MID-sized firms in Scotland are undervalued and overlooked, even though they account for more than one-fifth of private sector employment and generate £66 billion of revenues, accountancy firm BDO has claimed.
The contribution made by mid-sized firms, defined as those having an annual turnover between £10 million and £300m, is underlined in new research published today by BDO. This shows, although they make up less than one per cent of all firms in Scotland, mid-market companies account for 22 per cent, or 439,000, of the private sector jobs in the country.
BDO said the 2,094 Scottish companies in the mid-size bracket which were analysed together contributed £66bn every year in revenue and £20bn annually to economic output on the gross value added (GVA) measure. However, BDO claimed mid-market companies were caught in a "policy and profile black hole".
It added that these firms were too large to benefit from policies tailored to small businesses, but too small to win the attention that the largest corporates and FTSE companies commanded from the media and policy-makers.
BDO has also published its own 'Mid-Market Manifesto'. It believes the policies proposed in this manifesto could "unlock the potential of the mid-market", adding nearly £1.3bn to the total revenues of mid-sized companies in the UK and creating thousands of jobs.
These proposed policies cover procurement, tax, and education and skills. They include measures relating to exporting, manufacturing, and retailing.
BDO proposes a temporary reduction in employers' National Insurance contributions for manufacturing companies, and the award of government contracts on the basis of the employment and training benefits to the supply chain, not cost alone.
Martin Gill, partner and head of BDO in Scotland, said: "Without a shadow of a doubt Scotland's mid-market is undervalued and too often overlooked. Mid-sized firms contribute a remarkable amount to GDP (gross domestic product) and jobs, and what's exciting is that, with the right support, these businesses have the potential to deliver even more for our economy."
Looking ahead to next year's UK general election, Mr Gill said: "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."
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