Middle market and small business executives tout their businesses’ higher level of innovation, greater access to talented and more creative staff, and more flexible and efficient workplaces as key differentiators between their businesses and larger businesses. They don’t look to the national facts and figures (or the media) to get a sense for how things are going; rather, they rely on direct and personal experience to tell the story of economic success (or failure). In 2016, middle market executives present an optimistic view of their current business—and anticipate it continuing to grow in the near future. Over the next 12 months, about 8 in 10 foresee expansion and diversification including: new markets, new regions, new businesses, and new products. Their perspective on financing is also generally positive and is predominantly driven by a need to address domestic expansion, technology, and working capital. The majority feel that their workforce has heavy demands placed on their time right now, but most believe that the size of their staff will increase soon, perhaps alleviating the current pressure. Moreover, more than half can envision being a part of a merger or sale within the next three years. But everything is not altogether smooth for the middle market. Most express near-term apprehension about the economy, data security, taxes, and healthcare. They do not express one unified, crystal clear vision of Congress, but the majority are in relative agreement that certain changes in the regulatory environment (like the Trans-Pacific Partnership and the Dodd-Frank Act) have been or will be good—or at least neutral—with respect to their business. That said, according to executives, it is important that the next Congress address terrorism as well as concerns about data security, taxes, and healthcare in the coming years. They also generally agree that larger businesses have a larger impact on the national economy, but still do not feel that Congress is doing enough to support small and middle market companies.

1. CIT Voice
of the Middle Market
© 2016 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc. 1
KEY HEADLINES
FROM THE RESEARCH
z Greatest Confidence in
Strength of Business, Less in
National and Global Economies
z Some Confusion about the
Definition of Middle Market
z The Relatively Rosy
Expectations for Expansion
and Product Development
z No Clear Consensus on the
Impact of Congress
z Nearly All A’s for Financing
z Demand for More Staff Now;
Signs Point to Next Year’s
Workforce Expanding
z Differing Perceptions
Among Small Middle
Market Businesses
Middle market and small business executives tout their businesses’
higher level of innovation, greater access to talented and more
creative staff, and more flexible and efficient workplaces as key
differentiators between their businesses and larger businesses.
They don’t look to the national facts and figures (or the media) to
get a sense for how things are going; rather, they rely on direct and
personal experience to tell the story of economic success (or failure).
In 2016, middle market executives present an optimistic view of their
current business—and anticipate it continuing to grow in the near
future. Over the next 12 months, about 8 in 10 foresee expansion and
diversification including: new markets, new regions, new businesses,
and new products. Their perspective on financing is also generally
positive and is predominantly driven by a need to address domestic
expansion, technology, and working capital. The majority feel that
their workforce has heavy demands placed on their time right now,
but most believe that the size of their staff will increase soon, perhaps
alleviating the current pressure. Moreover, more than half can envision
being a part of a merger or sale within the next three years.
But everything is not altogether smooth for the middle market. Most
express near-term apprehension about the economy, data security,
taxes, and healthcare. They do not express one unified, crystal clear
vision of Congress, but the majority are in relative agreement that
certain changes in the regulatory environment (like the Trans-Pacific
Partnership and the Dodd-Frank Act) have been or will be good—or
at least neutral—with respect to their business. That said, according
to executives, it is important that the next Congress address terrorism
as well as concerns about data security, taxes, and healthcare in
the coming years. They also generally agree that larger businesses
have a larger impact on the national economy, but still do not feel
that Congress is doing enough to support small and middle market
companies.
To continue to understand the general outlook, trends, and challenges
facing the middle market, the Harris Poll, on behalf of CIT, a leader
in financing and advisory services to the small and middle markets,
conducted an online survey among middle market businesses and a
smaller sample of small businesses for comparison from July 25 to
August 16, 2016.

2. CIT Voice of the Middle Market
© 2016 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc. 2
As middle market executives rate the health of various
entities, confidence appears to gradually diminish as the
size of the executive's company decreases. Middle market
executives have by far the most faith in their own company
(around 3 in 4 offer a strong positive rating, and 7 in 10 feel
their company has built momentum over the past year).
