51,261 viewsMar 13, 2014, 09:41am
Tom
PostContributor
I
cover entrepreneurship and all its facets.
I've
long had an interest in developing a new way of looking at startup communities,
based less on the usual government statistics (tax and crime rates, income
growth and so forth) than on a cluster effect: that groups of entrepreneurs
tend to attract more entrepreneurs. So, several months ago, I turned to
Forbes.com contributor Darian Shirazi, founder of Radius,
a San Francisco technology company that collects small business data in the U.S. and offers a marketing platform to
corporate clients selling to that sector. Radius was the ideal group to
generate a list of the best cities to start a business, given its ability to
gather scads of information and its novel methodology for sifting the data. The
result is a series of guest posts by Lisa Fugere, who manages content strategy
and creation at Radius. She has put together the list of best places, along
with three other posts on the cluster phenomenon, small businesses shaking up
their communities and outlier regions that are mini-hotbeds of
entrepreneurship.
More
entrepreneurs than ever will open small businesses in 2014. According to a
recent report from the Global Entrepreneurship Monitor, early-stage
entrepreneurial activity is the highest it’s been since the group began
conducting research in 1999. Most won’t survive—one-third will still be around
in a decade, according to a 2011 SBA report.
What
does it take to survive? Aside from manic drive, moxie, hard work, creativity
and luck … maybe a sense of connectedness to a community, local or more global.
A sense of community adds to small business' likelihood of
success.
Green Flash Brewing
Co. of San Diego is a small team
that creates distinctive beers sold to restaurants and bars all over the
country. It’s a bit of a regional oddball. When Radius pulled data for our list
of The 12 Best Cities To Launch A Startup in 2014, we looked at the proportion
of the small businesses to all businesses, city by city. San Diego ranked dead
last on this measure. It’s a place, after all, where you’re more likely to find
a bio-med center than a craft brewery. But San Diego is also a spot where
entrepreneurs can thrive because the place is so well-connected in other
ways—in the prevalence of small businesses with Facebook pages, credit card
acceptance, and online peer reviews that make reputations matters of public
record. Social media has helped this brewer build a relationship with its
customers locally and nationally.
In
San Jose, Calif., Blackbird Tavern is a local restaurant, bar, gallery, and hub of
creative nightlife in the center of Silicon Valley. It’s thriving—which is odd,
considering it’s the latest tenant in a building that’s turned out a string of
failed tenants after its original owner was forced to close shop after the tech
bubble burst in 2001. Why? A restaurant that sources local coffee and spirits
and features work from local artists, Blackbird Tavern aims to be a “third
space,” a concept coined by urban sociologist Ray Oldenberg to define our
social surroundings separate from home and work.
YOU MAY ALSO LIKE
Civic Nation BRANDVOICE
School Counselors Are The Glue In The School
Grads of Life BRANDVOICE
Youth Opportunity: A Global Priority
Both
Greenflash Brewing Co. and Blackbird Tavern are outliers, but they each invest
in the engagement of their communities–on and offline.
Sometimes
success comes from engaging with a different sort of community—an incumbent
competitor, ripe for disruption.
In
New York City, home of the dwindling book publishing industry, now down to a
mighty six houses, comes a startup called Oyster. It borrows
the subscription model that has succeeded in online listening (Pandora and
Spotify) and online watching ( Netflix NFLX -0.49% and Hulu), and makes it available for e-reading.
Oyster customers pay monthly fees for unlimited access to over 100,000
books–available anywhere a customer can download the Oyster app. New York, of
course, is full of small businesses that bring a technology edge to traditional
industries. A delicious irony: Oyster’s model is a throwback to 19th century
subscription libraries.
Her
Campus Media is competing in one of the most crowded and pre-eminent academic
capitals of the world—Boston. An online publication, Her Campus Media is
written by women college journalists for “career-minded, distinctly
fashionable, socially connected, academically driven, and smartly
health-conscious” young women. While most stories read more like Glamour magazine
than Great Expectations, the site has a pleasing mix of
controversial topics, popular culture and career advice—reaching out to college
chapters around the country.
In
Austin, Tex., Vital Farms is a clear alternative to the poultry conglomerates
and the environmental depredation of fecal-dense coops. A network of 40 small
family organic farmers, Vital Farms is the nation’s largest producer of eggs
produced by hens raised in pastures, not cages, and counts Whole Foods Market WFM +0% (its Texas neighbor) among its largest customers.
Vital Farms started out in 2007 as a local operation with a few dozen hens; now
the eggs are available across the country – finding people who care
increasingly about the sourcing of their food.
Sometimes
a single startup can kick off a mini-community.
It
wasn't that long ago that Seattle's Ranier Avenue was a series of uninhabited
buildings in the crime-ridden neighborhood of Columbia City. Then La Medusa opened
in 1997. Serving Sicilian dishes made from locally-sourced ingredients, it was
one of the first of a string of small businesses, like Tutta
Bella Neapolitan Pizzeria, to move on the block. Today the
restaurant rubs elbows with weekend brunch hotspots and artisan bakeries–a transformation
that hints at a community-oriented small business’s power to pave the way for
more small businesses.
Panic was one of the first tech startups in Portland, Ore. Setting
up shop in 1998, with a shareware program called Transmit, Panic has continued
to develop apps (including Web editing, usenet, status boards and cryptographic
network protocols) for Apple AAPL -0.62% devices. The company survived the dot-com bust, and
thrived. But it also helped pave the way for a tech renaissance
in Portland—a place, our data at Radius shows,
where each technology job creates four additional jobs.
It
can even happen in Vegas. Madrivo is an integrated marketing
agency that helps companies acquire customers digitally, offering heat maps,
performance metrics, price sensitivity data and the like. Growing at 400% year
over year, it is an example, too, of how the gaming capital of the U.S. is
transforming itself into a vibrant technology hub – and how one small business
can help impact an entire city.