The European Economic Impact Report
The mid-market is consistently under-recognised by political decision-makers, business leaders and also the population at large. At Sage, we champion our SME and Enterprise customers and we strive to raise the profile of this important economic sector.
To do this we commissioned the Centre for Economic and Business Research, a leading independent body, to conduct a comprehensive, pan-European analysis of the sector. Such a wide-ranging, report of the 12 major European economies has never been undertaken before. The European Economic Impact Report proves that these skilled enterprises are punching above their weight when it comes to driving economic growth. Find out more www.midmarketimpact.com
Here at Sage we’ve always believed that the mid-market has been a little too modest when it comes to expressing its crucial role in boosting Europe’s economic growth. Recent turbulent economic times have meant that policy makers, business leaders and even the population at large have ignored the mid-sized enterprises vital contributions; instead focussing on either enterprising start-ups or the financial might of large enterprises.
At the heart of innovation
One of the most common themes to come from our recent European Economic Impact Report was that innovation is at the heart of the mid-market, reinforcing our long held belief that a higher proportion of mid-sized firms undertake innovative activity than is the case in the wider economies.
Our research, which analysed the views of business leaders across the 12 major European economies, proved that nearly two-thirds (63%) of mid-sized enterprises are continually innovating by developing and adopting new products and business practises. Furthermore a staggering 93% stated they are planning on investing in their IT estate this year.
On the front foot…
This huge focus on innovation, and a constant desire to be on the technological front foot, means mid-market enterprises can ensure they’re always maximising efficiency. It also means they are confident they are offering the very best service to their customers in a highly competitive market.
Mid-market enterprises are incredibly strong innovation incubators simply because they proportionally invest more in research and development than the wider business economies. Taken as a whole the mid-market invested over €22.4billion in R&D activity during 2013; the equivalent to 15% of the total across all European businesses. In a time of constant cost cutting mid-sized firms seem to instinctively know that this investment pays dividends in the long term. Moreover, they have a keen understanding of its positive impact on productivity and talent management.
The recovery’s driving force
Traditionally, mid-sized enterprises’ talent has been squeezed by the entrepreneurial attractions of start-ups and the financial and career opportunities of larger enterprises. To counter this 60% of mid-sized business leaders considered retaining the best staff to be one of their major priorities. It echoes my own experience, that when businesses get the best talent you naturally want to keep and nurture it. Any successful business is built on the hard work of its employees and getting talent right is crucial.
Ultimately mid-sized firms know that R&D and talent management are the twin pillars of a successful business and it is this approach that means they are the driving force behind Europe’s economic recovery. The mid-market has proved itself to be the silent giant – quietly winning the top talent, growing outside core markets and facing down increased competition. However, it’s about time they took all their well deserved credit.
To find out more and download a copy of the European Economic Impact Report visit: www.midmarketimpact.com