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Championing the Critical Middle: Why mid-market companies are critical to UK Growth

Robert Begbie, NatWest Group’s CEO of Commercial and Institutional Banking, on mid-markets and their vital role in our economy. 

On this page
What are MMCs?
Why they matter?
Economic growth
Local economies
National opportunity

What are mid-market companies?

Mid-market companies (MMCs) - defined as £10m to £100m turnover and/or 50–500 employees - are far more than a statistical midpoint. They are the backbone of local economies and act as growth anchors in towns and cities across the country.

Their ambition, resilience and connectivity make them strategic national assets. Unlocking their potential is one of the most direct routes to achieving stronger economic growth, enhanced regional productivity and a more balanced UK economy.
 

Despite this crucial role, MMCs have long occupied a blind spot in policy and debate. Attention tends to fall either on SMEs or major corporates.

Why mid-market companies matter

As the number one bank for mid-sized companies, we support more businesses within this segment than any other UK bank and see first hand the scale of their contribution. They are big enough to invest, export, innovate and scale - yet remain agile enough to adopt new technologies, pivot quickly and capture emerging market opportunities.

Despite this crucial role, MMCs have long occupied a blind spot in policy and debate. Attention tends to fall either on SMEs or major corporates, leaving mid-sized businesses without the tailored support they need - even though their challenges and opportunities are distinct.

That’s why, in March 2025, we convened the first Mid-Market Growth Council (MMGC), chaired by NatWest Group’s CEO Paul Thwaite. Backed by HMT and DBT, the Council provides a unified voice for these businesses and champions policies to unlock their growth potential.

In its first year, the Council has raised the profile of MMCs with the UK government and members have worked with officials to develop a formal definition for the segment. We have also partnered with regional and local governments on pilot projects to evaluate existing support and identify the gaps that exist.

And, as we look ahead to the second year of the MMGC, we are optimistic about the opportunity to build on these strong foundations and continue shaping a more supportive environment for these essential businesses.

Championing mid-sized businesses

Visit our mid-market hub to find out about their crucial role in the economy and how we’re supporting their ambitions. 

Visit hub

How mid-market companies can contribute to UK economic growth

Our UK-wide network of around 1,000 relationship managers – more than any other bank – plus our people and partnerships across every nation and region, give us a clear understanding of what growth really looks like: a network of local economic experiences spanning employers, entrepreneurs and households.

UK growth can only be created by backing the businesses, people and places that generate it. That principle sits at the heart of our Growing Together plan, in which the ‘critical middle’ is one of five priority focus areas.

Working with the MMGC, our goal is to ensure every part of the UK has the tools, environment and policy support needed to help mid‑sized firms turn possibilities into progress.

Why mid-market companies matter locally

Mid-market companies matter everywhere. They are deeply rooted in their communities, with supply chains, talent, investment and social contributions anchored in the places they operate. Often, they are the most productive and most export ready firms in their region. Many are also family-owned and highly innovative – focused on adapting and reinventing themselves to create a sustainable business for the next generation.

These businesses act as both stabilisers and accelerators for local economies. They sustain high quality jobs, drive supplier ecosystems, stimulate investment that circulates locally, and are frequently the businesses most likely to scale - spreading opportunity more evenly across the UK.

When a mid-sized engineering firm in Derbyshire expands into export markets, or a food manufacturer in Fife invests in new technology, the benefits stay local. And unlocking mid-market growth at scale, means those benefits multiply across every region and nation.

Just last week, I was in Glasgow hearing first hand from mid-market businesses about their plans for the future and how our support is helping them grow. One of the companies I visited was JW Filshill - a fifth generation wholesale business supplying thousands of products to retailers across Scotland and the north of England. Touring their new distribution hub brought to life how they’re investing for the future, building on our support as they continue to modernise and scale.

The national opportunity

Although MMCs represent just 0.5% of UK companies, they account for 26% of employment and 30% of GVA. A single percentage point of growth in this segment could add £35 billion to the UK economy - £24 billion of which would be generated outside the South East.

Working with the MMGC, our goal is to ensure every part of the UK has the tools, environment and policy support needed to help mid-sized firms turn possibilities into progress. In 2026, our focus includes helping MMCs extend their trading footprint, recognising that exports remain one of the fastest routes to both scale and resilience.

The opportunity is clear: mid-sized companies have the potential to define the UK’s economic future -just as start ups shaped the last decade and global corporates the ones before. They are regionally rooted, internationally minded, productive, ambitious and economically indispensable.

What they need now is targeted support and national recognition equal to their impact.

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The material published on this page is for information purposes only and should not be regarded as providing any specific advice, or used by consumers to make financial decision. Terms and conditions apply to any products or services mentioned.

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