Could SME label be affecting mid-sized businesses?
The small and medium sized enterprise label covers a vast array of companies of all shapes and sizes but could it be holding back the larger ones?
According to research, many of the UK’s mid-sized businesses feel they should be treated differently to smaller companies due to their needs being different.
The research by BLME suggested that small and medium businesses should be treated under separate categories as it is believed the SME label is holding some businesses back from further expansion.
The Confederation of British industry described medium sized businesses as the “forgotten army” as they represent just 1% of all business but account for 22% of economic income and 16%of all jobs.
Support for start-ups and small enterprises have increased in the past few years with several government schemes and several campaigns underway to provide financial assistance.
However, this is not the case for medium-sized companies that are wishing to expand as finance is said to be a lot harder to come by.
As a result there are fears that the mid sector market is being forgotten which in turn could lead to an increasing number of these sized firms entering administration or requiring corporate restructuring methods.
It is believed that mid-sized firms contribute around £700 billion every year to the economic output of the UK, highlighting just how important the sector is.
In order to grow, these businesses require access to finance to fund the process, which also enables them to attract higher-calibre staff and grow links with larger companies.
Almost a quarter of the businesses in the survey believed the government requires a business minister specifically to deal with medium-sized business issues.
They believe targeted support would remove the need for restructuring methods and open up more opportunities for growth.
With SMEs expected to play a leading role in the economic recovery, this could be a vital step in ensuring the trends seen in 2013 continue into next year.