Mid Size Businesses power the UK but need support

Mid Size Businesses power the UK but need support

 3 Jul 2019

Recent, comprehensive research by Sarah McKenna from www.msbleaders.com in conjunction with the Salford Business Schools has revealed the critical importance of mid sized businesses to the UK economy.

These companies are those between 50 and 499 employees and whilst they only represent 1.5% of UK businesses they contribute 22% of tax revenues and are the single greatest collective in regards to job creation… so its an important group that have long been without the recognition and support they deserve & need.

These organisations presently derive a substantial proportion of their revenue from export markets including the European Union. The uncertainty around Brexit has been more than a distraction for these companies who have retracted into ‘managing for decline’ mode, which is full scale consolidation which is inhibiting job creation and impacting the economy via the many obvious knock on effects.

Over 40% of ‘MSB’s’ have shifted their commercial focus to the development of the domestic UK markets and have great ambition to replace any losses from the EU in post Brexit Britain with improved domestic performance. To succeed with that strategy of deriving more from a market that is circa 15% as large as the EU , with increased competitive focus and the associated impact Brexit has on the availability of talent, restricted access to R&D, services, raw material etc innovation is the only way.

Its hard to see a clear winner in the post Brexit MSB space as the ‘war for talent’ intensifies, margin pressure increases and leaders & Board Directors are confronted by new contemporary challenges with no historical comparison to draw experience from.

The challenge is intensified by the need for investment in innovation at both a financial and structural level and given MSB’s traditionally uncomfortable relationship with financiers and reluctance to engage with external advisors with relevant expertise we may be walking toward the ‘perfect storm’

There is a massive need to insightful, progressive advisors to step up and collaborate with executives, leaders and business owners to try and create a clear direction of travel for UK businesses. Expertise and ‘grey hair’ has never had a greater value!

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