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The importance of mid-market companies to the UK economy

Unlocking the growth potential of the UK’s mid-market businesses – a powerhouse segment which occupies the space between SMEs and large corporates – is vital for the future growth and prosperity of the UK.

Mid-market companies drive productivity, investment and employment across every region of the UK. Although they represent just 0.5% of UK companies, they account for 26% of the UK’s total employment and 30% of Gross Value Added (the measure of how much value a company or industry adds to the economy). For example, just 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 East1.

Realising this potential therefore represents a clear route to stronger economic growth, enhanced regional productivity and a more balanced UK economy. And one of the most direct pathways for mid-market businesses to do this is through international trade.

Mid-market exporters frequently find their global presence elevates their reputation, opens doors to partnerships and joint ventures, and grants access to advanced international supply chains

The productivity premium and ‘halo effect’ of international trade

International trade enables mid-market companies to access new markets, expand their revenues and enhance their competitiveness – acting as a potentially powerful catalyst for their growth.

In its most recent report on trade and productivity, the Office for National Statistics highlighted that companies engaged in international trade were 35% more productive in terms of output per worker, than firms that did not2. 

And even when considering just one side of the trade coin, exporters of goods were 28% more productive than non-exporters and importers were 21% more productive than non-importers3. 

But the benefits extend beyond the statistics. By accessing overseas markets, mid-market companies can diversify their customer base beyond the domestic economy, reducing their exposure to local economic shifts.

Expanding into fast-growing economies also allows mid-market companies to capitalise on any rising demand for UK goods and services, benefiting from higher growth rates and emerging consumer segments potentially less saturated than more mature domestic markets.

As well as the prospects of improved revenue and sales growth, international trade fosters strategic benefits – such as enhanced brand recognition and potentially stronger and more diversified supplier networks. Mid-market exporters frequently find their global presence elevates their reputation, opens doors to partnerships and joint ventures, and grants access to advanced international supply chains – all of which can contribute to a longer-term ‘halo effect’ of competitive advantages.

Andy Gray talking at a Mid-Market Growth Council roundtable.

The challenges of accessing international markets

Mid-market firms are uniquely placed to deliver an outsized impact on the UK’s overall export volumes. Their established operational scale and resource base positions them well to enter new markets and scale more effectively than smaller enterprises, generating significant benefits for ‘UK Plc’ as a whole.

Importantly, many UK mid-market businesses also serve as important connectors that bring together products from smaller suppliers and feed them into the export process.

However, mid-market companies often face significant barriers to commencing and expanding their international footprint.

Against the backdrop of heightened geopolitical instability in recent years, firms have faced increased headwinds to trade. Shocks and instability have added to the complexity and risk of operating in overseas markets, and this can be particularly impactful for smaller mid-market firms which have limited capacity to absorb them.

For example, according to a recent survey by the Chartered Institute of Procurement & Supply, concern about the short-term security and price stability of supply chains reached a record high in 2025, with 22% of those surveyed reporting cost rises of over 10% by the end of the year4.

Regulatory demands imposed through customs, bureaucracy, and compliance can also place a significant burden on mid-market companies seeking to enter and consolidate new international markets. The Confederation of British Industry recently flagged that one in five firms reported quotas and licensing as issues which are now limiting their export potential, a level rarely seen since the 1980s5.

Navigating diverse regulatory environments, understanding cultural nuances, and managing complex logistics require a breadth of trade expertise that mid-market businesses may not possess initially. Without sufficient internal resources or experience they can struggle to build this knowledge base quickly.

In addition, international trading often requires significant upfront costs, including customs duties, freight, insurance, and working capital to manage extended payment terms. Compared to established multi-nationals, mid-market companies often have less financial flexibility to absorb these costs or delays, invariably impacting their competitiveness on the international stage. 

NatWest Group is helping to bridge gaps in export advice and funding, empowering businesses to scale with confidence despite external uncertainties

NatWest Group’s ambition to support UK mid-market firms to trade internationally

NatWest recognises the crucial role mid-market companies play in the UK’s economic future and aims to help them unlock their international growth potential.  

Our long-standing partnership with UK Export Finance (UKEF) is part of this ambition. Together, we’re opening doors for businesses by improving access to the right finance and instilling the confidence needed to invest boldly, scale rapidly, and succeed globally. That’s why NatWest Group has recently committed £2 billion to support UK exporters, as part of the UK Government’s ambitious new £11 billion export lending package.

In February 2026, we also partnered with the British Chambers of Commerce to launch the Singapore Life Sciences Trade Accelerator, bringing our Growing Together plan to life by helping UK firms to scale globally.

The pilot aims to demonstrate how the right partnerships can unlock growth at pace: providing export-ready businesses the finance, confidence and connections they need to enter new markets to win overseas – and in doing so, create jobs and drive sustainable growth across the UK.

Our track record of supporting UK exporters also extends beyond finance, providing expert guidance and tools to help firms navigate a multitude of trade complexities.

NatWest’s Trade 360 portal allows businesses to issue, amend, view and track domestic and international trade transactions easily online. And our support for customers to trade internationally includes ongoing training for our 1,000 relationship managers on the opportunities that exist, as well as working with partners like UKEF to run an extensive programme of events and insights to support businesses across the UK.

And to help build the right conditions for mid-market growth, NatWest Group established the Mid-Market Growth Council in 2025. Chaired by CEO Paul Thwaite, and bringing together industry leaders, HM Treasury and the Department for Business and Trade, the Council provides a unified voice for mid-market businesses and champions policies to unlock their growth potential.

By collaborating with government initiatives and leveraging its unique position in the finance ecosystem, NatWest Group is helping to bridge gaps in export advice and funding, empowering businesses to scale with confidence despite external uncertainties.

These efforts align closely with NatWest’s broader growth strategy focused on mid-market companies – recognising that supporting these businesses is fundamental to the UK's long-term growth. 

Case study: Helping a UK engineering firm to compete globally

“Trade has played a significant role in enabling Dynisma’s global growth. As a UK‑founded engineering company with world‑leading motion simulation technology, access to international markets is essential to delivering our vision of making high‑performance simulation available to a wider range of automotive and motorsport manufacturers.

Support from NatWest and UKEF has helped us compete globally with confidence by providing the trade finance, export expertise and flexibility needed to secure large, complex contracts while continuing to invest in high‑skilled jobs here in the UK.

As a company providing advanced, high-value systems, we face challenges such as long procurement cycles and increasing requirements for surety and underwriting across Europe. Working closely with NatWest and UKEF has allowed us to overcome these barriers and maintain long-term resilience as we expand.”

Simon Holloway, Commercial Director, Dynisma

Championing mid-market companies

As the number one bank for mid-market companies (MMCs), we’re supporting these vital growth engines of our economy.

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FAQs

  1. NatWest Group, The Critical Middle: UK’s ‘critical £1.3 trillion mid-market’ can be engine of growth for UK economy – NatWest | NatWest Group
  2. (after controlling for firm size, foreign ownership, firm age, region, and industry by year differences in productivity): Office for National Statistics (ONS), released 14 August 2025, ONS website, article, Trade and productivity in British firms: 2005 to 2022.
  3. Office for National Statistics (ONS), released 14 August 2025, ONS website, article, Trade and productivity in British firms: 2005 to 2022.
  4. Chartered Institute of Procurement & Supply: Cracks form in the global trading system | CIPS
  5. Confederation of British Industry: UK manufacturing struggles to regain momentum as cost pressures mount and orders remain weak - CBI Industrial Trends Survey | CBI

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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