CONNECT cover

Frontier Report

CONNECT

The Missing Middle

Building stronger Welsh SME ecosystems

Shahbaz Husain ·

Independent firms can achieve more when they can draw on capabilities, relationships and markets that would be uneconomic to build alone.

The proposition

Help independent firms borrow scale through relationships.

CONNECT examines the layer between individual businesses and the wider economy: supplier relationships, consortia, shared facilities and collaborative innovation. The objective is useful commercial relationships, not networking activity for its own sake. Relationships with major organisations should strengthen SMEs’ capabilities and widen their choices.

What the publication argues

01

Make SME-to-SME collaboration an explicit economic-development objective.

02

Support shared capability, joint market access and relationships that change what firms can do.

03

Assess major-customer relationships by the capabilities and independence they leave behind.

Evidence and examples

Italy’s network-contract framework provides an example of formal collaboration between independently owned firms. The report distinguishes the transferable lessons from the legal arrangements that would require UK action.

The full publication sets out the evidence, qualifications, recommendations and source references.

Citing this publication

Husain, S. (2026). CONNECT — The Missing Middle. Frontier Report, September.

Read the series

The Framework Briefing introduces the argument; the Reports examine each part in depth.

Discuss the implications for your organisation

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