Startups and small businesses throughout Ohio and New York were thriving in 2019, generating at least $1.3 billion in economic impact on regional economies, according to a recent study published by Silverlode Consulting based on data collected by JumpStart.
Economic impact is the impact of jobs and household income on the economy, and these startups and small businesses created and maintained 11,564 jobs. The labor income, or wages, of $713 million represents an average increase of 10% over last year. Average employment number also increased from 15 to 16.5 jobs per company, compared to 2018.
Growth in diverse-led companies continues to demonstrate the significant impact of Black, Latinx and Women-led companies. Black and Latinx-led companies accounted from more than $200 million in economic impact and 2,500 jobs. Women-led companies accounted for $604 million and 5,780 of the total jobs.
The companies contributed to state, local and federal taxes: $83 million in annual state and local taxes and more than $145 million in annual federal taxes.
This study is a snapshot of startups and small business activity in Ohio and parts of New York, but the total impact of entrepreneurial startups and small businesses is even greater. The 2019 economic impact report includes data from 701 companies who responded to the survey and met qualifying requirements (at least one employee plus revenue or payroll.) 242 (34%) of companies led by people of color and 346 (50%) led by women responded.
Since 2010, companies generated at least $7.9 billion in economic impact which has contributed to growing innovation and small business communities in Northern Ohio and parts of New York state.
All entrepreneurs who responded to the survey are working with one or several of the entrepreneurial support organizations in their communities (listed at the end of this blog).
Beyond the economic impact numbers listed above, the full report includes more detailed analysis including breakouts by service/capital and tech/small business.
View the 2019 Economic and Fiscal Impact Report
Click the icon in the bottom right corner to view fullscreen.
The startups and small businesses included in this report receive services from JumpStart and its many important community partners including:
Northern Ohio organizations who are part of the Entrepreneurial Services Program:
- Great Lakes Innovation and Development Enterprise (GLIDE)
- Manufacturing Advocacy and Growth Network (MAGNET)
- Northeast Ohio Medical University (NEOMED)
- Ohio Aerospace Institute (OAI)
- Tech Belt Energy Innovation Center (TBEIC)
- The University of Akron Research Foundation (UARF)
- Youngstown Business Incubator (YBI)
- Mercy Health
- The University of Toledo
- Bowling Green State University
Northeast Ohio Small Business Support Partners in the Business Growth Collaborative:
- Greater Cleveland Partnership (leader)
- Hispanic Business Center
- Urban League of Greater Cleveland
- Ohio Aerospace Institute
- Cleveland Neighborhood Progress
- Presidents Council
- Ohio Minority Supplier Diversity Council
New York and Ohio Small Business Support
A note on COVID-19
This economic impact report serves as a snapshot of the innovation and small business economy prior to the COVID-19 outbreak. While we anticipate changes in the 2020 outcomes, this report can help us better understand the long-term impact of the pandemic on our regional economy. JumpStart is currently collecting survey data on the impact COVID-19 is having on regional startups and small businesses. This data will be available by the end of summer 2020.