Mid-tier businesses have shown themselves to be adaptable and resilient in the face of Covid-19, but many have also been stretched to breaking point and beyond, according to a recent ACCA report, The challenges for medium-sized businesses post-Covid-19.
The research found that many are running on legacy systems and processes, facing long-term underinvestment in skills and technologies, and have a very strong case for change that crystallised after the outbreak of the pandemic.
When a mid-tier business fails, it leaves a hole that is not easily filled, whether in local employment or complex supply chains. ‘Neglecting their specific needs could cause considerable damage to economies in the medium term,’ the report states.
When a mid-tier business fails, it leaves a hole that is not easily filled, whether in local employment or complex supply chains
It says that governments need to be aware that the economic impact of their mid-tier businesses cannot simply be measured in headcount and turnover, but in relation to a much wider ecosystem of stakeholders, large and small.
Support schemes, it says, need to be carefully designed not only so that mid-tier companies do not fall through the gaps, but also to reflect the individual nature of the specialisms in which they operate.
This report is an overview of the challenges facing this undervalued sector, forming the first in a series of publications and podcasts that provide a snapshot of how mid-tier organisations are planning for recovery.