BACKGROUND
The Richmond community is one that is conservative in nature and takes great pride in its history. Unfortunately, over the past ten years, mature industries have consolidated and many of the largest conservative Richmond-based businesses have relocated, had their ownership moved outside of the state or have disappeared. Ten years ago, the “safe” and conservative job strategy may have been to work at one of the area’s largest 50 private employers which included such locally owned and managed businesses such as:
· Heilig Meyers Co.
· Whitehall-Robins
· Reynolds Metals Co.
· Richfood Holdings, Inc.
· Wheat First Butcher Singer
· ICI Americas Inc.
· William Byrd Press Inc.
· Signet Banking Corp
· Central Fidelity Banks Inc.
· Blue Cross and Blue Shield of Virginia
· Bell-Atlantic Virginia
· Best Products Co. Inc.
As global competition, consolidation and innovation have taken their toll on mature industries, it is vitally important that the Richmond area develop new industry leaders to ensure economic growth for the future. This will require a culture that supports risk-taking, provides access to risk capital and grows and retains local ownership of the best entrepreneurial companies.
A landmark 1979 study by economist David Birch that was commissioned by Inc. Magazine discovered that a small percentage of fast growing small businesses created nearly all the net new jobs in the economy. Birch named these businesses “gazelles” and defined them as companies exceeding 20% annual growth for five straight years from a base of at least $100,000 in revenues. A follow-up Birch study found that between 1990-94, gazelles created 5 million jobs while large businesses lost 3.8 million jobs.
