{"id":374069,"date":"2025-09-02T08:00:00","date_gmt":"2025-09-02T12:00:00","guid":{"rendered":"https:\/\/chiefexecutive.net\/?p=374069"},"modified":"2025-08-29T10:01:29","modified_gmt":"2025-08-29T14:01:29","slug":"5-myths-about-american-business-and-the-truth-ceos-need-to-know","status":"publish","type":"post","link":"https:\/\/chiefexecutive.net\/5-myths-about-american-business-and-the-truth-ceos-need-to-know\/","title":{"rendered":"5 Myths About American Business, And The Truth CEOs Need To Know"},"content":{"rendered":"\n

For decades, American business has been over-described in clich\u00e9s: small business is the job engine<\/em>, or large corporations hold back wage growth<\/em>. But our exclusive analysis of new data from the U.S. Census\u2014across small, middle-market and large firms\u2014tells a different story.<\/p>\n\n\n\n

The truth is, the middle market<\/strong> (companies with $10M\u2013$1B in revenue) is the unsung hero of the U.S. economy, even as both small businesses and large corporations dominate headlines. Over the last 15 years, covering the Great Recession, the post-crisis expansion and Covid-19, the middle market has consistently powered growth, productivity and wages.<\/p>\n\n\n\n

Here are five myths that the data show deserve to be retired:<\/p>\n\n\n\n

Myth #1: Small Business is the Engine of Job Growth<\/h4>\n\n\n\n

Reality<\/strong>: Small firms make up more than 95 percent of all businesses, but their share of U.S. employment has dropped from 35 percent in 2007 to under 29 percent in 2022. In that time, small businesses actually shed more than 3 million jobs.<\/p>\n\n\n\n

By contrast, middle-market firms added more than 5 million jobs over the same period, while large firms added over 13 million.<\/p>\n\n\n\n

CEOs need to recognize<\/strong> that the real engines of job growth are middle-market and large companies, not the smallest firms.<\/p>\n\n\n\n

Myth #2: Large Companies Are Poor Employers<\/h4>\n\n\n\n

Reality<\/strong>: Large firms now pay the highest wages in America\u2014average annual compensation is $81,875, nearly double<\/strong> what small firms pay ($42,716)\u2014a huge gap that goes a long way toward buying homes and raising families.<\/p>\n\n\n\n

Far from shedding jobs, large employers have expanded headcount by more than 14 percent since 2017.<\/p>\n\n\n\n

CEOs of mid-market companies take note:<\/strong> your talent competition is not small business, but large-cap employers raising the bar.<\/p>\n\n\n\n

Myth #3: The Middle Market is Just the \u201cTween\u201d Category<\/h4>\n\n\n\n

Reality<\/strong>: The middle market is anything but average. In 2022, it represented only 4.4 percent of firms\u2014 but delivered: 33.5 percent of U.S. employment, 29 percent of business receipts and employee compensation averaging nearly $69,000. Mid-market companies combine the efficiency of scale with the agility of smaller firms.<\/p>\n\n\n\n

For CEOs in this range:<\/strong> you are the backbone of American business\u2014but too often, you are invisible in policy debates.<\/p>\n\n\n\n

Myth #4: The U.S. Economy is a Tale of Small vs. Big<\/h4>\n\n\n\n

Reality<\/strong>: The real competitive tension is middle vs. large.<\/p>\n\n\n\n

In 2007, middle-market firms controlled ~31 percent of receipts. By 2022, their share slipped to 29 percent\u2014not because they shrank, but because large firms grew even faster, now controlling 59 percent of revenue.<\/p>\n\n\n\n

For CEOs:<\/strong> growth strategy is not just about outpacing small rivals, but about defending share against relentless consolidation at the top.<\/p>\n\n\n\n

Myth #5: Bigger Always Means More Productive<\/h4>\n\n\n\n

Reality<\/strong>: Large firms still post the highest productivity\u2014reaching about $589K in revenue per employee in 2022\u2014but they don\u2019t have a straight-line advantage. From 2012 to 2017, large-cap productivity declined (from ~$481K to ~$469K) while the middle market improved (from ~$250K to ~$262K). By 2022, the middle market reached ~$326K per employee\u2014still below large-cap levels, but a substantial climb.<\/p>\n\n\n\n

CEOs take note:<\/strong> Over the full 2007\u20132022 period, middle-market productivity grew about 43 percent, slightly faster than large-cap (41 percent). The middle market combines meaningful scale with operational agility, enabling steady productivity gains without big-company bureaucracy.<\/p>\n\n\n\n

Why This Matters<\/h4>\n\n\n\n

The old narrative\u2014small vs. big\u2014is outdated. CEOs should recognize:<\/p>\n\n\n\n

    \n
  • Small businesses remain vital to communities but are losing economic weight.<\/li>\n\n\n\n
  • Large firms dominate scale and wages, but face efficiency challenges.<\/li>\n\n\n\n
  • The middle market is the hidden powerhouse, employing one-third of Americans and delivering nearly a third of revenue.<\/li>\n<\/ul>\n\n\n\n

    <\/p>\n\n\n\n

    If you\u2019re running a middle-market company, you\u2019re not in the shadows. You\u2019re in the driver\u2019s seat of the U.S. economy\u2014even if Washington and Wall Street often forget it.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Small businesses and large corporations may dominate headlines, but a deep dive into the latest federal data by Chief Executive reveals the middle market is the unsung hero of the U.S. economy. <\/p>\n","protected":false},"author":2737,"featured_media":374070,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_oasis_is_in_workflow":0,"_oasis_original":0,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[871,1451],"tags":[],"class_list":["post-374069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-leadershipmanagement","category-mid-market"],"acf":[],"yoast_head":"\n5 Myths About American Business, And The Truth CEOs Need To Know<\/title>\n<meta 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