Glossaries - Report Companions: Market Research Edge - Startup Rates

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.