88% are Millionaires and 6 More Surprises From Entrepreneurial Survey

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88% are Millionaires and 6 More Surprises From Entrepreneurial Survey

 

I've been a subscriber to Inc. Magazine for a long time and follow the Inc. 500 list (a ranking of the fastest growing 500 privately held companies in the U.S.).  Recently, Inc. also introduced the Inc. 5000 which is a ranking of the top 5,000 privately held companies (similar criteria to the Inc. 500). 

Although I think 5,000 is too many companies to rank (and I think they're diluting the Inc. 500 brand), it's still only a fraction of the total privately held businesses out there.  As such, my hat is off to all of those that made the recent Inc. 5000 list.  [Blatantly immodest note:  My first startup, Pyramid Digital Solutions, made the Inc. 500 list for 3 consecutive years back in the day, one of the few entrepreneurial accomplishments of which I am proud].

Inc. conducted a survey of the Inc. 5000 (2,710 responded) and published some interesting results.

Here are some of the highlights:

1.  88% of the respondents in 2006 said they are now millionaires (compared to 52% in 2003).  17% have a net worth exceeding $10 million.

2.  97% are planning on growing their business by hiring staff in the next 12 months.

3.  82% are self-financed (and only 4% received help from the SBA or government funds)

4.  7% plan on taking their company public in the future

5.  47% plan to start another company in the future.  [Note:  Shows that serial entrepreneurship as a pathology continues to grow]

6.  92% make over a $100k in 2006 (vs. only 59% in 2003)

7.  95% offer health insurance to their employees.

The full document can be found here:  Inc. 5000 CEO Survey

Posted by Dharmesh Shah on Mon, Sep 10, 2007

COMMENTS

Surprising insights. We should set up the HubSpot lead scoring system to flag these folks when they self-select as they are probably great targets for our products.

posted on Monday, September 10, 2007 at 9:55 AM by Brian P Halligan


Very interesting. Enterprise is a good indicator of future state of the economy I believe.. "88% of the respondents in 2006 said they are now millionaires (compared to 52% in 2003)." Is a million from back then worth the same as a million today? :-) "97% are planning on growing their business by hiring staff in the next 12 months." And they say the economy is floundering? "82% are self-financed (and only 4% received help from the SBA or government funds)" Where are the VCs and is it possible that SBA and other funds from the government do not promote themselves well (I am projecting this from the UK of course)? I am interested in knowing if this data feeds into strategy or policy making somewhere for corrective action to remedy issues arising..

posted on Monday, September 10, 2007 at 10:05 AM by Shefaly


That is good news for us Entrepreneurs. I'm wondering if being a "millionaire" meant "On paper" based on the value of their company or personal assets?

posted on Monday, September 10, 2007 at 10:11 AM by Richard Kligman


I wonder the same thing that Richard Kligman does - can I slap a valuation on my company at some small multiplier of revenues, and then declare that I - as the sole stocholder of the firm - am a millionaire?

posted on Monday, September 10, 2007 at 9:53 PM by TJIC


Another statistic that I once heard was that more than 90% of the companies on the Inc. 500 were losing money. And the 'Entreprenuer of the Year' award has only been awarded to people who are single or divorced (with just one or two exceptions). There's two statistics that make me hope I'll never make the list.

posted on Tuesday, September 11, 2007 at 9:29 AM by Tom Snide


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