MID-SIZED businesses are managing to thrive despite the tough economic climate, according to a new study, reporting faster turnover growth over the last year than the UK average.
The study revealed that mid-sized firms, which typically employ 50-499 people, have seen no significant decline and in the last year have reported faster turnover growth at 4.1 per cent, than the 3.2 per cent UK average.
The research, undertaken by the Centre for Economics and Business Research on behalf of Grant Thornton, showed that Yorkshire & Humber is among those regions with the highest turnover from mid-sized businesses – more than £40bn – and is also one of the most productive, ranking fifth out of the 12 UK regions in the research.
With an estimated annual turnover of £628bn in 2011, the total contribution to the UK GDP by mid-sized businesses is £285bn. UK mid-sized firms also employ around 4.1 million people, or 20.8 per cent of the UK workforce, 318,000 of which are located in Yorkshire & Humber.
In the last year, mid-sized firms have created 52,000 jobs throughout the UK, increasing headcount in the sector by 1.4 per cent, compared to the national average of 0.4 per cent. Jonathan Riley, senior partner for Grant Thornton in Yorkshire, said: “These results tell a clear and very positive story, that medium-sized businesses – many of the UK’s most dynamic organisations – are integral to the recovery prospects and long-term health of the British econo- my.
“Fortunately, we have a relatively high number of medium-sized businesses in our region.”