1. Leading from the Middle Fact Sheet
Data at a Glance
Groundbreaking Research
The Fisher College of Business at The Ohio State University (OSU) and GE Capital
have partnered on a foundational, multi-source research initiative on the U.S.
Middle Market. They polled more than 2,000 business leaders across the United
States on their business, their capabilities and performance, their needs to drive
more growth and their overall economic outlook. This comprehensive insight-
driven research uses a compilation of highly reputable data sources, including the
Bureau of Economic Analysis, the U.S. Census, The CIA World Factbook, Compustat
and Dun & Bradstreet, as well as comprehensive primary research led by OSU in
partnership with GE Capital.
Key Research Findings
Defining the U.S. Middle Market
Middle Market firms are a complex collection of almost 2,000 companies with annual
company revenues between $10 million and $1 billion. There are three sub-segments
that exhibit distinctly different operational and financial characteristics:
 Small businesses that operate more like the small-business sector, despite
their revenue;
 Mid-sized businesses that have consistent business practices and project
strong growth; and
 Large businesses that more closely resemble multi-national corporations, but
are still firmly placed in the Middle Market.
U.S. Middle Market: Engine of the Economy
 Middle Market firms contribute $3.84 trillion annually to the U.S. private
sector GDP – the equivalent of the world’s fourth-largest economy, just
behind Japan but ahead of Germany.
 80% of Middle Market firms expect to grow over the next 12 months. One-
third experienced >10% growth in 2010 vs. pre-crisis 2007 – 2008 growth.
U.S. Middle Market: Economic Growth & Job Creation
 More than one-third of U.S. workers are employed by Middle Market
companies.
 While big business shed 3.7 million jobs during the recession, the Middle
Market added 2.2 million jobs – including nearly 500,000 jobs added in the
hard-hit Midwest, where big business shed 4.9 million jobs.
 The Middle Market – 3% of all U.S. businesses – provided as many jobs as 5.8
million small businesses and provided 3.2 million more jobs than large
companies did in 2010.
Leading From
the Middle

2. U.S. Middle Market: Resilient in Challenging Times
 82% of Middle Market firms survived the recession, compared with 57% of
small businesses.
 One in four big businesses were Middle Market companies just five years
ago. In fact, 27% of all large companies in 2010 were still Middle Market firms
in 2005.
U.S. Middle Market: Community Pillars
 Middle Market firms are durable community pillars, operating on average for
31 years, just as long as the average big business (35 years) and 5 times
longer than small businesses (6 years).
U.S. Middle Market: Diverse Geography
 Middle Market companies are spread throughout the country. They have less
geographic dependency than either big business or small business, which
respectively have higher relative concentrations in the New York metro area
and Southeast – making the sector more diverse and less dependent on
specific geographies.
 Middle Market firms exhibit greater balance in the markets in which they
operate, encompassing local, national and global markets alike. By
comparison, big business mostly operates globally (60% vs. 28% for Middle
Market), and small business mostly operates locally (60% vs. 42% for Middle
Market).
U.S. Middle Market: Diverse Industries & Ownership Structure
No single industry makes up more than one-third of the segment, underscoring the
diversity of Middle Market companies. The top five industries in the Middle Market are:
 Services (31.3%)
 Manufacturing (17.3%)
 Wholesale (13.8 %)
 Retail (12.4%)
 Construction (9.3%)
By comparison, more than 60% of all big businesses are concentrated in two
industries – manufacturing and services – and 56% of small businesses are in the
service industry.
Additionally, Middle Market firms include a diverse mix of ownership structures:
 Privately owned (40%)
 Family owned/sole proprietor (31%)
 Publicly traded (14%)
By comparison, 67% of big businesses are publicly traded companies, and 50% of
small businesses are family owned/partnerships.
Leading From
the Middle

3. U.S. Middle Market: Growth Drivers
The five most significant drivers of growth for Middle Market firms include:
 Attracting customers/identifying new channels (26%)
 Investing in innovation (20%)
 Effectively managing operations (19%)
 Managing outside pressures (19%)
 Resolving workforce issues (16%)
U.S. Middle Market: Challenges
Middle Market firms identified several important internal and external headwinds to
achieving success and reaching their full growth potential.
 55% do not have sufficient access to capital markets.
 84% do not have confidence in the national economy.
 45% are challenged by international competition.
 71% are challenged by regulatory compliance.
 37% are unable to pass on rising commodity costs to their customers.
U.S. Middle Market: Growth Champions
The study identified patterns and behaviors of the 9% of Middle Market firms that are
achieving the highest rate of growth, a subset coined “Growth Champions.”
This particular group of companies:
 Projects 10%+ growth this year and next; and
 Is growing at 3 to 5 times the rate of U.S. GDP growth.
Growth Champions share specific characteristics that help drive growth and allow
them to stand out from other Middle Market firms around five key strategic priorities:
1. Focus on innovation
2. Stronger management culture
3. Sharper customer focus
4. Exceptional talent management
5. Broader geographic vision
Leading From
the Middle

4. Impact of the Middle Market
The Middle Market is critical to sustaining America’s economic growth and global
competitiveness. Middle Market companies are deeply rooted in their communities,
buying goods and services from local and regional suppliers, helping to keep local
and national economies viable.
Middle Market firms successfully weathered the worst recession in modern history,
and continue to add jobs when they are needed most. Yet, despite their importance
and success, these are the companies most overlooked and under-resourced. This
sector is the nation’s best hope for continued growth and long-term success, which
is why supporting Middle Market firms must be a priority.
For a full set of the research data, please visit NationalMiddleMarketSummit.com.
Leading From
the Middle