Brewed Fresh Daily

There are some important points in Fortune Small Business magazine's interview with David Birch of Arc Analytics. Birch point out that the hot spots for entrepreneurs are:

• Phoenix
• Atlanta
• Raleigh-Durham
• Salt Lake City
• Charlotte
• Las Vegas

The Mountain States are #1, while the Sunbelt States have slipped to #2. Why are the Mountain States so successful? Birch cites the following reasons:

1. Great Educational Systems
2. Excellent Airports
3. No Industrial Heritage to Rid Itself of
4. Cheap Labor and Office Space

"Gazelles", companies with revenues greater than $100,000 and have 20% over a period of four years, are not typically High Tech companies. High tech companies, which he considers companies that make telco equipment, biopharm products, and other goods only make up .5% of SME. Most 'gazelles' come from your typical, boring industries like collision repair shops and waste management companies. How do they do so well? By focusing on Customer Service, a rather unglamous aspect of business. During the 90's, SME we're responsible for creating 10 million new jobs, more than large enterprises.

This is the article that I'm bringing to the next CAT meeting. I think there are some serious things that the Cleveland area needs to do to be move competitive when it comes to encouraging small business startups and growing companies. I think we can compete with those cities, but we need to get focused.