Private Company Employment Data and CEO Sentiments Indicate Belt Tightening — But No Mortal Fear
Negative sentiment nearly quadrupled in Q4 (from prior periods) when CEOs reported their outlook for “next quarter’s business climate.” Private company CEOs also believe funding will be increasingly more difficult to obtain in 2008 per a dramatic increase in perception that financial resources, both capital and debt, will be tighter in the coming period.
Chicago, IL, April 12, 2008 --(PR.com)-- A poll of CEOs, conducted by the Entrex Private Company Index (PCI), reveals that gloominess is at a high for this historically optimistic group. When asked about the perceived ease with which they could secure needed capital or debt funding, 39% of these leaders felt it would be tighter in the coming period. Meaning that CEO negativity on the matter nearly doubled from the only 20% who felt a tightening following Q3.
More dramatic was the quadruple increase in negative sentiment about the general business climate in the coming quarter. This figure rested between 0-8% for all prior periods of 2007—following Q4, 27% of CEOs responded negatively. This marks the first time in the history of the PCI that the percentage of CEOs feeling positive about the coming business climate dipped under 50%.
Jason Beans, CEO of Chicago-based PCI company Rising Medical Solutions, Inc., explains that he views this data as reflecting realism, not pessimism. “Entrepreneurs are known for an optimistic outlook, it’s where our confidence stems from to build our companies in the first place. Unstable market conditions are obviously impacting the availability of funding and, in relation, companies’ willingness to take on significant expenses. This doesn’t necessarily mean a shrinking business, rather a stabilization or even alternate development plans.”
Employment data also offers a significant shift in historical reporting from this group of PCI portfolio companies. During Q1-Q3 2007 no fewer than 87% of companies indicated they were currently hiring full-time employees. Following Q4 this number saw a significant drop to 55%. That said, the average number of net new full-time employees was actually plus five for January and February 2008.
According to Beans, this employment data is a boon for companies like his which are thriving and have seen no negative impact on revenue growth or market share. “With fewer companies hiring, a stable company like ours becomes more attractive to top talent –allowing this ‘negative’ time to become a period of opportunity and strengthening for us.”
Rising Medical Solutions does in fact have a history of growth. The company was recognized by the PCI as a Q4 2007 Top Five Growth company, based on outperforming their own Q4 2006 revenues by nearly 43%.
Beans continues, “I believe that private enterprises have some advantages in these market conditions. They are more nimble and can more readily move resources from under-performing products or market segments to areas that are stable and prepared for growth. With foresight and proper management, the economic impact can be minimized or avoided altogether.”
For PCI data and CEO sentiment highlights visit www.privatecompanyindex.com.
About Rising Medical Solutions, Inc.
Headquartered in Chicago, Illinois, Rising is a leading medical-financial solutions organization that services the auto, workers’ compensation, and liability markets. Through its comprehensive medical cost containment and care management programs, Rising provides compelling business outcomes to clients nationwide, including insurance carriers, self-insured employers, government organizations, third party administrators, and attorneys. (www.risingms.com)
###
More dramatic was the quadruple increase in negative sentiment about the general business climate in the coming quarter. This figure rested between 0-8% for all prior periods of 2007—following Q4, 27% of CEOs responded negatively. This marks the first time in the history of the PCI that the percentage of CEOs feeling positive about the coming business climate dipped under 50%.
Jason Beans, CEO of Chicago-based PCI company Rising Medical Solutions, Inc., explains that he views this data as reflecting realism, not pessimism. “Entrepreneurs are known for an optimistic outlook, it’s where our confidence stems from to build our companies in the first place. Unstable market conditions are obviously impacting the availability of funding and, in relation, companies’ willingness to take on significant expenses. This doesn’t necessarily mean a shrinking business, rather a stabilization or even alternate development plans.”
Employment data also offers a significant shift in historical reporting from this group of PCI portfolio companies. During Q1-Q3 2007 no fewer than 87% of companies indicated they were currently hiring full-time employees. Following Q4 this number saw a significant drop to 55%. That said, the average number of net new full-time employees was actually plus five for January and February 2008.
According to Beans, this employment data is a boon for companies like his which are thriving and have seen no negative impact on revenue growth or market share. “With fewer companies hiring, a stable company like ours becomes more attractive to top talent –allowing this ‘negative’ time to become a period of opportunity and strengthening for us.”
Rising Medical Solutions does in fact have a history of growth. The company was recognized by the PCI as a Q4 2007 Top Five Growth company, based on outperforming their own Q4 2006 revenues by nearly 43%.
Beans continues, “I believe that private enterprises have some advantages in these market conditions. They are more nimble and can more readily move resources from under-performing products or market segments to areas that are stable and prepared for growth. With foresight and proper management, the economic impact can be minimized or avoided altogether.”
For PCI data and CEO sentiment highlights visit www.privatecompanyindex.com.
About Rising Medical Solutions, Inc.
Headquartered in Chicago, Illinois, Rising is a leading medical-financial solutions organization that services the auto, workers’ compensation, and liability markets. Through its comprehensive medical cost containment and care management programs, Rising provides compelling business outcomes to clients nationwide, including insurance carriers, self-insured employers, government organizations, third party administrators, and attorneys. (www.risingms.com)
###
Contact
Entrex/Private Company Index
Erika Conefry
877-436-8739
www.entrex.net
Erika Conefry
877-436-8739
www.entrex.net
Contact
Multimedia
Categories