Building Britain for Generations: A Policy Agenda for Family Businesses
Mid-Sized Family Business Focus
Similar to the German ‘Mittelstand’, the UK’s mid- sized sector businesses hold huge potential and need to be harnessed to build a stronger economy at both a national and regional level. The scaling opportunity for these firms has, for too long, been neglected. Corporate governance requirements for these businesses, difficulties accessing finance and business support, and opportunities to take up procurement opportunities are cited as key barriers to growth. Scale-up Institute data shows that almost six in 10 (55%) mid-market family businesses feel there is very little support available for businesses like theirs. 14
Britain has a missing middle. The 10,000 mid-sized family firms that generate more than £140 billion in economic output and employ nearly 1.5 million people are largely invisible to policymakers. These are not lifestyle businesses. They are established, regionally rooted enterprises with the capacity to scale, and they are being held back by a policy environment designed for someone else. The barriers are specific: corporate governance requirements calibrated for listed companies, financing products designed around exit rather than growth, and procurement processes that favour large multinationals over capable local firms. Generic SME policy doesn’t reach them. Scale-up policy fits some, but not all of them. This section sets out what a targeted approach would look like to grow Britain’s ‘missing middle’ of strong family businesses, and with it the productivity of the whole nation. A Scale-up Institute report 12 , commissioned by FBUK, has homed in on mid-market and scaling family businesses population reflecting that there are nearly 10,000 of such firms across the country: 8,641 mid-market family businesses; alongside 2,985 scaling family firms (1,771 are in both segments). Within these businesses 13 , the mid-market firms generate more than £140 billion to the UK economy and employ more than 900,000 people; while family scaling businesses generate £72 billion and employ half a million individuals.
Recommendations Adopt a shared definition of medium-sized companies across all Government departments, to enable consistency of approach and focus. This should be those with revenues between £10 million and £100 million and 50 to 499 employees. Adopt a targeted strategy to support the growth and
resilience of medium-sized firms. This should include a dedicated concierge/ account management service as the central access point for medium‑sized firms, providing streamlined guidance across
support programmes, investment routes, and regulatory processes.
12,14 Forthcoming Scale-Up Institute Date (2025), commissioned by FBUK, expected publication Q2 2026. 13 Scale-Up definition of scaling mid-market – those with revenues between £10 million and £100 million and 50 to 499 employees and cover those growing their turnover or employee headcount, or both, by 20% or more each year over a monitoring period of three years; or a rate of between 10-20% with the same core parameters.
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