15 Aug 2012

Mid market firms 'overlooked'

7:31 am on 15 August 2012

Mid-sized firms are being overlooked as an engine of growth for the economy, according to GE Capital.

The US-owned lender says more needs to be done to ensure they get access to capital and skilled workers to allow them to continue expanding.

GE Capital says the mid-market, characterised as firms with annual turnover of between $2 million and $50 million, contributes a estimated $61 billion to the economy and employs one third of the nation's workers.

GE Capital New Zealand managing director Aaron Baxter says this sector, which is about 20,500 strong, has grown at a faster pace than the average, but tends to be undervalued by policymakers and funding markets.

Mr Baxter says access to funding has been more difficult due to the fallout from the global financial crisis and fewer finance firms, while mid market firms also struggle to attract skilled workers and managers.