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These minority-owned business enterprises represent roughly 30%
of the middle market but generate only 20% of the total revenue
and closing this gap could boost the economy, the study said.
"Midsize businesses are critical to the health of our economy
and communities and bridging this gap can be a big opportunity,"
Terry Hill, co-head of Emerging Middle Market, JPMorgan Chase
Commercial Banking told Reuters.
JPMorgan, the largest U.S. lender, has been looking at serving
this segment by tapping expertise from its corporate and
investment banking businesses, while Bank of America plans to
double its middle-market dealmaking team.
The report identified diverse-owned businesses as those run by
Blacks, Latinos, Asians, other people of color, women and
veterans. "There are approximately 300,000 midsize businesses
across the U.S. that generate $13 trillion in annual revenue and
employ more than 40 million people," the report said.
Some of these mid-size businesses have had challenges including
difficulty in accessing capital, obtaining the right information
compared to their counterparts, and creating suitable business
plans, it said.
The study was conducted by Next Street, an advisory firm which
analyzed data from the middle market segment focusing on firms
that generate an annual revenue of anywhere between $11 million
to $500 million.
JPMorgan has been beefing up its commercial and industrial
banking business by expanding into new geographies and
increasing its headcount.
The bank's broader commercial bank has nearly 25,000 clients,
including mid-sized businesses and corporations, government
entities and non-profits and more than 33,000 real estate
investors or owners.
(Reporting by Nupur Anand in New York; Editing by Sonali Paul)
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