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| By G. Michael Dobbs Managing Editor If you want to start a small business, then the Springfield area is a good place to be. In fact, it's the 76th best place in the nation out of 394 regions and the number one location in the country for change in new firm births. The report's results, which measures economic indicators across the country from 1991 to 2001, came as a surprise to Russell Denver, president of the Affiliated Chambers of Commerce of Greater Springfield, Inc. "I knew we were doing quite well, but not that well," Denver told Reminder Publications. The statistics were part of a national entrepreneurship study released last week by the U.S. Small Business Administration's Office of Advocacy and the Edward Lowe Foundation. "Springfield, Massachusetts tops all the regions studied nationwide in the number of new companies sprouting up," said Brian Headd, economist for the Office of Advocacy. "Springfield exhibits a healthy entrepreneurial spirit that can be turned into jobs and economic growth." According to the report, the region's ranking is based on the Regional Entrepreneurship Index, (REI) a measure intended to standardize assessment of entrepreneurship within and across regions. The Regional Entrepreneurship Index used by the study ranks a total of 394 regions according to their entrepreneurial and innovation activities. The study looked at three variables: number of new firms per 1,000 labor force participants, percent of rapidly-growing firms, and average annual change in the number of new firms. Springfield tops the nationa in annual change in new firm births, showing an 11.725% increase. Boston is ranked 11th in this key measure. The index draws data from the U.S. Census Bureau's Statistics of U.S. Business Data program, the National Science Foundation's Survey of R&D Expenditures, U.S. Patent and Trademark Office, U.S. Bureau of Economic Analysis, and econometric models. Regions scoring high are said to be the most active in creating new firms, supporting the growth of those firms, and building a strong base of support for entrepreneurs. Denver said that although many people believe that western Massachusetts is lagging behind the Boston area in economic development, that assumption is not true. He said that unemployment here is less than Boston's rate and there has been an increase here in private sector payroll. This area is also a less expensive location to do business than the Boston area, he added. Denver said he believes that several factors have contributed to the nurturing environment for small businesses. The fact this region has a strong group of community banks is important, as locally based banks frequently show more of a commitment to new enterprises. The Springfield Technical Community College Technology Park with its small business incubator program is also a strong factor. The privately owned Indian Orchard Mills building has also been a place for small business development as well, he noted. A report by the Pioneer Valley Planning Commission showed that the western Massachusetts economy is dominated by small businesses and Denver said locally owned businesses create more wealth in a community because they are the companies most likely to buy their supplies locally, keeping money within an area. "Changes in our economic base over the last decade necessitated a strategy of growing Springfield's economy from within by encouraging the formation of new business entities," said Allan W. Blair, president/CEO, Economic Development Council of Western Massachusetts (EDC). "Additionally, prospects entering the region seeking facilities or land for expansion doubled between 2003 and 2004. This study confirms that we are generating substantial new investment in our region." For the complete list of cities and their rank on the REI, log onto the Office of Advocacy web site at www.sba.gov/advo/research/rs256tot.pdf. |