Overlooked mid-sized firms need more help – BDO
MID-SIZED firms in the North West are under-valued and over-looked despite their importance to the economy, according to accountancy firm BDO.
Research carried out by the firm shows that mid-market companies account for 1% of all businesses in the region and yet are responsible for 24% (448,000) private sector jobs.
The 2,996 North West companies analysed, which have a turnover between £10m-£300m, also contribute £99bn in revenue and £31bn of gross value added (GVA) – a measure of economic output – every year.
But, according to BDO, the mid-market is caught in a “policy and profile black hole” – too large to benefit from policies tailored to small business, but too small to win the attention that the largest corporates and FTSE firms command from the media and policy makers.
It has published its own Mid-Market Manifesto – a set of policies that it argues could unlock the full potential of the mid-market. BDO said measures concerning procurement, tax and exporting to retail, manufacturing and education and skills could add over £1.3bn to mid-sized companies’ revenues and creating thousands of jobs.
Tim Entwistle, partner and head of BDO in the North West, said: “Without a shadow of a doubt the North West’s mid-market is under-valued and too often over-looked. Mid-sized firms contribute a remarkable amount to GDP and jobs, and what’s exciting is that with the right support these businesses have the potential to deliver even more for our regional economy.
“The Government has done a good job at promoting the general needs of business but more can be done to help mid-sized firms specifically. As we begin the run-in to a general election, this is a good opportunity to reflect on the needs of this section of our economy, as all political parties consider what they can do to drive economic growth.”