For Third Straight Year, Wisconsin Ranks Last In Business Startup Activity
Data On Wisconsin Economic Development Agency Can't Show If Incentives Create Jobs
State Jobs Agency Data A Mess
State And Local Government Business Incentives: Data Tells A Story
Walker's Commission Bankrolled By Bradley Foundation
TIF Plans In St Louis Are 'Redlining And Block-Busting,' Show-Me Institute Says
Wisconsin Center Expansion Study Won't Include Cost Estimate Or Funding Sources
Showing posts with label start-ups. Show all posts
Showing posts with label start-ups. Show all posts
Monday, May 29, 2017
Sunday, July 10, 2016
If Only Slogans and Buzzwords Were Needed For Economic Growth
David Haynes, editorial page editor of the Journal Sentinel, opines a lengthy list of platitudes as a prescription for economic growth in the area. He holds up the Research Triangle in North Carolina as a best practices example or guiding post.
Josh Lerner, of Harvard, has found the number of exceptional venture capitalists is very small. Harold Bradley, of the Kaufmann Foundation, believes venture capitalists have plenty of money, but allocate it very inefficiently, and therefore should not be receiving additional public dollars with the hope of boosting a local economy. Bradley and Carl Schramm, in an article for Business Week, write that the current focus on fees has promoted start-up flipping rather than nurturing.
The Research Triangle area of North Carolina — with Durham, Raleigh and Chapel Hill at its vertices — has long turned good ideas into business enterprises. World class universities attract an enviable supply of talent. and a range of companies — from startups to Cisco, BASF and GlaxoSmithKline — keep that talent anchored. The Triangle has one of the highest levels of educational attainment in the nation.
The Milwaukee region is not the Research Triangle and shouldn't try to be. Southeastern Wisconsin has to call on its own strengths, starting with an economy forged by industry leaders such as Northwestern Mutual, Rockwell Automation, GE Healthcare and Fiserv as well as a growing research presence at its academic institutions.Marc Levine addressed this leap of faith in The False Promise of the Entrepreneurial University:
In short, university research parks are anything but sure-fire investments in urban or regional economic prosperity. Success is relatively uncommon, as Wallsten’s impact study makes clear. “Game-changing” success – the kind that remakes a regional economy—is even more rare, the product of unique historical factors, good luck, and timing. For example, the North Carolina Research Triangle Park’s oft-cited (and oft-emulated) success, “was built around its first-mover status in the field of science parks,” generous state and federal funding, and a uniquely patient multi-decade commitment by political leadership – and even with all those difficult-to-replicate factors in its favor, it took more than 30 years to see evidence of the cluster development attributed to the park (Weddle, 2007, 7). Universities that cavalierly pursue and oversell URPs as “transformational” economic development investments risk creating white elephants and misallocating millions of dollars that could be better invested bolstering the core missions of their institutions.Now, Haynes does say we shouldn't try to be the Research Triangle, but that we do need to foster more entrepreneurial activity, and then he uses numerous Research Triangle examples to illustrate the path we should emulate.
The region's poor entrepreneurial performance matters: Research has shown that new businesses account for nearly all net new job creation, according to the Kauffman Foundation, and they juice local economies by boosting competition and innovation. If a region isn't creating enough new companies, it will likely have sluggish growth.
A vibrant entrepreneurial ecosystem that supports people who want to take the leap from idea to business formation is one essential element of a strong ecosystem for business development. So is the support of business leadership in the community. These are deep strengths in the Research Triangle.Research has also shown that new businesses account for most job loss.
The claim that most net new jobs came from new firms conceals the fact that existing firms added tens of millions of jobs in this 25-year period. Of course existing firms also lost tens of millions of jobs. We can say that the net job creation for existing firms was zero, but if we did not have an environment that was conducive for the job adders to grow (how many jobs did Microsoft, Apple, and Intel create after their first 5 years of existence?), then existing firms would have lost tens of millions more jobs.And, of course, Haynes had to mention venture capital, another one of the economic-clubs pundits continually beat us with whenever they're trying to sell these unsupported ideas.
