New research, commissioned by Ricoh Europe, has revealed that European mid-sized businesses could be missing out on up to £4.8 million of annual revenues because of barriers that hinder their growth. With 75,000 mid-sized businesses across Europe, the total missed potential revenue could amount to up to £364 billion.
93 per cent of mid-sized businesses report that they encounter barriers that prevent them from reaching their full potential, with the top three obstacles including, the need to comply with complex and costly regulation, the struggle to attract the best talent and finding, buying and applying the right technological solutions.
According to the research, 30 per cent of mid-sized businesses have also yet to apply digital solutions that would enable them to scale up and become big brands, which Ricoh believes is critical to capturing some of the revenue they miss out on each year.
David Mills, CEO of Ricoh Europe said, “most government support is focused on small businesses, while large enterprises are typically able to look after themselves due to their scale. Mid-sized companies often feel like they are the neglected child of the European business world. 364 billion is a staggering amount of capital for mid-sized businesses, and the European economy as a whole, to be missing out on. We believe it is time for the mid-market to prioritise innovation and make sure its businesses are truly adaptable. The easiest way to do this is by streamlining processes that make it possible to overcome the range of challenges they are facing.”
Despite the missed opportunity, Europe’s mid-market is still aiming for growth with nearly 40 per cent of businesses planning to offer shares to the public in initial public offerings. Another 21 per cent are also planning to acquire other companies or merge with competitors to increase their competitive strength.