Angela Hunter: Medium-sized firms enjoy the best of both worlds

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Business conversation in and outside of the media tends to focus on either large or small businesses. In fact, the term mid-market is still a somewhat unknown concept for many.

Despite this, mid-market firms - those businesses with a turnover of between $2 million and $50 million - stand firm post-GFC, having harnessed the best of both worlds.

Put simply, they have an advantage over both small and large businesses because they are flexible enough to jump on an opportunity and have deep enough pockets to support themselves while doing so.

It is no wonder mid-market firms are more optimistic than their small and large counterparts, with two-thirds of them saying their main focus for 2014 was growth.

Pockets just deep enough means mid-market firms have the ability to weather difficult times, but also fund innovation and hire key talent.

But unlike large businesses, which can do the same, mid-market firms are agile like small businesses. This means that when an opportunity comes knocking they have the ability to seize it, which is critical to growth.

At GE Capital, we have seen these ambitious mid-market companies achieve great things because they have been able to retain that entrepreneurial spirit.

This spirit is shown in many ways throughout the mid-market, from changing from a conventional logging firm to adding value to raw goods to maximise profits like Bay of Plenty outfit Kajavala Forestry, to using technology like Blenheim-based viticultural contractor VinePower, which uses iPads in the fields to track performance and production.

Rather than paying lip service to change and development, mid-market firms are free enough from the trappings of large firms to instigate change faster. Fewer people and fewer assets means less baggage when it comes to switching direction, so mid-market firms can scale up and down quickly to meet demands.

When it comes to staffing, mid-markets have another advantage. As roles are generally broader in medium-sized firms, it gives employees the chance to stretch themselves and take on projects they would not normally be exposed to.

Combine this with strong internal communication, and staff satisfaction and retention levels will be higher as employees look for more than a pay cheque in an employer.

In 2014, mid-market companies continue to punch above their weight, contributing $66.2 billion to the NZ economy. They also retain that nimble edge which sets them apart from large firms.

• Angela Hunter is managing director of GE Capital New Zealand.