Josh Lerner, of Harvard, has found the number of exceptional venture capitalists is very small. Harold Bradley, of the Kaufmann Foundation, believes venture capitalists have plenty of money, but allocate it very inefficiently, and therefore should not be receiving additional public dollars with the hope of boosting a local economy. Bradley and Carl Schramm, in an article for Business Week, write that the current focus on fees has promoted start-up flipping rather than nurturing.
In 2013, The Legislature overwhelmingly voted Tuesday to provide $25 million in taxpayer money to start-up companies. And we all know the booming job creation the Scott Walker regime has presided over since then.
Haynes closes with, "That's thinking like an entrepreneur. And it's the kind of thinking we could use more of in Milwaukee."
Let's start with the fact that a lot of economic momentum for a city or region is impacted by state and federal policies. Scott Walker killing the train, which would have better connected businesses and citizens in the region, was definitely not thinking like an entrepreneur. That infrastructure investment would have improved efficiencies, bolstered existing businesses, encouraged start-ups and increased the attractiveness of the region as a place to work and live. It would have been an investment of more than a billion dollars into the economy. I think we would have seen quite a bit of venture capital, start-ups, entrepreneurial activity and the like with an injection of a billion dollars.
So, maybe when our leaders stop cutting off our nose to spite our face we can have a real discussion about what's best for job growth.
For Further Reading:
Another False Idol: Venture Capital
Starting Up More Trouble
Faulty Excuses
A Steaming Pile of Boldness
Venturing Aimlessly
Venturing Wisconsin's Money
Selling Entrepreneurialism
Starting-Up More Trouble
Haynes closes with, "That's thinking like an entrepreneur. And it's the kind of thinking we could use more of in Milwaukee."
Let's start with the fact that a lot of economic momentum for a city or region is impacted by state and federal policies. Scott Walker killing the train, which would have better connected businesses and citizens in the region, was definitely not thinking like an entrepreneur. That infrastructure investment would have improved efficiencies, bolstered existing businesses, encouraged start-ups and increased the attractiveness of the region as a place to work and live. It would have been an investment of more than a billion dollars into the economy. I think we would have seen quite a bit of venture capital, start-ups, entrepreneurial activity and the like with an injection of a billion dollars.
So, maybe when our leaders stop cutting off our nose to spite our face we can have a real discussion about what's best for job growth.
For Further Reading:
Another False Idol: Venture Capital
Starting Up More Trouble
Faulty Excuses
A Steaming Pile of Boldness
Venturing Aimlessly
Venturing Wisconsin's Money
Selling Entrepreneurialism
Starting-Up More Trouble
Saturday, August 24, 2013
Friday, June 28, 2013
Starting-Up More Trouble
The cronyism and nefarious activities at the Wisconsin Economic Development Corporation weren't enough. Scott Walker and his Republican henchmen have found another avenue of misappropriation.
More than half of new businesses are gone within five years.
For Further Reading:
Something Ventured, (Virtually) Nothing Gained
A Steaming Pile Of Boldness
Venturing Aimlessly
Venturing Wisconsin's Money
The Legislature overwhelmingly voted Tuesday to provide $25 million in taxpayer money to start-up companies..."This is one more way that we move our economy forward," Walker said. ~ Senate, Assembly OK $25 Million For Start-Up FirmsVenture capital provides just two percent of the capital for new businesses.
More than half of new businesses are gone within five years.
For Further Reading:
Something Ventured, (Virtually) Nothing Gained
A Steaming Pile Of Boldness
Venturing Aimlessly
Venturing Wisconsin's Money
Sunday, April 21, 2013
Selling Entrepreneurialism
With all this talk of entrepreneurialism as the savior for the Wisconsin economy, I thought it might be interesting to take a look at some Wisconsin companies - size, performance, etc. Wisconsin, especially for its size, is home to numerous renowned, global, and Fortune 500 companies. Many are older, well-known companies, but there are also many newer, up-and-coming businesses.
