Why medium-sized businesses are vital to the social and economic fabric of NI
ULSTER University Business School (UUBS) is delighted to sponsor this year’s Best Medium-sized Company of the Year at the Belfast Telegraph Business Awards 2024.
At the heart of Northern Ireland’s economic landscape lies a cohort of enterprises often overshadowed by their larger counterparts but wielding significant influence: medium-sized firms.
With workforces ranging from 50 to 249 employees, these companies form a critical backbone of the region’s economy, driving innovation, fostering employment, and bolstering community development.
In a land where economic stability is paramount, and the restoration of the Executive brings a renewed sense of purpose and optimism, medium-sized firms, many of which are family owned and managed, serve as engines of growth, catalysing job creation across diverse sectors.
Unlike larger corporations that can monopolise attention, these enterprises are nimble enough to adapt swiftly to market fluctuations while simultaneously providing substantial employment opportunities. Their size allows for agility, fostering a dynamic environment where innovation thrives, contributing significantly to Northern Ireland’s economic resilience.
The significance of medium-sized and family run firms becomes apparent when considering their role in job provision. Data from the Ulster University Economic Policy Centres shows that in Northern Ireland there are 1,300 medium-sized businesses or 1.6% of the total number, yet collectively these firms represent the ‘mighty middle’ of our economy.
The top 100 of these firms earned just over £119m in operating profit in their last reporting year on a collective turnover of over £1.7bn. Importantly, this represents nearly 17,000 employees with just over £400m paid out in salaries and wages in the same period. As with any economic and contextual challenges, the resilience evident in such firms is a continued source of encouragement — even despite significant global and more regional risks to growth. Yet such firms, particularly in more traditional and low growth sectors, tend to escape the headlines and often go unnoticed.
In a region historically plagued by employment challenges, these enterprises serve as beacons of hope, offering steady employment to thousands of individuals. Whether it’s manufacturing, technology, or service-oriented industries, medium-sized firms play a pivotal role in diversifying the job market, reducing dependency on a singular sector, and ensuring sustainable employment growth.
Moreover, these firms are often deeply embedded within their local communities, particularly when they have been run by the same family for generations. They foster a deep sense of belonging and driving regional development.
These firms tend to invest locally, supporting small businesses, sponsoring community events, and engaging in philanthropic endeavours. Such grassroots involvement not only bolsters the local economy but also cultivates a spirit of cohesion and solidarity, essential for
Northern Ireland’s social fabric.
We need more start-up activity in Northern Ireland, coupled with more multi-national (MNC) and foreign direct investment (FDI). Crucially, however, we need to see more of our medium sized firm’s scale and grow. Medium-sized firms serve as hotbeds of innovation and entrepreneurship, propelling Northern Ireland onto the global stage.
As Northern Ireland’s largest business school, UUBS has worked closely with local businesses for over 40 years, delivering innovative executive education and management development opportunities to the next generation of managers and leaders.
The Department of Management, Leadership and Marketing offers a range of leading executive education, as well as through initiatives such as the Centre for Sustainable Family Enterprise, which is dedicated to providing enterprising families with the knowledge, tools and resources they need to build thriving, sustainable businesses that last for generations.