CBUS Leads in Scaling Startups
2016 Kauffman Index of Growth Entrepreneurship
Columbus is scaling startups better than every other major metro in the U.S. That’s the finding reported in 2016 Kauffman Index of Growth Entrepreneurship, the newest in Kauffman’s Entrepreneurship Index series.
Columbus scored 2.7 percent in “scaleups,”—270 percent above the national average of 1.1 percent. This means that here about 27 companies out of every 1,000 firms 10 years and younger that started small reached more than 50 employees in 10 years or less.
Last year, Kauffman also ranked Columbus the #1 fastest growing city for startup activity. So all those new companies we’re starting, they’re creating revenue and adding jobs.
More good news for Columbus, Ohio, and the Midwest
Columbus ranks #4 overall on the Kauffman list of the forty largest metropolitan areas in the U.S. in terms of the highest Growth Entrepreneurship activity .
Even with three powerhouses—Washington, DC; Austin, and San Jose) ahead of us, CBUS outpaced Boston to move up from fifth to fourth position.
Cities in the Midwest and Great Lakes regions gained positions throughout Kauffman’s ranking. Both Cincinnati and Cleveland were in the Top 20.
Benchmarking Job Creation and Revenue Growth
It’s always reinforcing to be at the top of such a well-researched and reputable benchmarked list; it’s particularly significant to be at the top of this Index because of the metrics Kauffman is using to measure impact.
Rather than focusing on inputs (patents, venture capital raised, or valuations for example) or new business starts, the Index of Growth Entrepreneurship focuses on outputs—the actual results and entrepreneurial activity (job creation and revenue growth).
The metrics line up with our aggressive goal of $2 billion in startup impact for Central Ohio from startups by 2018.
We’re following best practices here in CBUS—in R&D, by creating access to a $40MM+ continuum of capital with three new funds coming out this year, and by providing outstanding venture services. But we’re on a path to achieve $2 billion because we have much more than best practices going for us.
First, there’s CBUS’s unique Backyard Effect—that unduplicated spirit of cooperation and collaboration that happens here between corporations, investors, entrepreneurs, and public entities.
Second, our focus is on helping entrepreneurs create validated solutions that customers and markets need and want to buy. Then we take that a huge step further by connecting startups with first customers and advisors. In 2015, those connections produced 78 qualified leads.
The validation of our approach is in the measure of our growth and impact reported in this newest Kauffman Index.
I encourage anyone who has a stake in Central Ohio’s innovation economy (and that’s most of us) to download this informative report. Additionally, Kauffman is hosting a webinar on Entrepreneurial Growth June 14 at 2 p.m. – 3 p.m. ET. Sign up here.