Welsh mid-market businesses could generate around £252m in additional annual economic output if key decisions were made more quickly, according to new research from advisory firm FRP.
The findings suggest there is significant further growth potential for the Welsh mid-market, with faster decision-making able to support stronger revenue growth, improved efficiency and greater resilience in response to changing market conditions.
The findings form part of FRP’s new Decision Economy report, a major new study delivered 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 results show that slow decision making is costing up to £13.7bn in growth across the UK mid-market – equivalent to around 0.6% of GDP.
Welsh mid-market firms in particular are already a major contributor to the economy, generating more than £41bn in annual turnover and supporting around 187,000 jobs. However, businesses in Wales are also navigating a complex operating environment, with rising energy costs and regulatory change emerging as the biggest pressures shaping decision-making.
Energy costs were cited by 48% of Welsh business leaders, above the UK average of 43%, while changes to business regulations were cited by 40%, well above the UK average of 28%. International market disruption and changes in customer behaviour were also cited by 28% of Welsh respondents.
The research also points to further headroom for Welsh firms to improve performance through faster, more confident decisions, with it estimated that £252m in additional growth could be achieved. However, 36% of leaders are saying that time required to gather information needed to assess is impacting effective decision making, followed by time needed to appraise options in detail (26%) and uncertainty regarding customer markets (24%).
Geraint McGrath, Partner at FRP Corporate Finance, said: “Wales’ mid-market plays a crucial role in the country’s economy, supporting jobs and growth across communities from Cardiff and Swansea to Wrexham and the Valleys.
“This research shows there is a meaningful opportunity to unlock more from that base. Welsh businesses are used to adapting, but energy costs and regulatory change are putting real pressure on decision-making and making clarity more important than ever.
“Faster, more confident decisions could help firms protect margins, invest for growth and build resilience. With clearer policy signals and the right support, Wales’ mid-market can turn that pressure into momentum and make an even greater contribution to the economy.”