Moving down the line, only a little over half evaluate their
local economy as “strong”; less than half feel the same way
about the national economy; far fewer (about 3 in 10) feel the
same way about the global economy.
When gauging the U.S. economy, middle market executives
continue to rely on more direct and personal experience
rather than government figures. Most executives say they
weigh and judge the health of the economy based on how
their community, friends, family, and colleagues are doing,
rather than what the data says. However, this may be
leading them to feel less optimistic than they would be if
they relied on statistics.
Economic Outlook
Greatest Confidence in Strength of Business, Less in National and Global Economies
VIEWS ON U.S. ECONOMY
When thinking about the health of the U.S. economy, the
views of middle market executives are, on average, influenced
more by direct, personal measures such as personal
experiences and their company’s performance than more
objective measures like government data and media.
MORE THAN 3 IN 4 MIDDLE
MARKET EXECUTIVES (76%)...
rate the current state of their company
as strong, with a significant increase in
those responding very strong versus
one year ago
A slight majority of middle market executives (55%) believe
the current state of their local economy is strong.
z Far fewer feel the same way about the U.S. economy (44%)
and even fewer do so about the global economy (31%).
z Middle market executives are more optimistic than in 2015
about all three economies: 55% vs. 47% in 2015 for their
local economy, 44% vs. 35% for the U.S. economy, and
31% vs. 22% for the global economy.
z Nearly 7 in 10 (69%) say that their
company is better off today than
one year ago compared to 57%
saying that last year.
z Over 6 in 10 middle market executives (61%) feel that
the best way to judge the strength of the U.S. economy
is through observing the economic stability of their
community, friends, and coworkers, up from 2015 (59%)
—not through government economic facts and data (39%
in 2016 vs. 41% in 2015).
z Middle market executives who rely on government
facts and data to shape their perceptions are more
likely than those who rely on personal relationships to
rate the global (38% facts and data vs. 27% personal),
national (49% vs. 40%), and local economies (57% vs.
54%) as strong. However, they are similarly likely to
regard their own company as strong (75% facts and
data vs. 76% personal).
Influenced by government
economic data, facts figures21%
Influenced by their
company's performance23%
Influenced by
friends family12%
Influenced by
colleagues12%
Influenced by
personal experiences21%
Influenced by
the media13%

3. CIT Voice of the Middle Market
© 2016 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc. 3
The majority of middle market executives believe that all
businesses contribute to the national economic condition,
but progressively more so as businesses grow in size. Middle
market executives generally agree that large businesses have
the largest impact on the U.S. economy, followed by mid-size,
then small. In fact, 60% of middle market executives say large
businesses have a “major” impact, compared to only 36% for
mid-size and 33% for small businesses.
Interestingly, small business executives are highly likely to
self-identify as a “small business,” driven in their own words
by the number of employees and/or how the business is
owned. However, middle market executives don’t always
see themselves as part of the middle market, which they
themselves are most likely to define by the number of
employees, revenue, and number of locations.
According to small business executives, the key
qualities that differentiate them from mid-size and big
businesses are their spirit of entrepreneurship and lack
of bureaucracy. That said, middle market executives feel
similarly about their culture; in general, they cite a unique
ability to innovate, alongside a more stable and efficient
workplace and a more talented and productive workforce,
as their key differentiating characteristics.
Role of Small and Middle Markets
Some Confusion about the Definition of Middle Market
The majority of middle market executives agree each
business category below has a moderate/major impact on
the U.S. economy:
MIDDLE MARKET EXECUTIVES ARE SPLIT
between whether they consider their company to be a
z A much smaller number (16%) identify as a small business.
z By contrast, 8 in 10 small business executives (80%) see
themselves as a “small business,” while only 16% identify
as a middle market business.
One executive defines a small business by its identity:
A small business is a business that doesn't have a
wide reach, may be community based, and does
not have a large number of employees.
43%
MIDDLE MARKET
BUSINESS
41%
LARGE
BUSINESS
Small business executives believe the following differentiates
small businesses from mid-size and big businesses:
z 59% entrepreneurial spirit z 54% lack of bureaucracy
Another succinctly defines it by ownership, revenue, and employee size,
saying, “A small business is a privately owned and operated business
managed by a small number of employees. Annual revenue is less than
$20 million.”
