This recession has been great for entrepreneurs in most of the country, but not so good for folks starting new businesses in Clark County or the rest of the state.
According to the Kauffman Index of Entrepreneurial Activity, a leading indicator of new-business creation, Americans created 558,000 new businesses each month in 2009 — an increase of 12.7 percent in just two years.
In Clark County, meanwhile, new business creation dropped by 11.5 percent, to 4,299, over the two-year span that ended June 30.
That’s a stark and alarming contrast, and a tough one to get to the bottom of.
Washington is supposed to be a great place to do business. The state is in the top 10 in the U.S. in rankings by Forbes magazine, the Tax Foundation, the Small Business and Entrepreneurship Council, U.S. News and World Report, and the Beacon Hill Institute.
The Ewing Marion Kauffman Foundation — the nonpartisan Missouri nonprofit behind the Index of Entrepreneurial Activity — ranks Washington as No. 2 for its capacity to adapt to the new economy. But the foundation also acknowledges that startup activity here is falling. Oregon has also seen entrepreneurship slide over the past few years.
Renewed efforts
Fortunately, there are a number of efforts under way to help startups in Clark County succeed.
Among the most prominent, the Columbia River Economic Development Council has partnered with the Southwest Workforce Development Council and others to launch a series of “Pub Talks,” informal events aimed at fostering a community of entrepreneurs.
We at The Columbian have also gotten in on the action with Innovate Clark County, a website and online community where entrepreneurs can connect online, share ideas, and learn about things like venture capital, bank loans and finding office space. It’s online at http://www.columbian.com/news/innovate-clark-county.
But is it enough?
These efforts should all help people who have already become entrepreneurs, but research from the U.S. Small Business Administration suggests that we may need to do more to increase the number of folks willing to go it alone.
Spending on education, investing in high-tech resources and working across county lines all seem to boost entrepreneurial activity, the SBA found.
There’s good news on two of those three fronts. Over the past few years, local leaders have increasingly been willing to cross state and county lines to promote our region (excluding the Interstate 5 bridge debate). Tech resources here are growing, too, with a new applied-technology building funded at WSU Vancouver .
That leaves education. Oregon’s chronic school funding problems will spread to Washington in 2011 when federal stimulus money dries up. The major layoffs that school districts could face don’t bode well for the entrepreneurs of the next generation.
Courtney Sherwood is The Columbian’s business and features editor. Reach her at 360-735-4561 or courtney.sherwood@columbian.com.
