Mid-market firms created more than 214,000 new jobs in the last year with Germany leading job creation
Mid-market firms across the four markets of France, Germany, Italy and the UK (the 'EU-4') are in growth mode -- represented through both sales and employment intentions -- despite tough economic conditions and a focus on keeping costs down, headline findings from GE Capital's 2013 mid-market survey show.
The research, based on a combination of telephone interviews with 2,200 board level mid-market executives, and extensive database research of over five million public company records, finds the average German mid-market firm has grown by 2.4% in the last year, compared to 2.3% in the UK, 1.7% in France and 0.2% in Italy. Looking to the future, UK firms are most bullish about growth in the next 12 months, forecasting 2.1% growth compared to 1.7% in Germany, 1.4% in France and just 0.5% in Italy.
The research also identifies a select group of mid-market companies which have achieved 'Growth Champion' status. These are businesses that have achieved exceptional growth of more than 10% over the last year. The research shows that the highest proportion of Growth Champions in Europe are based in the UK (17%) compared to 13% in Germany, 13% in Italy and 11% in France.
Rich Laxer, CEO of GE Capital EMEA, commented: "The mid-market continues to outperform the general European economy but growth is still being impacted by tough conditions. The economic crisis was highlighted as the main barrier to growth by mid-market businesses whilst keeping costs down represented the single biggest strategic challenge.
"That the mid-market continues to perform so well despite these strong economic headwinds is testament to the segment's strength and resilience. But we must continue to focus on this key group of companies, providing them with the support structure they need to continue to outperform and reach their true potential."
Based on the data, mid-market firms in the last 12 months added more than 214,000, jobs, with Germany accounting for the majority (116,000) of these positions. Other key findings from the report include:
- Mid-market companies represent only 1.46% of the total number of companies in France, Germany, Italy and the UK but they contribute nearly a third of private sector GDP, revenues and employment
- Keeping business costs down was seen as the single highest business challenge for 37% of firms across the EU-4 mid market
- The economic crisis is the biggest external barrier to growth for 26% of EU-4 mid-market firms, with regulation (22%) and financial barriers (15%) also seen as key barriers
Tom Steiner
GE Capital EMEA
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+44-(0)-208-185-2494