MIDSIZE GROWTH COMPANIES

United States percentage of establishments and jobs represented

Unlike startups, midsize growth companies are no longer concerned about survival but have moved into what is known at second stage.

In contrast to small businesses and lifestyle entrepreneurs, midsized companies are significant job creators (creating 33.9% of the jobs in the United States) and many have established national and global markets that bring outside dollars into their communities.

Second stage is a critical time when these entrepreneurs are facing an entirely new set of challenges. What made them successful during startup won’t necessarily drive future growth.

A midsize growth company understands its financials, but still has obstacles ahead such as transitioning from an entrepreneurial culture to a more corporate structure, increasing sales and fulfilling orders.

A business typically begins to enter its second stage when it approaches $1 million in total receipts. The transition process may continue until it hits $100 million in receipts, although for most companies $50 million represents the upper limit of second stage. By $100 million, a midsize company will have to be professionally managed in order to continue to thrive and grow and be in its third stage of development. Employee numbers and revenue ranges vary by industry, but the population of firms with 10 to 100 employees and/or $750,000 to $50 million in receipts includes the vast majority of midsize growth companies.