Hardman & Co provide independent investment research and advice that helps companies communicate with investors, wherever they are. They are a rapidly growing, innovative corporate research & consultancy business, based in London, serving the needs of both public and private companies.

Their expert team of sector analysts and market professionals collectively have over 400 years of experience.  This depth of knowledge and a reputation for integrity have built trust with investors. With effective communication and precision distribution, they help companies disseminate their investment message to interested investors, as well as advise them on strategy.


Ruby Halabi

Communications, The Quoted Companies Alliance


T: 020 7397 8140

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