Medium sized UK businesses are resisting the wave of rising inflation and continuing to grow, according to a study.
Revenue for these businesses – with revenues of between £10m and £300m – increased by 12 per cent in 2022 to £1.5 trillion and reported job growth, according to accountancy firm BDO.
Mid-sized companies in London grew their top line by 17 per cent, with financial services companies in the capital increasing revenue by 47 per cent. Businesses in the north of England saw nine per cent growth.
See also: 5 UK fintech start-ups to know about in 2023
Small businesses with revenues less than £10m suffered a different fate, however, with turnover falling by more than a third.
Inflation peaked at 11.1 per cent in October. A recent survey found 41 per cent of businesses are absorbing extra costs, while 27 per cent are passing them on.
Andrew Bailey, the governor of the Bank of England urged small businesses to not continue increasing prices to reduce the risk of inflation continuing for longer – comments which the FSB said were “insulting to small businesses”.
Tech companies are some of most resilient in the UK, with a recent report suggesting the tech market could increase to $4 trillion by 2032 with the help of Government support and more venture capital investment.
The Government also revealed plans to back AI and other technology businesses with £250m in a bid to secure the UK as a technological and science superpower by 2030.
“With the right support, mid-sized company growth will be the driving force behind the UK’s economic recovery at a time when we need it the most,” BDO’s managing partner Paul Eagland was quoted as saying in The Times.
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