Why Location Matters With Entrepreneurial Projects
05/11/2010
The study, New Business Clustering in U.S. Counties, 1990-2006, by Larry A. Plummer, sheds light on business activity related to levels of education, industry, economic growth patterns, and geography. The report uses 1990-2006 business startup and closure data from the Census Bureau's Statistics of U.S. Businesses.
"State and local policymakers are continually looking for ways to generate new businesses, industries, jobs, and economic activity," said Acting Chief Counsel for Advocacy Susan M. Walthall. "The big question is always how and where new businesses are most likely to grow. This research provides some important clues to the relationships between business startups and various underlying factors in industries and across counties and states in the United States."
The study offers a number of insights about new business clusters, among them:
As expected, populous counties-Los Angeles, Cook (Chicago), and New York-have the highest levels of entrepreneurial activity.
The nation's interior and northwestern counties-especially in states like Colorado, Utah, and Washington-tend to have the highest firm birth rates and levels of entrepreneurial activity.
Retail trade has the highest rate of new firm births, followed by local market industries.
High technology is the only industry sector specifically favored in counties with access to an educated workforce and a local research and development structure.
New startup rates in high technology are tied to startup rates in business services, an indication that business service firms may form in response to high tech entrepreneurial activity.
Higher unemployment is correlated with higher firm birth rates except in the business services industries-an indication that business service firms depend on the success of other firms.
Project Announcements
PEAK Precision Manufacturing Plans Bowling Green, Kentucky, Operations
07/26/2024
Italy-Based Sipcam Agro USA Upgrades Wayne County, Mississippi, Operations
07/26/2024
Cleveland-Cliffs Plans Weirton, West Virginia, Operations
07/26/2024
IDEXX Laboratories Plans Wilson, North Carolina, Production Operations
07/26/2024
Germany-Based Ritz Instrument Transformers Plans Waynesboro, Georgia, Operations
07/26/2024
AirJoule Plans Newark-Wilmington, Delaware, Operations
07/26/2024
Most Read
-
19th Annual Area Development Gold and Silver Shovel Awards
Q2 2024
-
2023's Leading Metro Locations: Hotspots of Economic Growth
Q4 2023
-
2023 Top States for Doing Business Meet the Needs of Site Selectors
Q3 2023
-
The CHIPS and Science Act will bring jobs back to the United States
Q2 2024
-
The Bring Your Own Energy (BYOE) Party Is Starting
Q2 2024
-
2023 Top States Commentary: Top-Ranked States Have What It Takes to Win Mega Projects
Q3 2023
-
How to Overcome NIMBYism in Data Centers
Q2 2024