Opening new businesses for the sake of claiming whatever number of new businesses have opened doesn't mean much if the majority of those companies close within a year or two. Studies have shown that although Wisconsin may not create as many companies, the ones that are born here tend to last and grow better than those in many other states. "The numbers suggest that Wisconsin is doing well when it comes to nurturing those companies that do get launched there," Eric Thompson, a University of Nebraska researcher, said. "Your entrepreneurs tend to be good at staying in business."
Doug Henwood elaborates, "The small business myth is probably the most durable and pervasive of all. It holds appeal across the political spectrum, from corporate lobbyists trying to sell tax breaks to postmodern New Agers trying to sell their vision of decentralization and local self-reliance...Small firms pay less than large ones, are less likely to offer health, pension, or child care benefits, and are often more dangerous to workers. With few exceptions, they're not all that innovative technologically...37% of the labor force changes its employment status every year...new jobs do not sprout in the greatest numbers at either fresh start-ups or small firms...Smaller employers do generate plenty of jobs, but they also destroy them in great quantities. If you add together creation and destruction, no clear picture emerges."
We also shouldn't forget that Montana, Vermont, Alaska, New Mexico, Mississippi, Idaho, Louisiana, and Kentucky are often ranked near the top of entrepreneurial lists. Yet these are hardly the places most would think of in regards to start-ups, innovation and technology.
From CNN Money
The Top Companies in Wisconsin on the 2012 Inc. 5000
The Wisconsin 75 is an annual ranking and recognition of the largest closely held companies headquartered in Wisconsin. The list ranks the Top 75 companies by revenue, as determined by a voluntary submission of a qualifications form.
Wisconsin has 9 companies on Forbes Global 2000 (the 2000 biggest companies in four metrics; sales, profits, assets and market value).
Opening new businesses for the sake of claiming whatever number of new businesses have opened doesn't mean much if the majority of those companies close within a year or two. Studies have shown that although Wisconsin may not create as many companies, the ones that are born here tend to last and grow better than those in many other states. "The numbers suggest that Wisconsin is doing well when it comes to nurturing those companies that do get launched there," Eric Thompson, a University of Nebraska researcher, said. "Your entrepreneurs tend to be good at staying in business."
Doug Henwood elaborates, "The small business myth is probably the most durable and pervasive of all. It holds appeal across the political spectrum, from corporate lobbyists trying to sell tax breaks to postmodern New Agers trying to sell their vision of decentralization and local self-reliance...Small firms pay less than large ones, are less likely to offer health, pension, or child care benefits, and are often more dangerous to workers. With few exceptions, they're not all that innovative technologically...37% of the labor force changes its employment status every year...new jobs do not sprout in the greatest numbers at either fresh start-ups or small firms...Smaller employers do generate plenty of jobs, but they also destroy them in great quantities. If you add together creation and destruction, no clear picture emerges."
We also shouldn't forget that Montana, Vermont, Alaska, New Mexico, Mississippi, Idaho, Louisiana, and Kentucky are often ranked near the top of entrepreneurial lists. Yet these are hardly the places most would think of in regards to start-ups, innovation and technology.
