Last week we highlighted that DFW captured a top spot in the most “competitive” cities in the US and globally according to Site Selection magazine.
Going hand-in-hand with that is our market’s ability to create jobs. These job gains obviously come from companies growing organically, as well as large relocations (like Toyota). One area that flies under the radar, however, is the role of new companies forming. These businesses, often small, are critically important in driving growth – and help define an area’s “vitality”. Quite simply, these smaller companies are sometimes the innovators of products and ideas – and can be the genesis of tomorrow’s large corporations that define a region. For DFW, think back to the early days of TI, EDS, and Frito-Lay.
The chart below summarizes the major US markets by the number of NET NEW companies (employing less than 50 people) created between 2010 and 2013 – essentially looking at the strength of the regional economies since the start of this growth cycle. I get tired making this observation, but DFW’s pro-growth, low-cost business environment, and “entrepreneurial spirit”, helped propel our community to the top ranks, based on both raw numbers and percent. Overall, we had more than 7.500 net new small businesses created, or 5.7%. Few markets come anywhere close to this level of expansion. In addition, DFW scored high in the medium-sized company category, with that segment expanding by 10% over the period.
What’s important here is that site selection professionals and relocating companies often use this metric to compare an area’s vitality or ability to innovate. In the case of DFW, our market continues to stand out as a place to do business and to grow businesses – which should mean that we will continue to win more than our fair share of economic growth over the foreseeable future.