BizMiner Market Research Edge #1 Using Startup Activity
Rates to Project Marketing Vitality
1. Entrepreneurial startup activity
rates among customer industries and competitors offer a
window into future market vitality. Along with new branch
development rates discussed in Market Research Edge #3,
they provide a useful statistical measure of new vitality
in any US industry or area.
2. Startup rates are the surest sign
of continuing economic vitality. US areas and industries
with the highest levels of startup activity tend to have
the highest rates of growth (local and national).
3. Between 1999 and 2002, the rate of
three-year job growth among "survivor" startups
was twice as high as within the general business population.
("Survivor" startups maintain operations for at
least three years after roll out.)
4. Surviving startups in every sector
show significantly higher growth rates than retained sector
firms overall. Startup employment growth rates are particularly
high in Service industries -- almost triple the level of
all service firms. Even among manufacturers, startup job
growth rates are double the sector average.
5. The 3-year difference in sales growth
between survivor startups and all firms is equally impressive.
6. Entrepreneurial activity rates are
developed by comparing the number of firms in operation
one year or less with the total number of firms in an area
for which an age can be identified. (BizMiner Market Research Profiles use a one-year analysis period.) The resulting
percentage is benchmarked against industry or national rates
to create an indexed score. An index over 1.00 indicates
higher than average entrepreneurial activity in that industry
and/or area by the percentage indicated in the decimal.
Indices below 1.00 indicate lower than average activity.
7. Conclusion: Target the future now
by factoring startup activity rates into your marketing
plan targets. Industries and areas with the highest rates
of startup activity today will most likely experience unusually
high levels of future growth in the same business segments.
Startup activity rates are included
in every one of BizMiner's 900,000 online Market Research
Profiles, available for over 15,000 business segments. Market Research Reports are available in both national and local
versions covering over 250 US metropolitan areas.
Available online at www.bizminer.com/market-research-report.asp.
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