NCIIA 2012 Annual MeetingJon Down

down@up.eduUniversity of Portland

March 22, 2012

The State of Entrepreneurship in Portland, Oregon addresses why entrepreneurship matters, how Portland is doing in generating entrepreneurship and what might be done to stimulate additional entrepreneurial activity.

NCIIA 2012 Annual Conference – San Francisco

Cross Sectional – 51 Largest MSAs Longitudinal – 15 yrs VC funded firms Interviews - 25 In-Depth Surveys – 30 targeted & 119 additional Comparison Cities – Austin, Cincinnati,

Denver, Minneapolis, San Francisco, and Seattle

NCIIA 2012 Annual Conference – San Francisco

NCIIA 2012 Annual Meeting – San Francisco

NCIIA 2012 Annual Conference – San Francisco

Entrepreneurship drives job growth – 3% of new firms create nearly all new jobs

Creation of a portfolio of high-growth firms can lead to new economic clusters

NCIIA 2012 Annual Conference – San Francisco

Average Firm Size Small Firms per 1,000 Population Non-Employer Firms per 1,000 Population Percent Self-Employed College Attainment Creative Class Venture Capital Dollars per Capita

NCIIA 2012 Annual Conference – San Francisco

PDX Entrepreneurship Study - September 6, 2011

MSA PopulationAverage

Firm Size

Small Firms per

1,000 Population

Non-Employer Firms per

1000 Population

Percent Self-

EmployedCollege

AttainmentCreative

Class

Venture Capital

Investment $ per capita

Atlanta 5,261,296 16.1 22.4 86.0 11.8% 34.6% 7.6% 77Austin 1,592,590 16.2 21.1 82.5 11.8% 38.2% 11.0% 213Baltimore 2,663,805 16.4 21.9 69.8 9.4% 34.3% 9.3% 76Birmingham 1,108,672 17.4 20.8 69.7 11.2% 26.2% 5.2% 17Boston 4,492,338 18.5 23.9 74.8 10.8% 41.9% 10.5% 541Buffalo 1,126,513 17.3 20.2 47.8 7.8% 26.9% 5.5% 46Charlotte 1,646,431 17.7 23.3 74.4 10.2% 32.0% 6.6% 14Chicago 9,496,853 16.9 22.0 72.4 9.7% 33.0% 6.9% 44Cincinnati 2,143,824 18.9 18.9 61.4 9.2% 28.1% 7.0% 16Cleveland 2,094,885 17.3 22.6 64.8 9.5% 27.0% 6.1% 60Columbus 1,753,010 19.3 19.4 72.1 8.9% 32.8% 8.3% 12Dallas 6,153,474 18.6 19.0 80.2 10.5% 29.6% 7.3% 87Denver 2,453,393 14.7 26.7 84.8 11.9% 37.5% 9.0% 169Detroit 4,457,523 16.5 20.1 64.8 9.3% 26.5% 7.9% 19Hartford 1,186,485 18.5 21.6 66.5 9.6% 34.8% 8.2% 3Houston 5,597,958 18.5 18.1 77.6 10.7% 28.2% 7.2% 54Indianapolis 1,692,737 17.9 21.9 66.1 9.5% 31.8% 7.1% 44Jacksonville 1,297,813 14.8 24.2 67.5 10.3% 24.6% 5.2% NAKansas City 1,981,480 17.4 22.4 68.6 9.7% 31.9% 7.0% 20Las Vegas 1,827,655 20.8 19.1 67.1 8.9% 21.9% 4.6% 4Los Angeles 12,784,612 15.5 23.1 85.9 14.6% 29.9% 8.0% 135Louisville 1,232,304 17.8 20.8 68.5 9.0% 24.0% 5.0% 17Memphis 1,279,120 20.4 17.1 68.6 8.8% 24.7% 4.5% 16Miami 5,392,118 11.4 29.9 121.8 16.2% 29.5% 4.9% 10Milwaukee 1,543,378 19.7 21.5 53.6 8.7% 30.9% 7.0% 2Minneapolis 3,197,620 18.0 24.8 75.9 10.5% 37.6% 9.3% 141Nashville 1,520,160 18.4 21.3 87.2 11.9% 29.4% 6.3% 24New Orleans 1,109,411 15.4 22.5 80.3 13.0% 23.5% 5.5% 1New York 18,922,571 14.2 25.3 84.6 11.2% 35.2% 7.9% 94Oklahoma City 1,189,158 14.6 23.7 80.8 11.6% 26.4% 5.8% 12Orlando 2,028,669 16.1 25.2 82.7 12.0% 26.3% 6.6% 41Philadelphia 5,823,285 17.1 21.9 63.4 9.4% 32.1% 7.7% 93Phoenix 4,165,921 18.0 18.9 62.6 11.5% 26.5% 6.5% 49Pittsburgh 2,354,159 17.5 21.9 58.6 9.0% 28.7% 6.4% 62Portland 2,166,491 14.5 25.7 70.3 13.1% 33.3% 8.6% 69Providence 1,598,348 14.7 23.7 64.6 9.6% 28.0% 6.2% 25Raleigh-Cary 1,043,961 14.7 23.8 75.1 10.7% 41.5% 11.6% 243Richmond 1,211,101 16.3 22.7 62.4 9.3% 30.6% 6.7% 10Riverside 4,066,573 16.4 14.3 65.6 11.6% 19.0% 4.1% 0Rochester 1,032,488 18.2 19.6 59.4 8.9% 32.1% 8.1% 10Sacramento 2,082,186 15.1 19.5 69.9 11.8% 29.8% 8.2% 19St. Louis 2,805,465 17.4 21.8 61.7 9.2% 29.0% 7.0% 158Salt Lake City 1,095,362 17.1 25.7 73.8 10.2% 30.0% 7.3% 56San Antonio 1,984,921 17.8 17.2 72.2 10.1% 24.6% 5.3% 404San Diego 2,959,734 15.1 23.0 76.9 13.7% 34.2% 9.7% 1489San Francisco 4,216,125 15.8 24.8 85.7 13.5% 43.4% 11.8% 2473San Jose 1,786,355 19.9 22.1 69.7 10.7% 43.5% 17.2% 252Seattle 3,298,225 15.4 26.4 68.7 11.5% 36.4% 10.9% 22Tampa 2,715,273 13.9 23.8 75.6 12.6% 25.6% 5.7% 11Virginia Beach 1,659,679 16.0 20.2 52.9 8.1% 27.4% 7.0% 2Washington 5,302,295 17.2 22.8 81.3 10.0% 46.8% 13.8% 131

