Midmarket companies constitute the backbone of the private sector in the MENA region. Reportedly, more than 80% of companies in this segment are established by families and first-generation entrepreneurs. They are typically businesses in services and light manufacturing with annual revenues standing at between $50m and $200m.
In general, these enterprises are exceptional performers in terms of revenue growth, cost containment, hands-on management practices, low leverage, employee retention, and a relatively strong pattern of internal generation of capital in the form of retained earnings.
The appeal of midmarket companies is precisely their size. When compared to larger enterprises, midmarket companies tend to be more agile, highly innovative, and in closer contact with their customers. Such companies are set for continued revenue growth, and this growth primarily derives from a continuous improvement of their business model: launching new services & products, putting more efforts into sales & marketing and focusing on operational efficiencies to sustain business needs.