Every spring in Boston, an elite group of individuals gather for a two day summit to celebrate their achievements. They are the CEOs of America's fastest growing inner city companies--and they are all eager to find out which shining stars shone brightest this year. The top-secret Inner City 100 list was finally unveiled at gala event on May 1, 2008. So who made the cut this year?

On May 1, 2008, ICIC celebrated the 10^th annual Inner City 100 Awards Dinner. The Inner City 100 Awards annually reaffirm ICIC's conviction that recognizing growth is at the heart of all urban entrepreneurial successes; more importantly, they provide proof that our approach works. This year’s event paid tribute to the past, celebrated the present, and looked ahead to the future of the program. Over the past ten years, all the winning companies have represented profound and unparalleled success in America’s inner cities. Through their successes, these companies and their employees prove the positive, lasting impact economic development can have on both our urban communities and the people who live in them. These companies embody the truth that most effective way to create economic equality in America’s inner cities is to focus on sustainable business growth and investment in inner cities.

A joint project of ICIC and Inc. magazine, the past 10 years of the Inner City 100 list has brought tales of astounding growth. Each of the 519 companies who have found a place here could teach us more about entrepreneurship than could the hallowed halls of many institutions. These companies averaged 668% percent growth over five years, with a compound annual growth rate of 53%. These businesses average $23 million in annual revenue, and collectively have employed nearly 76,500 people and created over 57,000 new jobs.

This tremendous growth has translated into more jobs, income, and wealth for inner city residents and to the renewal of urban neighborhoods nationwide. These companies are located in inner cities, and their growth ranks them among the best-performing companies operating from any location.

Yet, as much as these triumphant success stories inspire, it is not enough. There is more to the growth story than just the numbers. Each year, the Inner City 100 provides 100 case studies on how to recognize the many facets of growth, and to measure the true impact of growth.

2008 Inner City 100 List

And the winner is. . .

CMR Construction and Roofing 

Steven Soule founded CMR Construction and Roofing, now based in inner city Indianapolis, with the idea that ethical principles, besides being the right moral guide, can also be a good strategy for business success. Soule had worked for construction companies that provided less quality and service than promised. He also experienced customers who failed to honor their obligations. CMR, Soule vowed, would succeed by treating customers and employees fairly and with respect.

CMR carved out a niche in the area of emergency response. Weather-related damage, especially roofs destroyed by tornadoes, hurricanes or violent rains, became the company’s specialty. Quick response required assuring the availability of a qualified workforce prepared to respond to emergencies. It has been a major challenge, but Soule’s thoughtful relationship with his employees has paid dividends for the company.

“I really do think that a company can hire people, treat them very well and be successful while doing it,” Soule explains. “I just want to stress that the attitude makes such a big difference because it trickles down and employees pass it along. It’s more than just doing the right thing - you can draw a benefit from it, not only emotional and moral but financial as well. I hope that people can learn from our example.” CMR’s revenue has grown sharply, reaching $28.46 million in 2006. The company’s goal now is to make sure that profits increase proportionately with revenue growth.

For a full list of Inner City 100 Winners and for more information about the event, visit the Inner City 100 Website.

For Inc. Magazine's take, click here.

2008 Inner City 100 list By the Numbers

Astounding Growth

• The average Inner City 100 company grew 472% between 2002-2006 (CAGR of 47%)
• The average Inner City 100 company’s revenues were $27 million in 2006.

Location, Location, Location

• 58 cities and 31 states are represented on the 2008 Inner City 100 list.
• Top city San Francisco had six Inner City 100 winners, contributing to California’s tally of 19 winners.

 Top Reason for Locating in the Inner City

• 24%: Access to downtown/customers
• 18%: Low cost of real estate
• 18%: Commitment to city/community
• 18%: Access to workforce

Companies Represent Strong Diversity

• 33% of the 2008 Inner City 100 companies were led by minorities.
• Representation of female CEOs on the Inner City 100 reached an all-time high in 2008 at 26%.
• 52% of the Inner City 100 workforce is made up of minority employees.

