How the M’s in SMEs feel overlooked for support – Daily Business

Middle-sized companies are feeling overlooked as support tends to focus on small businesses or large corporates, according to new research.

The lack of attention on the “Ms” in SMEs emerges in two reports this week that highlight the frustrations of companies in this sector.

These businesses typically have a turnover of between £10 million to £100m and/or 50 to 500 employees. The Scale Up Institute identifies more than 4,400 Scottish mid-market businesses in this range, which collectively employ 644,000 and have an annual turnover of £122 billion.

However, the segment remains “relatively underserved and not well understood”, despite representing “one of Scotland’s greatest growth opportunities”, according to research published by the Royal Bank of Scotland and NatWest Group titled The Middle Speaks: narrowing the mid-market conversion gap through technology, talent and trade.

It says that mid-market companies need to be supported, especially in three key areas – tech, talent and trade – where they lag behind the specialist skills, leadership capability and organisational resources available to larger companies. Tackling this ‘conversion gap’ is key to ensuring future growth in this segment.

Paul Thwaite, chief executive of NatWest Group, said: “Mid-market businesses already make a significant contribution to the UK economy. They are one of the UK’s greatest growth opportunities, but too many are held back because, despite having distinct needs, the segment is often overlooked.”  

Kevin Havelock, mid-market champion for the bank, added: “Scotland’s mid-market businesses are an essential component of our economy, but one that often falls between the cracks in policymaking when compared with small businesses and larger corporates.

“This report makes an important contribution on how government and industry can together equip them with the expertise to continue to innovate at home and successfully export to international markets.

“Throughout my engagement with Scottish mid-market businesses I am consistently impressed by their growth aspirations, they just need the right support in the right areas – like tech, talent and trade – to realise that ambition.”

Its research coincides with another report this week which highlighted the frustrations of companies in the sector. Specialist lender Shawbrook found that mid-sized business leaders across the UK question the blanket ‘SME’ label, with six in ten (61%) stating they would rather their business wasn’t described using the SME term at all.

Published as part of its M Agenda insight series, the Shawbook research reveals a disconnect between mid-sized firms and the broad terminology commonly used to describe them. Seven in ten (71%) mid-sized business leaders state that their company is regularly assumed to be smaller than it actually is because of how the term ‘SME’ is used.

Three-quarters (73%) agree that the label ‘SME’ lumps their business in with companies with which they have “very little in common”, while 71% say that when politicians or the media talk about ‘SMEs’, they are rarely talking about businesses of their size.

The research also highlights the difficulty many face in finding finance suited to their scale and needs. Seven in ten (71%) mid-sized firms report that it is hard to find financial support tailored to mid-sized businesses. This is up from 65% in Autumn 2025 and rises regionally to 79% in Scotland and 78% in the East Midlands.

Neil Rudge, chief banking officer at Shawbrook, said: “”Mid-sized business leaders are clearly frustrated with the broad-brush ‘SME’ definition and what it means for how their scale and needs are understood.

“Our latest research shows that these key drivers of the UK economy are still too often overlooked, with many of the options available failing to reflect their scale and complexity. When mid-sized organisations get the tailored capital they need, they create jobs, drive innovation, and boost national growth.

Charandeep Singh, chief executive of Scottish Chambers of Commerce, said: “Scotland’s mid-market firms are ambitious and showing a clear appetite to invest and grow.

“Firms need practical support to adopt AI and new technologies, access the skills they need and reach new markets at home and abroad.”

Irene Graham, CEO, ScaleUp Institute, said: “The mid-market does not lack ideas or appetite—it lacks a system designed around the challenges firms face as they get bigger, become established, and continue their drive for growth.

“They still need the support  to grow in accessing the expertise, skills and export services that can turn proven potential into sustained scale.”

Through the Mid-Market Growth Council and a network of 11 Mid-Market Champions across the UK’s nations and regions, Royal Bank of Scotland and NatWest Group aim to give this sector segment a stronger voice in policy discussions and better access to the support needed for growth. 

The initiative forms part of its Growing Together plan which champions mid-sized businesses and backs powerful regions by highlighting the role mid-market firms play in driving regional and national economic growth. 

Daily Business Bulletin: Subscribe here for our free morning bulletin of breaking news