Dean Poon of The Ohio State Fisher College of Business presentation on Job Creation. Presentation at GE Capital's Roadshow for Growth in Chicago, IL on May 9, 2013.

1. The Mighty Middle Market
Christine Poon
Dean of Fisher College of Business
The Ohio State University

2. Meet the Mighty Middle
197,000 BUSINESSES
BETWEEN $10MM—$1B
4th LARGEST
GLOBAL ECONOMY
ONE-THIRD PRIVATE SECTOR
GDP ($3.84 TRILLION)
43.3MM JOBS – ONE THIRD OF
TOTAL PRIVATE SECTOR JOBS
IN THE U.S.
US CENSUS DATA

3. Meet the Mighty Middle
• Pillars of their communities
• 82% survivorship rate during recent financial crisis
• 70% in business 20+ years
• Grounded in their communities
• Majority are privately held
• Widely dispersed across all regions
and industries

4. Chicago’s Mighty Middle Market
1% FIRMS
4,700 BUSINESSES
21% REVENUE
26% JOBS
Note: Estimates based on available data from Dun and Bradstreet and
previous research conducted by the National Center for the Middle Market.

5. Economic Outlook
Middle Market Executive Confidence
29%
22%
36%
48%50%
59%
66%67%
70%
Global Economy US Economy Local Economy
1Q ‘12 1Q ‘13
36%
59%
70%
40%
58%
74%
1Q ‘12 1Q ‘13 1Q ‘12 1Q ‘13

6. New EnglandNew England
+192K
NJ & NY
+369K
Mid Atlantic
+330K
Southeast
+373K
Southwest
+324K
Midwest
+460K
Western
-38K
Mountain-
Plains
+162K
Middle Market Companies Net Jobs Contributions: 2007 - 2010
MM
+2.2M
Jobs
Big Biz
-3.7M
Jobs

7. Outlook of the Middle Market…
CAUTIOUSLY
OPTIMISTIC

8. Top 5 Business Challenges
COST OF HEALTHCARE
COST OF DOING BUSINESS
92%
84%
89%
ABILITY TO
MAINTAIN MARGINS
UNCERTAINTY OF HOW
GOVERNMENT ACTIVITIES
WILL IMPACT BUSINESS
82%
ABILITY TO
ATTRACT, TRAIN,
AND RETAIN TALENT
75%
1Q 2013: Next 12 Months
1Q 2012: 92%
1Q 2012: 86%
1Q 2012: 88% 1Q 2012: 77%
1Q 2012: 81%

9. Healthcare

10. Healthcare
Nearly half of the firms are considering options:
1. Renegotiate with current insurer 25%
2. Seek new insurer 12%
3. Encourage wellness efforts 20%
4. Pay fines and eliminate coverage 7%
4Q 2012

11. Impact of Healthcare on Jobs
4Q 2012
Two-thirds of firms claim that they will be impacted –
top three actions:
• Less investment 32%
• Hiring Freeze 30%
• Laying off workers 17%

12. Skills Gap

13. Impact of Skills Gap
1Q 2013
More than 40% in Midwest report there is a skills gap
42%
58%
37%
63%
Midwest Nation
Skills gap present
No Skills Gap
Skills gap present
No Skills Gap

14. Impact of Skills Gap
1Q 2013
1.30%
Top three workforce challenges:
Most challenging areas to hire:
79% 78% 73%82%
62%
77%
0%
50%
100%
Finding sources of
talent
Lack of workers with
relevant experience
Lack of workers with
relevant training
MMI Midwest
22%
18% 16%
19%
28%
16%
0%
10%
20%
30%
Sales Skilled Trade Operations
MMI Midwest

15. Resolving the Skills Gap
1Q 2013
1.30%
Programs that would be most effective:
41% 39% 37%
12% 9%
0%
10%
20%
30%
40%
50%
Improvements in the
secondary educational
system
Business/community
college partnerships
Regional vocational
training programs
National vocational
training programs
A streamlined hiring
process for foreign
workers
66% Educational Improvements/Partnerships
42% Vocational Training

16. Growth Champions
1.30%
Growth Champion Characteristics
Investment in Innovation
Broader Geographic Vision
Customer Focus
Strong Management Culture
Operational Excellence
Note: Identified in the National Center for the Middle Market’s foundational
research “The Market that Moves America”.

17. www.middlemarketcenter.org