Two things are evident after reading
Endeavor’s Detroit office's assessment report of metro Detroit's entrepreneurial ecosystem: the region has lost a lot of jobs since the Great Recession and metro Detroit's best chance to get them back come from gazelles, i.e. young, fast-growing companies.
Gazelles, also known as scaleups, are small businesses that with tremendous growth potential. They traditionally grow from a couple of employees to a staff of a few dozen people in a matter of months. These are the companies that attract large sums of venture capital investment and make headlines as the new darlings of the local business world.
"Scaleups are a really important part of creating new jobs," says Mike Goodwin, project leader with
Endeavor Insight. "They have the most potential for creating new jobs."
However, the
"Scaling Up In The Motor City" report, supported by the
New Economy Initiative, points out that gazelle growth declined by more than 50 percent between 2007 and 2012, going from 674 to 323. That is the same time Michigan's unemployment rate went from 7.6 percent to 10.1 percent. Michigan needs to create 6,000 more jobs to get back to its 2007 employment levels.
Endeavor opened an office in Detroit with three direct employees and seven members of its board of directors earlier this year with the idea of helping reverse those job-loss numbers. The New York City-based nonprofit helps build regional entrepreneurial ecosystems around the world by helping gazelles grow even faster, introducing them to talent, mentors, and, eventually, investors.
The office in downtown Detroit is currently evaluating a broad range of local gazelles with the idea of picking half a dozen to enter into Endeavor's network by the end of the year. Endeavor's Detroit office will start taking on up to eight gazelles each year after that with an eye on supercharging metro Detroit's economic engine.
"We are aiming to accelerate and support the growth of high-impact entrepreneurs and in being successful we expect to contribute to the growth of the the region," says Antonio Luck, managing director of Endeavor’s Detroit office.
Source: Antonio Luck, managing director of Endeavor’s Detroit office and Mike Goodwin, project leader with Endeavor Insight
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
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