Austin TX Emerging Ecosystems (Blog Post)
| Austin TX Emerging Ecosystems (Blog Post) | |
|---|---|
| Project Information | |
| Project Title | |
| Start Date | |
| Deadline | |
| Primary Billing | |
| Notes | |
| Has project status | |
| Copyright © 2016 edegan.com. All Rights Reserved. | |
Ranked the number one US city for new business creation for two years in a row, Austin, Texas is one of the strongest emerging entrepreneurship ecosystems in the US. Posting a startup growth rate of 81.23% and a .60% rate of new entrepreneurs, it’s clear why entrepreneurship ventures from Homeaway to Whole Foods Market have succeeded.
Unlike many of the emerging entrepreneurship ecosystems, Austin has a strong history of entrepreneurship. Austin’s entrepreneurship ventures began in the 1980’s with the early build up of computer and microelectronics manufacturing. As the industry grew, major computer and semiconductor manufacturers banded together and created the Microelectronic Computer Corporation (MCC), creating one of the largest computer research companies at the time. MCC chose to establish itself in Austin instead of the Research Triangle, Washington, D.C. area, or the Stanford University area due to generous land incentives offered by the University of Texas at Austin. MCC, IBM, Dell Computers, and AMD established themselves in the late 1980’s in Austin, making the region one of the first build-ups of computer and microelectronics industry.
Ranked #1 for Startup Metropolitan Area Data (ranked #1 in 2015)
Rate of New Entrepreneurs: .60%
Opportunity Share of New Entrepreneurs: 79.88%
Startup Density: 105.2
Rate of Business Owners: 7.97%
Established Small Business Density: 812.6
Ranked #2 in Growth Entrepreneurship
Rate of Startup Growth: 81.23%
Share of Scale-ups: 2.25%
High-Growth Company Density: 234.7
2015 Kauffman Index Report: Austin MSA as the number-one US City for technology innovation startups
History Narrative
1960’s: Early build up of computer and microelectronics manufacturing
Microelectronic Computer Corporation (MCC) in Austin in 1983 and Rematch’s consortium of 13 semiconductor manufacturers in 1988
IBM, Dell Computers, and AMD set up shop in Austin in the late 1980s
Trilogy Software
Homeaway (IPO in 2011) & Bazaar Voice (IPO in 2012) (set up in 2005)
SXSW
Grew from population under 400,000 in 1970
Region adjusted to major industrial restructuring after the dot-com bust from 2001-2003 (experienced negative job growth from 2001 to 2003) but in 2005, employment and population growth was increasing again (exceeding national averages)
Diversified its economic base
Strong corporate links between local corporate branches and parent firms (esp in Silicon Valley)
Factors that have contributed to Austin’s Startup Growth:
Early successes of entrepreneurship ventures—talent in Austin
Availability of capital
Willing mentors and advisors (investors, incubators, accelerators, networking groups, and more)
Capital Factory: Joshua Baer—largest startup incubator and co-working space in Austin; most active email investor in the world. He was recognized as the 2013 Austin Community Leader of the Year & 2013 Henry Crown Fellow at the Aspen Institute
Affordable work spaces
Spaces: Incubators, Accelerators, and Co-Working
Capital Factor, Techstars, AVINDE, Rice Alliance (Austin Chapter), Austin Technology Incubator (ATI), Southwest Angel Network, Austin+Social Good, Tech Ranch, Mission Capital, Central Texas Angel Network, Opportunity Space, Vuka, The Incubation Station, Austin Technology Incubator, Launch Lab, Link Coworking, Perch CoWorking, Posh CoWorking, HubAustin Coworking, Conjunctured Coworking,
Supportive state and local government
Universities: UT, Concordia, St. Edward’s, Huston-Tillotson University
21.7% GDP Growth from 2007-2012 (Source: Forbes list of the US Regions to Watch in 2014) 11.8% Job Growth from August 2007 to October 2013
Austin’s projected 3.15% population growth rate in 2016 is the highest among the 100 metro areasexamined
Employment expanded 3.28% last year
