Middle-market firms in Connecticut share the same youth, on average, as companies nationally. But Connecticut has a higher percentage of firms with long-term sustainability.
The latest Middle Market Power Index: Exploring Generational Changes In Middle Market Industries by American Express says of the 1,953 middle-market firms in Connecticut, 215 have been in business less than 10 years. The fastest growing middle-market segment within these younger firms is business services.
At 11 percent, Connecticut’s share of mid-market firms in business less than 10 years equals the national average. The state beats the national average of 30 percent when it comes to mid-market firms in business more than 50 years at 33 percent.
The report explores the changes that the U.S. Middle Market is going through, and what the changing interests among future entrepreneurs may mean for the economy at large.The middle market is defined as companies with revenues between $10 million and $1 billion.
According to the report, nationally the burgeoning service economy is significantly outpacing more traditional industry sectors in its rate of business growth among middle-market companies. Nationally, service businesses formed in the last 10 years are showing ability to scale into the middle market at a greater rate than more traditional industries.
Also, nationally over half (54 percent) of middle-market enterprises are found in four industry sectors:
- manufacturing (17 percent);
- wholesale trade (13 percent);
- retail trade (12 percent); and,
- business services (12%).
Seventeen percent of middle-market firms in business less than 10 years are in business services. The report said this indicates this sector plays host to the next generation of businessmen and women, a trend that is likely to continue as the Millennial generation further develops their careers.
Alternatively, only 5 percent of middle-market firms in business 50 years or longer are in the business services sector.
