* New report published today by NatWest Group calls for targeted action on technology, talent and trade to help mid-sized firms turn ambition into growth

* Mid-sized businesses generate around £1.2 trillion in turnover and employ 7.3 million people, but fall between support designed for SMEs and large corporates

* NatWest Group calls for a dedicated mid-market growth framework, leadership programme and ringfenced share of the Government's £200 million AI adoption funding

London - Britain's mid-sized businesses generate around £1.2 trillion in turnover and employ 7.3 million people, yet many are being held back by a "conversion gap" that is preventing them from turning ambition into growth, according to a new report from NatWest Group.

Published today and launched at an event attended by more than 70 mid-market NatWest customers and Lord Leong, Minister for Small Business and Enterprise, The Middle Speaks: narrowing the mid-market conversion gap through technology, talent and trade finds that mid-market businesses, defined as those with turnover of £10 million to £100 million and/or 50 to 500 employees, are often overlooked by support designed for smaller firms or large corporates.

The report argues that mid-market businesses represent one of the UK's greatest growth opportunities. Despite creating jobs, driving innovation, strengthening supply chains and supporting local communities across the country, the segment remains relatively underserved and not well understood.

As the UK's number one bank for mid-sized companies, NatWest Group supports more businesses in this segment than any other UK bank and sees first-hand the contribution they make to local economies, employment and growth.

The report describes a "conversion gap" in which mid-market firms have proven commercial potential and greater capacity than smaller businesses, but often lack the specialist skills, leadership capability and organisational resources available to larger companies. NatWest Group says this gap is most visible across the three Ts of technology, talent and trade.

Key findings

* Talent is the most immediate constraint: 55% of mid-market firms identify talent and leadership development as a top barrier to growth, while 42% say recruitment and workforce capability are the economic challenge most likely to constrain expansion.

* AI adoption is rising, but firms are struggling to scale: Up to 72% of firms who are currently using AI have adopted at least one core AI tool, but up to two-thirds of users have not fully deployed these products across their business.

* Trade challenges facing the mid-market are widening the conversion gap: Many mid-market firms have established international relationships with ambitious plans to grow into new markets. However, they often lack dedicated customs, legal, and compliance teams, as well as geopolitical expertise and supply chain flexibility.

Five actions to unlock mid-market growth

1. Develop a dedicated Mid-Market Growth Framework to close gaps in existing provision and give firms coordinated access to support.

2. Ringfence funding for a mid-market AI Adoption Accelerator to help businesses move from experimentation to strategic deployment.

3. Launch a Mid-Market Leadership Capability Programme that builds on existing initiatives and equips leaders to scale and deliver business-wide transformation.

4. Build an employer-led growth and skills system that aligns training and technical education with regional and mid-market workforce needs.

5. Cut the cost and complexity of international growth by reducing administrative and trade barriers and improving access to end-to-end export support.

Paul Thwaite, Chief Executive of NatWest Group, said: "Mid-market businesses already make a significant contribution to the UK economy. They are one of the UK's greatest growth opportunities, but too many are held back because, despite having distinct needs, the segment is often overlooked. As the number one bank for mid-sized companies, we have the specialist expertise, local knowledge and financing capabilities to help mid-market customers address the challenges they are facing and reach their full potential as growth engines of our economy across every nation and region of the UK."

Minister for Small Business and Enterprise Lord Leong, said: "The UK's mid-market businesses are central to our mission to grow the economy, supporting millions of jobs and bringing investment to local communities. We are working closely with businesses and industry leaders to remove barriers, strengthen skills and help more firms adopt new technology and reach international markets."

Irene Graham OBE, CEO, ScaleUp Institute, said: "The mid-market does not lack ideas or appetite--it lacks a system designed around the challenges firms face as they get bigger, become established, and continue their drive for growth. They still need the support to grow in accessing the expertise, skills and export services that can turn proven potential into sustained scale."

NatWest Group says government, industry and regional partners must work alongside mid-market businesses to better understand the barriers they face and ensure support is delivering stronger productivity, skills and export growth.

Through the Mid-Market Growth Council and a network of 11 Mid-Market Champions across the UK's nations and regions, NatWest Group is helping ensure the segment has a stronger voice in policy discussions and better access to the support needed for growth.

The initiative forms part of NatWest's Growing Together plan which champions mid-sized businesses and backs powerful regions by highlighting the role mid-market firms play in driving regional and national economic growth.

ENDS

Notes to editors

* Photography attached.

* NatWest Group will use the report to support engagement with government, business leaders and regional partners. The full report, The Middle Speaks: narrowing the mid-market Conversion Gap through technology, talent, and trade, is available at Narrowing the mid-market conversion gap through technology, talent, and trade | NatWest Group

* The findings draw on 12 events involving more than 200 mid-market customers, one-to-one interviews, discussions with members of the Mid-Market Growth Council, NatWest Group's 2026 AI adoption survey and analysis of the ScaleUp Institute's 2025 survey of 970 mid-market firms.

* The Mid-Market Growth Council defines the mid-market as businesses with turnover of £10 million to £100 million and/or 50 to 500 employees. The report references analysis from NatWest's report 'Mid-market corporates: The critical middle' (December 2024), which uses an alternative definition of the mid-market (companies with a turnover of £25m-£500m).

* The report, The Middle Speaks: narrowing the mid-market conversion gap through technology, talent and trade, was developed through NatWest Group's Mid-Market Champions network, customer interviews, Mid-Market Growth Council engagement, NatWest Group research and external evidence.

* NatWest Group has appointed 11 Mid-Market Champions across 12 UK nations and regions to convene businesses and bring their perspectives into policy discussions.

* NatWest Group convened the Mid-Market Growth Council in March 2025. Chaired by CEO Paul Thwaite and backed by the UK Government, the Council exists to provide a stronger voice for the segment and champion policies that unlock growth. More here: Mid-Market Growth Council | NatWest Group

About NatWest

NatWest Group serves 20 million customers across retail, commercial and private banking, across the UK. We help people, families, and businesses build financial confidence and thrive - whether that's opening a first account, buying a home, growing a business, or planning for the future. Alongside a wide range of banking services, we provide specialist sector expertise and entrepreneurial support helping our business customers turn possibilities into progress.