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Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
Fst mid sized businesses presentation tera allas 26 november 2012
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Fst mid sized businesses presentation tera allas 26 november 2012

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  • European Commission: 50-250 employees and £8-£40m turnover CBI: Focus on 50-500 employees and £10-100m turnover BIS: £25-£500m turnover GE Capital: £15-£800m turnover NIESR research for BIS: £25-500m turnover
  • In 2011/12, the main initiative to identify and drive growth was the HMT/BIS jointly led Growth Review, which reported at Autumn Statement. The Plan for Growth: Overarching Ambitions To create the most competitive tax system in the G20 To make the UK one of the best places in Europe to start, finance and grow a business To encourage investment and exports as a route to a more balanced economy; and To create a more educated workforce that is the most flexible in Europe Strong, sustainable and balanced growth that is more evenly shared
  • Transcript

    • 1. Unleashing the potentialof mid-sized businesses26 November 2012Tera AllasDeputy Head – Government Economic ServiceDirector General – Strategy, Analysis and Better Regulation, BIS
    • 2. 2Unleashing the potential of mid-sizedbusinesses: today’s discussion• Mid-sized businesses are an important part of the UKeconomy, with many attractive characteristics• However, mid-sized businesses face specific challengesthat limit their current potential• Addressing these challenges is fundamental to achievingstrong, sustainable and balanced growth• The government has put in place a number ofprogrammes to help unleash this potential
    • 3. GE CapitalBISCBI3The definitions of “mid-sized” vary butrefer broadly to turnover of £25-£500mDefinitions of mid-sized businessesNumber of employeesAnnualturnover,£mEuropeanCommissionNote: positioning of the shapesis illustrative, not precise
    • 4. 4Mid-sized firms contribute around a fifth ofemployment and turnover in the UK0.521.2 19.70%10%20%30%40%50%60%70%80%90%100%# ofbusinessesEmploymentof allbusinessesTurnover ofallbusinessesSmall and largebusinessesMid-sizedbusinessesContribution of mid-sized businesses to all businesses in the UKSource: Growth review: Mid-sized businesses evidence base, Department for Business, Innovation and Skills, November 2011
    • 5. 5The number of mid-sized businesses hasgrown rapidly since 2005No. of private-sector registered firms, by size category808590951001051101151201251301997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010No.offirms(indexedto1997=100)Small Mid sizedLargeSource: Growth review: Mid-sized businesses evidence base, Department for Business, Innovation and Skills, November 2011MSBs
    • 6. 6Innovation is a key driver of growth formid-sized businesses in the UK% of revenue derived from innovation by company size 2009Source: Future champions: Unlocking growth in the UK’s medium-sized businesses, CBI, October 2011MSBsMSBs
    • 7. 7Within a mixed picture, some mid-sizedbusinesses achieve very high growthSource: Growth review: Mid-sized businesses evidence base, Department for Business, Innovation and Skills, November 2011High-growthMSBs
    • 8. 8Unleashing the potential of mid-sizedbusinesses: today’s discussion• Mid-sized businesses are an important part of the UKeconomy, with many attractive characteristics• However, mid-sized businesses face specific challengesthat limit their current potential• Addressing these challenges is fundamental to achievingstrong, sustainable and balanced growth• The government has put in place a number ofprogrammes to help unleash this potential
    • 9. 9Relative to comparator countries, the UKmid-sized business sector is under-weightSource: Mid-sized Businesses in Finland, France, Germany, Sweden and the UK – General Statistics, NIESR, December 2011Mid-sized businesses as % of turnover of all businesses32.832.031.530.519.7SwedenFinlandGermanyFranceUK
    • 10. 10A number reasons may be responsible forthe relative “under-performance”Drivers of mid-sized business (MSB) sector contributionMSBs as % ofall businessturnover*MSBs as % ofall businessemployment*MSB turnoverper employee(productivity)*Average turnoverper employee inspecific sectors*MSB sector mix(relative to allbusinesses)*Number of MSBsas % of numberof all businesses*Average numberof employeesper MSB*MSB specificproductivitydifferences** Compared to other countries“Population”“Size”“Sector mix”“Productivity”
    • 11. 11UK mid-sized firms’ productivity isconsiderably lower than other countriesSource: Mid-sized Businesses in Finland, France, Germany, Sweden and the UK – General Statistics, NIESR, December 2011Turnover (in €) per employee of mid-sized businesses 2009/10221268290 290301UK Germany France Finland Sweden
    • 12. 12UK mid-sized businesses’ productivity isrelatively poor in all sectorsSource: Mid-sized Businesses in Finland, France, Germany, Sweden and the UK – General Statistics, NIESR, December 2011Turnover (in €) per employee of mid-sized businesses 2009/10256228206279363293ManufacturingOtherproductionServicesAverage of EUcomparators*UK* Finland, France, Germany, Sweden
