Sarasota-Manatee Runner-Up

Sarasota-Manatee Runner-Up

Steve Herrig

President, Progressive Employer Services

People have said Steve Herrig is the classic entrepreneur, someone who can see the big picture but doesn't like to get caught up in the day-to-day tasks. He tested that theory in 1999, when he used capital from the sale of an insurance brokerage to co-found Sarasota's Progressive Employer Services.

Over the past seven years, the company, a professional employment organization, has flourished. It even survived a near-death experience in 2002 when many competitors shut down, unable to get workers' compensation insurance. Since that crisis, Herrig has led Progressive on an acquisition path, buying competitors Sunwest PEO of Florida in Tampa and SEMCO of West Palm Beach.

During the 2002 crisis, Progressive was able to obtain the required workers' compensation insurance because the company boasted a loss ratio of about 23%, far lower than its competitors, whose ratios were sky high.

Herrig accepts only about 35% of requested proposals and stays away from high-risk employees, such as roofers.

The firm bills itself as one of the top 10 of its kind in Florida and one of the top 20 in the country.

Progressive provides payroll administration, employee benefits, workers' compensation, risk management, human resources and regulatory compliance services to small- and medium-sized businesses.

Among the companies it targets are those in the service and construction industries.

Herrig remains the firm's majority shareholder, although Palm Beach Capital invested $6 million in the company nearly two yeas ago. The firm announced earlier this month that it has increased its credit line with PNC Business Credit to $9 million from $5 million as it seeks more growth, both internal and through potential acquisitions.

The company now represents about 1,800 companies and 20,000 employees, says Herrig, who contends his team at Progressive is responsible for the company's success. "They deserve the credit," he says.

-Janet Leiser

Revenues 2003: $10.4 million 2004: $20.7 million 2005: $29.2 million

(99% increase) (40.6% increase)

Average annual growth: 69.8%

EMPLOYEES 2004: 65 2005: 120 2006: 133