Page 17 - Murfreesboro, TN Comprehensive Plan: Chapter 7, Economic Development

Economic Development 7.17

DRAFT 12.02.15

Small Business + Creative Jobs=

LOCAL GROWTH

THE MAJORITY OF NEW JOBS ARE PRODUCED
BY SMALL LOCAL BUSINESSES.
INNOVATION CAFE Kansas City, MO.
ENTREPRENEURS CONVERT IDEAS INTO JOBS, Sells membership to a collaborative community with
WEALTH AND COMPETITIVENESS. access to professional infrastructure.

SMALL BUSINESSES ARE BETTER AT REPLACING
JOBS FOLLOWING A RECESSION.

CREATIVE INDUSTRIES ACCOUNT FOR 35
PERCENT OF THE JOBS, AND 51 PERCENT OF
THE WAGES.

NECESSITY FOR BUSINESS INCUBATION
The National Business Incubation Association (NBIA)
states that business survival rates can be increased
through business support services such as incubation
and mentorship. The NBIA claims that business INDY HALL
incubators reduce the risk of small business failures, Coworking space in Philadelphia, PA.
reporting that 87 percent of all firms that have graduated
from their incubators are still in business.
The University of Saskatchewan reports that start-
Business accelerators and incubators provide innovative, up companies tend to remain within the community,
early-stage entrepreneurs with resources, facilities and contributing to the economic development and
expertise to help them develop their business plans diversification of the local economy. Studies from
and seek follow-on financing. They play an important around the globe consistently link entrepreneurship
role in the venture capital system, helping innovators with rapid job creation, GDP growth, and long-term
gain strategic advantage in a competitive international productivity increases. Perhaps most importantly, the
marketplace. NBIA states that 84 percent of incubated graduates stay

RETURN ON INVESTMENT in the community where they were incubated.
Incubation and innovation centers have shown a positive ON PLACE BALLET
return on investment in dollars, new jobs, company “Place ballet” describes the regularity of place founded
retention and increased attractiveness. The Okanagan in habit, routine, and supportive physical environment.
Research & Innovation Centre, now known as Accelerate
Okanagan, claims that for every dollar spent on business Conducting their own daily activities, people
incubators, $30 is returned to the local economy come together in space, which takes on a sense of
in wages, taxes, sales and services. The Economic place. Individual participants using the same space
Development Administration of the U.S. Department of unintentionally create a larger place with its own tempo
Commerce has showed that business incubation has a of activity and rest, bustle and calm.
much larger economic impact and return on investment Place ballets may occur at various scales, indoors and
than other forms of public infrastructure expenditure. out. A lounge, office building, village square, or any other
They report that incubators can provide up to 20 times situation where some users come together regularly,
more jobs than infrastructure projects such as water and face-to-face, may provide a foundation for place ballet.”
sewer improvements. (David Seamon, PhD. Kansas State University)