Middle-market executives are positive about their firms’ growth prospects and access to capital, despite having little knowledge about new federal legislation designed to benefit small and midsize companies, a new study finds.
The Middle Market Pulse study by the accounting firm CohnReznick surveyed U.S. executives from a wide range of industries. Overall, their outlook was positive on the prospect of future growth; however, few were well-informed about the Jumpstart Our Business Startups Act, a 2012 Obama administration initiative to make public equity more accessible to small and midsize firms.
An overwhelming majority of respondents (89 percent) said their firms’ financial situation was the same or better than a year ago, according to the study, which polled 300 C-Suite executives at middle-market firms and was released in September. Similarly, 57 percent expected their profit to improve in the second half of 2014 compared to a year earlier, while 31 percent forecast it would remain the same.
CohnReznick’s National Liquidity and Capital Formation Advisory Group, which produced the survey, asked executives about the challenges their businesses face. The top three issues identified were general economic conditions, maintaining and increasing sales, and attracting and attaining qualified employees. To drive business outcomes, the most common strategy among respondents was to increase products and service offerings (47 percent); expanding geographic locations was a distant second (31 percent).