Manufacturing is the biggest industry in China
Mid-market firms play a vital economic role, supporting 169 million jobs and contributing USD4.8 trillion in economic output in 15 countries and territories, according to new research by Oxford Economics for HSBC. The report examined the middle market in developed and emerging economies across Asia, Europe, Latin America and North America.
Mid-market enterprises were directly accountable for between 10 per cent and 17 per cent of private sector output in each of the countries and territories covered. As well as creating jobs directly, they supported smaller firms by purchasing materials and services.
Mid-market enterprises were directly accountable for between 10 per cent and 17 per cent of private sector output
The make-up of the middle market varied in each country and territory. A significant proportion of UK enterprises offered business services. In China, manufacturing was the single biggest industry. Mining and utilities played a more significant role in Saudi Arabia than anywhere else.
The size and productivity of the middle market also varied across countries. The US was home to more than 50,000 mid-market firms, the largest number of any country, while China had around 40,000. The sector employed more than 70 million people in China, but it employed fewer than 20 million in the US.
The UK had the most productive sector of all, with mid-market enterprises accounting for 17 per cent of private sector output, more than in any other location.
Steve Bottomley, Global Head of Mid-Market and Business Banking, Commercial Banking, HSBC, said: “Mid-market enterprises are a vital engine of growth, making a significant contribution to local, regional and national economies. Many countries, such as Germany, offer a supportive environment. We also know, however, that in some places mid-market enterprises feel undervalued and overlooked – too big to benefit from specific support offered to small firms, and too small to exercise influence over public policy in the same way as large companies. This is a missed opportunity.”
Hidden Impact: the vital role of Mid-Market Enterprises is an independent report published by Oxford Economics for HSBC in March 2015. It defines an MME as an enterprise that had recorded earnings of between USD50 million and USD500 million in 2012 US dollars and exchange rates. It estimated the size and composition of the mid-market in 15 countries and territories (Brazil, Canada, China, France, Germany, Hong Kong, India, Mexico, Poland, Saudi Arabia, Singapore, Turkey, the United Arab Emirates, the United Kingdom and the United States) using a combination of publicly available and modelled data.