And according to mid-market executives, the main factors that
differentiate middle market companies from small and large ones are:
z the ability to innovate (59%, up from 55% in 2015)
z stability (55%, up from 53% in 2015)
z quality of the workforce (50%, up from 38% in 2015)
z speed to market (49%, up from 45% in 2015)
One executive defines a middle market business in specific figures,
saying, “They have more than two locations, maybe a couple
internationals; medium sales; it has more than 100 and fewer than
500 employees; the revenues are higher than $7 million a year.”
Another defines it by its reach, claiming a middle market business
is “a company that is in between that of a small business and a
massive business. Although a household name to some, it is not
established enough to be massive all over the world.”
SMALL BUSINESS (revenue less than $25 million)
} 66% moderate/major impact } 33% major impact
WHAT EXECUTIVES ARE SAYING
The top qualities that seem to define a middle market business are:
z being independently owned/operated (12%)
z having a “small” number of employees (11%)
z having fewer than 50 or 100 employees (10%, 9%)
z being locally owned/operated (6%)
LARGE BUSINESS (revenue greater than $1 billion)
} 90% moderate/major } 60% major
MIDDLE MARKET BUSINESS
(revenue between $25 million and $1 billion)
} 87% moderate/major } 36% major

4. CIT Voice of the Middle Market
© 2016 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc. 4
Middle market executives are generally optimistic about
what the future will hold for their companies. Most believe
that there is a better-than-ever chance that their company
will expand into new markets or regions in the next year, and
even more feel that their company will further develop its
product or service mix: 33% to 40% think these activities are
“very” likely. Perhaps in response to these plans, many mid-
market executives envision a greater financial investment (and
reliance on banking services) in the next 12 months to support
expansion in the U.S., and also anticipate using financing to
enhance technology, capital, staff, and marketing.
In the short term (over the next 12 months), a slight majority
of middle market executives (51%) foresee their company
buying or acquiring another company, but are less likely
to believe their company will enter into a merger or be
sold/acquired (41% and 34% respectively). Expectations
for either a merger or a sale (on either side) don’t increase
much (between 3 and 6 percentage points) when looking
out to the long term over the next three years.
For the upcoming year, the biggest concern for middle market
executives involves tax increases, though nearly the same
proportion worry about the impact of data security, economic
uncertainty, healthcare reform, and retaining top talent.
(And more than one-third express grave concern about the
impact these challenges may pose to their business.)
Growth Strategies and Obstacles
Relatively Rosy Expectations for Expansion and Product Development
MERGER OR ACQUISITION
Most middle market executives believe it is at least somewhat
likely that their company will be buying/acquiring another
company in the short term (over the next 12 months, 51%) or
the long term (over the next 12 to 36 months, 57%).
But they generally do not feel it is likely that
their company will be:
z sold/acquired
(34% short term; 38% long term)
z part of a merger
(41% short term; 44% long term)
Many executives think that financing/commercial banking
services will be used over the next 12 months for:
z investing in technology (40%)
z working capital (36%)
z U.S. expansion (34%)
z hiring staff (31%)
z marketing/advertising (30%)
z tax increases
(83% somewhat/very concerned,
up from 72% in 2015)
z continued economic uncertainty
(79%, up from 77%)
z costs associated with complying
with healthcare reform, also known
as the Affordable Care Act
(78%, up from 74%)
z data security
(82%, down from 83%)
THINKING ABOUT
THE NEXT 12 MONTHS
TYPES OF GROWTH
The majority think it is at least somewhat likely that the
following types of growth will occur at their company in
the next 12 months:
Increasing range
of products and services
offered in current markets
88% somewhat/very likely
38% very likely
Expanding into
adjacent markets
81% somewhat/very likely
33% very likely
Entering other regions
within the U.S.
80% somewhat/very likely
35% very likely
Related diversification,
entering into a new
business that is familiar
to their company
72% somewhat/very likely
27% very likely
Most middle market executives are
at least somewhat concerned about
Assuming functionality
previously performed by
a supplier or distributor
73% somewhat/very likely
26% very likely

5. CIT Voice of the Middle Market
© 2016 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc. 5
Right now, middle market executives are relatively torn
on whether Congress is doing too little, too much, or just
the right amount to support businesses. But, depending
on the size of the business the perceived focus received
from Congress varies. Most middle market executives feel
Congress is not doing enough for small businesses and is
doing a sufficient amount or too little for the middle market.
