An annual
JumpStart survey indicates that tech startup companies that receive assistance from mentors, advisors and investors make a significant contribution to the region’s economy, even in the early stages. The Center for Economic Development at Cleveland State University’s
Levin College of Urban Affairs surveyed 121 JumpStart and
North Coast Angel Fund companies to measure their economic impact on the region.
The report showed these companies had a $220.5 million economic impact in 2011 in Northeast Ohio, creating 776 direct jobs within the companies and 864 indirect jobs, for a total of 1,640 regional jobs.
“This is great for an economic region -- showing small growing startups are contributing,” says Cathy Belk, chief relationship officer for JumpStart. Belk emphasizes that the surveyed companies are not even a comprehensive list of all small tech companies in the region. However, many of the companies receive support from multiple organizations in addition to JumpStart and the North Coast Angel Fund.
Sixty-three companies included in this 2011 impact analysis also were surveyed in 2010. In one year, those companies increased their aggregated Northeast Ohio employment by 111, payroll by $8.7 million and expenditures by $20.6 million.
“All of this shows that Cleveland is one of the best places in the country to start and grow your business,” says Belk.
Source: Cathy Belk
Writer: Karin Connelly