Entrepreneurs help recovery after recession

Dennis Harding

6th  October 2009

It is interesting to see how news about entrepreneurs and how they are helping an economy to recover from the recession. The following article is from Tom Walker of Oklahoma in the US and I particularly like its upbeat style and positive, if a parochial message.

One of the requests I often hear is to explain what "i2E” means. Well, it literally means "innovation to Enterprise,” which is a way of saying that we help Oklahoma’s entrepreneurs turn technologies and ideas into commercial businesses.

We want to see the state’s economy expand by fostering the growth of great new businesses and jobs revolving around innovations that emerge from scientific laboratories or someone’s garage — we’re not particular.  As Oklahoma continues to weather the nation’s economic uncertainty, I’d like to share with you the impact entrepreneurs and small businesses have had on the U.S. economy when coming out of past recessions.

The Small Business Administration states entrepreneurial growth companies, defined as fast-growing new businesses, account for at least two-thirds of the net new jobs in the economy. These firms drive innovation and prosperity in communities, paying much higher wages, and with a propensity to export their products.

Entrepreneurial small businesses have helped the U.S. recover from past recessions. In the three years after the 1991 recession, companies of fewer than 20 employees created 89 percent of net new jobs while companies with more than 500 employees created a net of 4 percent. In the three years after the 2001 recession, companies of fewer than 20 employees created 107 percent of net new jobs while companies with more than 500 employees experienced a net loss of minus 24 percent.

You can see why we’re so big on the growth of small businesses.
In Oklahoma we’re experiencing this very type of entrepreneurial growth. Companies in i2E’s portfolio reported a 35 percent growth rate last year, paying on average salaries 100 percent higher than the state per capita personal income and importing more than 60 percent of their revenues from out of state.

There are no geographic limitations to their development. i2E client companies are located statewide, from the major metropolitan areas to communities such as Ada, Ponca City and Prior.  Entrepreneurs and the companies they lead have a huge effect on our international competitiveness. There’s a close correlation between a region’s entrepreneurial capacity and its economic prosperity. These are the reasons Oklahoma needs to continue supporting small innovation-based businesses with access to seed capital, talent and business networks.

These entrepreneurs are creating great jobs in a community near you.

Read the full article at: http://www.newsok.com/entrepreneurs-help-recovery-after-recession/article/3406620#ixzz0TAH2A3J7