Driving growth in an uncertain decade

Thriving amid uncertainty

While the future may take different forms, the possible scenarios share a common thread: volatility is becoming structural and the margin for error is shrinking. 

For mid‑market organisations, the question is no longer how to return to stability, but how to perform in its absence.

Where are leaders placing their bets?

heading-left heading-right line-1-label-left line-1-label-right line-1-ball 1 line-1-left line-1-right line-2-ball 2 line-2-left line-2-right line-2-label-leftRecruitment and retention line-2-label-rightData and analytics line-3-label-leftData and analytics line-3-label-rightRecruitment and retention line-3-ball 3 line-3-left line-3-right line-4-ball 4 line-4-left line-4-right line-4-label-leftCybersecurity line-4-label-right line-5-ball 5 line-5-left line-5-right line-5-label-leftRisk management line-5-label-right

The big AI bet

Mid-market leaders are all-in on technology, but few are ready for what comes next.

Our study shows that almost 7 in 10 business leaders (70%) believe technology and digital transformation (including AI) will contribute considerably to accelerating their organisations’ growth over the next five years, making it the number one predicted accelerator, above factors like innovation, capital sourcing and talent. 

And most organisations (60%) are putting financial firepower behind this prediction.

of business leaders say technology and digital transformation (including AI) is currently a key investment priority

However, with just over half of executives (51%) saying that cybersecurity is a key priority for their organisation, our research suggests that some organisations are moving faster on innovation than on the protections required to keep that innovation secure. 

In a world where technology underpins every part of an organisation and is fundamental to growth and survival – and where geopolitical threats are increasingly acute – cybersecurity must also be a key priority.

The talent trap

With technology disruption reshaping the labour market, a scarcity of the right talent could stall organisations’ progress on innovation.

By 2035, competition for top talent will be the single greatest constraint to mid-market business growth, according to 6 in 10 business leaders (60%).

One of the knottiest technology-talent issues currently playing on the minds of business leaders is the impact of AI on talent development.

of leaders predict talent shortages will be the single greatest constraint on growth by 2035

As AI replaces or reshapes many entry-level roles, how do people entering the workforce gain the foundational skills they need to become the executives of tomorrow?

Leaders need to balance technology and talent, ensuring that in their race for technology-enabled growth, they do not neglect their human workforce. Not only does achieving the right balance help organisations prepare for tomorrow’s talent constraints, it also serves as a potential growth lever today.

In a technology-saturated world, 7 in 10 leaders believe that the mid-market organisations that can demonstrate their human value are the ones that will win.

59% say the pa c e of te c hnologi c al c hange is ou t s t ripping l e ade r s ability to adapt 57% of e x e c uti v es p r edict a l e ade r s hip pipeline c risis due to AI r e s haping or eliminating junior r oles

Yet firms list leadership pipeline and development among their least prioritised investment areas

Regulatory oversight

While policy changes driven by political oscillation are already posing a challenge, 60% predict an increasing pace of regulatory change over the next decade, with just 18% anticipating a slowdown.  

Yet our opinion research indicates that while leaders are concerned about a hyper‑regulated future, they are still not giving compliance the precedence it needs.  

Regulatory compliance and governance are at the bottom of the list of organisations’ current investment priorities, along with sustainability and environmental, social and governance (ESG) initiatives.

In the scramble for innovation and growth, there is a risk that businesses put themselves in the path of fines and reputational damage by neglecting these fundamentals. 

Strong governance is not just about risk mitigation; it can create the foundation for organisations to innovate with confidence.

Least-prioritised areas for investment

21% say sustainability and ESG initiatives are not a priority 20% say strategic partnerships and ecosystem development are not a priority 21% say regulatory compliance and governance is not a priority

The Goldilocks zone

Despite the challenges, there is abundant cause for optimism among mid-sized organisations, especially those that can turn potential risks into advantages. 

In fact, mid-market organisations could be in a Goldilocks position for the next decade: not too big to face political targeting yet big enough to plan alternative strategies in the case of volatility; nimbler than larger businesses yet with better economies of scale than smaller ones. 

Top 5 advantages mid-market businesses have over large organisations

2 3 4 5 1 Easier access to seniordecision-makers Greateragility Lessbureaucracy Fasterdecision-making Personalisation / customer-centric approach
Report front cover

There's more to The mid-market maze

What you have seen here are just the headlines. The full report goes deeper into the data, the insights and the real-world moves leaders need to make to get ahead. 

  • Challenge your assumptions 

  • Assess risk and opportunity from every angle  

  • Stress-test your strategy for what’s next 

Go beyond the surface. Explore the full mid-market maze report.