OP-ED

July 28, 2008

Response to Indiana Companies to Watch effort a tribute to state's economic diversity

This story is being told through the state's first-ever Indiana Companies to Watch, an awards program recognizing 50 outstanding Indiana second-stage companies.

Those of us close to economic development knew all along that the state was rich with entrepreneurial activity.  The number of nominations for Companies to Watch - an impressive 420 submitted from 66 Indiana counties - is proof. Resulting applications were narrowed down to 222 companies representing 44 counties.  From there, 133 finalists were selected in late May.

Fifty companies will be selected in July and all will be recognized during a formal dinner on Aug. 27 at the Indiana Roof Ballroom in Indianapolis.

Combined, the 133 finalist-companies generated revenue of $1.4 billion in 2007, with projections to surge more than 25 percent in 2008. Just as critical, they plan to create 1,408 jobs in the next year, rising 20 percent from 7,042 in combined employment to 8,450 next year.

Just being eligible as a nominee is a victory in itself.

Nominees must be based in Indiana, privately held, and advanced beyond the startup phase. To be eligible, they also must employ six to 150 full-time employees, including the owner, and have $750,000 to $100 million in annual revenue or working capital in place from investors or grants.

The Indiana Economic Development Corp., through its Small Business Development Centers, is collaborating with KeyBank, Purdue University and its Discovery Park complex, Edward Lowe Foundation, Ivy Tech Community College, Barnes & Thornburg, Sapper & Miller and others to make this program possible. For more details, go to https://Indiana.CompaniesToWatch.org .

The Edward Lowe Foundation, based in Cassopolis, Mich., created the Companies to Watch program to paint a realistic picture of a statewide or regional economy. The foundation also presents Companies to Watch in Michigan and Arizona, with 2009 awards programs planned for Colorado and the Jacksonville, Fla. Region.

A recent report by the Indiana Chamber of Commerce Foundation indicated that while mid-sized companies comprise only 3 percent of for-profit companies headquartered in the state, they generate 30 percent of the jobs in Indiana and more than 40 percent of the sales.

In the chamber's survey, mid-market companies are described in the study as those with between $5 million and $100 million in annual sales. Nearly 3,800 such firms were found in 2006; they employed more than 386,000 people and produced in excess of $55 billion in sales.

Similarly, Indiana Companies to Watch celebrates high-performing second-stage companies for their performance in the marketplace as well as their innovative products, unique processes and philanthropic actions among other company strengths

This, however, is not an award of the "top" or "best" companies. These engines for job creation make a point about Indiana's diverse economic landscape. They're making a significant impact on our economy by collectively providing thousands of jobs and contributing billions of dollars of revenue every year.

Diverse is no exaggeration, either.

Companies among the list of finalists range from traditional sectors such as manufacturing, financial services, transportation, construction and warehousing to the new era for Indiana in life sciences, information technology, health and medical services, telecommunications, and environmental or technical consulting. What they have in common is the ability to innovate and transform - the capacity and creativity to uncover new markets or to capitalize on new technologies.

Past growth and projected success are factors for this recognition program. So are the companies' special strengths centered on innovative products and business practices, and special use of technology. But this isn't the only criteria. Judges also look at the companies' work within their local communities. So there's a social element to these entrepreneurship-minded performers.

The response to this inaugural effort from all regions of the state has been outstanding, putting the spotlight on thriving Indiana companies that often fly under the radar.

A company that doubles its employment of five technicians and a handful of support staff might not make the front page of your daily newspaper or lead story on the local television or radio broadcasts. Put a handful of those growing companies together however, and you have a mini-economic boon for many communities across Indiana.

That indeed is a story worth telling.

 Sam Cordes is associate vice provost for engagement and co-director for Purdue's Center for Regional Development in Discovery Park's Burton D. Morgan Center for Entrepreneurship.

Jeff Heinzmann is director of the Indiana Economic Development Corp.'s Indiana Small Business Development Centers.

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