Mid-sized business leaders across the UK are questioning the blanket ‘SME’ label, with six in ten (61%) stating they would rather their business wasn't described using the term at all.
New research from specialist lender Shawbrook, published as part of its M Agenda insight series, reveals a disconnect between mid-sized firms and the broad terminology commonly used to describe them. Seven in ten (71%) mid-sized business leaders state that their company is regularly assumed to be smaller than it actually is because of how the term ‘SME’ is used.
This lack of distinction is a source of significant frustration for the UK's mid-sized business leaders. Three-quarters (73%) agree that the label ‘SME’ lumps their business in with companies with which they have ‘very little in common’, while 71% say that when politicians or the media talk about ‘SMEs’, they are rarely talking about businesses of their size.
The research also highlights the difficulty many face in finding finance suited to their scale and needs. Seven in ten (71%) mid-sized firms report that it is hard to find financial support tailored to mid-sized businesses. This is up from 65% in Autumn 2025 and rises regionally to 79% in Scotland and 78% in the East Midlands. Furthermore, over half (56%) state their business is too big for most small business finance products, rising to 63% among larger mid-market firms with turnovers between £50m and £100m.
Neil Rudge, Chief Banking Officer at Shawbrook, said: “Mid-sized business leaders are clearly frustrated with the broad-brush ‘SME’ definition and what it means for how their scale and needs are understood.
“Our latest research shows that these key drivers of the UK economy are still too often overlooked, with many of the options available failing to reflect their scale and complexity. When mid-sized organisations get the tailored capital they need, they create jobs, drive innovation, and boost national growth.
“Following the recent change in leadership, the new Government has an opportunity to build on the contribution mid-sized businesses already make across the UK. These firms are the Critical Middle of our economy, and recognising their distinct scale and needs will help them continue to invest, create jobs and drive growth.”
Methodology
The research was conducted by Censuswide, among a sample of 1,000 senior funding or budget allocation decision makers (senior manager and above) at UK mid-size businesses (defined as 50 to 249 employees) with an annual turnover of £5m to £100m. The data was collected between 18 August 2026 and 25 August 2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge. We adhere to the MRS Code of Conduct and ESOMAR principles
