Midsize
firms are settling in to their role as the nation’s economic engine,
mimicking a startup environment in their business models and casting a
new spotlight on regions throughout the country.
Mid-market firms added 3.3 million jobs from 2007 to 2013 (and currently employ 44.5 million people, one-third of all U.S. jobs), and many were even hiring during the recession, according to the National Center for the Middle Market (NCMM), a partnership between Ohio State University’s Fisher College of Business and GE Capital. Outside of New York and San Francisco, smaller cities and regions are starting to court more traditional companies looking to incorporate lean management principles and innovate in the same way as startups. For mid-market firms, “innovation is the only
source for competitive advantage,” says Craig Safir, Director of Cloud and Converged Markets at Sprint. “If you are not open to being disrupted or pivoting your strategy, then you're being very shortsighted.”
Turn Your Employees Into a Real Team
But where a mid-market business plants its roots matters, and some cities are starting to cater to more than just startups. As regions of the U.S. welcome industry-disrupting startups and put a greater focus on allowing mid-market companies to pivot and grow, many companies have set up shop in some of the country’s lesser-known regions. One trend that has emerged is companies working with accelerator programs to learn alongside more agile startups (and often get a first look at startups that could be acquired). “I don’t think disruption is a phenomenon that you have to be on the coasts to experience,” Safir says.
Mid-market stars
In Texas, midsize businesses now employ 29 percent of the population, according to the NCMM. Austin’s high-tech area, Silicon Hills, has been at the epicenter of startups since the late 1990s, but many existing companies are now leveraging the area’s quality workforce. Midsize companies, such as HomeAway.com, which operates vacation rental websites, have tapped into the region’s resources and incorporated a culture of disruption into their own ethos. The firm was voted one of the best mid-market U.S. employers in 2014 by Great Place to Work, a leadership coaching and consulting firm.
To the north, Kansas City, Des Moines and Omaha anchor Silicon Prarie. This year, Kansas City was a pilot city for Google Fiber, which provides lightning-fast broadband Internet and television connections. For growth-minded companies focused on technology capabilities, it’s becoming easier to tap into the regions accelerators and infrastructure. “Every day seems to bring greater affirmation that we’re the most wired place in the country,” says Safir, who is based in Overland Park, Kansas.
Workplace-as-a-Service: Instant IT For Your New Office
Head east from Des Moines and you’ll find places such as 1871, an incubator for tech startups that dominates the business conversation in Chicago. But there are mid-market companies seeking inspiration in Chicago, too. In Illinois, 76 percent of mid-market companies are looking to grow through capital investments, according to NCMM. More than 6,500 midsize businesses employ 21 percent of the state’s workforce.
For mid-market companies, entering these regions or building satellite offices can be a way to find affordable talent that’s easier to recruit—and keep—than it is on the coasts. And rather than focusing on their traditional methods for sustaining growth, many are looking to neighboring startups to figure out how to expand. For many mid-market businesses, that means having a willingness to experiment and pivot when necessary, because, as Safir says: “Today’s pace of doing business is relentless.”
Mid-market firms added 3.3 million jobs from 2007 to 2013 (and currently employ 44.5 million people, one-third of all U.S. jobs), and many were even hiring during the recession, according to the National Center for the Middle Market (NCMM), a partnership between Ohio State University’s Fisher College of Business and GE Capital. Outside of New York and San Francisco, smaller cities and regions are starting to court more traditional companies looking to incorporate lean management principles and innovate in the same way as startups. For mid-market firms, “innovation is the only
source for competitive advantage,” says Craig Safir, Director of Cloud and Converged Markets at Sprint. “If you are not open to being disrupted or pivoting your strategy, then you're being very shortsighted.”
Turn Your Employees Into a Real Team
But where a mid-market business plants its roots matters, and some cities are starting to cater to more than just startups. As regions of the U.S. welcome industry-disrupting startups and put a greater focus on allowing mid-market companies to pivot and grow, many companies have set up shop in some of the country’s lesser-known regions. One trend that has emerged is companies working with accelerator programs to learn alongside more agile startups (and often get a first look at startups that could be acquired). “I don’t think disruption is a phenomenon that you have to be on the coasts to experience,” Safir says.
Mid-market stars
In Texas, midsize businesses now employ 29 percent of the population, according to the NCMM. Austin’s high-tech area, Silicon Hills, has been at the epicenter of startups since the late 1990s, but many existing companies are now leveraging the area’s quality workforce. Midsize companies, such as HomeAway.com, which operates vacation rental websites, have tapped into the region’s resources and incorporated a culture of disruption into their own ethos. The firm was voted one of the best mid-market U.S. employers in 2014 by Great Place to Work, a leadership coaching and consulting firm.
To the north, Kansas City, Des Moines and Omaha anchor Silicon Prarie. This year, Kansas City was a pilot city for Google Fiber, which provides lightning-fast broadband Internet and television connections. For growth-minded companies focused on technology capabilities, it’s becoming easier to tap into the regions accelerators and infrastructure. “Every day seems to bring greater affirmation that we’re the most wired place in the country,” says Safir, who is based in Overland Park, Kansas.
Workplace-as-a-Service: Instant IT For Your New Office
Head east from Des Moines and you’ll find places such as 1871, an incubator for tech startups that dominates the business conversation in Chicago. But there are mid-market companies seeking inspiration in Chicago, too. In Illinois, 76 percent of mid-market companies are looking to grow through capital investments, according to NCMM. More than 6,500 midsize businesses employ 21 percent of the state’s workforce.
For mid-market companies, entering these regions or building satellite offices can be a way to find affordable talent that’s easier to recruit—and keep—than it is on the coasts. And rather than focusing on their traditional methods for sustaining growth, many are looking to neighboring startups to figure out how to expand. For many mid-market businesses, that means having a willingness to experiment and pivot when necessary, because, as Safir says: “Today’s pace of doing business is relentless.”
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