Midcaps are "hotbed" of innovation
The UK’s midcap companies are set to be major drivers of economic growth and job creation, according to financial advisor Ernst & Young, based in Birmingham.
According to Growing Britain into Recovery: Putting Midcaps on the Map, a report based on findings from YouGov, the UK’s midcaps will invest £109bn in innovation by 2012, including a £12.8bn spend on research and development, market research and technical training.
Commenting on the results, Ronnie Bowker, Birmingham senior partner at Ernst & Young, said: “It is clear that UK mid-sized businesses are a hotbed of innovation and enterprise, and a driving force for economic growth. These are not lumbering giants of industry or precarious fledglings feeling their way, but employment-creating, dynamic and ambitious organisations with their sights firmly set on growth.”
In addition, 81 per cent of midcap owners, which include businesses with a turnover of £20m or more, and with 250 or more employees, expect to see profits increase in the next two years, with just 7 per cent expecting a loss. Thirty-three per cent also expect to have a major role in job creation over the next two years.
