Private Firms’ Sales Swell to $7 Billion : Entrepreneurs: 73 California firms are included on magazine’s ‘500 fastest-growing’ list.

NEW YORK — The 500 fastest-growing private U.S. companies saw sales shoot up to more than $7 billion last year from just $541 million in 1989, Inc. magazine said in an annual survey released Wednesday.

Over that period, the companies also created close to 47,000 jobs.

At the head of the pack were booming telecommunications and computer networking companies.

Inc. said the South is home to nearly a third of the growth companies. California is the No. 1 entrepreneurial state, home to 73 companies on the list.

The fastest-growing company was Object Design, a computer software firm based in Burlington, Mass., with sales growing at a staggering 23,376% between 1989 and 1993.

Object Design, which was founded in 1988, had sales of $105,000 and eight employees in its first year. By 1993, it had 18 offices around the world, 253 employees and annual sales of $24.6 million.

The magazine said CardMember Publishing was the second-fastest-growing firm. The Stamford, Conn.-based provider of services for credit card holders achieved a five-year growth rate of 21,111%.

Rasna, a San Jose company that sells computer-aided software for mechanical engineers, was third, with sales soaring 15,628%.

Ten other companies registered a growth rate of more than 10,000%, the magazine said.

Even the company at the bottom of the list, Manufacturing Modes, which makes plastic, metal and electronic products, came in with a booming 523% sales increase.

Inc. said a poll of chief executives on the list showed that more than 50% of them have started more than one business venture.

Of the group, 28.6% have had businesses fail and 41% have sold businesses.

The South, with 165 companies, is most favored by the chief executives. The region had 145 of the companies five years ago.

The West is second with 123 companies, compared to 120 in 1989. The Northeast follows with 110 firms, down from its 1989 tally of 124. The Midwest trailed with 102 companies, down nine from 1989’s level.

After California, Florida had the greatest number of growth companies at 35, followed by 33 in Massachusetts, 25 in Texas and Virginia and 24 in New York.

Inc.’s Fastest-Growing Firms

Inc. magazine listed the 500 fastest-growing private American companies in a survey released Wednesday. The following are the Top 10 on the list:

1993 Percentage sales gain over Company; location; product (millions) 5 years 1. Object Design, Burlington, Mass.; database software $24.7 23,376% 2. CardMember Publishing, Stamford, Conn.; credit card services 25.0 21,111 3. Rasna, San Jose; computer software 16.2 15,628 4. Furst Group, Shamong, N.J.; long- distance phone services 42.6 5. MicroVoice Applications, Minneapolis; software 25.7 15,213 6. Access America Telemanagement, Chesterfield, Mo.; telecommunications 26.2 7. Travelpro Luggage, Deerfield Beach, Fla.; luggage maker 27.6 13,275 8. Tivoli Systems, Austin, Tex.; computer networks 12.8 12,545 9. Duracom Computer, Irving, Tex.; computer systems 15.1 11,876 10. PC & More, Fremont, Calif.; computer systems 12.9 11,388