New research it released today shows that mid-sized businesses, despite accounting for just 1 per cent of businesses, generate a combined turnover of more than £1tn annually, 31 per cent of private sector turnover. They employ 6.2m people, a quarter of the total employed by the private sector.
But BDO suggests that businesses this size, whilst not benefitting from the scale that FTSE companies enjoy, are not benefitting from Government policies aimed at small businesses.
Its new “Mid-Market Manifesto” sets out a range of measures it believes will tackle this inequity.
It suggests using the tax system to incentivise entrepreneurs to grow their company, giving mid-sized businesses a single contact point with HMRC, widening mid-sized businesses’ access to Government funding schemes and addressing skills problems.
It also suggests a temporary national insurance cut for manufacturers and action to boost the awarding of council contracts to mid-sized firms.
Simon Michaels, managing partner at BDO, said: “Compared to other European nations, Britain’s middle-market is undervalued and overlooked. Despite already contributing a remarkable amount to UK GDP and jobs, these businesses have the potential to deliver even more.
“The UK Government has done a good job at promoting the general needs of business but more can be done to help Britain’s mid-market specifically. As we begin the run-in to a general election, this is a good opportunity to reflect on the needs of this section of our economy, as all political parties consider what they can do to drive economic growth.”
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