The researchers believe that one plausible hypothesis is that mid-size businesses are going bust is because they are not large enough to scale virtually and they don't have strong R&D departments that keep them at the forefront of their market. They are in that difficult spot where overhead, field, and opportunity are not matching in a way that help these businesses adapt. Policy changes could help ensure government is focused on creating an environment where small, medium and large businesses can thrive.
It should be noted that many mid-size companies produce things and sell them nationally and internationally making them an important conduit by which large and small businesses conduct commerce. They are often family and partner-owned being integrally tied to their communities. On the cusps of becoming international corporations their decline could also indicate a decline in emerging global companies (Let us wait and see).The researchers looked on the UCLA-LoPucki Bankruptcy Research Database (BRD). Very cool site that people can search around and look for different bankruptcy trends and patterns. This is helpful for understanding how COVID has impacted businesses in various geographic locations. A little search and I was able to see how bankruptcies impacted the economy in different locations and sizes.
"The UCLA-LoPucki Bankruptcy Research Database (BRD) is a data collection, data linking, and data dissemination project of the UCLA School of Law. The BRD's mission is to promote bankruptcy research by making bankruptcy data available to academic researchers throughout the world." UCLA-LoPucki, n.d., para 1).
LoPucki, Lynn M. “A Window on the World of Big-Case Bankruptcy.” The UCLA-LoPucki Bankruptcy Research Database (BRD), UCLA, lopucki.law.ucla.edu/.