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Many U.S. Middle Market Firms Choose to Retain Domestic Focus

By: AMA Staff Writer

Nearly three-quarters (73%) of  U.S. middle-market firms that currently sell and operate solely in North America do not intend to expand beyond the region in the next three years. Only 7% of these “domestic” firms are currently engaged in overseas expansion. The research, sponsored by the National Center for the Middle Market—a collaboration between Ohio State University’s Fisher College of Business and GE Capital—defines middle market firms as those with revenue between $10 million and $1billion.

These “domestic” firms see international expansion as risky and expensive—82% say their focus on the home market is a strategic choice, and 59% say the costs of expanding abroad outweigh the benefits.

The report “US Middle Market Firms and the Global Marketplace: Should I Stay Or Should I Go?” is available at http://www.managementthinking.eiu.com/us-middle-market-firms-and-global-marketplace.html

About the Author(s)

AMA Staff Writer is Florence Stone, AMA Editorial Director.