Header: Midsize businesses are a core component of the U.S. economy. 

Despite representing only 5% of the total number of national employer businesses, midsize businesses account for 33% of revenue generated and 30% of all private sector employment in the country.

IMAGE: Outline of the United States with the following text: 300,000 midsize businesses in the U.S., $13T Annual revenue, 40MM jobs.

Early and emerging midsize companies are particularly influential.

Together, the number of early and emerging midsize businesses account for nearly 90% of the U.S. middle market and generate $5.4T in annual revenue, more than 40% of total middle market revenue.

CHART: Bar chart with the following information: 66% Early ($11MM to $20MM), 22% Emerging ($21MM to $100MM), 12% Established ($101MM to $500MM)

These businesses represent a large opportunity for support organizations, financial institutions, and service providers to build relationships that could generate long-term value.

Five industries account for more than half of the middle market in the U.S.

Each of these industries has grown by more than 20% in annual revenue during the last fiscal year.

CHART: Pie chart with Top 5 Industries: 

IMAGE: Price tag icon: Retail $2.1T Revenue; Gasoline stations, automobile dealers, grocery stores

IMAGE: Truck icon: Construction $1.8T Revenue; Building equipment, residential building and exterior constructors

IMAGE: Medic icon: Healthcare $1.5T Revenue; Physicians, dentists, family offices

IMAGE: Briefcase icon: Professional Services $1.3T Revenue; Legal, consulting and computer system services

IMAGE: Package icon: Wholesale $1.1T Revenue; Machine and equipment, grocery and durable goods merchants

Diverse-owned midsize businesses represent approximately 30% of the middle market, but only account for approximately 20% of the revenue.

CHART: Pie chart with the following information: 90K DIVERSE-OWNED MIDSIZE BUSINESSES*, $2.6T IN REVENUE, 300K MIDSIZE BUSINESSES, $13T IN REVENUE

Closing the revenue gap for U.S. diverse-owned midsize businesses presents an opportunity to generate:

IMAGE: Icon of a hand holding a dollar sign: $1.3T IN ADDITIONAL REVENUE

*“Diverse-owned” businesses includes Black-, Hispanic-, Latino(a)-, Asian-, and other people of color-owned businesses, women-owned businesses, and veteran-owned businesses.

This research focuses on three of the five top revenue generating U.S. markets.

These markets account for:

12% Total National Middle Market

$1.6T in Revenue

Chicago, IL with a car icon, briefcase icon and truck icon. 

IMAGE: Outline of the state of Illinois with Chicago pinned. 

In Chicago, there is a greater presence of midsize businesses in the Transportation industry.

And a greater presence of diverse-owned midsize businesses in Professional Services and Construction.

Dallas, TX with a checklist icon, briefcase icon, truck icon and car icon. 

In Dallas, there is a greater presence of midsize businesses in the Administrative Services industry.

And a greater presence of diverse-owned midsize businesses in Professional Services, Construction, and Transportation.

IMAGE: Outline of the state of Texas with Dallas pinned. 

Los Angeles, CA with a box icon, key icon, truck icon, price tag icon, and checklist icon

IMAGE: Outline of California with Los Angeles pinned. 

In Los Angeles, there is a greater presence of midsize businesses in the Wholesale and Real Estate industries.

And a greater presence of diverse-owned midsize businesses in Construction, Retail, Administrative Services, and Real Estate.

The Middle Matters: Exploring the Diverse Middle Market Landscape. November 2023.

© 2023 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/cb-disclaimer for full disclosures and disclaimers related to this content. This is not a product of the Research Department of J.P. Morgan Securities LLC

JPMorgan Chase

Next Street