It is more difficult to move high -growth businesses that directly provide local employment than previously thought, new research shows.
A case study in Franklin County, Ohio – home of Columbus – found that when growing businesses moved into the county, almost the same number of them moved to town or school. They may have moved closer to their original location.
That is, the three main assumptions that predict where growing businesses will move are correct: out in search of low prices, inside in search of good urban amenities. more, and close to reducing moving costs.
“These three features are almost identical in cities. That is, there is no single factor that is controlling the growth of the country,” said Yasuyuki Motoyama, the study’s author and assistant professor of research. urbanization and landscaping at The Ohio State University.
The study is now published on GeoJournal.
Motoyama, who has been researching small, high -growth businesses for a decade, said Columbus has done a good case study because it has been a major economic center for only 30 years, but in it is now a very strong place for business growth. .
Using InfoGroup business data, (now Data Axle) Motoyama was able to see which businesses in the Columbus state met the definition of small, high -growth businesses during the 2016 training period. and 2019. These are businesses that have had 100% sales growth over three years and will earn $ 1 million or more in 2019.
Motoyama found that 586 high -growth businesses met these requirements, or 2.1% of all jobs in Franklin County. The study looked at 87 companies (14.8%) that moved between 2016 and 2019.
These high -growth businesses completed their share of the county’s revenue in 2019, and their share of the county’s sales increased more than seven times, to 10.6%.
It is hoped that these industries will continue to grow and expand, and that these fast -growing industries could become a major source of Ohio’s economy, Motoyama said.
The results showed that 19.5% of businesses in the study moved within the city, 17.2% moved out of the central city and the highest percentage – 25.3% – moved to nearby areas. The rest moved out of the county.
The study also found that contrary to popular belief, most of these high -growth industries that help drive the local industry are not traditionally available in medicine, pharmacy or IT.
But they cover a wide variety of disciplines and technologies.
“There are high -quality jobs in all areas, including shops, restaurants, transportation, and other industries,” Motoyama said.
Preliminary research into the relocation of businesses focused on the impact of major industrial relocation on local communities. Typically, these types of businesses can move or add to a large number of local businesses, but it is not clear if this move will have a positive impact on the workforce, as it is thought to be effective. one city had a loss in another, Motoyama said.
But high -growth industries that are built will provide a boost to the economy by combining labor and wealth locally and nationally, he said.
Motoyama’s research provides insights into government policy. He said research shows that one-size-fits-all incentive packages do not work for everyone to pull and maintain businesses for low costs, and that different options should help Local business to grow.
“The government needs to think about different types of support for different industries,” he said.
Motoyama hopes to continue his research in other Ohio neighborhoods, including Cleveland or Cincinnati. “I think it’s important to do similar research in other metropolitan areas in Ohio,” he said.
“I want to find out more about what’s going on in those areas that see different types of growth: what kind of high -growth companies are living, and where are they moving.”
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Yasuyuki Motoyama, Where do high -growth businesses go ?, GeoJournal (2022). DOI: 10.1007 / s10708-022-10603-w
Presented by The Ohio State University
Directions: Small businesses and districts appeal to high-growth industries (2022, March 29) Retrieved 29 March 2022 from https://phys.org/news/2022-03-downtown-suburbs-appeal -small-high-growth. html
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