By contrast, they (as well as small business executives) feel
that large businesses are getting the right amount or even
too much attention.
Middle market executives have also not reached consensus
on whether current federal legislation helps or hurts their
company. Over 1 in 3 admit they don’t really pay attention
to federal legislation and how it may (or may not) affect
their business. But for the remainder, economic legislation
(like tax reform and trade agreements) seems to be the
most influential, followed by healthcare legislation. Broadly,
over 1 in 2 are critical and feel that relevant legislation has a
negative impact, impeding their company’s growth. But the
opposite is true when reflecting on specific changes to the
regulatory environment. The majority support the Trans-
Pacific Partnership (57%). And more than 7 in 10 believe that
the Dodd-Frank Act has made it easier or had no impact
on their ability to get capital loans (notably, any modest
changes to the Act are also expected to either continue to
grow their capital or leave it unchanged).
To result in the most benefit to their own company and
alleviate top concerns, middle market executives feel
the key priorities for the upcoming Congress should be:
terrorism (increasing significantly since last year) and
tax reform, followed closely by reduced spending, cyber
security, and healthcare reform.
Impact of Federal Government
No Clear Consensus on the Impact of Congress
CONGRESSIONAL SUPPORT
MOST EXECUTIVES SAY...
it is at least somewhat important to their company for the new session
of Congress in 2017 to take action on the following issues:
Terrorism 2016: 87% 2015: 78%
Tax reform 2016: 86% 2015: 87%
Reduced federal spending
2016: 84% 2015: 77%
Changes to healthcare reform
(aka the Affordable Care Act)
2016: 79% 2015: 77%
Almost 2 in 3 executives (63%)
think Congress is doing too little
to support small businesses
z Small business executives (61%) are much more likely
to feel that Congress is doing too much to support large
businesses than middle market executives do (41%).
Thinking about federal legislation and/or changes in the
regulatory environment that have the most impact on their
company, approximately half of middle market executives
(51%) feel these policies mostly impede their company's
growth. But some (21%) say these policies support growth,
and others (28%) say they do both. That said:
z Over 6 in 10 middle market executives (63%) support the
multinational trade agreement called the Trans-Pacific
Partnership (TPP).
z More than 4 in 10 middle market executives believe the
Dodd-Frank Act made no difference (42%) or made it
easier (31%) to get banks to lend them the capital their
company needs.
z Most mid-market executives believe that modest tweaks
to the Dodd-Frank Act will have no impact (38%) or will
increase (37%) their access to capital.
CYBER SECURITY
IN
2016
• 88% in 2015 •
84%
MIDDLE MARKET BUSINESSES
(revenue between $25 million and $1 billion)
44% too little | 37% sufficient | 19% too much
SMALL BUSINESSES
(revenue less than $25 million)
63% too little | 23% sufficient | 15% too much
LARGE BUSINESSES
(revenue greater than $1 billion)
23% too little | 35% sufficient | 41% too much

6. CIT Voice of the Middle Market
© 2016 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc. 6
There is pervasive optimism about the state of financing
for middle market executives. At least 9 in 10 are satisfied
with their current banking relationship, access to financing,
and their financial lender. And nearly the same proportion
feel comfortable with their company’s cost of financing.
When it comes to their current use of financing (over the
past five years), less than half of middle market executives
have taken advantage of any one type of product or service,
the most common of which are internal sources of funding
and secured bank loans.