Mean 3,207,761 16.8 22.0 72.1 10.6% 31.0% 7.6% 151.7425th Percentile 1,531,769 15.4 20.2 65.2 9.3% 26.7% 6.1% 14.5075th Percentile 4,116,247 18.0 23.7 78.9 11.7% 34.2% 8.3% 93.75

Portland Rank 23 48 4 25 5 15 12 18

PDX Entrepreneurship Study - September 6, 2011

MSA PopulationAverage

Firm Size

Small Firms per

1,000 Population

Non-Employer Firms per

1000 Population

Percent Self-

EmployedCollege

AttainmentCreative

Class

Venture Capital

Investment $ per capita

Atlanta 5,261,296 16.1 22.4 86.0 11.8% 34.6% 7.6% 77Austin 1,592,590 16.2 21.1 82.5 11.8% 38.2% 11.0% 213Baltimore 2,663,805 16.4 21.9 69.8 9.4% 34.3% 9.3% 76Birmingham 1,108,672 17.4 20.8 69.7 11.2% 26.2% 5.2% 17Boston 4,492,338 18.5 23.9 74.8 10.8% 41.9% 10.5% 541Buffalo 1,126,513 17.3 20.2 47.8 7.8% 26.9% 5.5% 46Charlotte 1,646,431 17.7 23.3 74.4 10.2% 32.0% 6.6% 14Chicago 9,496,853 16.9 22.0 72.4 9.7% 33.0% 6.9% 44Cincinnati 2,143,824 18.9 18.9 61.4 9.2% 28.1% 7.0% 16Cleveland 2,094,885 17.3 22.6 64.8 9.5% 27.0% 6.1% 60Columbus 1,753,010 19.3 19.4 72.1 8.9% 32.8% 8.3% 12Dallas 6,153,474 18.6 19.0 80.2 10.5% 29.6% 7.3% 87Denver 2,453,393 14.7 26.7 84.8 11.9% 37.5% 9.0% 169Detroit 4,457,523 16.5 20.1 64.8 9.3% 26.5% 7.9% 19Hartford 1,186,485 18.5 21.6 66.5 9.6% 34.8% 8.2% 3Houston 5,597,958 18.5 18.1 77.6 10.7% 28.2% 7.2% 54Indianapolis 1,692,737 17.9 21.9 66.1 9.5% 31.8% 7.1% 44Jacksonville 1,297,813 14.8 24.2 67.5 10.3% 24.6% 5.2% NAKansas City 1,981,480 17.4 22.4 68.6 9.7% 31.9% 7.0% 20Las Vegas 1,827,655 20.8 19.1 67.1 8.9% 21.9% 4.6% 4Los Angeles 12,784,612 15.5 23.1 85.9 14.6% 29.9% 8.0% 135Louisville 1,232,304 17.8 20.8 68.5 9.0% 24.0% 5.0% 17Memphis 1,279,120 20.4 17.1 68.6 8.8% 24.7% 4.5% 16Miami 5,392,118 11.4 29.9 121.8 16.2% 29.5% 4.9% 10Milwaukee 1,543,378 19.7 21.5 53.6 8.7% 30.9% 7.0% 2Minneapolis 3,197,620 18.0 24.8 75.9 10.5% 37.6% 9.3% 141Nashville 1,520,160 18.4 21.3 87.2 11.9% 29.4% 6.3% 24New Orleans 1,109,411 15.4 22.5 80.3 13.0% 23.5% 5.5% 1New York 18,922,571 14.2 25.3 84.6 11.2% 35.2% 7.9% 94Oklahoma City 1,189,158 14.6 23.7 80.8 11.6% 26.4% 5.8% 12Orlando 2,028,669 16.1 25.2 82.7 12.0% 26.3% 6.6% 41Philadelphia 5,823,285 17.1 21.9 63.4 9.4% 32.1% 7.7% 93Phoenix 4,165,921 18.0 18.9 62.6 11.5% 26.5% 6.5% 49Pittsburgh 2,354,159 17.5 21.9 58.6 9.0% 28.7% 6.4% 62Portland 2,166,491 14.5 25.7 70.3 13.1% 33.3% 8.6% 69Providence 1,598,348 14.7 23.7 64.6 9.6% 28.0% 6.2% 25Raleigh-Cary 1,043,961 14.7 23.8 75.1 10.7% 41.5% 11.6% 243Richmond 1,211,101 16.3 22.7 62.4 9.3% 30.6% 6.7% 10Riverside 4,066,573 16.4 14.3 65.6 11.6% 19.0% 4.1% 0Rochester 1,032,488 18.2 19.6 59.4 8.9% 32.1% 8.1% 10Sacramento 2,082,186 15.1 19.5 69.9 