Life is getting harder for 'boutiques' in consulting.

I've had numerous conversations recently with founders or partners of SME consultancies in the UK, and the question I often get is; how are others doing? These conversations reveal a segment under significant pressure. Most of the talk these days in consulting revolves around the big 4 or MBB but boutiques are a critical component of the industry.

Representing roughly 20% of the UK's £20bn+ consulting market, these firms are facing unprecedented challenges even as the overall market growth decelerates.

I took on further research, combining these 1-on-1 dialogues with market analysis, and it paints a clear picture:

▪️ SMEs form more than 95% of all consulting firms but are navigating a tough landscape.

▪️ Growth disparities are stark: medium-sized boutiques are the ones that really struggled for growth since 2016.

▪️ Boutiques grapple with intense hurdles that are limiting their growth: talent shortages, limited brand recognition, financial constraints, access to capital, geographic expansion, long sales cycles, regulatory complexity, and the urgent need for digital/AI adoption - with which there is a lot of confusion.

This is a deep dive into the state of the boutique segment in consulting—their key challenges, emerging opportunities, and the investment outlook. Having led the scaling of such an organisation for six years until recently, I'd always wanted to have a resource and a platform to lean on for understanding these issues and working on shared opportunities. That is why I decided to do this review.

There is a full report that contains further critical insights. Feel free to write to me directly if you'd like to learn more.