Scotland’s mid-sized businesses have made a significant contribution to a recovery in the UK total.
Mid-sized UK businesses have weathered the global downturn better than those in the renowned German Mittelstand, according to new figures released by business advisory and accountancy firm BDO.
The snapshot of the European mid-market released by BDO this week shows that the turnover of the UK’s mid-sized firms at €1.92 trillion (£1.4 trillion) now exceeds that of the German Mittelstand at €1.8 trillion.
Scotland has contributed significantly to this success story.
Latest BDO figures show that there are more than 2000 mid-market firms in Scotland (revenue between £10 million and £300 million a year) employing 440,000 people. Scottish mid-market firms turnover £66 billion each year.
Since 2009, the Mittelstand has grown by 12% compared to the mid-market by 33%. The UK has also overtaken Germany in terms of the number of people employed in their respective mid-markets – the UK employing 9.3million people compared to Germany’s 9.2million.
The Mittelstand forms the backbone of the Germany economy with approximately 43,500 companies and has traditionally led the way for mid-sized businesses in Europe.
Martin Gill, Managing Partner at BDO in Scotland, said: “The UK mid-market is leading Europe. This is a massive achievement – one that we should be proud of, but not complacent about. Germany has always invested in its mid-market; it has policies directly aimed at the Mittelstand and culturally the Mittelstand stands as the economic backbone of the nation. While the UK’s mid-sized businesses are worth more than the Mittelstand for the time being, there is so much more we can do to cement our position as Europe’s mid-market leader.”