Mid-market enterprises in Europe generated €1.02 trillion to the economy in 2014, according to a report by Sage Enterprise Market Europe.

The European Economic Impact Report predicts the mid-market output will increase to €1.06 trillion in 2015 and reach €1.2 trillion by 2019.

The total income accounts for 20% of total turnover in Europe – despite mid-market enterprises making up only 1% of firms in the continent. In total 18.7 million people are employed by mid-market firms across Europe. This works out as 17% of the total workforce.

The report predicts employment within the sector will grow by 124,000 per year in the next five years – reaching 19.3 million by 2019.

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The report also includes a survey with SMEs from a range of European countries – including the UK. It suggests that 57% of mid-market firms in this country expect growth. And 52% pick Germany as the main target for future exporting growth.

Sage Enterprise Mid-Market Europe Jayne Archbold commented that the figures show mid-market firms are “the pumping heart of the European economy”.

“More than any other market, mid-sized businesses have shown that they are some of the strongest incubators of innovation. Mid-sized enterprises are built on the hard work of their employees and getting talent management right is a key concern,” she said.

“Traditionally, mid-sized enterprises’ hiring has been squeezed by the entrepreneurial attractions of start-ups and the financial and career opportunities of larger enterprises.”