Mid-sized European businesses are demanding greater support from governments and lenders. As much as 70% of respondents from such firms report experiencing negative effects of 'Middle Child Syndrome' — according to the latest research study conducted by Coleman & Parkes for Ricoh Europe.
Barriers to growth for mid-sized firms
Research findings show that 76% of mid-sized business leaders believe their companies are performing well, but could do more to become more competitive in domestic and European markets. The main barriers they identify are complex legal regulations — associated with significant costs — and difficulties in finding and financing the right technology to achieve their ambitions. Importantly, these challenges are also recognized by larger corporations.
“The European mid-market is full of energy — both in growth and ambition,” said David Mills, CEO of Ricoh Europe. “To strengthen our economies, governments and lenders should collaborate with dynamic mid-sized firms to support their growth and innovation. Many plan to launch new services and create additional jobs in the coming years. This will become nearly impossible if the regulations surrounding such actions remain as complex and expensive as they are today.”
Priorities for the next two years
Detailed analysis of collected data revealed that 67% of mid-sized European firms compete with new market entrants as well as large corporations. The study indicates that mid-sized businesses have set several key priorities for the next two years. The most important are: launching new products or services (30%), managing growth (28%), and adopting innovative technologies (28%).
“The needs of mid-sized businesses are often overlooked, placing them at a disadvantage — making it harder for them to overcome both new and existing market challenges. It’s important to note that these firms generate as much as 30% of annual revenue earned by all European enterprises. Significant structural issues require changes at both the company and national economic policy levels. Investing in growth and innovation is essential for Europe to maintain its position as a global leader in innovation and remain competitive with other world markets,” adds David Mills.
Barriers to growth for mid-sized firms
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Summary
The research commissioned by Ricoh Europe through Coleman & Parkes shows that 70% of mid-sized European firms feel the effects of the 'Middle Child Syndrome' — being ignored between small and large players. As much as 76% view their situation positively, but point to barriers: complex regulations and difficulties in funding technology. Mid-sized firms generate 30% of annual revenue across all European businesses.
Their main priorities over the next two years are launching new products (30%), managing growth (28%), and innovative technologies (28%). David Mills, CEO of Ricoh Europe, urges governments and lenders to collaborate in supporting this crucial business segment.