From CNN Money
Here's a list of Wisconsin's largest public companies: 1. Johnson Controls Inc. – Glendale, WI – www.johnsoncontrols.com 2. Manpower Inc. – Milwaukee, WI – www.us.manpower.com 3. Kohl’s Corp. – Menomonee Falls, WI – www.kohls.com 4. Oshkosh Corp. – Oshkosh, WI – www.oshkoshtruckcorporation.com 5. Harley‐Davidson Inc. – Milwaukee, WI – www.harley‐davidson.com 6. Rockwell Automation Inc. – Milwaukee, WI – www.rockwellautomation.com 7. Fiserv Inc. – Brookfield, WI – www.fiserv.com 8. Manitowoc Co. Inc. – Manitowoc, WI – www.manitowoc.com 9. Wisconsin Energy Corp. – Milwaukee, WI – www.wisconsinenergy.com 10. Marshall & Ilsley Corp. – Milwaukee, WI – www.micorp.com 11. Bemis Co. Inc. – Neenah, WI – www.bemis.com 12. Alliant Energy Corp. – Madison, WI – www.alliantenergy.com 13. Joy Global Inc. – Milwaukee, WI – www.joyglobal.com 14. Snap‐on Inc. – Pleasant Prairie, WI – www.snapon.com 15. Bucyrus International Inc. – South Milwaukee, WI – www.bucyrus.com 16. A.O. Smith Corp. – Milwaukee, WI – www.aosmith.com 17. Regal‐Beloit Corp. – Beloit, WI – www.regal‐beloit.com 18. Briggs & Stratton Corp. – Wauwatosa, WI – www.briggsandstratton.com 19. Plexus Corp. – Neenah, WI – www.plexus.com 20. MGIC Investment Corp. – Milwaukee, WI – www.mgic.com 21. Metavante Technologies Inc. – Brown Deer, WI – www.metavante.com 22. Actuant Corp. – Butler, WI – www.actuant.com 23. Brady Corp. – Milwaukee, WI – www.bradycorp.com 24. Associated Banc‐Corp – Green Bay, WI – www.associatedbank.com 25. Modine Manufacturing Co. – Racine, WI – www.modine.com 26. Sensient Technologies Corp. – Milwaukee, WI – www.sensient‐tech.com 27. Wausau Paper Corp. – Mosinee, WI – www.wausaupaper.com 28. School Specialty Inc. – Greenville, WI – www.schoolspecialty.com 29. Marten Transport Ltd. – Mondovi, WI – www.marten.com 30. MGE Energy Inc. –Madison, WI – www.mgeenergy.com 31. Journal Communications Inc. – Milwaukee, WI – www.journalcommunications.com 32. Ladish Co. Inc. – Cudahy, WI – www.ladishco.com 33. National Presto Industries Inc. – Eau Claire, WI – www.gopresto.com 34. Johnson Outdoors Inc. – Racine, WI – www.johnsonoutdoors.com 35. The Marcus Corp. – Milwaukee, WI – www.marcuscorp.com 36. Anchor BanCorp Wisconsin Inc. – Madison, WI – www.anchorbank.com 37. Twin Disc Inc. – Racine, WI – www.twindisc.com 38. Badger Meter Inc. – Brown Deer, WI – www.badgermeter.com 39. Great Wolf Resorts Inc. – Madison, WI – www.greatwolfresorts.com 40. Assisted Living Concepts Inc. – Menomonee Falls, WI – www.alcco.com 41. Weyco Group Inc. – Milwaukee, WI‐ www.weycogroup.com 42. TomoTherapy Inc. – Madison, WI – www.tomotherapy.com 43. Bank Mutual Corp. – Brown Deer, WI – www.bankmutualcorp.com 44. Strattec Security Corp. – Milwaukee, WI – www.strattec.com 45. Renaissance Learning Inc. – Wisconsin Rapids, WI – www.renlearn.com 46. Waterstone Financial Inc. – Wauwatosa, WI – www.wsbonline.com 47. Tufco Technologies Inc. – Green Bay, WI – www.tufco.com 48. Magnetek Inc. – Menomonee Falls, WI – www.magnetek.com 49. Orion Energy Systems Inc. – Manitowoc, WI – www.oriones.com 50. Baylake Corp. – Sturgeon Bay, WI – www.baylake.com
Here's a list of Wisconsin largest public and private employers:
|
The Top Companies in Wisconsin on the 2012 Inc. 5000
| RANK | COMPANY NAME | 3-YEAR % GROWTH | REVENUE (millions) | STATE |
|---|---|---|---|---|