Perceptions of Financing and Lending
Nearly All A’s for Financing
THINKING ABOUT THEIR OWN COMPANY
the vast majority of middle market executives
feel satisfied with:
92% their current financial lender
91% their current banking
relationship
91% their company’s access
to financing
88% the variety of financing
alternatives available to
their company
86% their company’s cost
of financing
The range of activities that executives
expect financing/commercial banking
services to be used for over the next 12
months include:
z INVESTING IN TECHNOLOGY
40%, almost unchanged
from 41% in 2015
z WORKING CAPITAL
36%, a significant increase from 28%
z HIRING STAFF
31%, up from 27%
z MARKETING/ADVERTISING
30%, a significant increase from 17%
z U.S. EXPANSION
34%, up from 30%
41% secured bank loan
38% internal sources of funding
on the following for their company
in the last five years
APPROXIMATELY 4 IN 10 MIDDLE MARKET
EXECUTIVES HAVE CAPITALIZED

7. CIT Voice of the Middle Market
© 2016 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc. 7
Nearly 2 in 3 middle market executives feel that the current
demands of their company force employees to do more
with less. Staff seems to be at a premium today, but in
the coming year, most executives expect that things may
change as their workforce will continue to grow (middle
market executives are more likely to foresee a rise in staff
than small business executives are). This increase in their
workforce will be triggered predominantly by a need to
innovate and a boost in business opportunities. Still, the
strength of the economy and the quality of the applicants
will continue to be the biggest variables that drive their
company’s ability to hire.
Current and Future State of the Workforce
Demand for More Staff Now; Signs Point to Next Year’s Workforce Expanding
Among those who believe their workforce will
increase, the primary reason is increased business
demand/opportunities (41%), followed by the need
to innovate to stay ahead in their industry (20%).
z 16% say it will increase by more than 10%.
z Outlook is more optimistic than in 2015,
when 71% of middle market executives
expected their workforce to increase. A
similar level (15%) said they expected an
increase of more than 10%.
SLIGHTLY LESS THAN 2 IN 3
MIDDLE MARKET EXECUTIVES
(64%) agree that when it comes to their
current workforce, they are expected to
accomplish more with fewer employees.
over three-fourths of middle market
executives (78%) believe the workforce
at their company will increase.
OVER THE NEXT 12 MONTHS
z While the impact of the economy has lessened (33%
compared to 38% in 2015), the impact of available
capital on their ability to hire has grown (17% compared
to 10% in 2015).
ABOUT 1 IN 3
middle market executives feel
that current economic conditions
(33%) and the quality of the
applicant pool (37%)
have the greatest
impact on their
company's ability
to hire.

8. CIT Voice of the Middle Market
© 2016 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc. 8
Across the board, middle market executives are noticeably
more confident and supportive than small business
executives about: the state of their company; the impact of
various federal measures; the likelihood for growth; and the
use of various financial tools. Their personal experiences tend
to influence these economic perceptions, but small business
executives are influenced even more by their experiences.
They are more likely to see their company either buying or
acquiring another company or being part of a merger.
Small vs. Middle Market Businesses
Differing Perceptions Among Small Middle Market Businesses
CORPORATE LEGISLATION
By contrast, small business executives are much more
likely to criticize Congress for not doing enough to
support and protect small businesses (67%) than they
are middle market businesses (43%). They are also more
likely than their middle market counterparts to feel that
Congress is doing too much to support large businesses
(61% vs. 41% respectively).
The middle market is more likely to be at least somewhat
concerned with macro issues with the largest margins
being for:
TECHNOLOGY REPLACING BUSINESS MODELS
46% Small business 66% Middle market
THE UNITED KINGDOM’S WITHDRAWAL
FROM THE EUROPEAN UNION
34% Small business 51% Middle market
HIRING TOP TALENT
62% Small business 75% Middle market
RETAINING TOP TALENT
65% Small business 78% Middle market
DATA SECURITY
72% Small business 82% Middle market
With respect to various types
of corporate legislation,
middle market executives
express more support
for pending and
existing legislation.
z More than three-fifths (63%) support the
Trans-Pacific Partnership, while less than half of
small business executives (44%) feel the same.
z Three-fourths of middle market executives say
modest tweaks to the Dodd-Frank Act would
either increase their access to capital (37%) or
have no impact (38%), while only three-fifths
(61%) of small business executives say the same
(27% increase, 34% no impact).
Furthermore, they offer a much more encouraging picture of their own
company than small businesses do (76% vs. 60% respectively).
