Medium sized businesses leading economic recovery

Businesses that employ between 50 and 499 people and have an annual turnover of between £10 and 100 million are leading the UK's economic recovery, research from the Confederation of British Industry (CBI) has found.

Medium-sized businesses (MSBs) make up just 1.8 per cent of the private sector in the UK. However, they created 185,000 new jobs and increased turnover by an average seven per cent between March 2010 and March 2013: more than double that achieved by large firms in the same period.

The CBI research shows that MSBs:

  • employ 4.7 million people across the UK - 16 per cent of our total workforce
  • generate 23 per cent of total private sector revenue
  • are estimated to contribute more than £300 billion to the UK economy
  • represent just 2.2 per cent of businesses in the North East but generate 48 per cent of private sector revenue
  • have created 15,000 more jobs in the East Midlands since 2010.

The CBI's director general, John Cridland, said:

"The UK's medium-sized businesses are the unsung heroes of our economy and have done much of the heavy lifting to drive the UK recovery.

"These firms are optimistic and want to make the most of the recovery. With the right help from the Government their future growth potential could be even greater.

"With better access to a range of growth finance options, improved training and research support, and help to break into new exports markets - these firms could be worth an extra £20 billion to our economy by 2020."