Royal Bank of Scotland and NatWest Group have published a new report on the mid-market businesses of Scotland and the UK that finds these companies “are often overlooked by support designed for smaller firms or large corporates.”
Titled ‘The Middle Speaks: narrowing the mid-market conversion gap through technology, talent and trade’ the report said mid-market businesses, defined as those with turnover of £10 million to £100 million and/or 50 to 500 employees, are often overlooked by support designed for smaller firms or large corporates.
Analysis in the report by Scale Up Institute identifies over 4,400 Scottish mid-market businesses who collectively employ 644,000 and have an annual turnover of £122 billion, reflecting the immense contribution that the mid-market makes to the Scottish economy.
However, despite creating jobs, driving innovation, strengthening supply chains and supporting local communities across Scotland, the report said this segment remains relatively underserved and not well understood.
The report argues that mid-market businesses represent one of Scotland’s greatest growth opportunities. However, for this opportunity to be unlocked mid-market businesses need to be supported, especially in three key areas – tech, talent and trade – where they lag behind the specialist skills, leadership capability and organisational resources available to larger companies.
Tackling this “conversion gap” is key to ensuring future growth in this segment, the report said.
NatWest Group CEO Paul Thwaite said: “Mid-market businesses already make a significant contribution to the UK economy. They are one of the UK’s greatest growth opportunities, but too many are held back because, despite having distinct needs, the segment is often overlooked.
“As the number one bank for mid-sized companies, we have the specialist expertise, local knowledge and financing capabilities to help mid-market customers address the challenges they are facing and reach their full potential as growth engines of our economy across every nation and region of the UK.”
Kevin Havelock, Mid-Market Champion for Royal Bank of Scotland, said: “Scotland’s mid-market businesses are an essential component of our economy, but one that often falls between the cracks in policymaking when compared with small businesses and larger corporates.
“This report makes an important contribution on how government and industry can together equip them with the expertise to continue to innovate at home and successfully export to international markets. Throughout my engagement with Scottish mid-market businesses I am consistently impressed by their growth aspirations, they just need the right support in the right areas – like tech, talent and trade – to realise that ambition.
“As Scotland’s largest bank for mid-market firms, the Royal Bank will continue to lead the discussion around tackling the conversion gap so that these businesses can unlock their full growth potential.”
ScaleUp Institute CEO Irene Graham said: “The mid-market does not lack ideas or appetite—it lacks a system designed around the challenges firms face as they get bigger, become established, and continue their drive for growth. They still need the support to grow in accessing the expertise, skills and export services that can turn proven potential into sustained scale.”