According to a new report from the National Institute of Economic and Social Research, commissioned by Google, the UK’s digital economy is 40% larger than official statistics have previously suggested. 270,000 companies make up the digital economy, with businesses from all different sectors unlocking the potential of digital in their own space. Digital companies, when compared with non-digital companies, are generating 25% more revenue growth and on average employ 3 more people.
The report also criticises the government‘s ‘out-dated’ economic classification system for allowing the digital economy to miss out on government support due to misleading reporting. It claims that the idea that technology companies are all just un-profitable startups is no longer the case, since the widespread use of ‘Big Data‘ and cloud-based software has meant that even traditional industrial businesses are becoming digital.
Hopefully this realisation will filter into policy-making circles and improve the funding environment for digital entrepreneurs.