Home Economy Mid-sized businesses leading the charge on job creation in Scotland
“High-growth mid-sized businesses are the backbone of the Scottish economy…”
Mid-sized businesses have created nearly 80,000 jobs in Scotland over the last five years – outstripping the job growth of the country’s large and small businesses – according to new research from accountancy and advisory firm BDO.
Since 2011, job numbers in Scottish mid-sized businesses have increased by 23% from 336,000 to 414,000. In comparison, jobs in Scotland’s large businesses saw a reduction of jobs of 15% over the last five years from 568,354 to 480,000. Small businesses in Scotland have seen an increase of 11% from 87,000 employees to 97,000.
Yet despite having such an impact in Scotland, mid-sized businesses risk being overlooked as the UK prepares to leave the European Union, according to BDO’s ‘New Economy’ report.
With so much uncertainty facing the UK, BDO is calling on the Government to prioritise the needs of mid-sized companies as one of three areas that policymakers must get right in order to create a ‘new economy’ that can thrive in the post-Brexit environment.
The three areas in the ‘New Economy’ report that BDO is calling upon the Government to focus on are:
(i) Encourage the UK’s fast-growth mid-sized businesses (the UK economic engine)
(ii) Create sector and geographic powerhouses
(iii) Ensure open and simple access to global markets and talent
The report’s proposals – which suggest twenty two policy recommendations – include a call for the Government to choose ‘simplicity over subsidy’ for the UK tax code, helping to simplify the tax system to support mid-sized companies; to cut through red-tape and commission ‘shovel-ready’ infrastructure projects that bring immediate economic impact; and battling hard to retain a variant of the financial services passport which is a core pillar of the UK’s economic success.
Martin Gill, Head of BDO LLP in Scotland, said: “High-growth mid-sized businesses are the backbone of the Scottish economy. They contribute jobs, revenue and profits to our region yet, because they are so hard to define, they are overlooked and undervalued.
“With Brexit and more uncertainty looming, this is the time for the Government to engage with this part of our economy and draw on their natural energy, ambition and entrepreneurial spirit to create a ‘new economy’ and help the UK succeed post-Brexit”.