Report: Massachusetts strong in 'middle market' firms
Massachusetts has an estimated 3,963 “middle market” companies, making up 1 percent of overall businesses in the state, according to a new report.
The report, “Middle Market Power Index” from American Express and Dun & Bradstreet, ranks Massachusetts fourth out of the 50 states in its share of firms in the middle market. Middle market enterprises are defined as generating between $10 million and $1 billion annually in revenues.
The report’s statistics also show that middle-market firms, though relatively small in number, are making "an outsized contribution across industries."
Nationally, the report said, there are more than 136,000 middle market firms, which employ an average of 368 workers and generate an average of $45.1 million per firm per year. While the middle market makes up less than 1% of U.S. businesses (0.7%), they contribute slightly more than one in five dollars (21%) of U.S. business revenues and employ over one in four workers (28%) in the private sector.
Small businesses — defined as those generating less than $10 million a year in revenue — make up 99.27 percent of businesses nationwide, according to the report. In Massachusetts, small businesses make up a slightly smaller figure, 98.97 percent, of total businesses. Middle market businesses make up 1.004 percent of the state’s businesses, compared with 0.721 percent in the nation as a whole.
Massachusetts also exceeds the national average in the share of large businesses, those making more than $1 billion in revenue a year. Nationally, large businesses make of 0.012 percent of the total; in Massachusetts, large businesses make up 0.02 percent of the state’s overall business profile, the report found.
Massachusetts has 3,963 of the nation’s 136,603 middle-market companies, the report says. The state has 84 of the nation’s 2,266 large companies; and 390,760 of the nation’s 18,812,008 small companies. Illinois (1.100 percent), Wisconsin (1.051 percent) and New Jersey (1.020 percent) have slightly higher percentages of middle-market businesses than Massachusetts at 1.004 percent.
The report used Dun & Bradstreet’s proprietary databases of commercially active U.S. firms to analyze the characteristics and economic impact of middle market enterprises, according to a statement on the findings released Tuesday.
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