New report from accountancy firm BDO reveals the region’s smaller businesses also performed well, experiencing a 9% increase and creating 13,271 jobs, bringing the total number of jobs to 161,315
Mid-sized businesses in the North West have created more jobs in the last year than FTSE 350 and small businesses combined, according to new figures from accountancy firm BDO.
Despite often being overlooked and undervalued by the Government, mid-sized businesses in the region created 51,376 additional jobs in the last year, a 7% increase from 726,342 to 777,718.
The North West’s smaller businesses also performed well, experiencing a 9% increase and creating 13,271 jobs, bringing the total number of jobs to 161,315.
The 11 FTSE 350 firms in the region fared less well, with a 0.50% reduction in jobs growth on the previous year. However, turnover increased slightly from £52.1bn to £55.8bn.
The national story paints a similar picture of growth for the mid-market. In total an additional 500,000 jobs were created by mid-sized businesses last year – an increase of 8%.
This compares with smaller businesses, which created 100,000 more jobs, (+7% increase). FTSE 350 businesses experienced a reduction in jobs nationally, down by 1.2% at a loss of 80,000 jobs.
These high-growth, entrepreneurial and ambitious businesses (which BDO calls the UK economic engine) punch well above their weight, accounting for only 0.5% of all UK businesses (29,000) but over one third of UK revenue (£1.3tn) and almost one in three private sector jobs.
BDO defines the UK economic engine as being a combination of privately owned businesses with a revenue of between £10-£300m, private-equity owned businesses and AIM-listed companies. Large businesses were defined as those in the FTSE350 and small businesses defined as those with a revenue below £10m.
Despite playing such a pivotal role, mid-sized businesses risk being overlooked by policy makers according to BDO’s ‘New Economy’ report.
The report outlines five key policy areas aimed at boosting the UK economic engine post-Brexit. Ideas include radically simplifying the UK tax system, creating regional and sector powerhouses, tackling the UK skills gap and increasing productivity by boosting the Annual Investment Allowance.
Ed Dwan, partner and head of the North West at BDO, said: “North West businesses continue to perform well, experiencing strong employment and turnover growth. While small businesses in the region are thriving – reporting a 9% increase in job creation – mid-market companies continue to power the regional economy.
“Despite the continued uncertainty around Brexit and the resulting political and economic concerns, mid-market businesses have remained resolute in their ambitions, targeting growth and creating more than 51,000 new roles during the last year.”