There are more than 13,000 of them across the UK and they employ 7.3m people – though on paper they represent just 0.5% of the UK's tally of companies and their lack of recognition is holding them back.

With a collective contribution of £1.3 TRILLION of turnover and £420bn of Gross Value Added to our economy, the NatWest Bank has been focusing on the financial health and prospects of mid-market companies (MMCs) – and the bank says five key challenges are clear for these businesses to overcome.

Working in partnership with strategy advisors Oliver Wyman and supported by Business Secretary Jonathan Reynolds MP, the UK's biggest business bank has identified that UK MMCs are "the unsung engine" of the UK economy and it has outlined a new plan to fix the issue.

The bank's full report highlights how MMCs:

● Employ 26% of Britain's workforce.

● Contribute the equivalent of 200 SMEs to the economy, creating 30% of the country's GVA.

● COULD contribute an additional £115bn to turnover and £35bn of GVA by 2030 (while areas outside London and the South East, could see growth of up to £70bn and £24bn for turnover and GVA respectively).

Some 1,075 firms were consulted in Nat West's report, leading to the five identified challenges:

● Lack of collective identity: MMCs do not identify as a distinct segment (unlike the German Mittelstand), and therefore cannot collectively advocate for additional support and policies which would enable growth.

● Lack of data and transparency: this segment loses in terms of policy support and other targeted measures as the lack of data means it is difficult for public and private sector stakeholders to understand the importance of the MMC segment to the economy and define policy and other targeted measures to support growth and productivity.

● Insufficient access to skills: MMCs struggle to fill vacancies at every level (specialist and entry level) and the problem is getting worse;

● Complexity growing faster than their capacity: the level of complexity can exponentially increase as they establish new business lines, enter new markets or breach thresholds for regulation or red tape.

● Infrastructure and planning restrictions: because MMCs are typically more regionally based, limitations in regional infrastructure (e.g housing, rail/bus links, grid connectivity, broadband) disproportionally affects this segment. This is compounded by problems with the planning system.

In total, MMCs now employ more than 1.2million MORE individuals than large non-financial corporates.

Paul Thwaite, CEO of NatWest Group, said that because MMCs are a significant growth and productivity driver his bank wants to encourage "a step change in support for the critical middle".

He added: "The first step on that journey is to convene a MMC Council - creating a cohesive identity to collectively advocate and influence for growth enabling policies and support."

In response to these issues, NatWest, with the support of the Department of Business and Trade, is to create a UK Mid-Market Council, with members representing the primary sectors from across the business sphere.

This will begin operation in 2025, while the bank is also launching a new Mid-Market Growth Tracker, in collaboration with S&P Global.

Believed to be the first of its kind, the tracker will use the industry standard Purchasing Managers Index (PMI) to provide an ongoing view of mid-market sentiment and productivity across the UK, providing regular data on progress.

Furthermore, the bank is also announcing a partnership with the UK Export Academy, with an aim to "help educate and encourage businesses to begin exporting to EU and International markets".

A spokesman added that the report identified how "knowledge, networks and compliance are major barriers for mid-market businesses who want to commence trading internationally; this partnership will aim to break down these barriers and provide mid-market businesses with the confidence and expertise to expand their business into foreign markets".

Paul Thwaite, CEO, NatWest Group said: "Mid-market businesses are a significant growth driver for our economy, playing a crucial role in supporting the UK's regions as a substantial employer, whilst driving productivity improvements. However, they have the potential to do even more. Through today's report we want to encourage a step change in support for the critical middle. The first step on that journey is to convene a MMC Council - creating a cohesive identity to collectively advocate and influence for growth enabling policies and support."

Business Secretary Jonathan Reynolds added: "This Government's number one mission is growing our economy - this report provides clear evidence for the vital role that mid-market corporates can play in achieving that. It sets out the contribution these businesses make to regional economies, delivering jobs and increasing productivity across all sectors. The sky is the limit for what these businesses can contribute to the UK.

The British Chambers of Commerce has also endorsed the move. Shevaun Haviland, BCC Director General, said: "The potential for mid-market corporates to generate economic growth is staggering, if we can get the frameworks to support them right. These firms have often been overlooked but with their regional influence, high productivity levels, and capacity to boost exports, they deserve greater support and a stronger voice."

And Louise Hellem, Chief Economist at the CBI, added that MMCs are "lynch pins of regional economies around the UK as well as key players in our national prosperity and international trade".

"We welcome NatWest's commitment to this issue and look forward to working with them further."

Irene Graham, CEO of the ScaleUp Institute, which will join the MMC Council, added: "We estimate that there are nearly 8000 scaleups within the midmarket who are highly innovative and international. Tailoring solutions to the needs of our mid-market scaleups to foster their further growth makes sound economic sense.

"As the government progresses its industrial, business and trade strategies there is opportunity to lean further into this segment through even closer public and private sector collaborations, which we look forward to working on further as part of the MMC Council."

● To access and find out more, this is the full report.