Greater Cleveland Startups Contributing Millions to Ohio's Economy
Report Shows As Entrepreneurial Ventures Grow, So Does Their Impact
22 Jul, 2013, 07:00 ET
CLEVELAND, July 22, 2013 /PRNewswire/ -- A recently released study shows that Greater Cleveland-based startups contribute significantly to Ohio's economy, an impact that increases as these tech companies mature. In 2012, 127 young companies collectively generated $270 million in economic benefits for Ohio ($211 million for Northeast Ohio), according to an annual report from The Center for Economic Development at Cleveland State University's Levin College of Urban Affairs. The 127 companies in the report helped create and retain 1,100 in-state direct jobs, with a total Ohio employment impact of 2,140. These same young firms and their suppliers increased total Ohio household earnings by $125 million and contributed nearly $12 million in state and local tax impact.
The report looks at the economic contributions of growing tech-based businesses that successfully leveraged business assistance and/or seed capital from nonprofit JumpStart Inc. or close partner organization North Coast Angel Fund. The Cleveland State University report does not include the economic impact of all startups in the 21 counties of Northeast Ohio or even all of the companies to which JumpStart provides assistance, just those who responded to the survey; reported some Ohio employment, payroll and/or expenditures in 2012; and certified their responses. "When JumpStart and many of our accelerator, incubator, seed and early-stage investing partners in the region start working with an entrepreneur, his or her company is often pre-revenue and the venture may only have one employee—the founder," says JumpStart Board Chair Mark Williams. "And yet, in the last three years, these young client companies—which by no means represent all of the tech-based entrepreneurial activity in the region—already have had a cumulative impact of $688 million on Ohio."
Further analysis of 44 entrepreneurial firms who participated in the study yearly between 2010 and 2012 reveals that as these companies matured, so did their economic contributions; collectively they increased their state and local tax impact by 23%, overall output impact in Ohio by 37% and in-state employment by 53% over those three years.
"What this report clearly shows is that innovative businesses like these can and do add to the vitality of our community," says Williams. "Thanks to the commitment of public, private and philanthropic partners, vision of civic leaders and groundbreaking support from the Third Frontier, we expect to see even more companies launch, grow and create new wealth and opportunities in the Buckeye State."
To read the entire 2012 Economic Impact of JumpStart Inc. Portfolio and Client Companies report, visit www.jumpstartinc.org/results/reports.
JUMPSTART INC JumpStart accelerates the successes of diverse entrepreneurs, their companies, and the ecosystems supporting them. JumpStart has provided intensive business assistance to more than 400 entrepreneurial clients and invested in 76 early stage Northeast Ohio companies. To learn more, visit www.jumpstartinc.org or follow @JumpStartInc on Twitter.
NORTH COAST ANGEL FUND North Coast Angel Fund (NCAF) is a contributed capital and "sidecar" pre-seed investment fund with a focus on early-stage technology investments. Membership includes some of the region's leading investors, entrepreneurs, and business leaders dedicated to accelerating early-stage ventures and improving the state of early-stage funding in Ohio. www.northcoastangelfund.com
SOURCE JumpStart, Inc.
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