I am on the board of a non-profit called Upstate Venture Connect. Nasir Ali, a good friend of mine, heads the organization. Here is a guest post from Nasir sharing summary findings from a recently completely survey of upstate NY CEOs. Enjoy!
Seeds of Growth are All Around Us
This year’s Global Entrepreneurship Week follows an election season where economic anxiety weighed heavily on American voters. Nearly a decade of research from the Kauffman Foundation and other sources has confirmed that young, high-growth businesses create almost all the net new jobs. While Upstate NY leaders were busy trying to save (or attract) industrial era giants, a new generation of world-beating founders grew up in our midst, then left to launch companies like Android, airbnb, Priceline, Nvidia, etc. in more startup friendly communities.
As the head of Upstate Venture Connect (uvc.org), I am committed to building Upstate NY’s startup ecosystem. I meet incredibly talented and ambitious founders in every part of Upstate, proof that our region continues to produce high growth entrepreneurs. Yet, these emerging companies are still invisible in their home communities and business leaders and policymakers miss their economic impact.
This fall, UVC commissioned Rochester based Center for Governmental Research to conduct the first ever Upstate Venture CEO Survey. We wanted to hear from high growth founders and, in one month, 115 CEOs responded. Half of the companies were less than 6 years old and nearly all (90%) were targeting national/global customers. Below are three key findings from the survey and their implications for UVC and other Upstate NY ecosystem builders.
High growth companies are everywhere and disrupting everything. The 115 respondents fall into 47 different industry codes. Our future is not going to be a single cluster per city, but a super-regional community that values and encourages out of the box thinking and a fast growth orientation. Emerging founders today often have peers that are a few highway exits away instead of being across the street.
High-paying jobs are available, especially for college graduates. Seventy-five percent of companies paid workers more than $40,000 on average. Forty percent reported an average payroll of more than $75,000/year. Three out of four companies said that 80% of their staff holds college degrees.
The economic impact is significant and growing: Taken together, the firms account for 4,700 direct jobs (70% in NY) and 4,400 additional jobs creating more than $450 million in annual wages for NYS. When asked for five year projections, the CEOs collectively are planning to add 9,600 direct jobs. If these jobs are in NYS, there could be as many as 12,800 new jobs created with $1.4 billion in payroll.
The data clearly shows that the seeds of growth are all around us. That is why UVC is doubling down on its efforts to raise awareness of the intrepid founders creating a path to the future. In the year to come, we will be highlighting the most exciting companies in each Upstate community via our online Ecosystem Map, Events Calendar, UNY Pulse e-newsletter and blog/social media activity. We will also continue to work with leaders in each community to form new angel investment funds, accelerate the growth of existing businesses, and showcase entrepreneurial career opportunities for ambitious and talented college grads.
To see how you can play a role in building Upstate NY’s new economy, please visit http://uvc.org and join our growing network of startup founders and supporters today. The full survey report and summary data can be viewed and downloaded at http://uvc.org/upstate-venture-ceo-report/.