    • 13. 13Only 26% of UK mid-sized businessesexport more than 50% of their turnoverSource: The Financial Times, 23 October 2012; BIS analysis461711917Export more than 75% of theirturnoverExport 50-75% of their turnoverExport 25-50% of their turnoverExport less than 25% of theirturnoverDo not exportMid-sized businesses’ export intensity in the UK% of total mid-sized business population26%
    • 14. 14UK mid-sized companies employ fewergraduates than those in other countries% of managers in mid-sized firms with a degree 2011Source: Future champions: Unlocking growth in the UK’s medium-sized businesses, CBI, October 2011
    • 15. 15Unleashing the potential of mid-sizedbusinesses: today’s discussion• Mid-sized businesses are an important part of the UKeconomy, with many attractive characteristics• However, mid-sized businesses face specific challengesthat limit their current potential• Addressing these challenges is fundamental to achievingstrong, sustainable and balanced growth• The government has put in place a number ofprogrammes to help unleash this potential
    • 16. 16-1.0-0.50.00.51.01.52.02.53.02011 2012 2013 2014PercentagepointsPrivate consumption Business investment Other private investmentGovernment Net tradeGDP Growth Forecasts0.9% 0.7% 2.1% 2.7%Business investment and trade areinstrumental to UK’s economic recoveryOBR* forecast of contributions to GDP growth 2011-2014* The independent Office for Budget ResponsibilityBusinessinvestment
    • 17. 17Mid-sized businesses are particularlyimportant in our key export sectorsSource: Growth review: Mid-sized businesses evidence base, Department for Business, Innovation and Skills, November 2011; Industrial Strategy: UK SectorAnalysis, Department for Business, Innovation and Skills, September 2012; * UK Exports by Category of Goods and Services, ITC Trade DatabaseIn top 5 export categories* in 2010
    • 18. 18Growth of existing mid-sized businesseswould contribute to regional rebalancingSource:Futurechampions:UnlockinggrowthintheUK’smedium-sizedbusinesses,CBI,October2011
    • 19. 195.2%1.4%8.3%3.2%0%2%4%6%8%10%12%14%16%Innovation activefirmsNot innovationactive firmsOther graduatesScience graduatesEmploying graduates is correlated withinnovation and firm growthGraduates as a proportion of all employeesin innovation active and not innovation active firms 2008Source: UK Innovation Survey 200913.5%4.6%
    • 20. 20Unleashing the potential of mid-sizedbusinesses: today’s discussion• Mid-sized businesses are an important part of the UKeconomy, with many attractive characteristics• However, mid-sized businesses face specific challengesthat limit their current potential• Addressing these challenges is fundamental to achievingstrong, sustainable and balanced growth• The government has put in place a number ofprogrammes to help unleash this potential
    • 21. Support investment and exportsCompetitive tax systemThe Plan for Growth sets out thegovernment’s strategy under 4 ambitions£££Educated and flexible workforceBest place to start and grow abusiness21
    • 22. 22A number of initiatives are driving oursupport to mid-sized businessesSpring 2011 Autumn 2011 Spring 2012 Autumn 2012Plan forGrowthMid-sizedbusinessesgrowth reviewIndustrialstrategyLord Heseltinereview andresponseImplementationExamples:• New equity forMSBs: BusinessGrowth Fund• Red TapeChallenge• Presumption infavour - planning• Reducing maincorporation taxrate from 28% in2011 to 22% by2014.Examples:• Export support forMSBs acrossEnglish regions,eg IP advice and‘mini-MBA’• 8 LEPs agreepathfinders toraise MSB profile• Business SchoolTask Force –report 22 NovExamples:• AdvancedManufacturingSupply ChainInitiative: £125m• Breedon review,development of£1bn BusinessBankExamples:• Strengthenedrole forChambers, esp.in exports• Stronger LEPcapability andinfluence
    • 23. 23Good progress is being made on growthmeasures and commitmentsStatus of Plan for GrowthPhase 1 and 2 deliverables100% = 250+ measures39%61%CompleteProgress MadeExamples of impactApprenticeships• Over 500,000 took up apprenticeships in2011/12, in over 200,000 workplaces• Extending ‘Higher Apprenticeships’• 2/3 better paid on completionInvestment and exports• 23,000 companies supported by UKTI in2011/12; on target for 32,000 in 2012/13• Over £1.5bn High Value Opportunitywins since launch in 2010• Securing over 1,400 investments from 58countries in 2011/12
    • 24. 24These and other actions can boost mid-sized businesses’ contribution further95%31%20%10%15%15%9%13%14%18%41%51%63%0%20%40%60%80%100%Enterprises Employment Turnover ExportsMicro (0-9 employees) Small (10-49) Medium (50-249) Large (250+)Source: BIS Business Population Estim ates 2011; * DTI Econom ics Paper 18 2006 & OECD Statistics Brief Feb 20114.5m 23.4m £3,100bn £391bn*100%=UK economic statistics by size of firm 2011*Keysource ofgrowthpotential
    • 25. Unleashing the potentialof mid-sized businesses26 November 2012Tera AllasDeputy Head – Government Economic ServiceDirector General – Strategy, Analysis and Better Regulation, BIS

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