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Private Company Index Compares Main Street to Wall Street
(NewsUSA) - The newspapers and television news stations around the world track the Nasdaq and Dow industrial changes every day. These statistical indicators reflectdifferent aspects of the public marketplace, yet they reflecta small subset of the 17,000 public companies.
What is missing, some experts say, is a significantpart of the U.S. economy - a group of businesses whose number eclipses that of the esteemed publicly traded firms: private companies.
The U.S. business community comprises more than 28 million private companies. Of those, 1.1 million enjoy revenue of more than $1 million annually. Just over 112,000 enjoy revenue of more than $10 million annually. So, with a subset of private businesses generating trillions in revenue each year, officials at Entrex Inc. wondered why no one was paying them any collective attention.
Founded by Entrex Inc. in mid 2005, the Private Company Index, also called PCI, is the only indicator tool of its kind that measures trends in the performance of North American private business on a monthly basis. Using statistical analysis of revenue figures, the PCI reflectstrends in consumption of goods and services from private companies - which varies significantlyfrom the Dow and Nasdaq indices to which the public and the media pay a considerable amount of attention. The year 2006 saw the PCI increase 52.5 percent. The PCI growth represents how the consumption from these private businesses rose steadily last year, seeing only the slightest seasonal dips. The PCI portfolio comprises companies representing a variety of industry sectors - everything from general consumer products and services to more esoteric specialty commercial goods. "Upon review of the PCI results, what is important to note is how different the activity of the private sector is to the whims of Dow and Nasdaq indices' changes," said Stephen Wa t k i n s , CEO of E n t r e x . " P u b l i c m a r k e t i n d i c e s have little relationship to business activity on Main Street."
The PCI takes the annual data and produces the "Survey of Private Company CEO's: Reality, Trends and Expectations." This survey compares the research of public company CEOs and offers insight and comparisons into the untapped private company leadership. The report is available at www. privatecompanyindex.com.
Through the PCI monthly and the annual survey, private business shareholders and their leaders stand to benefit. Increased exposure of their unique financial and operational demands will enable capital sources, like banks and alternative investors, to target financial products and services to them.
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