Wednesday, June 29, 2016

Business Startups Cluster in Just 20 US Counties

Reports Valuewalk:

Rural areas have almost completely lost out on new businesses.  Just 20 counties, all of them large metropolitan areas, have accounted for more than half of all new businesses in 2010-2014. Of those 20 counties, five are in California, five are in Texas, four are in Florida, three are in New York and there is one county each in Illinois, Arizona and Nevada.

Capital chases high-growth ideas, and high-growth ideas tend to be concentrated in areas of highly educated and highly skilled workforce. This suggests that the lack of new business formation in rural America may lead to widening gaps in income and employment between those areas and big cities.

1 comment:

  1. Most startups are created by smart young people with new ideas. They write a business plan and then visit with various Venture Capital firms that invest in their area of interest (medical, telecom, I-devices, etc.). Your clusters of counties are where the ideas and money are. I was cofounder of Fiberstreet (San Jose, CA) in 2000. It was a great experience!
    Regards, Dave Redick
    Madison, WI