Mid-sized firms ‘driving UK growth’

Mid-sized firms ‘driving UK growth’

Britain’s mid-sized firms grew 5pc over the past five years, outperforming both small companies and large corporations, a report by Grant Thornton has found.

Ahead of The Telegraph’s Festival of Business on Tuesday, which aims to help British firms innovate and grow, new research from the accountants has shown that, despite generating the lion’s share of growth for the UK economy, mid-sized firms are lacking real support from the Government.

Much of the Government’s rhetoric is currently geared towards small firms, the report says. However, new research shows that between 2007 and 2012, mid-sized businesses (MSBs) grew 5.4pc, compared with 0.7pc for SMEs and 2.4pc for large companies.

There are currently 34,100 mid-sized firms in the UK, compared with 1.1m small businesses and 3,180 large companies. These medium-sized companies increased their average growth across the previous five-year period to hit 3.1pc.

Grant Thornton’s “Agents of Growth” analysis shows that MSBs contributed £270bn to the UK economy in 2012 alone. This is equivalent to the UK’s entire financial services and real estate sectors combined, worth £158bn and £108bn respectively.

London’s mid-tier firms are storming ahead of the rest of the country, increasing turnover between 2011 and 2013 by £19.5bn. Over that same period, the turnover growth for MSBs in the North East was £540m, showing the need for further support for firms outside the capital.

Scott Barnes, CEO of Grant Thornton, said of the research: “The CBI is right to call [MSBs] the ‘forgotten army’ of our economic recovery, taking more risks and proving more resilient than other types of firms.

“It is the dynamism of these mid-market organisations that is creating growth throughout Britain.”

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