Are medium-sized UK firms undervalued and overlooked?
The UK’s mid-sized firms do not receive the recognition they deserve regardless of their contribution to the economy, according to accountancy and advisory firm BDO LLP.
This is despite new published research suggesting that mid-sized firms generate more than £1 trillion in revenue every year – despite only accounting for less than 1% of all UK firms.
That figure accounts for almost a third of all private sector turnover and one in four private sector jobs in the UK – some 6.2 million roles.
However, BDO says mid-sized firms are caught in a “policy and profile gap” – essentially too large to benefit from SME initiatives and too small to be noticed by FTSE firms and the media.
Managing Partner Simon Michaels made the remarks relating to mid-sized firms, comparing them with others in different European countries.
These areas of concern are being addressed in part by BDO’s own Mid-Market Manifesto, a set of policies designed to unlock further potential.
It is hoped the policies will help medium-sized firms to add more than £1 billion to the UK’s gross domestic product, while also creating jobs in the process.
Many of the businesses already have the potential to deliver more than they already do, but are held back by a lack of clear direction and support.
In some cases this is placing pressures on company finances, but with the correct restructuring and management, the negative effects can be managed effectively.
The government has already supported many businesses with different incentives but the feeling that more can be done still remains.
It is thought further plans could be launched in the run up to the general election in 2015 in a bid to earn votes from the business world.
A focus on the economy remains paramount and BDO has identified several key areas where it believes recommendations are required.
Given the unique position that medium-sized businesses find themselves in, it is easy to see why they could be viewed as undervalued – the emphasis is on the ends of the scale and not in the middle.
As a result, careful management is required as there can be no guarantees for these firms in the current business climate.
By Phil Smith