This optimism gap among middle market executives extends
to their workforce outlook as well:
z 16% of middle market executives expect their workforce to
increase by more than 10%, whereas only half that amount
(8%) of small business executives expect the same increase.
z Small business executives are significantly more likely to
say they expect the size of their workforce to stay the same
over the next 12 months (34% vs. 18% respectively).
Given their optimistic views, it is perhaps not surprising
that middle market executives are more likely to project
investments in technology, capital, marketing, and equipment.
Middle market executives are also more likely to foresee their
company being involved in a merger or acquisition, such as:
z buying or acquiring another company (51% vs. 31%)
z part of a merger (41% vs. 27%)
local (a margin of +16%)
national (+11%)
global (+7%) economies
MIDDLE MARKET RATES ECONOMIES
more positively than small businesses do
Expand into adjacent markets
66% Small business
81% Middle market
Assume responsibilities previously
performed by a supplier or distributor
53% Small business
69% Middle market
Expand within the U.S.
58% Small business
80% Middle market
Expand outside of the U.S.
36% Small business
65% Middle market
OVER THE NEXT YEAR, MIDDLE MARKET
EXECUTIVES ARE MORE LIKELY TO...

9. CIT Voice of the Middle Market
© 2016 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc. 9
Methodology
517 interviews were conducted online July 26 – August 15, 2016,
averaging approximately 16 minutes in length.
Qualified respondents were age 24+, employed full-time,
working in selected industries with revenue between $1 million
and $1 billion (small business is between $1 million and $25
million in revenue, middle market business is between $25
million and $1 billion in revenue), 10 or more employees, and a
majority of employees based in the U.S. as well as having one of
the following titles:
z Owner
z Board Member
z Chief Executive Officer (CEO)
z Chief Operating Officer (COO)
z Chief Financial Officer (CFO)
z Chief Information Officer
z Chief Investment Officer
z Other C-level executive
z Sr. Vice President/Vice President/Director
Data for the middle market segment were weighted where
necessary to bring them in line with the population of interest as
based on the 2015 CIT Topline by Revenue Client Report, for the
following variables: Gender, Title, Revenue, Industry, Percentage
of Employees based in the U.S., Region of Headquarters, and
Company Ownership structure.
Data for the small business segment were weighted where
necessary to bring them in with the population of U.S. businesses
with 10-99 employees and annual revenue $1 million - $25
million, excluding government and non-profits, as based on
the current Dunn and Bradstreet database, for the following
variables: Number of employees, Annual Revenue, and Industry.
Percentages were rounded to the nearest whole percentage
point. Differences in the sums of combined categories/answers
are due to rounding.
About Harris Poll
Over the last five decades, Harris Polls have become media
staples. With comprehensive experience and precise technique
in public opinion polling, along with a proven track record
of uncovering consumers’ motivations and behaviors, Harris
Poll has gained strong brand recognition around the world.
The Harris Poll offers a diverse portfolio of proprietary client
solutions to transform relevant insights into actionable
foresight for a wide range of industries including health
care, technology, public affairs, energy, telecommunications,
financial services, insurance, media, retail, restaurant and
consumer packaged goods. Contact us for more information:
ConsumerInsightsNAInfo@nielsen.com.
ABOUT CIT
Founded in 1908, CIT (NYSE: CIT) is a
financial holding company with more than
$65 billion in assets. Its principal bank
subsidiary, CIT Bank, N.A., (Member FDIC,
Equal Housing Lender) has more than $30
billion of deposits and more than $40 billion
of assets. It provides financing, leasing
and advisory services principally to middle
market companies across more than 30
industries primarily in North America, and
equipment financing and leasing solutions
to the transportation sector. It also offers
products and services to consumers through
its Internet bank franchise and a network
of retail branches in Southern California,
operating as OneWest Bank, a division
of CIT Bank, N.A. cit.com
www.cit.com
To subscribe to the CIT View from the Middle
newsletter, please send an email to:
viewfromthemiddle@cit.com.
FOR PRESS INQUIRIES, PLEASE CONTACT
Matt Klein
Director, Media Relations
matt.klein@cit.com
FOR BUSINESS INQUIRIES, PLEASE CONTACT
Debbie Haeringer
Director, Content Marketing
debbie.haeringer@cit.com