While the long-term impact of COVID19 is still unknown, startups and small businesses in Northern Ohio remain optimistic, according to a recent survey conducted by JumpStart.
Companies who participated in the survey are actively engaged with services from JumpStart, organizations in the Business Growth Collaborative (BGC) or organizations in the Entrepreneur Services Provider (ESP) program.
Of the 796 companies who responded to the survey, the vast majority were optimistic about the future of their business despite the impact COVID19 is having on the regional economy.
85% of startups receiving services from JumpStart and its many partners believe their business will survive or grow.
44% of tech startups reported that their business will continue to grow at a steady pace.
41% of tech startups reported that their businesses will see challenges but will likely survive.
89% of small businesses receiving services from JumpStart and its many partners believe their business will survive or grow.
41% of small businesses reported that their business will continue to grow at a steady pace.
48% of small businesses reported that their businesses will see challenges but will likely survive.
Nearly half of startups and 64% of small businesses pivoted in response to COVID19, making changes to bolster stabilization or growth. Many believe the changes they made will be permanent (regardless of COVID19).
13% made dramatic cost reductions
15% entered new markets
15% started offering new services
16% developed and started selling new products
11% made dramatic cost reductions
19% entered new markets
34% started offering new services
26 % developed and started selling new products
Despite the pandemic, approximately 15% of startups and small businesses experienced growth due to increased demand related to the pandemic.
The survey points to the value of entrepreneurial support services and mentorship, support networks can help a business stabilize operations, pivot to new markets, launch new products, and mitigate loss. The regional entrepreneur support ecosystem provides free services and funding options to help small businesses and startups.
“We remain very engaged with startups and small businesses in our region as they face the challenges of this economic crisis,” said JumpStart Chief Investment Officer Jerry Frantz. “This survey reflects a lot of the entrepreneurial spirit we see every day from our clients in that they are highly responsive to challenges, open to advice and resources, and making thoughtful adjustments to their business plans. We know that they believe they can overcome a lot of obstacles and the entrepreneurial support organizations in the region are here to help give them the best chance to get thru this time.”
A Note on Small Business Closures
The semi-annual Survey includes responses from organizations still engaged with JumpStart and its many partner organizations. We have not yet seen vast closures from companies engaged with JumpStart and its partners. Here is a glimpse based on our data:
Northeast Ohio Startups
JumpStart and Northeast Ohio Entrepreneur Services Provider (ESP) organizations engaged with 562 entrepreneurs between March 15, 2020 and July 31, 2020. During this time, 17 businesses reported being out of business or abandoned their project/idea.
Northeast Ohio Small Businesses
JumpStart engaged with 273 entrepreneurs between March 15, 2020 and July 31, 2020 through the Core City: Cleveland program. During this time, 6 businesses reported being out of business or abandoned their project/idea.
About the Survey
JumpStart sends a bi-annual survey of all client companies who are actively engaged with JumpStart and Partners. In July 2020, JumpStart Surveyed 996 small businesses and tech startups in northern Ohio. We received 796 responses (80%). The startups and small businesses included in this report receive services from JumpStart and its regional collaborators and community partners including:
Northern Ohio organizations part of the Entrepreneurial Services Provider (ESP) Program: Bounce, Braintree, BRITE Energy Innovators, Great Lakes Innovation and Development Enterprise (GLIDE), Manufacturing Advocacy and Growth Network (MAGNET), Northeast Ohio Medical University (NEOMED), Ohio Aerospace Institute (OAI), The University of Akron Research Foundation (UARF), Youngstown Business Incubator (YBI), Mercy Health, ProMedica, and The University of Toledo
Northeast Ohio Small Business Support Partners in the Business Growth Collaborative (BGC): JumpStart (co-leader), Greater Cleveland Partnership (co-leader), Hispanic Business Center, Urban League of Greater Cleveland, Manufacturing Advocacy and Growth Network (MAGNET), Ohio Aerospace Institute, Cleveland Neighborhood Progress, Presidents’ Council, COSE, Ohio Minority Supplier Diversity Council, and Economic and Community Development Institute (ECDI)