• Inner City 100 companies employed nearly 21,500 people in 2006, the most in the program’s history.
• Inner City 100 companies created over 15,000 new jobs between 2002-2006.

2008 Dorothy A. Terrell Impact Award

Sponsored by Chevron

The Dorothy A. Terrell Community Impact Award, named in honor of the ICIC’s former President and CEO, examines the extent to which the 2008 Inner City 100 companies create jobs, income, and wealth for the residents of the inner city locations in which they operate. Using data collected during the Inner City 100 application process, ICIC evaluates the breadth, depth, and quality of a company's impact on its community. Through her leadership at ICIC, Terrell brought the Impact Award to fruition, refining how the organization could better measure inner city business commitments and the resulting benefits to inner city residents.

The Dorothy A. Terrell Community Impact Award demonstrates that inner city companies have a concrete, measurable impact on the residents in their communities in terms of employment, salaries, and benefits. By tracking this kind of data into the future, the Impact Award will enable inner city businesses to improve their services both to their clients and to the communities that sustain them.

“Impact” is not measured through any one metric, and therefore the Impact Award uses a combination of proxies to understand a company’s effect in the community. Using data collected during the Inner City 100 application process along with interviews and follow-up surveys, the Impact Award factors in four metrics when calculating a company’s impact:

•           Percentage of all employees that are inner city residents

•           Number of inner city residents employed

•           Average annual pay to employees

•           Employee benefit programs

Each company is peer-ranked relative to the lowest and highest scores [(Company score – Minimum score) / (Maximum score – Minimum score)]. The total score is an aggregate of all four factors and provides a measurement of impact to the immediate inner city community.

Based on this method, the 2008 Dorothy A. Terrell Community Impact Award winner is Giroux Glass of Los Angeles, CA.

Giroux Glass

With no experience in the industry, she turned to her 10 employees for help. They devised ways to improve the business, including improving the phone system, creating a customer evaluation sheet, setting up an 800 number, and bidding for bigger projects. Early on she learned the best way to motivate employees was to show them that they were all in this together.

Fortunately for Murell, the early 1990s was a good time to be a glass repair company in Los Angeles. In addition to the 1992 riots that devastated neighborhoods, the earthquake of 1994 created a demand for both repairs and new construction. Giroux Glass grew in response to this increased demand, reporting more than 400 employees, $37 million in annual revenues, and the recent addition of a Las Vegas office. Customers include such national icons as the Getty Museum, The Staples Center and the Grand Canyon Skywalk.

Today Murrell is restoring the community in other ways: by creating jobs and wealth in the inner city. Giroux Glass employs approximately 200 inner city residents, and Murrell has put together a succession plan that transfers ownership of the company to her employees within seven years. She is cultivating a leadership team among her current workforce that can take the reins from her and enable the business to continue to grow.

The 2008 winners show that inner-city companies create new jobs at a faster pace and pay better salaries than their counterparts in other locations, and they underscore why the Inner City 100 uncovers and celebrates inner city entrepreneurship and business success. Inner city companies and their leaders know how to grow and endure; they prosper in economic downturns, as is evidenced by the last five years, because they understand their markets and their clients, and they adjust quickly to changing circumstances.

2008 Minority-Owned Business Award

Sponsored by Staples

As minority populations throughout America continue to rise, the number of top performing inner city businesses owned by minorities grows even more quickly. Once again, inner cities are at the forefront of a fundamental demographic shift. Nationally, the number of minority-owned businesses still lags; only three percent of all businesses with annual sales over $1 million are minority-owned. The Inner City 100 list is a different story. Minority ownership among the Inner City 100 list in 2008 was reflective of the overall program average of 32%. This represents a significant change since 2004, when minority-owned companies accounted for only 23% of the list, but still highlights a vast discrepancy as 82% of inner city residents are minorities.

