Medium-sized firms lead job growth over past decade – iwoca

Medium-sized firms grew jobs at twice the rate of small and large businesses over the last decade, according to research from iwoca.

The research found that firms employing 50 to 249 people increased their workforce by 20% from 2014 to 2024, compared to just 10% growth for smaller (0 to 49 employees) and larger (250 plus employees) businesses.

As of last year, medium-sized businesses employed 3.7 million workers in the UK.

The overall number of UK businesses grew steadily across all sizes over the past 10 years, with increases of 20% for small firms, 18% for medium-sized firms, and 19% for large firms.

The total number of medium-sized companies rose to 41,540 in 2024, up from 34,985 in 2014.

The IT and healthcare sectors led growth in the ‘middle’ size category, with IT businesses increasing by 62% to more than 2,500, and professional, scientific, and technical firms rising by 35% to 4,285.

Regionally, London and the South West saw the highest increase in medium-sized businesses, with numbers rising by a third in London and 22% in the South West since 2014.

Colin Goldstein (pictured), chief commercial officer at iwoca, said: “Medium-sized businesses are driving job growth in the UK and creating jobs at a faster rate than both small and large firms.

“They are responsible for 3.7m jobs, and need access to finance to continue making significant contributions to the UK economy and increase their productivity.”