An annual study conducted by Cleveland State University’s
Center for Economic Development at the Levin College of Urban Affairs shows that startup companies in Northeast Ohio contribute significantly to the economy. The study surveyed tech-based companies that received assistance, either financially or in services, through
JumpStart or the
North Coast Angel Fund.
The 127 companies who participated in the study generated $211 million in economic benefits in Northeast Ohio in 2012, $270 million statewide. These companies helped create and retain 1,100 in-state direct jobs, with a total Ohio employment impact of 2,140. The companies and their suppliers also increased total Ohio household earnings by $125 million and contributed nearly $12 million in state and local tax impact.
As the early-stage companies grow, their impact increases, according to the study. Among those surveyed, 44 companies participated over three years -- from 2010 to 2012, showing 53 percent job growth and a 36 percent increase in economic impact over those three years.
“These numbers quantify the impact small companies made,” says Cathy Belk, JumpStart COO. “Small companies make a big difference. It’s exciting to see the impact the companies we see every day are having. We see how hard these companies are working.”
With all of the organizations in Cleveland that support startups, in addition to support from
Ohio Third Frontier, which provides funding to organizations like JumpStart, the region is ideal for new businesses.
“We continue to believe that Northeast Ohio is the best place in the country to have a small business or a new business,” says Belk. “We have such a robust ecosystem for startups and small business.”
Source: Cathy Belk
Writer: Karin Connelly