NatWest’s ‘Critical Middle’ has revealed mid-market corporates (MMCs) represent just 0.5% of UK companies but account for 26% of employment nationally and 30% of employment in the North West. And with the right support, 1% growth in segment could add £35bn gross value add to the UK economy and £115bn in business turnover by 2030.

Mid-market corporates (MMCs) play a significant role across the North West’s jobs market, employing  30% of the workforce – a figure which is higher than the national average of 26%.

NatWest’s Critical Middle report has identified that UK mid-market businesses have an oversized impact on the UK economy, are particularly important to regional economies and are the unsung engine of the economy:

• c.13,000 of these businesses exist across the UK;
• while being only 0.5% of the total number of UK companies each MMC business contributes the equivalent of 200 SMEs to the economy;
• every year they contribute £1.3trillion of turnover and £420billion of Gross Value Added (GVA) to the economy nearly one third of all companies;
• with the correct support, MMCs could contribute an additional £115bn to turnover and £35bn of GVA by 2030. For areas outside of London and the South East, the growth potential could be up to £70bn and £24bn for turnover and GVA respectively, and
• employ 7.3million Britons – 26% of the total and are essential employers across the UK’s regions.

MMCs are crucial to regional economies, often employing a large proportion of their local community. As well as employing 30% of the North West’s workforce, they contribute significantly to employment in the West Midlands (24%), North East England (23%), Yorkshire and the Humber (27%) and Scotland (27%). In aggregate they employ more than 1.2million more individuals than large non-financial corporates.

MMCs are also present across all sectors, with 20-30% share of turnover in most industries. MMCs form a higher proportion of the education sector, including many universities and private schools, and the property sector, while being less present in retail and agriculture.

MMCs face distinct challenges that, if left unaddressed, could hinder their potential. From the need for enhanced access to skills and resources to the complexities of compliance and reporting, these growing pains require targeted action from all stakeholders involved—financial institutions, Government bodies, industry associations, and the corporates themselves.

In response to these issues and to provide a unified voice to this critical segment, the bank with the support of the Department of Business and Trade has created a new UK Mid-Market Council, with members representing the primary sectors from across the business sphere.

We have also launched a  Mid-Market Growth Tracker, in collaboration with S&P Global, which provides a quarterly view of sentiment across the UK mid-market, giving an ongoing view of this sector’s sentiment and growth prospects in every corner of the UK.

And NatWest is partnering with the UK Export Academy, with the aim to help educate and encourage businesses to begin exporting to EU and International markets. The report cited knowledge, networks and compliance as major barriers for mid-market businesses who want to commence trading internationally; this partnership will aim to break down these barriers and provide mid-market businesses with the confidence and expertise to expand their business into foreign markets.