“When the growth factors outside of a company’s control conspire against it, it becomes even more important for companies to invest in what they can control.”
– National Center for the Middle Market
A Look Back: 5 years ago, the National Center for the Middle Market (the USA’s leading research institution dedicated to understanding and providing resources to the Middle Market) conducted groundbreaking research to understand what drives growth in this important sector of the economy. This research is worth revisiting given the conflicting economic data and reports that are currently challenging c-suite leaders and private equity firms operating in the middle market.
Insights from 20,000 Companies: The Center analyzed hundreds of data points from 20,000 middle market companies and uncovered seven areas of leadership and managerial-controlled actions that drive growth for companies, regardless of the industry in which they operate.
The research findings showed that the better a company performs across all seven growth pillars, the faster it grows. Middle market companies that achieve breakthrough gains tend to be adept in all seven areas, just as the members of a high-performing team inspire one another.
Seven Growth Drivers: The seven most important growth drivers and their weight in the growth model include:
• Market Expansion (23.4%)
• Formal Growth Strategy (14.4%)
• Investing & Innovating (14.3%)
• Attracting & Retaining Talent (13.7%)
• Financial Management (12.3%)
• Cost Efficiencies (11.2%)
• Staff Development (10.6%)
Learn More: The Center found that the growth DNA of middle market companies is distinctly different from that of larger companies. Learn more about these differences, and the seven growth drivers in the middle market by clicking here.