Family businesses in the critical middle: unlocking the UK’s next growth opportunity
and employing more than 900,000 people.* Importantly, nearly nine in ten are based outside London. The research also revealed a sector that is both ambitious and optimistic:
that exists within this segment. The findings showed that a modest 1% increase in growth across the UK’s mid-market could generate an additional £35 billion for the UK economy, with £24 billion of that created outside the South East.* These firms are often deeply rooted in their regions, supporting local supply chains, investing in skills and creating high-quality employment. They are not simply contributors to regional
Family businesses are at the heart of the UK economy. They create jobs, invest for the long term, support local communities and pass knowledge, values and ambition from one generation to the next. For many Family Business UK Members, growth is about more than quarterly or annual results; it is about building resilient businesses that will succeed for generations. Today, many of those businesses sit within the UK’s “ critical middle ” – the mid-market segment that represents one of the greatest opportunities for economic growth across the country. These businesses are large enough to invest, innovate, export and create meaningful employment, yet agile enough to adapt quickly to changing market conditions. Despite this, they have often been overlooked in favour of either SMEs or large corporates.
Seven in ten expect to continue scaling in 2026
Six in ten see overseas sales as a priority for growth
Nine in ten have undertaken innovative activity during the last three years
economies – they are often the businesses that anchor them.
One in four scaling businesses in the UK is family-owned.
For family businesses, that regional impact is particularly powerful. Their long-term outlook, commitment to place and focus on sustainability make them natural drivers of economic resilience and productivity.
At the same time, family businesses identified clear barriers to growth. Access to markets, talent, leadership capability, regulatory and policy developments, growth finance and innovation support emerged as recurring themes. Many respondents highlighted the value of stronger regional support networks, and a trusted relationship manager who could act as a single point of contact as they navigate their growth journey. The message was clear: the ambition exists. The opportunity exists. What is needed is a more coordinated ecosystem to help unlock it.
What we learned about family business scale-ups
That is beginning to change.
The importance of family businesses within the mid-market was reinforced by Family Business UK’s recent report, Family Business Scale-Ups: Breaking Barriers to Growth , published in partnership with the ScaleUp Institute. The report highlighted that there are over 8,500 mid-market family businesses across the UK, generating £142 billion in turnover
Why mid-market companies matter
The numbers demonstrate just how important this segment is. While mid-market businesses account for just 0.5% of UK companies, they contribute 26% of UK employment and 30% of gross value added (GVA) to the economy.
NatWest’s Critical Middle research identified the enormous potential
FBUK Issue 8 20
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