TrueSpace and Gallup Release Research to Help Second-Stage Businesses Reach the Middle Market
First-Of-Its-Kind Assessment Provides Entrepreneurs with a Scientific Approach to Business Building
DENVER, Feb. 20, 2020 /PRNewswire/ -- TrueSpace, a business ecosystem intentionally designed to help entrepreneurs scale to the middle market, today announced the release of their multi-year research effort culminating in the Five Conditions Assessment (5CA). This announcement, with their research partner, the Gallup Organization, includes a report detailing the methodology, findings and implications of the assessment.
The 5CA was informed by a formal ethnographic analysis conducted between 2014 and 2018 and targeted at 147 private companies that were past the startup stage (three years or more in age) with aspirations to grow but were stuck below the early middle market threshold of $10 million in annual revenue.
Through this research, TrueSpace discovered five distinct operating conditions that must be present for a small business to consistently reach the middle market. They also uncovered how to create these conditions in businesses struggling to scale. Gallup's researchers were able to validate that the creation of these operating conditions produced more consistent and higher levels of sales and employment. As a result, Gallup created a high-performance benchmark for entrepreneurs to discover where their firm stands against the benchmark.
According to the study, 21% of the variation in performance between companies can be explained by the responses provided by entrepreneurs to the Five Conditions, making the 5CA far more predictive of a second-stage business's size and growth performance than its age or industry, or the demographic characteristics of its owner. These findings are based on a rigorous quantitative survey conducted by Gallup with 2,494 business owners. Full details on the study can be found here: https://news.gallup.com/reports/284201/truespace-report.aspx
"This research, and the 5CA can provide an entrepreneur with a scientific approach to scaling their firm," said Charles Fred, TrueSpace CEO and co-founder. "We believe the data will influence entrepreneurs and investors to see the potential in businesses once perceived as stuck."
Gallup estimates that if even 10% of second-stage companies in the U.S. could move from average to top-tier scores on the 5CA, their improved consistency would result in 17 million new jobs.
"This research reinforces the common purpose we have with TrueSpace; creating quality living wage jobs for all Americans," said Joe Daly, Senior Partner at Gallup. "This instrument, and the segment of businesses that it impacts, could have a profound impact on how we approach this challenge. We have high hopes for the impact we can have together."
To learn more about the assessment, please visit https://news.gallup.com/reports/284201/truespace-report.aspx to learn more about TrueSpace, visit www.truespace.com
About TrueSpace
TrueSpace is a Denver-based firm that has created a business ecosystem intentionally designed to help entrepreneurs move from starting a business to building one. Through their Gallup certified Five Conditions Assessment, they offer a scientific approach for business owners to reach the middle market. TrueSpace offers a National Development Center in Denver for entrepreneurs to work on their business and to find partners to help them succeed. For more information, please visit www.TrueSpace.com
About Gallup
Gallup delivers analytics and advice to help leaders and organizations solve their most pressing problems. Combining more than 80 years of experience with its global reach, Gallup knows more about the attitudes and behaviors of employees, customers, students and citizens than any other organization in the world. For more information, please visit www.gallup.com/
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SOURCE TrueSpace
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