Mid-Market Outlook: Why Entrepreneurs Matter
Mid-market perspectives blog: Growth enterprise services
Posted by Tom McGee on November 16, 2012
There has been a lot of media coverage over the past few months about entrepreneurs and the role they play in the U.S. economy. Does entrepreneurial behavior make a difference?
To find out, we expanded the focus of a September 2012 survey of 652 mid-market executives to examine how, or if, entrepreneurial behavior has an impact on mid-market companies. And according to our new report, the answer is a resounding yes.
Highlights of the survey findings include:
- Companies identified as having become more entrepreneurial are succeeding at a faster pace. Compared to less entrepreneurial companies, they are more likely to have increased capital investment (38 percent vs. 27 percent), experienced greater worker productivity (59 percent vs. 40 percent), and generated higher profit margins (49 percent vs. 34 percent). They cite organic growth in existing markets and innovative products and strategies as their highest priorities.
- Fifty-nine percent of all mid-market executives polled attribute the success of their companies to a dedicated and committed workforce.
- Sixty-six percent say that the largest number of new jobs will come from mid-sized privately held companies ($10 million to $500 million in annual revenues) and small businesses.
- Fifty percent of respondents say the uncertain economic outlook is their company’s main obstacle to growth; consistent with previous reports, 46 percent of executives think the level of uncertainty is higher than one year ago.
We asked a key question in our survey: “Is the United States the best place for entrepreneurs to start a business?” While 59 percent of respondents said yes, that is a marked contrast to the 87 percent who said it was the best place to do so in past years.
What has changed? According to survey respondents, taxes, regulation and fiscal policy are some of the barriers to the United States becoming more entrepreneurial-friendly. The good news is that the challenges impacting entrepreneurship can be addressed. When asked what measures could most help U.S. businesses grow in the next year, the top three cited by respondents were reducing corporate tax rates (51 percent), keeping interest rates low (44 percent), and rolling back healthcare reform (42 percent).
I invite you to read our full report, Mid-market perspectives: America's economic engine - why entrepreneurs matter, and encourage you to share your comments on this important topic.