Ninety small companies in the region helped support 1,115 jobs and nearly $154.4 million in economic activity last year, with help from organizations including JumpStart. A report due out today provides a snapshot of the local entrepreneurial economy.
View full sizeA report due out today provides a snapshot of the local entrepreneurial economy, from a survey of companies that received money or help from Cleveland nonprofit JumpStart Inc.CLEVELAND, Ohio -- Ninety small companies in the region helped support 1,115 jobs and nearly $154.4 million in economic activity last year, with help from local economic development groups and investors.
That's the conclusion of a report due out today from JumpStart Inc., a nonprofit that funds and serves emerging companies.
A snapshot of the local entrepreneurial economy, the report shows that 90 young companies contributed to $18.3 million in local, state and federal tax revenues last year, by employing people and supporting suppliers and service businesses who put money into consumers' pockets.
All the companies received money or help from JumpStart or the North Coast Angel Fund, an investor that JumpStart supports. In 2010, the 90 companies had 546 employees and a collective payroll of $34.3 million - for an average salary of $62,856. The companies produced goods and services worth $84.4 million.
"Sometimes it's hard for people to understand how 10 jobs here, 20 jobs here matter, when you hear about 400 people getting laid off," said JumpStart President John Dearborn. "This helps say, in real terms, this does have an impact. It's not the only answer to job growth or the economic trajectory in a region, but it's an important component."
JumpStart will release its economic-impact report six months later than usual, after tweaking its analysis in response to critics. The 12-page report, prepared by researchers at Cleveland State University, shifts the focus from JumpStart's achievements to the success of young companies in the 21-county region.
That shift was intentional. JumpStart drew fire in March, when critics questioned the accuracy of its economic reports. A trio of outspoken entrepreneurs bashed the nonprofit for spending more money serving businesses than creating them.
Founded in 2004 to invest public and private money in companies, JumpStart grew to offer free assistance to entrepreneurs. The nonprofit also won federal money to help other regions boost entrepreneurship.
When it comes to boosting entrepreneurial activity, JumpStart acts as the state's key partner in Northeast Ohio. But during the last few years, other economic development groups and investment funds have sprung up.
It doesn't make sense for JumpStart to take sole credit for the growth of companies that receive money and support from multiple sources, said Ziona Austrian, director of the center for economic development at CSU's Maxine Goodman Levin College of Urban Affairs.
"When we first started doing this, JumpStart was the only entity serving these companies," said Austrian, who has prepared economic-impact studies for JumpStart for several years. "The more the ecosystem grew, the harder it was to measure the impact of JumpStart."
JumpStart executives said they considered critics' feedback when crafting the 2010 study.
The nonprofit surveyed 167 companies, 111 of whom responded. Each company had to verify that its numbers meshed with financial information submitted to the Internal Revenue Service. And the surveys pinpointed Northeast Ohio jobs, since some of the companies have grown beyond the region.
Dearborn said JumpStart isn't trying to appease its detractors.
"It's not there to satisfy our needs or our critics' wants," he said of the report. "It's there to provide information."
JumpStart is not required to produce a regional economic survey. The nonprofit regularly files reports with the state on how it spends public money.
Since 2004, JumpStart has invested more than $21 million in 56 companies. Between investments and services, the nonprofit has worked with 407 clients.