Mid-sized businesses reject SME label, Shawbrook finds

Six in ten UK mid-sized business leaders would prefer their companies not to be described as SMEs, arguing that the term fails to reflect their scale, complexity and growth ambitions, according to new research from Shawbrook.

The specialist lender’s latest research, published as part of its M Agenda insight series, found that 61% of mid-sized business leaders want to move away from the SME label altogether.

Seven in ten (71%) said their company is regularly assumed to be smaller than it actually is because of the way the term SME is used, while 73% believe the definition groups them together with businesses with which they have “very little in common”.

A further 71% said that when politicians or the media discuss SMEs, they rarely feel the term refers to businesses of their size.

Shawbrook said the findings demonstrate a disconnect between the way mid-sized businesses see themselves and the broad terminology commonly used to categorise them.

The research also identified challenges for mid-sized companies seeking financial support appropriate to their scale.

Some 71% said it is difficult to find financial support specifically tailored to mid-sized businesses, up from 65% in autumn 2025.

The proportion rises to 79% among businesses in Scotland and 78% in the East Midlands.

More than half (56%) of respondents said their business is too large for most standard small business finance products. Among larger mid-market businesses with annual turnover between £50 million and £100 million, this increases to 63%.

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.”