By Dave Gatton
May 1, 2006

Detroit-based Commodity Sourcing Group (CSG) won top honors as the fastest growing inner city business in America at the 2006 Inner City 100 Awards ceremony held April 19 in Boston. CSG recorded revenues of $21.1 million in 2004, employs 54 workers and had a five-year standard growth rate of 10,028.3 percent.

When it came to choosing a location for CSG, which sets up purchasing systems for Detroit-area hospitals, owner Daryl Hart saw only competitive advantages to an inner-city location. Because he had grown up in the inner city, none of the misperceptions of the area clouded his vision. Instead, he saw a location close to his customers, where reasonably priced office, warehousing and manufacturing space was available and that offered access to a technology-literate workforce. All three advantages served CSG well.

“We are extremely proud of CSG for its accomplishments,” said Detroit Mayor Kwame Kilpatrick, who nominated the company for consideration. “CSG is part of the new Detroit, which is building a 21st Century economy one business at a time.” Kilpatrick chairs the Conference of Mayors Council on the New American City, a partner in the Inner City 100 initiative.

The 2006 Inner City 100 winners recorded a 655-percent average standard growth rate in the period 2000-2004. The companies created more than 10,000 new jobs during the same period, and collectively employed more than 17,000 workers, 34 percent of whom live in inner city neighborhoods. The average hourly wage paid by the winning companies is $14.54, and the average annual salary is $41,600. Ninety-nine percent of Inner City 100 companies provide health plans for employees, and 77 percent of companies offer a bonus incentive plan. Eighty-two percent of the CEOs hold bachelors degrees, while 34 percent hold graduate degrees.

The cities of Boston, Denver and Detroit have the highest representation of Inner City 100 companies with five companies apiece. Baltimore, New York City, and St. Louis each have four winning companies.

Albany Mayor Gerald Jennings kicked off the luncheon event honoring the 100 winning companies. On behalf of the nation’s mayors, Jennings congratulated the companies for their outstanding performance and for the promise they represent in the revitalization of city business districts and neighborhoods. “We congratulate you for your hard work and look forward to supporting your continued leadership in the revitalization of American cities,” he said. He exhorted the CEOs to find time to help support important community initiatives, especially those to help improve public schools.

Boston Mayor Thomas M. Menino, a long supporter of the Inner City 100, keynoted the luncheon and praised the Initiative for a Competitive Inner City (ICIC) and its new president and CEO Dorothy Terrell for their contribution to entrepreneurship in cities. “The Inner City 100 is a great example of the entrepreneurial spirit in cities,” said the mayor. “Cities are on the comeback because of the hard work of the Inner City 100 companies in this room.”

Menino, joined by Terrell and Eddy Bayardelle, President of the Merrill Lynch Foundation, honored 25 young CEOs, all under the age of 25 who had started their own businesses. “These kids are the future of our cities,” Menino, who the kids flocked to for a picture after the ceremonies, said. “This is a great group of kids who show initiative,” he added.

Over 4,500 inner city companies were nominated by 150 cities. The Inner City 100 is sponsored by the ICIC, INC Magazine, The United States Conference of Mayors and its Council for the New American City.