Mid-market businesses leading the economy
Mid-market firms make up less than 2% of the UK’s businesses, but manage to provide more than one-third of GDP and employ more than one-third of the workforce. They punch way above their weight, so you can see why for the large part this sector feels ignored.
GE has put together some financial insights into this growing and optimistic business sector.
Mid-market firms exist in that land between SMEs and big, exchange listed companies. Too large to be one, but not big enough to be the other.
But the mid-market is the success story of the UK’s business world, with growth nearly equalling that of Germany’s mid-market, and with its optimism far stronger. And compared to the other major European economies, the UK’s mid-market has higher future growth predictions.
Size is a key factor in this. Costs are kept tight, and mid-market firms are able to be nibble to both challenges and opportunities for growth.
And that growth is matched by how willing the mid-market is to invest in innovation.
Of course, that investment comes at a cost, with mid-market firms citing cash flow and access to loans as major obstacles they face.
Employment is also a problem. If the UK’s mid-market had matched that of Germany it would have created 80,000 new jobs.
The bedrock of the mid-market’s success has been the domestic market, but opportunities and optimism for exports is high in the sector.
Watch the video, and click through to see the extent of GE’s mid-market insight, featuring The Mighty Middle iBook, and infographics on the growth of the middle