Mid-Market Companies with European Subsidiaries Could be Missing Out on Growth

Mid-market companies with substantial feet on the ground in Europe could be missing out on significant growth due to complex regulations, recruitment challenges, and a lack of updated technologies.

gettyimages-143070812-compressorThat was the key finding of a Coleman Parkes Research study carried out on behalf of Ricoh Ireland. The survey of 1,650 mid-sized businesses across Europe found that 93% encounter barriers to growth that prevent them from reaching their full potential. Companies said the top three obstacles to growth were the need to comply with costly and complex regulations (31%), struggles to attract the best talent (27%), and applying the right technological solutions (27%). Respondents said they believe they could increase revenues by an average of 19% if these obstacles were addressed.

With 75,000 mid-market businesses across Europe, the study estimates the potential missed opportunities to be near $480 billion. Jyoti Banerjee, co-founder of the M-Institute, a think tank that represents mid-sized businesses, told Tech City News that companies face challenges with national business policies. Banerjee said that while these companies are growing and creating jobs, “we must also recognize that more support from government and industry would make a huge difference to how this amazing, but often overlooked, group of companies perform.”

Gary Hopwood, general manager of Ricoh Ireland, feels that governments need to do more to champion mid-market businesses across Europe. He said it’s especially important for them to receive incentives to adapt new technologies. While 65% of digital adopters said technology has helped them outpace their competition, only 30% of mid-sized businesses said that they had applied such digital technologies.

“To outdo their competition, robust technology will be needed to power mid-sizes businesses into the digital economy and to lead the way with their products and services.”

“To achieve this, robust technology will be needed to power mid-sizes businesses into the digital economy and to lead the way with their products and services,” said Hopwood.

According to EY’s European Mid-Market Barometer 2015, middle-market companies in Europe express positive future prospects with only 7% expecting their business to deteriorate in the coming year. Yet across international boundaries, perceptions about the business climate can vary drastically. While companies in Turkey, the UK, Denmark, The Netherlands, Portugal and Spain expressed positive sentiment, those in Russia, Germany, Italy, Poland and Greece ranked among the lowest on the measure of confidence.

Companies in the EY survey were largely in favor of using public investments to promote growth (63%). Nearly three-quarters of those companies said tax deductions would help boost business, while 42% said they most needed reductions in bureaucracy. More of a concern as an impediment to growth was a shortage of skilled labor, as more than half of mid-market companies surveyed in Austria, Switzerland, Greece and Germany said the skills shortage was a problem.

“One potential obstacle in the road is a lack of skilled labor, which can hamper companies just at the point where they are ready to grow. Governments across the region need to think about education, training and immigration reform to address this issue,” said Julie Teigland, EMEIA Managing Partner Accounts and Markets at EY.


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process

    Executives expressed frustration with their current strategic planning process. Issues include:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns.  They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning.  Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process.  This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented.  If you are ready for a Strategic Planning tune-up, select this workshop in your registration form.  The additional fee of $695 will be added to your total.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.