Mid-market businesses driving European economy with €1trn contribution
57% of UK medium-sized firms expect growth this year with efficiency and cost management top priorities
Medium-sized businesses (50-249 employees) from across Europe contributed a staggering €1.03trn to the economy in 2014; a figure expected to rise to €1.06 trillion this year according to a new report published by Sage Enterprise Market Europe in partnership with the Centre for Economic and Business Research.
Said to reflect mid-market enterprises driving European growth, the European Economic Impact Report analysed the economic impact of medium-sized firms across 12 European countries including the UK, Germany and Spain and found that although the European mid-market accounts for just 1% of firms in the economy, they created 20% of total turnover.
The report had positive findings for the UK’s medium businesses with 57% expecting growth this year with a focus on controlling costs and becoming more efficient.
Exporting was also a priority for British mid-sized firms; 77% said they already exported and 43% said they rely on exports for over 20% of their sales. Interestingly, a large proportion of UK businesses surveyed said Germany was a prime location for future export growth.
Other findings of the report include statistics which show employment by European mid-market businesses totalled 18.7 million people in 2014, with 124,000 new jobs expected year-on-year by 2019.
Innovation was also found to be key to the success of medium-sized enterprises with 63% labelling themselves as innovators; developing and adopting new products and business practices.
Sage Enterprise Market Europe CEO, Jayne Archbold, discussed the report findings with us:
“Research is showing us that across Europe mid-sized firms are expecting to grow and we really believe that they can deliver the same performance as Germany’s Mittelstand.”
When asked about ways in which medium businesses can be better supported, Archbold said:
“[Mid-market businesses need] more help from governments across Europe with exports and getting into new markets.
“The report has found that 42% of UK businesses are looking at alternative finance- having the right advice about alternative finance would also be really useful for mid-market firms.
“Talent and recruiting staff appears to be one of the biggest challenges – people need to be aware of what a mid-market business offers; it can be a really great opportunity”
To view a full copy of the report click here.