Technology and Energy, Cleantech and Natural Resources categories flourish; Nominee employment growth far outpaces US average
JULY 21, 2011 – Despite continuing global economic challenges and persistently worrisome US employment statistics, the 2011 Ernst & Young Entrepreneur Of The Year award nominees’ companies managed to grow and even thrive, with 28 percent overall revenue growth and 27 percent overall employment growth, according to figures compiled by the public accounting firm.
In the two-year period between 2008 and 2010, the 2011 Entrepreneur Of The Year nominees experienced double-digit employment growth (27 percent) at a time when overall U.S. employment actually fell by 5.1 percent.
“The spirit of innovation demonstrated by America’s high-growth entrepreneurs is very strong, and clearly has not been stifled by the recent economic downturn,” said Bryan Pearce, Americas Director of the Ernst & Young Entrepreneur Of The Year Program. “Our 2011 nominees demonstrate the importance of entrepreneurship in creating jobs, generating economic activity in our communities, keeping America competitive and driving American innovation.”
The 1,600 2011 Nominees are broken into 10 categories in 26 regions across the United States. As of December 2010, these companies employed some 500,000 individuals and generated total revenue of just under $125 billion.
Employment Growth
Sectors leading the group in employment gains were 1) Technology and 2) Energy, Cleantech and Natural Resources category, which, between 2008 and 2010, posted 89 percent and 58 percent employment growth, respectively.
Regionally, employment growth was led by the Southwest Area North, including Dallas, Texas and the surrounding area, which turned in 69 percent employment growth. Rounding out the top three were the Alabama/Georgia/Tennessee and Central Midwest regions with 67 percent and 60 percent employment growth, respectively.
“The energy industry is experiencing unprecedented growth, especially when compared to other industries, due to major discoveries and breakthroughs in technology,” noted Timothy Leach, CEO of Concho Resources, Inc., based in Midland, TX. “Our company has been able to leverage our position as a domestic, onshore E&P company and more than double our employment over the last few years.” During a period when Las Vegas endured one of the worst unemployment and home foreclosure crises in the nation, Ernst & Young Entrepreneur Of The Year nominees from the Greater Los Angeles region, which includes Las Vegas, were able to increase employment growth by 37 percent.
Revenue Growth
The Technology and Life Sciences categories performed strongest in terms of revenue growth, where nominees boasted 110 percent and 103 percent growth rates respectively. Revenue growth was robust across nearly all categories, with the exception of the Real Estate, Construction and Lodging group, which showed negative growth over the same period.
Pat Hyek, Global Technology Leader for Ernst & Young noted, "Technology and Life Sciences companies continue to innovate and provide value for their customers in areas from social media, data analytics and cloud computing to smart mobility and technology-enabled health care, leading to growth and employment opportunities in these categories."
Regionally, Alabama/Georgia/Tennessee turned in impressive numbers, with 80 percent revenue growth over two years. Also putting up healthy numbers were the nominees from the Southwest Area North and Greater Washington regions, with revenue growth rates of 77 percent and 75 percent, respectively.
For example, 2011 Entrepreneur Of The Year award winner Michael DiMarco, CEO of The Outsource Group, based in St. Louis, Missouri, saw his revenues increase 40 percent, and as a result, hired an additional 400 employees in order to meet demand.
Productivity Growth
Much of the continued success of these high-growth entrepreneurial companies can be attributed to their focus on productivity or revenue per employee. The strongest productivity rates among nominees were found in the Financial Services category, followed by the Energy, Cleantech and Natural Resources and Media/Entertainment categories. New York and the Central Midwest programs companies led the way in productivity metrics nationally.
Pearce noted that a recent Ernst & Young report, “Nature or nurture? Decoding the DNA of the entrepreneur,” revealed some interesting findings about what distinguishes these high-growth entrepreneurs: “The core of the entrepreneur is ultimately about a way of viewing the world and the ability to act on those views. Entrepreneurial leaders are personally characterized by a strong locus of control, an opportunistic outlook and a willingness to take risks (and potentially fail).”
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Ernst & Young Entrepreneur Of The Year is the world’s most prestigious business award for entrepreneurs. The unique award makes a difference through the way it encourages entrepreneurial activity among those with potential, and recognizes the contribution of people who inspire others with their vision, leadership and achievement. As the first and only truly global award of its kind, Entrepreneur Of The Year celebrates those who are building and leading successful, growing and dynamic businesses, recognizing them through regional, national and global awards programs in more than 140 cities in more than 50 countries.
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