The UK is a superb place to start a business. With an established financial sector ready to offer growth finance, an efficient professional services infrastructure and a highly skilled talent pool, the UK remains one of the most attractive markets for those starting their growth journey.
However, there has been a persistent issue with helping growing firms taking the leap from start up to more established members of the middle market. Whether a lack of capital or unwillingness to invest further, going from small to medium in the UK has been tough.
To address that, a new government-supported group is being established to represent the UK’s mid-sized businesses, often overlooked despite their significant contribution to the economy.
According to a NatWest report, these “unsung” firms could add an additional £115 billion to the UK economy by 2030 with the right support, driving growth particularly in regions outside London and the southeast.
Mid-sized businesses account for just 0.5% of UK companies but employ over 7.3 million people — more than a quarter of the private sector workforce. They play a crucial role in areas such as the West Midlands, northeast England, Yorkshire and the Humber, and Scotland, the report found.
However, challenges including skill shortages, poor regional infrastructure, and a lack of representation are holding back their growth. To address this, a “mid-market council” is set to launch in 2025, supported by the NatWest bank and the Department of Business and Trade. The council will act as a unified voice for the sector, representing key industries and addressing critical issues such as infrastructure, planning, and skills shortages.
Paul Thwaite, NatWest’s CEO, stressed the importance of giving mid-sized companies greater visibility: “They don’t have a collective voice. There’s a lot of talk about small businesses, and large corporates have their own platform. These businesses need to be treated as a distinct segment.”
Jonathan Reynolds, business secretary, welcomed the creation of the council, noting that mid-sized businesses have the potential to outpace other market segments in growth, exports, and productivity. He said the council would “amplify their voice” and unlock untapped potential in the sector.
Paul Beare, who works with both growing UK businesses and those outside the country aiming to set up in the UK, said it was key for smaller businesses to get the right support early on to help them. “Establishing your business in the mid market is an ambition for many of our clients, but to do that they need to draw on the right support to get there.
Whether that’s investing in the right technology, hiring the right people or accessing suitable finance to grow, getting it right is vital. That’s why at Paul Beare Ltd we use our experience in the market to help our clients with everything they might need – from banking and tax, to payroll and company secretary services.
“The UK is a great place to be a growing business – now it’s time to prove it’s a great place to thrive too.”
The squeezed middle:
- Over 13,000 of these businesses exist across the UK, employing 7.3 million Britons;
- They represent just 0.5% of the total number of UK companies, yet each MMC contributes the equivalent of 200 SMEs to the economy;
- They contribute £1.3 trillion of turnover and £420 billion of Gross Value Added (GVA) to the economy;
- With the correct support, MMCs could contribute an additional £115bn to turnover and £35bn of GVA by 2030, and for areas outside of London and the South East, the growth potential could be up to £70bn and £24bn for turnover and GVA respectively
If your business is at the beginning of its growth journey – and you aspire to grow into a sustainable and thriving business, then you need time, patience and luck to succeed. You also need high quality advice and support from your professional partners. That’s why at Paul Beare Ltd we offer a full range of accounting services, from tax and payroll to accounting and banking.
- Written by: Paul Beare
- Posted on: December 6, 2024
- Tags: feature, Setting up in the UK