A newly established government-supported organization aims to advocate for the interests of “unsung” mid-sized businesses, following a report emphasizing their essential role in driving economic growth.

The NatWest report indicates that with adequate support, medium-sized enterprises could add an impressive £115 billion to the UK’s economy by 2030, significantly influencing regions beyond London and the southeast.

Research highlights that just a 1 percent growth in this sector could inject £35 billion into the economy. However, these businesses face hurdles such as inadequate infrastructure and skill shortages, as noted by the bank.

In response to worries that mid-sized companies’ concerns are eclipsed by the agenda of large and small business representatives, a “mid-market council” is being formed to amplify their voice.

According to the report, mid-sized firms, comprising only 0.5 percent of UK companies, contribute to over a quarter of private sector jobs in the UK. With approximately 13,000 such businesses employing 7.3 million people, they play a crucial role in regions like the West Midlands, northeast England, Yorkshire and the Humber, and Scotland.

Paul Thwaite, the chief executive of NatWest, expressed to The Times that mid-sized enterprises need better representation as they often do not receive recognition as a unique category.

He stated, “They lack a collective voice. While small businesses are frequently discussed and large corporations have their platforms, the narrative around policies often overlooks mid-sized firms as a distinct group.”

NatWest is collaborating with the Department of Business and Trade to establish the council, which is set to launch in 2025, with members from various key sectors.

The report also pointed out shared challenges for mid-sized businesses, particularly in skills access, with many unable to fill positions at all levels. Additionally, prevailing regional infrastructure and planning issues pose significant barriers.

Many mid-sized companies located outside London and the southeast are disproportionately affected by infrastructure challenges, including housing shortages, transport inefficiencies, and limited broadband connectivity. These issues are often exacerbated by an obstructive planning system that hinders growth.

Unlike Germany’s “Mittelstand,” UK mid-sized businesses reportedly lack a cohesive identity, which restricts their ability to collectively advocate for the support and policies that could foster their growth.

Thwaite expressed hope that the new group would serve as a platform to facilitate necessary changes and unlock the potential growth that exists within mid-sized enterprises.

Jonathan Reynolds, the business secretary, noted that “mid-market corporates have the potential for rapid growth, increased exports, and enhanced productivity compared to other market segments.” He welcomed the formation of the council, aiming to “amplify their voice.”