Book launch reveals the most powerful business group in Gloucestershire
"It was all about the launch of a book on financial management, but it revealed probably the most powerful group of businesspeople in the county – a group that could be about to influence Government," wrote Andrew Merrell, lead journalist and founder of The Raikes Journal in Gloucestershire.
Here as a guest blog he shares his thoughts on the evening. This article first appeared in The Raikes Journal on 19th June 2025.
Book launch reveals the most powerful business group in Gloucestershire
It was all about the launch of a book on financial management, but it revealed probably the most powerful group of businesspeople in the county – a group that could be about to influence Government.
By Andrew Merrell.
A government seeking a formula to drive economic growth needed to look no further than Gloucester Rugby Club on Monday evening. In fact, a regular at Downing Street was in the room listening.
This was the launch of a book its authors, a Gloucestershire businessman and an academic and former Government advisor, believe contains a message powerful enough to transform millions of companies.
But it was also an event that suggested something else - a changing of the guard in Gloucestershire and a significant new voice for business.
There were 150 guests at Kingsholm Stadium’s Captain’s Lounge - leaders of some of the county’s most dynamic and fastest-growing companies, plus policymakers, anchor organisations like the University of Gloucestershire, representatives from local government, and more.
Others tuned into the live stream from Australia, Malaysia, Denmark, Germany, Brazil, Canada and India, to watch authors, Dr Stewart Barnes and Professor Malcolm Prowle, quizzed by journalist and presenter, Jill Douglas MBE.
It was an audience of the calibre not seen since one of GFirst LEP’s annual gatherings, back when the local enterprise partnership was in its prime, and an event that would not have looked out of place high up the bill at the Cheltenham Literature Festival.
Except this was Gloucester - and this was a book about the niche subject of Developing Financial Leadership in Small-Medium Businesses, co-written by Barnes and Prowle.
At the core of the audience were 100 alumni of QuoLux, the leadership development firm run by Barnes, Jo Draper and Rachael Ramos, based at Elmbridge Court.
“It is interesting for us to hear that other anchor institutions view QuoLux as an anchor institution too as they consider us to be the pre-eminent leadership development organisation for SMBs in the area.
“The large gathering may be a physical manifestation,” said a clearly flattered Barnes, speaking post-event.
If you wanted hard evidence of the impact of QuoLux and its leadership programmes on businesses it was on a banner stage left.
On average, delegates from its LEAD™ programme saw turnover increase by 42 per cent, profits by 197 per cent, productivity by 47 per cent and staff numbers rise by 19 per cent.
Tim Watkins, managing partner at Randall & Payne, was at the book launch and on the very first cohort to go through LEAD™.
“One of the big benefits of the QuoLux programme is the cohort itself. You get to know people from very different businesses with whom you can share the challenges you are facing.
“The ability to talk to them – and learn from one another – is invaluable. We work at a financial and board level with a lot of businesses already and see how powerful a good understanding of finances can be.”
But the night was all about the book, which uses research and data to back its argument - that good financial leadership cascaded down through dynamic businesses can be transformative.
It might sound obvious, but think on this… apparently 65 per cent of businesses have no business plan, let alone any measurable targets, financial or otherwise.
The book contains real case studies of businesses QuoLux has worked with during the last 15 years, including some who were in the room that evening - which also points to the organisation being a key catalyst for Gloucestershire’s economic growth.
Barnes and Prowle believe a Government seeking levers to help the UK grow, achieve better productivity, overcome the skills shortage and raise more tax revenue, will find answers within the book.
Key is identify what the pair call the UK’s ‘small-medium businesses’ (SMBs) - and separating them out from the traditional broader SME (small to medium-sized enterprise) grouping.
Do this and you reveal a significant force for growth, keen to learn and change, willing to tackle environmental issues, to prioritise sustainability, to put its community first and create jobs and driven by growth.
“There are 5.5 million companies in UK. Single-person companies (those that don’t employ anyone) there are 4.1 m of those. Micro-business (those with between one and nine employers), there are 1.1 million of those,” said Barnes.
“Ninety-five per cent of businesses are often single-person companies and micro businesses and have no intention to grow and they don’t look to employ any more staff.
“If the county is going to do anything about growth, then we believe it’s the SMB (small-medium businesses) that are going to do this.
“There are only roughly 250,000 SMBs. That’s just five per cent, but the economic wealth; the output; the wealth generated by that five per cent is almost a third.
“So, five per cent of companies in UK produce 33 per cent of the wealth. They are the ‘Vital 5%’ and society owes much to the few.”
Prowle, a former consultant for big business and an advisor to Government, now professor of performance management at the University of Gloucestershire, added: “When we look at the media and Government there is an emphasis on big business, multinational business. Yet 33 per cent of GDP is from the SMB sector.
“I was shocked when we found that figure.”
Barnes added: “Our concern is that when people talk about SMEs, it is a general title that brings in 99.9 per cent of companies.
“We’re concerned the five per cent we’ve mentioned is subsumed into that total and overlooked.”
Since the pandemic (2020), said Barnes, there were 0.5 million fewer single person businesses.
Why was unclear, but the figure suggested those former self-employed workers had mostly moved into full-time roles in the SMB sector as those businesses had grown.
Which means there are 4.1 million similar single-person businesses are still out there.
“Imagine, if you can encourage 3.1 million single person businesses into working in SMBs and let’s say they each receive an average salary of £30,000, that’s roughly £5,000 tax for each person,” said Barnes.
“Multiply that £5,000 by 3.1 million and you have £16.5 billion in extra revenue. You have £20 billion with the additional employer National Insurance contributions.
“You’d gain in increased productivity, and with that perhaps the figures goes up to £24 billion. That’s equivalent to the difference required to have defence investment of 3.5% and meet NATO’s proposed requirement from members! All from a change in focus – no tax rises or increases in immigration.
“Remember, most single person businesses don’t pay VAT. They are geared not to pay personal tax. Most fail within 10 years.”
He added: “The people who have been running their own businesses have, I would argue, more get up and go – an entrepreneurial spirit – exactly what you want in your business.
“I would argue it is harder work to try to deliver growth by focusing on getting the 2.1 million long-term sick into work.”
It was leadership development that was driving the growth at those SMBs, said Barnes, and good financial leadership was a significant element of that equation. And the book spells out how to achieve that and more.
Rhiannon Hooper, a partner at Hazlewoods accountants who was at the Kingsholm event, said: “What a lot of businesses realise is that they don’t always have to employ someone outright. A good accountant working with the business should be able to provide the right advice.
“It’s not just about good accounting, it is about what else you can offer.
“We often get calls from new senior hires who want us to help them run through the financials because they know there is value in understanding them.
“As Stewart said, what is also good practice is if they can they help the staff understand too – and to be clear what the KPIs of the business are.”
Chris Wills, partner at Willans solicitors, who was also at the launch, agreed with the emphasis on the power of creating the right culture.
“Often it is not about trying to understand everything, it is about not pretending you know everything. It’s about having the confidence to ask the right questions,” said Wills.
“It’s about recognising there are experts around you, using them, and knowing how to get the most from that relationship to get the most out of your business.”
The book concludes with the authors suggesting, “The future lies in more financially aware leaders – people who can and are prepared to take the managed risks. It is these entrepreneurial SMBs who drive economies, and policy makers and anchor institutions should focus on supporting them as their success will be everybody’s success.”
Most interesting, there were 150 business leaders nodding in agreement.
Keep up-to-date on the latest leadership and management tips by signing up to our weekly blog here