Big businesses are always in the limelight. Media, patrons and business specialists often follow them and there upon they catch the global attention at all times. As far as the economic growth of a country is concerned, the influence of small and medium business markets usually remains unnoticed. However a 2011 survey by Economist Intelligence Unit (EUI) of Deloitte reveals that the mid market businesses have a profound influence on the general health of American economy. The survey represents the view of the US middle market business leaders on their future prospects as well as concerns at this time of another economic down turn. The US middle market plays an impressive and impactful role in the economy of that country with 41 million jobs and generating around $3.84 trillion towards U.S. private sector GDP.
EUI conducted the survey among 527 public and private enterprise executives with annual revenues between $ 50 million and $1 billion. The survey included questions about business metrics (pre, mid and post recession), plans for growth (financial, global expansion, head count) and outlook about the potential hurdles to success.
- Around 93 % of the survey respondents expect the economy to grow in the coming years. 81% expect their annual revenue to increase
- About 72% increase in productivity was seen in mid market businesses which is higher than that in pre recession period
- Around 69% respondents have plans for adding full time employees
- Majority of midmarket firms are focussing their growth targets domestically, while 34 % have plans to expand globally
- Around 38 % expect to pursue financing for business expansion in the coming year.
- Even though 93 % of the respondents expect the economy to grow, only 20 percent believe it will expand at a pace needed for widespread job creation.
- About 50 % believe that federal, state and municipal debts pose a serious challenge to the economic growth
- An approximate 32 % of respondents believe that regulatory issues by US Government pose a challenge to potential growth in economy.
On a positive note, the survey findings indicate the growth potential of the middle market by reducing unemployment rates and increasing consumer confidence. These positive repercussions from the mid market can collectively support the growth of US economy in the coming years.
In the flipside of the coin, the survey also shares the apprehensions of the mid market business leaders at the time of an unstable economy. Business leaders realize the significant hurdles to achieve success due to uncertain economic outlook, rising interest rates, uncertain market demand, and a steady increase in the cost of raw materials. Being cautiously optimistic, many mid market firms underscore the need for careful business planning in the coming years. A close monitoring of employment trends, business trends, deficits, cost management etc is being considered. The survey also mentions the role of US Government in supporting the mid market businesses. Expectations about US Government interventions in tax breaks, low interest rates and other incentives are also high among the mid market business leaders.
Mid market businesses mark a key influence in US economy by generating huge amount of capital and employment prospects in the US business arena. With finely honed business practices in tough times of recession, mid market businesses hold the potential to grow further in the coming years. With investments in technology, careful business planning and awareness of the recession trends, mid market is expected to bolster the economic conditions in the US to greater extents.