A recent article about entrepreneurship-friendly cities in the world, Cleveland is labeled as a hotbed for innovation. It's taken some time, but in the past eight years, there's been an increase in seed, angel and early-stage funding sources both at the private and state levels.
CLEVELAND, Ohio - Cleveland and Columbus are among the top 50+ Entrepreneur Friendly Cities, in a list that includes cities in other countries, according to a ranking by NerdWallet.
In a world where small businesses and especially startups have such a small success rate, the cities were recognized for environments that help new businesses to thrive.
While Silicon Valley is No. 1, referred to as the gold standard for start-ups and ecosystems, with more support and venture capital raised there than any other city, Cleveland is ranked No. 34, following Dallas and Daejeon, South Korea. Pittsburgh, referred to as the "Silicon Valley of the East" in the past, for its transformation from an industrial city to one where entrepreneurs are thriving, follows Cleveland at No. 35.
The article refers to Cleveland as a hotbed for innovation and entrepreneurship. It's taken some time, but in the past eight years, there's been an increase in seed, angel and early-stage funding sources both at the private and state levels.
While LeBron James has brought back excitement to the city, so has the LaunchHouse, a Shaker Heights seed capital fund and business accelerator, the article mentioned.
A company makes a pitch during the LaunchHouse XPO at the LaunchHouse Accelerator in Shaker Heights in this photo taken in February. The expo is the culmination of the 16-week LaunchHouse Accelerator program where startup teams deliver their first public pitches to the investment community, while others display their products and services at a hands-on exhibit. Todd Goldstein, chief executive officer and co-founder of LaunchHouse, said they believed that Cleveland had the ability to be a top 50 city for entrepreneurs in 2008, when they started the organization.
"To finally see Cleveland recognized as a power player is a result of the many organizations that provide assistance to startups and small businesses, as well as the access to capital, resources and the low cost of living," Goldstein said. "The ecosystem is going to keep growing and getting stronger. As companies that were funded become successful and have exits, we will see a trickle down effect as those entrepreneurs then reinvest back in to the region."
Columbus is ranked No. 45, just above Atlanta, which is known more for Fortune 100 companies such as Coca Cola and Home Depot, but apparently has a soft spot for less established businesses. At No. 51, New Orleans is last on the list, touted for more entrepreneurs moving to the city than ever before, with its low-cost of living and support like Entrepreneur's Row, a building with loft-like work spaces for promising start-ups.
Drivers for growth include access to capital, whether that's micro-finance, traditional financing, such as from banks, or more sophisticated financing such as venture capital and private equity.
Education and training, although not necessarily of the university and MBA kind, are other drivers. "We're talking crash courses on the practical realities of running a business and coaching,"according to the MBA Central website.
COSE is bringing it's 10th annual small business conference back to downtown Cleveland, after hosting it in Sandusky in recent years, like in this 2014 photo. Networking and contracting opportunities, were also cited as reasons for making the list. Cities with lots of networked businesses and chances to work for larger companies or as government suppliers, tend to support more businesses.
The Council of Smaller Enterprises, or COSE, is among the region's largest support organizations for small businesses and works to connect business owners to resources they need. The small-business chamber of commerce offers numerous events throughout the year, from events to connect buyers and suppliers to education and assistance opportunities.
That includes an upcoming two-day small-business conference that's scheduled for Oct. 21-22. The 10th annual event will be at the Cleveland Public Auditorium & Conference Center and will feature successful entrepreneurs from across the country and 30 educational workshops.
"A big part of what we do is help small business owners and entrepreneurs navigate the web of help and support that is available in Northeast Ohio," said Steve Millard, president and executive director of COSE. "I don't care what kind of help you need, it's here in the region - finding it sometimes takes assistance--but connecting them is a big part of our role."