Three quarters of mid-sized businesses expect revenues to return to pre-pandemic levels within the next 12 months, according to a report.
And 86 per cent of medium-sized companies surveyed by accountancy firm BDO plan to hire more staff over the next six months, with 54 per cent nationally planning permanent appointments, the accounting firm’s survey of bosses of 500 mid-sized British businesses said.
The employment picture is even better in Yorkshire and the Humber, as well as Central South, where almost three quarters (73 per cent) will recruit permanent staff.
Three quarters of mid-sized businesses also feel that this is the year to invest, BDO has found.
BDO defines a medium-sized business as one with revenue between £10m-£300m.
Nearly half of businesses (47 per cent) are planning new investments following the “super deduction” initiative, which allows companies to cut their tax bill by up to 25p for every pound they invest.
Twenty-six per cent plan to invest in new locations or mergers and acquisitions.
And the government’s £3,000 apprenticeship grant will also provide a boost, with over a third (36 per cent) of businesses saying they would now hire apprentices as a direct result of this incentive.
The findings are encouraging as middle-sized, private equity-owned and AIM-listed companies account for less than 1 per cent of national businesses overall but contribute £1.4tr in revenues and provide one in four jobs, BDO said.
The significance of mid-sized businesses was underlined by the CBI, which in 2015 estimated that the growth of just 3,000 mid-sized firms between 2010 to 2013 was enough to drag Britain out of recession.
However, one third of mid-sized businesses expect the pricing of products and services to increase, reflecting the need to pay back debt or recover higher costs.
Ed Dwan, a partner at BDO, said that mid-sized businesses were set to benefit from the Covid-19 vaccine programme and the lifting of restrictions and that access to finance and supply chain support would be “crucial in creating an environment that allows these businesses to thrive”.