Many entrepreneurial businesses in Boston have seen an increase in profit, revenue, jobs and access to capital in the past six months, predicting further improvement in the next six months, according to a survey by the Boston Chapter of the Entrepreneurs’ Organization.
The Entrepreneurs’ Organization, a global business network comprised of 10,000 businesses in 42 countries around the world, represents approximately 2.2 million employees and $565 in revenue. The EO surveyed these businesses and analyzed the entrepreneurial market both globally and regionally. In Boston, businesses witnessed an improvement in their own companies and predict further growth.
“Things are getting healthier and more jobs are going to be coming available, which is great news for all of us,” said Adrienne Cornelson, EO spokeswoman. “Entrepreneurs, in their optimistic nature and in their way of finding opportunity, are going to be the first ones to take risk and make those hiring decisions … so it’s a frontline indicator of [the economy] getting better.”
EO Global Entrepreneur Indicator for the month of March reports that 62.71 percent of startups in Boston saw an increase in full-time employees in the last six months. Additionally, 77.59 percent predict even more full-time job opportunities to surface in the next six months.
According to the report, 58.62 percent of businesses saw an increase in their net profit and 82.46 percent foresee future increases in profit. Also, 68.97 percent saw an increase in their revenue in the past six months and 84.21 said they believe they will see even more of an increase in the coming six months.
Cornelson said small-to-midsized businesses are much more vital to growth in the job market and economy than corporations because smaller businesses and startups are the companies producing new jobs, whereas corporations simply hire people at the same rate as they let people go.
“If we’re going to try and strengthen the economy, supporting these small businesses becomes critical,” she said. “Small business owners, as a general rule, are going to find ways to press forward regardless, but the business community needs to realize the importance of supporting small businesses and how they really are going to be critical in rebuilding our economy.”
Ian Mashiter, a strategy and innovation professor at Boston University’s School of Management and expert at BU’s Entrepreneurship Club, said there are many factors that make Boston a good environment for entrepreneurs.
“Innovators in Boston are helping provide startups with program help, mentorship, and structure so they can help validate their business ideas and are able to go out and build successful companies on the market,” he said. “Also, you have increasing lines of venture capital in the city, which invest in these kinds of businesses. These factors are working together to produce a very healthy and thriving environment for startups.”
Mashiter said entrepreneurial businesses are vital to the economy because they provide fresh roots necessary to an economy.
“There’s no economy in the world that has relied so much on its innovation and its startups to drive the next generation of great companies,” he said.
Several residents said they were pleased to hear about the growing startup community in Boston and how it will in turn improve both Boston’s local economy and the national economy.
“Everyone is so worried about finding jobs right now, it’s on everyone’s mind,” said Adam Riegel, 22, of Fenway. “I knew Boston was a very innovative and technological city, but it’s great to know it is directly impacting the job market.”
Silvi Fernandes, 36, of Back Bay, said in a city like Boston where recent graduates are fighting for jobs, an increase in small businesses and start-ups is important.
“The job market is really competitive these days, and that’s not going to change, but any additional jobs in the market is always a good thing,” she said. “Especially serving a city where there is a continuous flow of students graduating and looking for jobs and people aren’t leaving their jobs at the same rate.”
Weiru Shao, 41, of Boston, said he hopes it will have a large effect on the economy.
“It’s comforting to hear, I just hope the effect is great enough to really help the economy,” he said. “Startups can’t do it all on their own obviously, but the economy could use as much help as possible. And each one individual with a job, is one less unemployed.”