11.8% 29.8% 8.2% 19St. Louis 2,805,465 17.4 21.8 61.7 9.2% 29.0% 7.0% 158Salt Lake City 1,095,362 17.1 25.7 73.8 10.2% 30.0% 7.3% 56San Antonio 1,984,921 17.8 17.2 72.2 10.1% 24.6% 5.3% 404San Diego 2,959,734 15.1 23.0 76.9 13.7% 34.2% 9.7% 1489San Francisco 4,216,125 15.8 24.8 85.7 13.5% 43.4% 11.8% 2473San Jose 1,786,355 19.9 22.1 69.7 10.7% 43.5% 17.2% 252Seattle 3,298,225 15.4 26.4 68.7 11.5% 36.4% 10.9% 22Tampa 2,715,273 13.9 23.8 75.6 12.6% 25.6% 5.7% 11Virginia Beach 1,659,679 16.0 20.2 52.9 8.1% 27.4% 7.0% 2Washington 5,302,295 17.2 22.8 81.3 10.0% 46.8% 13.8% 131

Mean 3,207,761 16.8 22.0 72.1 10.6% 31.0% 7.6% 151.7425th Percentile 1,531,769 15.4 20.2 65.2 9.3% 26.7% 6.1% 14.5075th Percentile 4,116,247 18.0 23.7 78.9 11.7% 34.2% 8.3% 93.75

Portland Rank 23 48 4 25 5 15 12 18

Interview results confirm Expert survey – 84% yes Open survey – 79% yes

NCIIA 2012 Annual Conference – San Francisco

18th of 51 VC investment per capita 189 Oregon companies received VC over 15

years – more than half still in operation 5,000 jobs at these companies today Recent VC activity growing

NCIIA 2012 Annual Conference – San Francisco

Funding Human resources Business and tax environment

NCIIA 2012 Annual Conference – San Francisco

PDX Entrepreneurship Study - September 6, 2011

Index of Entrepreneurship Index of Entrepreneurship IndicatorsIndicators

Support existing organizations:◦Educating entrepreneurs on business

and funding success◦Engaging creative, young, educated

talent in PDX◦Identifying and supporting possible

gazelles◦Developing a larger pool of angel

investors

NCIIA 2012 Annual Conference – San Francisco

Draw in out of state resources:◦Buyers of traded sector goods◦Suppliers of venture capital

Continue to develop PDX as a great place to live, work and learn

Use resources and know-how to leverage existing organizations already devoted to improving entrepreneurship

Be entrepreneurial in trying new initiatives

NCIIA 2012 Annual Conference – San Francisco

Promote culture supportive of entrepreneurship:◦Continually streamline process of

starting a business◦Communication of available resources

for entrepreneurs◦Tracking and reporting of

entrepreneurship indicators◦Using real estate expertise to develop

physical spaces for entrepreneurs

NCIIA 2012 Annual Conference – San Francisco

NCIIA 2012 Annual Conference – San Francisco

Are there parallels between the Portland study and your city?

What works and what doesn’t work regarding programs designed to generate entrepreneurial start-ups and economic development?

Why should we care about the entrepreneurship eco-systems around our universities?