Mid-sized businesses predict growth despite trade bottlenecks
Mid-sized businesses predict growth despite trade bottlenecks
- Over two in five (45%) mid-sized businesses are confident about their growth prospects over the next year
- Mid-sized businesses targeting new corridors for trade including across Africa, Asia-Pacific and North America as UK Government negotiates multiple trade deals
- However, overseas trade complications including supply chain disruption and tariff uncertainty are mounting
The UK’s mid-sized businesses are optimistic about plans to export overseas and open new premises in the next year despite recent turmoil in global trade and tough economic challenges, according to the latest research from accounting and business advisory firm, BDO.
BDO’s survey of over 500 mid-sized business leaders reveals more than two in five (45%) are confident about their growth prospects over the next 12 months despite the backdrop of uncertainty around trade and high inflation.
Forecasting expansion, businesses’ prospects for growth include plans to open new premises, recruit new staff or invest in new technologies and R&D.
Businesses pursuing new trade corridors amid deal negotiations and strong overseas demand
Mid-market businesses see exports as an important part of their growth strategy over the next year – with over a quarter (28%) citing strong or growing demand as their main motivation. Businesses were motivated by supportive policy environments, as almost half (46%) said favourable trade agreements or government support in receiving markets, such as conducive tax regimes and R&D incentives, make these regions more attractive.
Asked which regions would be the most appealing to their business, 37% said Asia-Pacific was the most attractive as businesses work to forge new trade corridors in the Far East and Australia amid ongoing negotiations between the UK and other territories.
Similarly, over one in five (21%) were most interested in selling products or services to customers in the Middle East, North Africa or Sub-Saharan Africa. For over two in five (42%) of these respondents, the opportunity to diversify away from dependence on other markets, such as the European Union, was the factor underpinning the regions’ appeal.
As the Government continues to discuss favourable terms on trade with the United States, North America is the most attractive export region for nearly half of mid-sized businesses (49%). [1] This is even higher amongst mid-sized financial services firms (56%), likely attracted by the prospect of trade with financial centres such as New York and opportunities in fintech with major hubs including Silicon Valley or Toronto.
Challenges still threaten to disrupt businesses’ plans for growth
Despite their optimism, major challenges could still stifle mid-sized businesses’ prospects for growth. Over half (57%) consider the combination of overseas trade complications and supply chain pressures, including changing tariffs and delays or shortages in distribution networks, as a top challenge. This follows continued uncertainty around trade tariffs for the US market.
Richard Austin, Partner at BDO, said: “These findings show the resilience of the UK’s mid-market in the face of significant challenges and their potential to be a major international force for UK economic growth.
“Mid-sized businesses generate £1.6 trillion in revenues and support one in three private sector jobs. Frictionless trade is crucial to help these companies power the UK economy forward. Although the Trade Strategy published last week is welcome, targeted support for mid-sized businesses – whether new hubs to support them to export or trade deals enabling their access to international markets – must build on this and create the right conditions to help them deliver their plans for growth and thrive.”
ENDS
[1] This survey was conducted between 27 May 2025 and 5 June 2025.Note to editors
BDO LLP operates in 18 offices across the UK, employing 8,000 people. It has UK revenues of £1bn. It provides Audit, Tax, Deals, and Consulting, Risk & Outsourcing services predominantly to mid-sized, entrepreneurially-spirited, high-growth businesses that are driving growth in the UK economy. BDO calls this segment of the market the UK’s economic engine. BDO LLP is the UK member firm of the BDO international network.BDO’s global network
The BDO global network provides business advisory services in 166 countries and territories, with more than 119,000 people working out of 1,800 offices worldwide. It has revenues of US$15bn.
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