The latest research carried out by BDO into the UK economy reveals that mid-sized businesses have boosted their overseas turnover by 63% in the last five years, despite often being overlooked and undervalued.
Revenue generated overseas by the mid-sized businesses (what BDO refers to as the economic engine) has grown from £96bn to £157bn in the last five years.
In comparison, FTSE 350 businesses experienced a decline of 15%, with smaller businesses seeing a 37% drop, bringing total overseas revenues to £521bn and £8.5bn respectively.
Regionally, mid-sized businesses in London have seen the highest turnover growth outside of the UK, recording an increase of 80% from £28bn to £50bn. The capital is closely followed by the South West and the West Midlands, reporting overseas turnover growth of 69% and 66% respectively.
From a sector perspective, financial services has led the way for overseas growth, experiencing an increase of 117% from £7bn to £15bn. Despite witnessing such significant growth overseas, domestically the financial sector lagged behind as one of the slowest growing, with just 8% growth.
Since 2016, as part of our New Economy campaign, we have been calling on the government to place these overlooked and undervalued mid-sized businesses at the heart of its policy making. Our latest New Economy report sets out five policy areas that focus on ensuring the continued success of UK businesses post-Brexit.
It is great to see the UK’s economic engine excelling both in terms of overseas and domestic growth. These are bold businesses with entrepreneurial instincts who are succeeding despite the current uncertainty.
We want to see this growth continue which is why we are calling upon the Government to do more to help this overlooked and undervalued segment of the UK economy. Simplifying tax, investing in infrastructure and prioritising skills are all policy areas that the Government should be focusing upon.
Paul Eagland is Managing Partner at BDO.