Yorkshire and the Humber is home to more mid-market businesses than any other UK region but faster decision-making could unlock a further £780m in annual growth, according to new research from advisory firm FRP.
The firm found that the region is home to about 8,000 mid-market businesses – more than any other UK region, including London – which generate more than £101bn in annual turnover and support approximately 464,000 jobs.
The findings form part of FRP’s new Decision Economy report, a new study in partnership with research firm Development Economics to assess the importance of mid-sized businesses – those with between 50 and 499 employees – to the UK economy and how effectively they make decisions.
The report found that slow decision making is costing up to £13.7bn in growth across the UK mid-market – equivalent to about 0.6 per cent of GDP.
The report identified a significant opportunity to help Yorkshire businesses convert the scale of their mid-market into stronger growth and efficiency gains. Faster decision-making could unlock about £780m in additional annual economic output, with the largest share – approximately £516m – coming from decisions linked to cost savings and efficiencies.
Decision-making is being shaped by a mix of cost, technology and policy pressures, with 38 per cent of leaders citing rising energy costs, 32 per cent pointing to government policy announcements and 28 per cent highlighting technological innovation including AI.
However, businesses said they were being held back by risks or uncertainties associated with options, cited by 34 per cent of Yorkshire & Humber leaders as the biggest factor affecting the speed and quality of decisions, followed by time required to gather information (32 per cent) and competing business priorities, which was mentioned by 30 per cent.
Respondents said clearer signals from government regarding future policies would do the most to improve the speed and quality of decision making, cited by 28 per cent of leaders. This was followed by faster decisions from finance providers (22 per cent) and then improved data/evidence gathering and analysis (18 per cent).
Dan Sheahan, partner at FRP Corporate Finance, said: “Yorkshire has always been a region built on enterprise, resilience and straight-talking business leadership. The fact it has the UK’s largest mid-market economy shows the depth of ambition and capability that exists across the region.
“The opportunity now is to help those firms turn that scale into even greater momentum. Faster, more confident decision-making could help businesses protect margins, improve efficiency and respond more quickly to changing market conditions.
“Yorkshire businesses are used to getting on with the job, but clarity and confidence still matter. With better insight, clearer policy signals and the right support, there is a real opportunity to unlock more growth from one of the UK’s most important regional economies.”
