Medium-Sized Businesses Are UK’s “Economic Engine” As Overseas Turnover Up 50% Since 2011
The government has been urged to consider the significance of medium-sized firms, as Article 50 negotiations begin in two days
UK medium-sized businesses have reported that their overseas turnover is up 50% since 2011, according to a report from the BDO.
Outperforming UK FTSE 350 and smaller firms, medium-sized enterprises generated £127bn in 2016 – up from £84bn five years previously.
Despite the backdrop of Brexit in 2016, the “economic engine” of the UK economy remained buoyant and increased its international sales from £119bn to £127bn – a 7% rise.
In contrast, the levels of overseas trade of FTSE350 and small businesses in 2016 fell 30% (from £524bn to £366bn) and 13% (from £12bn to £10.4bn) respectively.
With Article 50 negotiations set to begin from Wednesday, the government has been urged to consider the significant of small and medium sized businesses to the economy – with the UK’s 30,000 medium firms accounting for one third of all UK turnover.
Paul Eagland, managing partner at BDO, said:
“High-performing and entrepreneurially-spirited mid-sized businesses are the economic engine of UK international growth. Despite all the uncertainty of the past twelve months these companies have taken calculated investment risks and prospered.
The success of these businesses should not be taken for granted and, with Article 50 being invoked in two days’ time, it is crucial that the government factors the needs of these mid-sized businesses into their thinking ahead of negotiations.”