$6.6B Cumulative Output from Client Companies Assisted by JumpStart and its Partners Since 2010
JumpStart Inc. has released its yearly economic impact report, tracking the outcomes of the startups and small businesses assisted by the organization and its collaborative partners — including the Ohio Third Frontier-supported Northeast Ohio Startup Network.
The report prepared by Silverlode Consulting, shows companies assisted by JumpStart and its partners generated more than $1 billion of economic output in 2018 (the total value of all goods and services produced) across Ohio and upstate and western New York, with $953 million in economic output in Ohio alone.
Combined with data from previous studies, companies supported by JumpStart and its partners have now reached $6.6 billion in cumulative economic output since 2010. Yearly output numbers have remained above $1 billion since 2015 — even without counting the ongoing impact of several highly successful startups acquired by large public companies who have since ceased reporting their data via JumpStart’s annual surveying process which informs its economic impact analysis.
“We are a data-driven organization with a mission to economically transform communities, so it’s very important to study how the companies we’re assisting are impacting the economy,” said JumpStart CEO Ray Leach. “This study highlights a strong group of growing startups who are continuing to generate significant impact on our economy, even as successful startups such as CoverMyMeds and Wireless Environment get acquired and exit the study.”
Additional findings from the 2018 report include:
- $530 million (53%) of total economic output came from women-owned/-led companies
- $160 million (16%) of total economic output came from companies owned/led by people of color
- Companies tracked in the report support more than 8,100 jobs
- Companies tracked in the report generated $104 million in federal taxes and another $50 million in Ohio state & local taxes in 2018
“We are proud to be helping startups and small businesses create jobs, tax revenue and overall economic impact,” said JumpStart President Cathy Belk. “We are also very encouraged to see the large and growing impact of companies led by women and people of color. These outcomes speak to our goal of creating sustainable and inclusive economic growth in the communities we serve.”
Previous economic impact studies focused solely on the Ohio tech companies who have traditionally received funding and assistance from JumpStart and its partners. The 2018 impact study includes these companies, but also expands to include many non-tech companies in both Ohio and New York who receive assistance from JumpStart and its partners through initiatives such as Core City: Cleveland and the KeyBank Business Boost & Build program.
Beyond the economic impact numbers listed above, the full report includes more detailed analysis of economic impact via dozens of different “slices,” which break the data down into smaller subsets using variables such as company geography, tech vs. small business/non-tech companies, etc.
The data underpinning this study is gathered by JumpStart and its partners via company surveys. Participating companies provide employment, payroll, revenue and other operational data necessary to prepare the analysis using the IMPLAN model—one of the most widely used and accepted methodologies for estimating regional economic impacts.
Under this model, economic impact is tracked directly and through “indirect” and “induced” ripple effects. Other organizations using the IMPLAN model to calculate the economic impact of their work include the Cleveland Clinic and The NASA Glenn Research Center.
About JumpStart Inc.
JumpStart is a nationally recognized investing, entrepreneurial support and economic development organization dedicated to unlocking the full potential of diverse and ambitious entrepreneurs to economically transform entire communities.
About Silverlode Consulting
Silverlode Consulting was founded in 2002 by two leaders of Ernst & Young’s and Pricewaterhouse Coopers’ consulting practices. As a national leader in the field of economic impact analysis, the company helps hundreds of organizations, ranging from non-profit arts groups to multi-national corporations, to measure their impacts on their communities and communicate those impacts to their stakeholders. Learn more at www.silverlodeconsulting.com.
CONTACT: Vicki McDonald, Media Relations, 216.363.5451, Twitter: @jumpstartinc