It hopes the injection will help accelerate growth among Britain’s mid-market, and provide a welcome uplift to the economy. The UK’s MSBs currently contribute £165bn a year to GDP – an increase of 33 per cent in five years.Medium-sized companies have previously been referred to as Britain’s “overlooked success story”, due to little official support but recording impressing numbers nonetheless. Research by business advisory group Grant Thornton said the number of businesses in the space have increased by over five per cent from before the 2007 financial crisis – outpacing 1.6 per cent rise in larger companies and a 0.9 per cent decrease in small businesses. Grant Thornton said this could be further boosted with help to increase exports and close the skills gap. Mid-sized firms contribute one fifth of employment and turnover in the UK, with Grant Thornton calculating that the mid-market has 34,000 companies of 50-499 employees. LDC – formerly known as Lloyds Development Capital – said this pledge would also be useful as its expertise would be a great tool for these businesses to utilise when planning to scale domestically and internationally. Some 17 per cent of mid-sized firms export beyond Europe – and the percentage of UK MSBs that have international operations compares unfavourably with Germany and the Eurozone. Nearly half of German “Mittelstand” firms have international operations, compared to 29 per cent of UK MSBs. Read more on the UK’s mid-market:
- British mid-market firms are punching above weight, says study
- Brittelstand vs Mittelstand: Who would win in a clash of the mid-market titans?
- Prime minister David Cameron lifts lid on scheme to create British Mittelstand
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