Despite economic challenges, the UK’s mid-market has grown revenues and employment in the last year, according to new research from accountancy and business advisory firm, BDO.
Mid-sized businesses in Yorkshire and the Humber outperformed the majority of other regions, reporting a 14% growth in revenues and a 4% increase in jobs in the last year. Total revenues generated by these businesses reached £99bn and they provide more than 600,000 jobs.
In comparison, London’s mid-sized businesses recorded the most significant turnover growth of 17%, outperforming all other UK regions. However, job growth in mid-sized businesses in London was lower, at 1.5%.
Businesses with revenues between £10m and £300m, AIM listed, and private equity owned, what BDO calls the economic engine, grew overall turnover by 12% in the last year, to £1.5tn. This compares to overall turnover growth of 10% for FTSE 350 businesses and a reduction of more than a third (36%) in turnover for smaller businesses, defined as those with less than £10m in revenues.
Mid-sized businesses also demonstrated resilience in employment levels, reporting an increase in jobs of 1% in the last year. This brings the total number of employees to eight million, accounting for one in four UK jobs.
In comparison, FTSE 350 businesses saw the total number of employees fall slightly by 1%, to five million. Smaller businesses recorded a reduction of 15% with the number of employees dropping to two million.
Terry Jones, Head of BDO in Yorkshire (pictured), commented: “Yorkshire’s businesses have remained incredibly resilient over the last few years, despite facing major hurdles including Brexit, the pandemic, the cost-of-living crisis, and now the threat of a recession.
“The recent Budget may have given some cause for optimism for some, but many will feel that policies didn’t go far enough. Additional funding for the local areas as part of the Government’s ‘levelling-up’ agenda were welcomed, but businesses want to see targeted incentives and policies that boost growth to remain competitive.
“Despite creating one in four jobs across the UK, mid-sized businesses are at risk of being overlooked. Spread across the UK, with the right support and policies, their growth will be the driving force behind the UK’s economic recovery at a time when we need it the most.”
