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Closing the Revenue Gap for U.S. Diverse owned Midsize Businesses presents a $1.3T Opportunity

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On November 28, 2023, JPMorgan Chase and Next Street released The Middle Matters: Exploring the Diverse Middle Market Business Landscape, a new report that provides insights into the midsize businesses that power our economy.

Conducted and analyzed by Next Street, the research reveals that while midsize businesses generate significant revenue nationally and locally, there is an opportunity to better support them as they face headwinds such as increasing competition, slowing revenue growth and an uncertain economic outlook.

The report details the U.S. midsize business:

• Market: There are approximately 300,000 midsize businesses across the U.S. that generate $13 trillion in annual revenue and employ more than 40 million people.

• Importance: These businesses account for 33% of annual revenue generated and 30% of all private sector employment in the country, despite representing only 5% of the total number of national employer businesses.

• Discrepancy: Diverse-owned businesses represent roughly 30% of the middle market, but generate only about 20% of the total market revenue.

• Opportunity: Closing this gap could generate an additional $1.3 trillion in annual revenue, presenting a meaningful opportunity to support national economic health and prosperity.

“Midsize businesses are critical to the health of our economy and communities,” said Terry Hill, Co-Head of Emerging Middle Market, JPMorgan Chase Commercial Banking. “They create millions of jobs, as well as the products and services that power our day-to-day lives. By providing tailored solutions that meet their unique needs, we can help companies build lasting legacies that uplift communities for generations.”

The Diverse Landscape

To date, there has been limited investment in research that highlights diverse-, women-, and veteran-owned midsize businesses. Understanding the needs of midsize businesses that make up the middle market offers a significant opportunity to empower underserved business owners and bolster the economy.

Diverse-owned midsize businesses are, on average, 10 years younger and employ fewer employees than non-diverse-owned businesses. According to the businesses surveyed, diverse-owned companies are growing at a faster rate (32%) than their non-diverse counterparts (19%). That said, the report finds that diverse-owned midsize businesses face roadblocks to growth.

Key challenges include:

• Accessing capital and advisory services

• Acquiring growth financing and improving capital structure

• Creating and implementing strategic business and innovation plans

In addition to exploring the current state of the middle market, the report describes opportunities for broader access to financial resources and overall support for midsize businesses.

“There is growing support in the business community for a greater understanding of the middle market overall, and the dynamic businesses within it,” said Charisse Conanan Johnson, Co-CEO of Next Street. “We hope this new report serves as a call to action for middle market stakeholders to accelerate additional research efforts and solutions to serve the needs of diverse-owned midsize businesses.”

The full report can be found here, and infographics with key findings from the report can be found at

Report Methodology

The report, The Middle Matters: Exploring the Diverse Middle Market Business Landscape, is a new study based on research conducted and analyzed by Next Street. The study included primary and secondary data sources, surveys, interviews and focus groups. For this research, the middle market is defined as those businesses generating between $11 million and $500 million in annual revenue. Most midsize businesses fell into the $11mm to 100mm range of annual revenue. Next Street’s analysis primarily focused on the middle markets in Chicago, Dallas and Los Angeles—which, when combined, represent 12% of the overall U.S. middle market.

For the purposes of this report, “diverse-owned” includes Black-, Latino(a)-, Asian-, and other people of color-owned businesses, women-owned businesses, and veteran-owned businesses.

About JPMorgan Chase Commercial Banking

JPMorgan Chase Commercial Banking is a business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with assets of $3.9 trillion and operations worldwide. Through its Middle Market Banking & Specialized Industries, Corporate Client Banking & Specialized Industries and Commercial Real Estate businesses, Commercial Banking serves emerging startups to midsize businesses and large corporations as well as government entities, not-for-profit organizations, and commercial real estate investors, developers and owners. Clients are supported through every stage of growth with specialized industry expertise and tailored financial solutions including credit and financing, treasury and payment services, international banking and more.

About Next Street

Next Street designs and develops solutions to connect entrepreneurs and small business owners with the right resources at the right time, with a focus on small businesses facing disproportionate barriers. With a proven track record of nearly 20 years, an ongoing commitment to becoming an anti-racist organization, and an extensive network of small business advocates, operators and investors, Next Street accelerates the impact of institutions and advisors on small businesses and provides millions of businesses with the experts, tools and capital they need to thrive. Learn more at

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