| 79 | Dynamic Recycling | 3,530% | $7.1 million | WI |
| 398 | Quincy Bioscience | 937% | $12.7 million | WI |
| 544 | RevolutionEHR | 685% | $2 million | WI |
| 663 | Facility Gateway | 542% | $11.5 million | WI |
| 689 | Stella & Chewy's | 516% | $11.9 million | WI |
| 876 | Authenticom | 380% | $14.6 million | WI |
| 1019 | Commercial Bargains | 310% | $2.2 million | WI |
| 1131 | BizLab | 279% | $21.5 million | WI |
| 1251 | TRC Global Solutions | 247% | $25.2 million | WI |
| 1266 | Millennium | 243% | $28.1 million | WI |
| 1364 | Delta Media | 224% | $7.5 million | WI |
| 1506 | True Process | 197% | $7.8 million | WI |
| 1636 | Beyond The Office Door | 179% | $2.4 million | WI |
| 1692 | TMI Consulting | 170% | $3.2 million | WI |
| 1711 | Midwest Prototyping | 167% | $2.8 million | WI |
| 1753 | ESC Services | 163% | $3 million | WI |
| 1834 | Tim O'Brien Homes | 152% | $21 million | WI |
| 1959 | Forte Research Systems | 138% | $7.2 million | WI |
| 2048 | Heartland Business Systems | 129% | $135.7 million | WI |
| 2073 | Zeon Solutions | 127% | $9.1 million | WI |
| 2210 | SASid Insurance Development | 116% | $4.2 million | WI |
| 2225 | Solaris | 115% | $3.5 million | WI |
| 2550 | Centare | 95% | $10.3 million | WI |
| 2763 | Codeworks | 84% | $24.5 million | WI |
| 2877 | Networkers Funding | 79% | $3.3 million | WI |
| 2927 | Waukesha Metal Products | 76% | $27.3 million | WI |
| 2986 | JGear | 73% | $5.6 million | WI |
| 3038 | Elite Human Capital Group | 71% | $5.7 million | WI |
| 3215 | Batteries Plus | 64% | $164.8 million | WI |
| 3279 | Quest CE | 61% | $3.1 million | WI |
| 3339 | New Glarus Brewing | 58% | $26.4 million | WI |
| 3341 | ABC Supply | 58% | $4.6 billion | WI |
| 3405 | Campbellsport Building Supply | 56% | $57.2 million | WI |
| 3445 | New Resources Consulting | 55% | $16.7 million | WI |
| 3461 | First Edge Solutions | 55% | $9 million | WI |
| 3513 | Alpha Source | 53% | $18.6 million | WI |
| 3547 | Americollect | 52% | $6.8 million | WI |
| 3681 | Superior Support Resources | 47% | $5.3 million | WI |
| 3753 | Wireless Logic | 44% | $7.1 million | WI |
| 3763 | Synergy Consortium Services | 44% | $8.3 million | WI |
| 3788 | Ascential Service | 43% | $22.5 million | WI |
| 3794 | Doig | 43% | $12.1 million | WI |
| 3917 | OnCourse Learning | 39% | $24.4 million | WI |
| 4049 | DiscountRamps.com | 35% | $20.7 million | WI |
| 4087 | QPS Employment Group | 33% | $114.1 million | WI |
| 4121 | Symmetry | 32% | $12.2 million | WI |
| 4152 | TAPCO | 31% | $36.2 million | WI |
| 4154 | Batzner Pest Management | 31% | $9.1 million | WI |
| 4226 | Enviro-Safe Consulting | 29% | $2.9 million | WI |
| 4267 | Advanced Waste Services | 29% | $39.2 million | WI |
| 4303 | Standard Process | 27% | $124.4 million | WI |
| 4361 | Huberty & Associates | 26% | $3.4 million | WI |
| 4442 | Mantz Automation | 23% | $19.7 million | WI |
| 4475 | Prefinished Staining Products | 22% | $2.1 million | WI |
| 4487 | Jung Express | 22% | $9.3 million | WI |
| 4490 | Spectrum Industries | 22% | $29.9 million | WI |
| 4527 | Crystal Finishing Systems | 20% | $88 million | WI |
| 4577 | Goff's Enterprises | 19% | $6 million | WI |
| 4591 | Northwire - NWI Lab 360 | 19% | $47.9 million | WI |
| 4635 | InForm Product Development | 17% | $2.9 million | WI |
