Business Outlook Tracker

Mid-market businesses continue to set the pace for UK productivity. Our analysis finds that labour productivity of UK mid-size businesses, when measured as average annual revenue per employee, has surpassed that of larger and smaller companies, and the UK average, for the past seven years. Why the mid-market is so resilient is a salient question. Essentially, it's down to their size, enabling them with greater agility than their larger competitors. They also tend to have better access to resources and capital than smaller competitors, giving them greater opportunity to weather change and invest in the future. These factors generally mean that mid-size businesses are more resilient to shocks and market uncertainty. Their success also stems from the beneficial blend of an entrepreneurial mindset of a smaller business with the resources of a larger one. This mix of agility and financial resources plays out particularly when it comes to technology adoption. The emergence of AI as a productivity enabler for example is a game-changer—when deployed responsibly, it augments human capability and empowers teams to achieve more. With talent shortages posing a challenge to growth, AI is stepping in as a productivity partner, enhancing what people can achieve.