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June 21, 2012

Tech Startups: Boosting Local Economies

By Nick Ruble, TMCnet Contributing Writer

With the cost of company creation at an all time low, it’s no wonder that so many technology startups are emerging lately. Paul Kedorsky, of the Kauffman Foundation, put the industry into perspective, explaining that, “What cost $3 or $4 million to do back in 1998, now probably costs $30,000 or less today.”

Even at drastically lower costs than what would have been required to start a business a decade ago, aspiring entrepreneurs still need a push to get things rolling. Likewise, local governments are taking interest in promising tech start ups with the intention of boosting the health of the economy.

Take Murrieta, California for example - a huge chunk of its population has to make the commute to larger metropolitan areas due to the lack of technology-oriented jobs in town. With so many employees being snagged by larger, more established companies out of town, Murrieta doesn’t get the taxpayer dollars in which it has the potential to reel in, nor does it get to claim residence of very many notable technology companies.

But with the city’s new plans of ‘helping out the little guy’, that could all be changing pretty quickly. Murrieta has begun renovating its out-of-commission city hall building with the intention of offering four tech startups dirt-cheap office space - $1 office space, to be exact.

Through helping out this handful of up and coming tech companies, the city should see a nice increase both in tax dollars as well as its overall image and reputation as far as the technology industry is concerned.

On a broader spectrum, organizations and events like Startup Weekend are helping to encourage entrepreneurship through pairing up aspiring entrepreneurs with experienced, industry-specific veterans.

“I think that people are starting to see that job growth is coming from startups and very young businesses. On an aggregate level, that’s creating hundreds of thousands of new jobs,” said Maris McEdward, community manager at Startup Weekend.


Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. For more information on registering for ITEXPO click here.

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Edited by Brooke Neuman
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