Research figures from a report by Grant Thornton showed that mid-sized businesses contributed £262bn to UK GDP in 2014 with a predicted £413bn contribution annually to the UK economy by 2020.
First the worst, second the best, third the one with the hairy chest - an old rhyme proving that being the middle man gives you the title of success. This has been demonstrated by the UK’s mid-sized businesses who this year have overtaken small businesses and large firms with higher gross profits and annual growth.
Mid-sized businesses (MSBs) are excelling ahead of smaller and larger companies, with a rate of 6.5% growth in turnover and a 5.8% UK GDP growth expected from MSBs in 2015.Predictions from Grant Thornton’s Agents of Growth report that was published earlier this week, showed that MSBs could be contributing a colossal £413bn per year to the UK economy by 2020 to kickstart us into economic recovery.
"Medium-sized businesses have done fantastically well through the crisis, and continue to outperform the market across many important metrics, supporting our view that they are critical to driving the UK's economic growth,” said Chris Frostwick, partner and practice leader at Grant Thornton. MSBs, the friendly neighbourhood businesses that hold between 50 and 499 employees each, are set to save the UK economy one step at a time. The sector currently employ 4.2 million people, and predictions show that 500,000 more jobs will be created by 2020, calling the nations champions up for hero duty to eradicate the UK’s crippling debt…and of course create successful businesses.
The East Midlands has seen a £300m rise in annual collective turnover this year compared to 2013, as well as 5000 employed into MSBs this year making the region the third highest for annual growth in the UK, only closely behind Northern Ireland and London.
The report revealed the 25% of companies surveyed expressed that regulation red tape and lack of skilled talent are hindering company success in an uncertain economy. Speaking ahead of the autumn statement, delivered yesterday by the Conservative Party, Frostwick urged that more is needed to “promote productivity and growth, particularly looking at: skills, exports and incentivising businesses to invest and innovate.” The tories have delivered the answers to business prayers, for once, after announcements of further funding, a fuel duty freeze and increased tax credits for research and development could help UK businesses excel. The report also showed that 4.5% of MSBs will boost exports and 2.8% will invest further funds into their companies. The Fuel Duty freeze is predicted to see a major growth in business export.
The UK could finally see the light at the end of the debt tunnel if MSBs continue to thrive.