8(a)'s Dominate Inc.
5000 List If you were thinking about getting an 8(a) certification but not sure if it is worth the time and effort of going through the paperwork some interesting statistics might help you make up your mind.
Inc.
Magazine publishes a yearly list of the fastest 5000 growing companies in the United States called the Inc 5000.
The companies are ranked based upon their annual revenue growth over a three year period.
The following growth calculation is used by Inc.
: [(2012 revenue / 2009 revenue) - 1] x 100 = total growth percentage Example: if 2009 revenue was $2 million and 2012 revenue is $8 million: $8 million / $2 million = 4 - 1 = 3 x 100 = 300% growth over the three year period.
When we looked at the number of 8(a) firms on the list in a given social group compared with that group as a whole the statistics were staggering.
We found that the percentage of 8a firms in the top 25 of each social group category ranged from 16% to 48% of that group.
These are extremely high percentages given the number of 8a firms relative to the population of these companies as a whole.
For Example: African American: There are 1.
9 million African American owned businesses in the United States.
Only 2,137 of these businesses currently are 8(a) certified however 12 of the top 25 African American businesses according to the INC 5,000 list were 8a certified a surprising 48%.
Hispanic: There are 2.
3 million Hispanic owned businesses in the United States.
Only 1,339 of these firms are currently 8(a) certified and 7 of the to 25 Hispanic businesses were 8(a) certified or 28%.
Asian Pacific Islander: There are 1.
2 million Asian Pacific Islander owned businesses in the United States.
Only 783 of these firms are currently 8(a) certified and 4 of the to 25 Asian Pacific Islander businesses were 8(a) certified or 16%.
Native American: There are 270,000 Native American owned businesses in the United States.
Only 1,149 of these firms are currently 8(a) certified and 7 of the to 25 Hispanic businesses were 8(a) certified or 28%.
Subcontinent Asian: There are 310,000 Subcontinent Asian owned businesses in the United States.
Only 865 of these firms are currently 8(a) certified and 7 of the to 25 Hispanic businesses were 8(a) certified or 28%.
In general only a very small group relative to the entire population of socially disadvantaged companies are 8(a) certified (approximately 1.
28 per thousand).
However, on average 30% of the top 25 in each category for the Inc.
5000 listings per group are 8(a) certified.
So an 8(a) firm is 196 times more likely to be one of these ultra-high performing firms than the general population at large.
Based upon this information if you are looking to jump start your firm's growth having an 8(a) certification makes your firm 196 times more likely to be one of the fastest growing companies in your socio-economic group.
These statistics for 8(a) simply cannot be ignored.
5000 List If you were thinking about getting an 8(a) certification but not sure if it is worth the time and effort of going through the paperwork some interesting statistics might help you make up your mind.
Inc.
Magazine publishes a yearly list of the fastest 5000 growing companies in the United States called the Inc 5000.
The companies are ranked based upon their annual revenue growth over a three year period.
The following growth calculation is used by Inc.
: [(2012 revenue / 2009 revenue) - 1] x 100 = total growth percentage Example: if 2009 revenue was $2 million and 2012 revenue is $8 million: $8 million / $2 million = 4 - 1 = 3 x 100 = 300% growth over the three year period.
When we looked at the number of 8(a) firms on the list in a given social group compared with that group as a whole the statistics were staggering.
We found that the percentage of 8a firms in the top 25 of each social group category ranged from 16% to 48% of that group.
These are extremely high percentages given the number of 8a firms relative to the population of these companies as a whole.
For Example: African American: There are 1.
9 million African American owned businesses in the United States.
Only 2,137 of these businesses currently are 8(a) certified however 12 of the top 25 African American businesses according to the INC 5,000 list were 8a certified a surprising 48%.
Hispanic: There are 2.
3 million Hispanic owned businesses in the United States.
Only 1,339 of these firms are currently 8(a) certified and 7 of the to 25 Hispanic businesses were 8(a) certified or 28%.
Asian Pacific Islander: There are 1.
2 million Asian Pacific Islander owned businesses in the United States.
Only 783 of these firms are currently 8(a) certified and 4 of the to 25 Asian Pacific Islander businesses were 8(a) certified or 16%.
Native American: There are 270,000 Native American owned businesses in the United States.
Only 1,149 of these firms are currently 8(a) certified and 7 of the to 25 Hispanic businesses were 8(a) certified or 28%.
Subcontinent Asian: There are 310,000 Subcontinent Asian owned businesses in the United States.
Only 865 of these firms are currently 8(a) certified and 7 of the to 25 Hispanic businesses were 8(a) certified or 28%.
In general only a very small group relative to the entire population of socially disadvantaged companies are 8(a) certified (approximately 1.
28 per thousand).
However, on average 30% of the top 25 in each category for the Inc.
5000 listings per group are 8(a) certified.
So an 8(a) firm is 196 times more likely to be one of these ultra-high performing firms than the general population at large.
Based upon this information if you are looking to jump start your firm's growth having an 8(a) certification makes your firm 196 times more likely to be one of the fastest growing companies in your socio-economic group.
These statistics for 8(a) simply cannot be ignored.
SHARE
