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Norm Brodsky responds: It sounds as though David Feltman is confirming my analysis of the situation as reported in the column. I never suggested, by the way, that greed was a factor. Employees aren't being greedy when they respond to a company's bonus program. They're just doing what the company wants.

Girlz in the hood
In May, Inc. presented the second annual Inner City 100 winners, a ranking of the fastest-growing privately held companies in America's inner cities. The list honors entrepreneurs who have chosen to grow their companies within some of America's most economically depressed areas. This reader was inspired by our stories.

The Inner City 100 issue did a great job of showcasing businesses that are creating value at the economic core of our cities. The stories were inspirational and offered some good advice for entrepreneurs who want to participate in the development of urban infrastructure, urban service, and urban commerce.

I've been researching women's entrepreneurship for more than 20 years. Although women own about 40% of all companies in the United States, current research shows that women are receiving only about 5% of institutional venture capital, which is funding predominantly high-tech and E-commerce businesses today. It appears that the majority of this year's Inner City 100 companies are service businesses -- the sector preferred by women business owners, according to the Small Business Administration. Would you let me know what percentage of the companies on this year's list are headed by women?

Candida G. Brush
Research director
Entrepreneurial Management Institute
Boston University School of Management
Boston

Editor's note: Some 17% of this year's Inner City 100 CEOs are women, whereas women ran 8% of the companies on the 1999 Inc. 500 list.

Speak, memory
Dr. Steven Berglas addressed the advantages of invoking start-up myths in his April Entrepreneurial Ego column, " Those Were the Days." Berglas suggested that such myths can be great motivators, but they can backfire within an organization if they're not handled carefully. This reader found motivation in Berglas's advice.

Your article on founding myths helped to crystallize my thinking about a new business I've been working with since August. Today I'm going to begin to record (as opposed to "invent") the company's myth and use it to motivate myself and others. Of course, the company has a sales story, but thanks to your article, I now truly understand the role of the myth. This may have been the most important article I've ever read -- anywhere.

Christopher Frey
Sales manager
Sunset Resorts
Cabarete, Dominican Republic

Chew on this
In her March article " Stretching Your Benefits Dollars," finance editor Jill Andresky Fraser took a look at the tax advantages that flexible spending accounts can offer growing companies and their employees. This reader got help from an unexpected place in setting up his company's FSA.

In almost every issue of Inc. I find practical information that I can use in my business. It happened again with your March issue. I am now putting a flexible spending account in place in my company, similar to the one that was described in "Stretching Your Benefits Dollars." Since we have only 12 full-time employees, the plan is simple enough for our bookkeeper to administer. The employees love the idea of spending pretax dollars for eyeglasses and for dental and other health expenses not covered by our medical plan. I love not having to pay the employer's Social Security and Medicare "contribution" on that compensation.

I received help from an unlikely source -- my state's dental society. A consultant at the society's subsidiary, North Carolina Services for Dentistry (NCSD), took me step-by-step through the process of developing the account -- and even printed up the plan document, along with information sheets and some very simple claim forms to hand out to my employees. The cost for that service? Zero. NCSD is pushing direct reimbursement for dental expenses, but it is willing to enlarge the FSA document to include other health services. I found out about NCSD's service in an online resource guide called Health Care Buyer, an excellent reference tool for companies on managed-care and other health plans. The American Dental Association can also help with direct-reimbursement dental plans.

John Neal
President
John Neal, Bookseller
Greensboro, N.C.

Please address all snail mail to Inc. Letters Editor, 38 Commercial Wharf, Boston, MA 02110, and include your name, address, and phone number for verification. Letters may be edited for space and style. For help with subscription problems, call 800-234-0999.

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