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Week of August 25 - 31, 2008


The 2008 Inc. 500

The latest version of the Inc. 500 list of the fastest growing US companies—along with the newer Inc. 5000---was released this week. As usual, it’s an impressive list of world-class companies. This year’s list tracks firm performance between 2004 and 2007, so most of the companies were not yet affected by the current economic downturn. As usual, the list offers an interesting peak at “hot” sectors and trends. Topping this year’s list is Senior Whole Health, a Massachusetts-based managed care provider that has capitalized on Massachusetts experiments in health care reform. Without a doubt, Senior Whole Health has enjoyed a good run, posting a five-year growth rate of more than 31,000 percent. The list also includes some new categories, including:

  • Highest Revenue per Employee: Vizio, an Irvine, CA, producer of flat-screen televisions. ($19.3 million per employee)

  • Largest Women-Owned Venture: The Saxon Group, a construction firm based in Sugar Hill, GA with annual revenues of $81.8 million.

  • Oldest Firm on the Inc. 500: San Diego’s Borrego Solar Systems is twenty-one years old.

  • Largest Sole Proprietorship: Milwaukee’s Service Financial has annual sales of $11 million.

As in the past, California is home to the highest number of Inc. 500 firms (78), and the Washington, DC (39) area tops the list of Inc. 500-heavy metro areas. If we look at the number of Inc. 500 firms per million residents, Utah is the place to be as the most popular state for these companies and Provo as the most popular metro location.

To learn more about the 2008 Inc. 500, visit www.inc.com. The list also appears in the September 2008 issue of Inc. magazine.


Who Pays Capital Gains Taxes?

If you ask entrepreneurs about important policy issues, they frequently cite the importance of favorable tax treatment for capital gains. This important issue also differentiates the Presidential candidates with Obama seeking to reverse most of the cuts in capital gains taxes for individuals in the highest tax brackets and McCain supporting the current tax rate of fifteen percent. New research from the Urban Institute offers a look at the state of the capital gains tax debate by asking who currently pays these taxes. Fewer than one in seven American taxpayers report taxable capital gains each year. Those who earn more than $200,000 per year account for 83% of all capital gains taxes paid. Those who earn more than $1 million per year account for a large portion of this total, and also account for 63% of all capital gains taxes paid. Capital gains account for approximately 40%—of annual gross income for this cohort of taxpayers.

Access the July 31, 2008 Urban Institute report, “Who Pays Capital Gains Tax,” by Eric Toder.


Nanotechnology Oversight

As advances in nanotechnology continue, government regulators face some tough challenges. A new study from the Pew Trusts/Woodrow Wilson Center Project for Emerging Nanotechnologies offers some guidelines for how the next Administration might address these thorny issues. The report contends that the existing systems for managing nanotechnology are “weak and inadequate.” It makes 35 different recommendations for how to strengthen and update these tools and regulations to help ensure that nanotechnologies can be harnessed to best serve society’s needs. These suggestions include expanded funding for research into the potential health risks of nanomaterials, revision of existing laws to account for unique nature of nanomaterials, and more aggressive enforcement of existing laws to regulate the use of nanomaterials in cosmetics, clothing, household appliances, and other consumer products.

Access the 2008 Project for Emerging Nanotechnologies report, “Nanotechnology Oversight: An Agenda for the Next Administration,” by J. Clarence Davies.


From Entrepreneur to Titan in Canada

Canadian business leaders have long bemoaned their nation’s inability to rapidly generate world-class entrepreneurial ventures in a manner like California’s Silicon Valley. A recent symposium sponsored by the Information Technology Association of Canada examined the causes of, and potential remedies, for this weak performance. The symposium raised a number of concerns about the quality of Canada’s technology workforce and the absence of a nurturing environment for entrepreneurs. Symposium participants reached a consensus view that a more supportive entrepreneurial ecosystem is required if Canada wants to succeed in building a critical mass of world-class companies. Specific recommendations included building stronger mentoring programs for new business owners, including establishment of global network of Canadian executives who could provide coaching and support for these firms.

Access the proceedings of the May 21, 2008 Research Money Conference in collaboration with the Information Technology Association of Canada, “From Entrepreneur to Titan: Can Canadian Entrepreneurs Grow Start-ups into Domestic Multinationals?”


Stanford Offers Entrepreneurship Podcasts and Video Clips

The Stanford Technology Ventures Program (STVP) in the School of Engineering at Stanford University continues to host a website with more than 1,200 free, high-quality podcasts and video clips of entrepreneurial thought leaders from Silicon Valley and beyond. The Entrepreneurship Corner (ECorner), sponsored in part by the Ewing Marion Kauffman Foundation, features clips recorded during guest lectures at Stanford University. More than 200 speakers, including Mark Zuckerberg of Facebook and Carly Fiorina, the former CEO of HP, offer insights on the following: creativity and innovation; opportunity recognition; finance and venture capital; leadership and adversity; and, other related topics.

Formerly called Educators Corner, the new Entrepreneurship Corner is still available at http://ecorner.stanford.edu


The National Dialogue on Entrepreneurship is an initiative of the Public Forum Institute made possible by a grant from the Kauffman Foundation of Kansas City. Through NDE-news, we bring you short summaries and analyses of various trends driving entrepreneurship around the world. Subscribe now to receive your weekly copy. Archived issues are available online.


Kauffman Foundation The Public Forum Institute

National Dialogue on Entrepreneurship

Mark Marich, Editor

All stories © 2008 The Public Forum Institute
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