US minority-owned businesses have $1.3 trillion growth potential, JPMorgan says

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NEW YORK, Nov 28 2009 (Reuters) – Mid-sized U.S. businesses have untapped revenue potential worth $1.3 trillion a year, JPMorgan Chase said. (JPM.N) It was found in a study on the segment where major lenders are chasing growth.

These minority business enterprises represent 30 percent of the middle market, but generate only 20 percent of total revenue, and closing this gap could boost the economy, the study found.

“Mid-sized businesses are critical to the health of our economy and society, and bridging this gap can be a huge opportunity,” JPMorgan Chase Commercial Bank’s Terry Hill told Reuters.

The largest US lender, JPMorgan, has been looking at serving this segment by tapping expertise from its corporate and investment banking businesses, while Bank of America (BAC.N) The mid-market deal maker plans to double its team.

The report identified a diverse range of businesses owned by blacks, Latinos, Asians, other people of color, women and veterans.

“Across the U.S., there are nearly 300,000 medium-sized businesses that generate $13 trillion in annual revenue and employ more than 40 million people,” the report said.

Some of these mid-sized businesses face challenges in accessing capital, getting the right information and creating suitable business plans compared to their peers, he said.

The research was conducted by consulting firm Next Street, which analyzed data from the middle market segment, focusing on companies with annual revenues between $11 million and $500 million.

JPMorgan is expanding its commercial and industrial banking operations. New geographies And Increase in head count.

The bank’s broad commercial banking base has nearly 25,000 customers, including mid-sized businesses and corporations, government entities and nonprofits, 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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Nupur Anand is Reuters’ US banking correspondent in New York. She focuses on JPMorgan Chase, Wells Fargo and regional banks. Anand has covered banking and finance in India for over a decade and has covered the collapse of major lenders and the turmoil surrounding digital banks and cryptocurrencies. She holds a Diploma in English Literature from Delhi University and a Post Graduate Diploma in Journalism from the Indian Institute of Journalism and New Media, Bangalore. Anand is an award-winning novelist.

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