BDO research shows mid-market grows overseas revenues to £190bn
The UK’s mid-market businesses have continued to strengthen their global presence, with revenues generated overseas rising by 6% in the last year despite ongoing supply chain disruption and wider global economic certainty, according to new data from accountancy and advisory firm BDO.
The figures show that overseas revenues generated by the mid-market now stand at £190bn, growing almost twice the rate of smaller businesses. This figure accounts for 8% of total mid-market turnover, which rose by 3% in the same timeframe, to £2.44tn.
Despite representing less than 1% of private UK companies, the UK’s mid-market, defined by BDO as businesses with revenues between £10m-£500m, now accounts for more than 40% of all private sector revenues and provides more than one in three private sector jobs, demonstrating the outsized contribution it makes to the UK economy.
London remained the UK’s largest contributor to overseas mid-market revenues, generating £62.7bn following a 10% year-on-year growth. The South West also recorded 10% growth, taking overseas revenues to £8.2bn.
As a proportion of total turnover, the South East tops the table, with mid-market businesses generating almost one in every ten pounds from overseas. London and the North East also demonstrate a strong international presence with close to one in every £11.
Separate data from BDO’s bi-monthly Mid-Market Tracker, a survey of 500 decision makers in mid-sized businesses, found that a fifth plan to make significant investment in international expansion over the next 12 months.
Richard Austin, partner at BDO, commented: “The UK’s mid-market continues to demonstrate its importance to the economy, not only through the jobs and revenues it generates domestically, but increasingly through its success in overseas markets.”
“While ongoing economic uncertainty, rising costs and geopolitical volatility creates a difficult trading environment, these businesses continue to identify opportunities for growth beyond the UK. That overseas revenues continue to grow against this backdrop reflects both the ambition and resilience of mid-sized businesses.
“The ambition is there, but government must ensure the conditions for growth are too by removing the barriers that prevent more mid-sized businesses from scaling internationally. With the Budget approaching, the government has an opportunity to support the economic engine that is the mid-market and create a more competitive environment for all.
“That means simplifying the tax system and making overseas trade easier by improving access to export support and finance. With the right conditions, the mid-market can deliver even greater international growth and strengthen the UK’s competitiveness.”