Economic growth over the next two years is set to be driven by thriving innovation and enterprise among UK midcaps – companies with a turnover of £20m a year or more – according to a new report from Ernst & Young.
Based on research from YouGov Plc, the report, Growing Britain into Recovery: Putting Midcaps on the Map, reveals that UK-based midcaps are to invest an estimated £109bn in innovation by 2012, providing the dynamism needed to fuel their growth. As a result, 81% expect to see profits increase in the next two years – with one in 10 expecting 21-50 per cent growth. Only 7% expect profits to decline in coming years.
In turn, this will boost the broader economy, as two fifths of midcaps (41%) expect their largely overlooked sector to drive UK growth by 2012, with a third (33%) citing a major role in job creation.
Commenting on the findings, Bob Forsyth, Head of Strategic Growth Markets, UK & Ireland, at Ernst & Young, said: “It is clear that UK mid-sized businesses are a hotbed of innovation and enterprise, and a driving force for economic growth. These are not lumbering giants of industry or precarious fledglings feeling their way, but employment-creating, dynamic and ambitious organisations with their sights firmly set on growth.”