Entrepreneurship and Ecosystem Building as Economic Development Strategy
Most economic developers, business leaders, civic leaders, and ordinary citizens don’t understand the importance and impact of entrepreneurial activity on economies. There is a need to educate society on the power and impact of entrepreneurship and innovation on economic development.
Below are talking points with citations that can be shared to help make the case for entrepreneurship and for ecosystem building as an emerging economic development practice.
Why Support Entrepreneurs and Those Who Help Them? It’s about the economy …
Better Economic Performance
“Regions that produce more high-quality startups show better economic performance… a doubling of entrepreneurial quality in a region predicted an increase of 6.8% in GDP 11 years in the future.” ~ How the Startup Economy is Spreading Across the Country — and How It Can Be Accelerated
“New businesses account for nearly all net new job creation and almost 20 percent of gross job creation.” ~ The Importance of Young Firms for Economic Growth
“Business startups account for about 20 percent of US gross (total) job creation while high-growth businesses (which are disproportionately young) account for almost 50 percent of gross job creation.” ~ The Role of Entrepreneurship in US Job Creation and Economic Dynamism Journal of Economic Perspectives
“Companies less than one year old have created an average of 1.5 million jobs per year over the past three decades.” ~ The Importance of Young Firms for Economic Growth
“… high growth young firms contribute disproportionately to job creation, output and productivity growth.” ~ High Growth Young Firms: Contribution to Job, Output and Productivity Growth
“Fewer start-ups mean fewer new ideas and fewer young, productive businesses to replace older, less productive ones. Researchers have found that the decline in companies entering the market since 1980 has trimmed productivity growth by about 3.1 percent.” ~ Where Are the Start-Ups? Loss of Dynamism Is Impeding Growth
“Those places that fail to boldly and immediately invest in startup ecosystems, and thus fail to produce startups, will experience economic stagnation.” ~ 2017 Startup Genome Report
“To get the economy energized again, we must focus on startups like a laser beam. Those are the companies that can give the most lift to the job market and create the most opportunities.” ~ How the Startup Economy is Spreading Across the Country — and How It Can Be Accelerated