Significant Growth in Full Time Employee Numbers Sited From Subset of Private Companies
Chicago, IL – July 24, 2007 – Based on a poll conducted this month by the Private Company Index (PCI), portfolio companies reveal that employment numbers at the end of Q2 2007 are up 28% from those reported in Q1. Figures detailing net new hires in Q2 indicate that hiring action is up 50% from the previous quarter.
This positive data stands alone during a time when a range of authorities are reporting opposite trends in the private sector. The National Federation of Independent Business’s “Small Business Economic Trends” (June 2007) reflects a year-to-date negative employee growth number of -7%. While the Bureau of Labor Statistics is touting payroll statistics that show an increase of 100,000+ for each of the last three months, there is no information that allows one to evaluate this growth among only private companies.
And, while recent news from CareerBuilder.com sites a Q3 slowdown in hiring among private companies, 85% of PCI company respondents say they are currently hiring.
Stephen H. Watkins, CEO of Entrex Inc., a sponsor of the PCI, explains his thoughts on the disparity of the data. “PCI portfolio companies are not your typical small business in as much as the term is used broadly by the media. These companies are on average at least 3-5 years old and range from $1-50M in annual revenue. They are growth-oriented firms, often with aspirations to become a recognized mid-sized company—as Dow Jones once defined, the Blue Chip Private Companies.”
He continues, “The work we do at Entrex is 100% about bringing awareness of this private sector subset to the investor’s marketplace and the traditional financial community. This group re-defines what people view as a small private company and it’s my pleasure to promote a new awareness in the world.”
The PCI survey, administered both annually and quarterly, also tracks private company sentiment data regarding key financial indicators related to company growth, perceived access to capital and growth funding availability. Additional data snapshots with a complete report of private company CEO thoughts related to Q2 2007, and forward looking Q3 impressions, were gathered this month and are available at www.privatecompanyindex.com.
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