| 4659 | HUSCO International | 17% | $272.8 million | WI |
| 4743 | InPro | 13% | $93.4 million | WI |
| 4791 | Fi-Med Management | 12% | $6.4 million | WI |
| 4809 | Graphics Systems | 12% | $11.1 million | WI |
| 4872 | Seaway Printing Company | 9% | $5.1 million | WI |
| 4928 | Trident Contract Management | 8% | $8.8 million | WI |
| 4969 | Data Dimensions | 6% | $21.9 million | WI |
1. S.C. Johnson & Son Inc., Racine
2. U.S. Venture, Inc., Kimberly
3. Kohler Co., Kohler
4. ABC Supply Co. Inc, Beloit
5. Quad/Graphics, Sussex
6. Kwik Trip, Inc., La Crosse
7. Schneider National Inc., Green Bay
8. Ashley Furniture Industries, Inc., Arcadia
9. Sentry Insurance, Stevens Point
10. Uline, Pleasant Prairie
11. Menasha Corporation [1], Neenah
12. Charter Manufacturing Company Inc., Mequon
13. Green Bay Packaging Inc., Green Bay
14. Sargento Foods Inc., Plymouth
15. The DeLong Co. Inc., [4] Clinton
16. Robert W. Baird & Co., Milwaukee
17. Trek Bicycle Corporation, Waterloo
18. Appleton, Appleton
19. ACUITY, Sheboygan
20. Masters Gallery Foods, Inc., Plymouth
21. Johnsonville Sausage, LLC, Sheboygan Falls
22. Bergstrom Automotive, Neenah
23. West Bend Mutual Insurance Co., West Bend
24. Boucher Automotive Group, Greenfield
25. Greenheck Fan Corporation, Schofield
26. Miron Construction Co., Inc., Neenah
27. Rockline Industries Inc., Sheboygan
28. Lakeside Foods Inc., Manitowoc
29. Hydrite Chemical Co., Brookfield
30. Adelman Travel Group, Milwaukee
31. Windway Capital Corp., Sheboygan
32. The Boldt Company, Appleton
33. Husco International, Inc., Waukesha
34. Ewald Automotive Group, LLC, Milwaukee
35. J.P. Cullen & Sons, Inc., Janesville
36. Miller Compressing Company, Milwaukee
37. Edward H. Wolf & Sons, Inc., Slinger
38. Meridian Industries Inc., Milwaukee
39. JX Enterprises Inc., Pewaukee
40. Quality State Oil Co. Inc., Sheboygan
41. C.D. Smith Construction, Inc. *, Fond du Lac
42. Bauer Built Inc., Durand
43. Gehl Foods, Inc. *, Germantown
44. Werner Electric Supply Co., Neenah
45. First Supply LLC, Madison
46. Electronic Theatre Controls, Inc., Middleton
47. Palermo Villa, Inc., Milwaukee
48. Wausau Supply Company, Schofield
49. J.F. Ahern Co., Fond du Lac
50. Mayville Engineering Co. Inc., Mayville
51. Gustave A. Larson Company, Pewaukee
52. Gordon Flesch Company Inc., Madison
53. Everbrite, LLC, Greenfield
54. Hunzinger Construction Co., Brookfield
55. Serigraph Inc., West Bend
56. Herzing University, Milwaukee
57. Standard Process, Inc. [3], Palmyra
58. W.T. Walker Group, Inc., Milwaukee
59. Inland Power Group, Inc., Butler
60. Kolbe & Kolbe Millwork Co. Inc., Wausau
61. Placon Corporation, Fitchburg
62. QPS Employment Group, Brookfield
63. Derse, Inc., Milwaukee
64. Western States Envelope and Label, Butler
65. Baptista’s Bakery, Inc. *[2], Franklin
66. Zilber Ltd., Milwaukee
67. Miller-St. Nazianz, Inc., St. Nazianz
68. InPro Corporation * [5], Muskego
69. Badger Truck Center, Inc., Milwaukee
70. Holz Motors Inc., Hales Corners
71. Dental Associates, Wauwatosa
72. Engman-Taylor Company, Inc., Menomonee Falls
73. Eggers Industries, Two Rivers
74. Shorewest, Realtors, Brookfield
75. Super Steel LLC *, Milwaukee
Wisconsin has 9 companies on Forbes Global 2000 (the 2000 biggest companies in four metrics; sales, profits, assets and market value).
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