Companies Worth the Risk Young Entrepreneurial Companies Contributed $155 Million to Northeast Ohio's Economy in 2010
CLEVELAND, Oct. 6, 2011 /PRNewswire/ -- High growth companies based in Northeast Ohio are contributing significantly to the region, according to a Cleveland State University (CSU) report. In 2010, 90 young tech-based companies generated nearly $155 million in economic benefits and helped create and retain 546 in-region direct jobs at an average salary of $62,850, with a total employment impact of over 1,100 total jobs for the 21-county region.
The analysis is of a sampling of companies supported by JumpStart Inc., a Cleveland-based nonprofit that has invested significant mentoring time and more than $21 million directly into early stage companies. The 90 innovative businesses surveyed for the study collectively increased state and local tax revenues by $7.5 million and federal tax revenues by $10.8 million, for an overall 2010 tax impact of $18.3 million. Every new job created by these companies and their suppliers also generated new earnings for local households, increasing total household earnings in Greater Cleveland by $58 million in 2010.
"Northeast Ohio's ecosystem clearly is helping new companies create jobs and wealth for the region, even in challenging economic times by supplying the capital, assistance, support, and other resources young entrepreneurs with high growth ideas desperately need," says Doug Weintraub, entrepreneur and Board Chair for JumpStart. He added that the CSU report commissioned by JumpStart does not include all Northeast Ohio startups or even all of the companies to which JumpStart provides assistance. "This data is an indication of the role the entrepreneurial economy plays in our region's economic transformation."
JumpStart Inc. is transforming the economic impact of entrepreneurial ventures and the ecosystems supporting their growth. JumpStart invests time, and in some cases dollars, in diverse, Northeast Ohio-based, early stage companies that are positioned to excel in high opportunity markets. To-date, JumpStart has put $21 million directly into 56 Northeast Ohio companies and worked with 1,181 entrepreneurs to secure resources. The organization also supports the growth and strengthening of Northeast Ohio's innovation and entrepreneurial ecosystem by securing a continuous stream of resources for entrepreneurs.
SOURCE JumpStart Inc.