Currently, 26,600 mid-market firms account for just 1.5% of the 1.82 million registered enterprises in the UK’s business economy*. Despite this, they were found to contribute 17% of the country’s total Gross Valued Added output (GVA) in 2014, having experienced growth of 33% since 2009.
At the same time, the sector has experienced a surge in employment with 260,000 jobs created over the past six months alone and further growth of 5.3% expected over the next five years.
That’s according to Sage’s Economic Impact Report, a comprehensive snapshot of the state of Europe’s mid-market – defined according to the European standard as companies with between 50-249 employees. The research, undertaken with the Centre for Economics and Business Research and Redshift Research, analysed the contribution of mid-sized enterprises to 12 major economies of the EU.
Of all the European countries included within the study, the UK has seen the most growth in terms of mid-market employment in the years since the 2008-9 downturn. Employment figures for the sector currently stand at 3.02 million, but this set to rise to 3.18 million by 2019.
The survey also found that mid-sized enterprises are highly optimistic about the coming year. The overwhelming majority (73%) said turnover would stay the same or grow by up to 50%. Expectations for hiring were even more buoyant with 70% expect their staff numbers to grow in the next year. This was the highest proportion across 12 European countries in the survey.
Jayne Archbold, CEO at Sage Enterprise Market Europe, said: “Mid-sized businesses play a critical role in driving economic growth in the UK, and across Europe. They are ambitious, with high levels of productivity and impressive employment stats. At a time when many businesses were struggling, this sector grew by 33%. They should be viewed as the unsung heroes of the economy.
“Looking ahead, an improving demand outlook and easing financial position suggest robust mid-market growth in the medium-term in the UK.”
The poll found that the UK’s mid-market employees are the hardest working across Europe. According to results, 70% work occasionally after regular working hours, 55% at the weekend, 28% on vacation and 26% when ill. Just 5% work on none of these occasions, which compares to the European average of 12% and, for instance, 17% in France.
Other research findings
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We provide small and medium sized organisations, and mid-market companies with a range of easy-to-use, secure and efficient business management software and services - from accounting, HR and payroll, to payments, enterprise resource planning and customer relationship management. Our customers receive continuous advice and support through our global network of local experts to help them solve their business problems, giving them the confidence to achieve their business ambitions. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and entered the FTSE 100 in 1999. Sage has millions of customers and circa 13,000 employees in 23 countries covering the UK & Ireland, mainland Europe, North America, South Africa, Australia, Asia and Brazil. For further information please visit www.sage.com.
Research Appendix
The European Economic Impact report analyses the contribution of mid-sized firms to the economies of the EU. The main data source used for analysing the mid-sized sector is Eurostat’s structural business statistics (SBS) database. This dataset is compiled through enterprise surveys, administrative surveys and business registers. Throughout the report, firms are disaggregated into size classes according to their employment levels, defined as follows (in accordance with OECD and Eurostat guidance):
Gross value added (GVA) is a measure of output defined on Eurostat as ‘value added at factor cost’. It is calculated as turnover less the cost of external purchases used as inputs to produce these goods and services; after adjusting for subsidies and indirect taxes.