By Jerry Reichert
Special to the Enquirer

It's easy for the story of private businesses to get overshadowed in today's economy, as news of behemoth companies claims the headlines - too often for the wrong reasons.

But the story of the services and contributions of privately owned businesses is worth telling and is particularly relevant to Greater Cincinnati.

Locally, these businesses, while often unsung, represent an intrinsic part of our business community and a growth engine for Greater Cincinnati. Focusing the limelight on these organizations not only brings well-deserved recognition, but also can reveal telling trends and provide a barometer for the shape of business in a challenging economy.

Now in its 20th year, the Greater Cincinnati 100 program was conceived to celebrate the success of the 100 largest privately held businesses in our region. We have since come to appreciate to an even greater extent that this business segment is a compelling force in our community, and the people who lead it are thought leaders for our business region.

For all of these reasons, Deloitte, along with The Cincinnati Enquirer, is pleased to present the program and to sponsor a survey of these business leaders. The survey gives us a window into the insights, opinions, plans and concerns of some of our region's top business leaders and thinkers. We get a view of our economy, business trends and challenges, and prospects for growth from the perspective of a critically important, but often unheard, sector of our economy.

Combined, the companies that make up the 100 account for $15.3 billion in sales (an increase of almost half a billion since last year) and employ almost 71,000 people. Representing a cross section of industries - from manufacturing and distribution, to real estate and construction, automotive, retail and service companies - they provide a compelling overview of not just where we have been, but where we are going.

It's no secret that the past few years have seen a less-than-robust economy, nor is it a surprise that more than half of the 100 ranked the economy as a top challenge to future growth and survival. While more than half anticipate the economy will expand in the coming year, a clear trend has emerged: When the going gets tough, the tough get back to basics.

For the Cincinnati 100, the basics are clear: customers, people and processes, and capital. What is less clear, especially in this economy, is how to increase value to customers, optimize internal resources and fund strategic initiatives. Sitting back and maintaining the status quo is not part of the equation.

Customers are increasingly demanding. Businesses must determine how to provide additional value while also growing their customer base. To accomplish this, businesses are looking at new and alternative sources for products and services, including opportunities overseas in China and Eastern Europe.

They also are realizing that the potential for organic growth is often limited and, accordingly, are focusing on new markets, new geographies and opportunistic acquisitions that will expand the size and scale of their organizations.

To succeed with their external customers, businesses are focused on their internal infrastructure. Investing in people and processes through training and development is what drives productivity as well as employee and, ultimately, customer satisfaction.

Owners are investing in a wide range of training, from performance- and technology-related programs to leadership and mentoring programs to further enhance the depth and breadth of skills resident in their organizations.

Employee benefits are another part of the investment in people and one that is rapidly approaching crisis proportions due largely to increased health-care costs. More than three-quarters of respondents anticipate continued health-care price increases and are calling for urgent government action to control costs. Until then, these companies continue to battle escalating costs through innovative initiatives that empower the work force to develop solutions rather than perpetuate problems.

Funding these investments in products and services, customer services, and people and processes takes money. In today's economy, with intense competition for traditional sources of funding and a general decrease in the availability of these sources of capital, businesses are looking for more creative alternatives for funding their business initiatives including strategic alliances, partner relationships, joint ventures, and private capital funds. An increasing number of privately owned businesses are looking at these alternative capital sources as a way to fund their growth and compete in today's economy.

The strategic importance and economic impact of the companies who are the Greater Cincinnati 100 is clear. Together, they rival our region's largest employers, such as Procter & Gamble and Federated Department Stores, in terms of revenues and employees. Add to these 100 the multitude of companies like them - long-standing family businesses and "up and comers" - and you have as important a constituency as any.

We need to heed their call for attention to a disparity of health-care costs between mega employers and smaller businesses. We need to hear their collective voice in regional and even national matters and recognize them as the important business leaders they are.

And we might be wise to take note of their philosophy and approach to doing business, as year after year they have proven that strong and steady wins the race.

Jerry Reichert is a partner with Deloitte.