The minority entrepreneurs on this year’s list are innovative and pursuing cutting edge opportunities. They realize the value of working with minority suppliers and attempt to diversify their workforce to reflect their multi-lingual clientele. The Staples Foundation for Learning joins ICIC in saluting America’s inner city minority entrepreneurs and will present the Top Minority Award to Roxbury Technology.

The story of gender diversity on the list is equally promising. A remarkable twenty-six percent of 2008 Inner City 100 companies are woman-owned, marking an all-time high for the program. Nationally, only two-percent of companies with revenues over $1 million are woman-owned. America is starting to realize that successful women entrepreneurs are not only starting businesses in the right places, but they are making revolutionary changes to inner city economies. And, in a first for the Inner City 100 list, Roxbury Technology will also receive the Top Woman-Owned Award.

Roxbury Technology

Inner city businesses around the country have discovered that many members of their communities root for their success. That’s true in Boston for Roxbury Technology, founded by Archie Williams. Williams was a creative entrepreneur, starting many businesses based in Boston’s inner city neighborhoods and employing the minority residents of those communities. One of the businesses Williams launched in 1995 was Roxbury Technology, which re-manufactures laser printer cartridges. In essence, the company recycles printer cartridges, improving the environment, hiring workers and making money.

Much of the company’s success is attributable to a chance meeting between Williams and Staples founder and CEO Tom Stemberg. Williams described his vision to Stemberg and Stemberg agreed to put Roxbury Technology’s printer cartridges in Staples outlets across the country.

Archie Williams died unexpectedly in 2002 and Beth Williams, Archie’s daughter, took over. In 2003, Staples reaffirmed its commitment to Roxbury Technology, and under Beth’s leadership the company grew quickly by expanding their product line and more than doubling the number of cartridges sold. Roxbury Technology staff increased from 3 employees in 2003 to 35 today. Once labeled an accidental entrepreneur, Beth has proved her capability as a CEO by cutting costs while at the same time raising quality to meet or exceed OEM standards.

Staples continues to be involved in Roxbury Technology’s development, providing senior executives to counsel Beth on key strategic issues and creating a steering committee to support Roxbury Technology’s growth and distribution.

2008 National Inner City Economic Leadership Award Winners

The 2008 National Inner City Economic Leadership Award recognizes those partners who have traveled the long path with ICIC over the years. This year, ICIC honored Bank of America, the Boston Consulting Group, Chevron, the Ewing Marion Kauffman Foundation, Merrill Lynch, PricewaterhouseCoopers, Staples, US Conference of Mayors, the US Department of Commerce – Economic Development Agency, and the US Small Business Administration. These ten partners and sponsors have not only contributed to the success of the program, but also made extraordinary contributions of their own organizations' understanding of, and commitment to, the cause of inner-city economic development. 

2008 Mayoral Inner City Economic Leadership Award

The ICIC Mayoral Inner City Economic Leadership Award is reserved for a few mayors with a passionate approach to supporting inner city businesses as vital players in the economic development of their cities. This year, ICIC recognized Miami Mayor Manny Diaz during the tenth annual Inner City 100 Summit. First elected in 2001 and re-elected to a second term in 2005, Manny Diaz has led Miami toward a renaissance of prosperity and opportunity. Having never before held elected office, Mayor Diaz is now recognized as one of America’s most innovative Mayors, chosen to lead the United States Conference of Mayors as its president beginning in the Summer of 2008.

When he first took office, Miami city government was bankrupt, held junk bond status, and was under a state financial oversight board. Mayor Diaz pursued a vast administrative overhaul that brought with it financial stability, healthy levels of financial reserves, continued tax cuts, lowered millage rates, and an A+ bond rating on Wall Street. ICIC was honored to recognize Mayor Manny Diaz, a leader who is a shining example to his fellow mayors of how sustainable change in America’s inner cities can be accomplished when you put neighborhoods first.