By Daniel Hunter
Mid-sized enterprises contributed €1.03 trillion to the European economy in the last year, a figure expected to grow by 3 per cent to €1.06 trillion in 2015, according to Sage Enterprise Market Europe.
The European Economic Impact Report forecasts this to rise further to €1.2 trillion by 2019.
The research, undertaken with the Centre for Economic and Business Research, analysed the contribution of mid-sized enterprises to 12 major economies of the EU.
The report’s found that the mid-market is a vital component of economic activity across Europe, accounting for just 1% of firms in the business economy, but accruing 20% of turnover.
The figures suggest that it provides employment for 17% of the workforce. In 2014, mid-market employment totalled 18.7 million people. By 2019, it will add around 124,000 jobs per year, with total employment expected to stand at 19.3 million people.
Three-quarters of the business decision makers said they expected their turnover to stay the same or increase in 2015, with more than a third (39%) expecting turnover to increase by up to 10%. This confidence is echoed by the fact that over half (55%) of mid-sized enterprises plan to grow their business by hiring new staff.
Jayne Archbold, CEO at Sage Enterprise Market Europe, said: “There are 18.7 million people employed by mid-sized enterprises across Europe and this surveys shows they form the pumping heart of the European economy.”
“More than any other market, mid-sized businesses have shown that they are some of the strongest incubators of innovation. Mid-sized enterprises are built on the hard work of their employees and getting talent management right is a key concern.
“Traditionally, mid-sized enterprises’ hiring has been squeezed by the entrepreneurial attractions of start-ups and the financial and career opportunities of larger enterprises.
“The fact that innovation is at the heart of this sector and that mid-sized enterprises are investing billions in research and development sends the message that these ambitious, skilled enterprises are punching above their weight when it comes to driving economic growth. Mid-market companies are the unsung heroes of the European economy.”