JPMorgan Chase and Next Street released The Middle Matters: Exploring the Diverse Middle Market Landscape, a new report that provides insights into the midsize businesses that power our economy.

Conducted and analyzed by Next Street, the research reveals that while midsize businesses generate significant revenue nationally and locally, there is an opportunity to better support them as they face headwinds such as increasing competition, slowing revenue growth and an uncertain economic outlook.

The report details the U.S. midsize business:

• Market: There are approximately 300,000 midsize businesses across the U.S that generate $13 trillion in annual revenues and employ more than 40 million people.
• Importance: These businesses account for 33% of annual revenue generated and 30% of all private sector employment in the country, despite representing only 5% of the total number of national employer businesses.
• Discrepancy: Diverse-owned businesses represent roughly 30% of the middle market, but generate only about 20% of the total market revenue.
• Opportunity: Closing this gap could generate an additional $1.3 trillion in annual revenue, presenting a meaningful opportunity to support national economic health and prosperity.

“Midsize businesses are critical to the health of our economy and communities,” said Terry Hill, Co-Head of Emerging Middle Market, JPMorgan Chase Commercial Banking. “They create millions of jobs, as well as the products and services that power our day-to-day lives. By providing tailored solutions that meet their unique needs, we can help companies build lasting legacies that uplift communities for generations.”

The Diverse Landscape

To date, there has been limited investment in research that highlights diverse-, women-, and veteran-owned midsize businesses. Understanding the needs of midsize businesses that make up the middle market offers a significant opportunity to empower underserved business owners and bolster the economy.

Diverse-owned midsize businesses are, on average, 10 years younger and employ fewer employees than non-diverse-owned businesses. According to the businesses surveyed, diverse-owned companies are growing at a faster rate (32%) than their non-diverse counterparts (19%). That said, the report finds that diverse-owned midsize businesses face roadblocks to growth. Key challenges include:

• Accessing capital and advisory services
• Acquiring growth financing and improving capital structure
• Creating and implementing strategic business and innovation plans

In addition to exploring the current state of the middle market, the report describes opportunities for broader access to financial resources and overall support for midsize businesses.

“There is growing support in the business community for a greater understanding of the middle market overall, and the dynamic businesses within it,” said Charisse Conanan Johnson, Co-CEO of Next Street. “We hope this new report serves as a call to action for middle market stakeholders to accelerate additional research efforts and solutions to serve the needs of diverse-owned midsize businesses.”

The report, The Middle Matters: Exploring the Diverse Middle Market Landscape, is a new study based on research conducted and analyzed by Next Street. The study included primary and secondary data sources, surveys, interviews, and focus groups. For this research, the middle market is defined as those businesses generating between $10 million and $500 million in annual revenues. Most midsize businesses fell into the $10mm-100mm range of annual revenues. Next Street’s analysis primarily focused on the middle markets in Chicago, Dallas and Los Angeles—which, when combined, represent 12% of the overall U.S. middle market.

For the purposes of this report, “diverse-owned” includes Black-, Latino(a)-, Asian-, and other people of color- owned businesses, women-owned businesses, and veteran-owned businesses.