The research arm of Endeavor Global, an entrepreneur support organization based out of New York released a report on May 30, 2019, identifying and highlighting the competitive advantages of supporting entrepreneurships in Greater Miami. With help from the John S. and James L. Knight Foundation, Endeavor Insight studied more than 20,000 businesses in the Miami metropolitan area. Through that research, it found that the city can increase economic growth and create well-paid jobs by supporting entrepreneurs who operate in high-value industries.
The Need to Support High-Impact Entrepreneurs
Miami has seen significant growth over the years. In 2018, the city drew $1.4 billion in venture capital investments. By comparison, it drew $607 million in venture capital investments in 2013. Although its rate of new business creation is one of the highest in the United States, the city’s economy remains more dependent on low-paying service jobs than other major cities across the country. Also, a lot of jobs are in industries that are expected to grow slower than jobs in other industries.
U.S. cities that are more prosperous have bigger, high-value entrepreneurial businesses. These companies are created by locals who reinvest in their communities on a greater scale than company branches that have headquarters elsewhere. With 50 or more employees, they’re larger and create more jobs with higher wages. On top of that, they generate more productivity per worker, making them more valuable to their communities.
Greater Miami has the potential to achieve this same economic growth if it supports existing large, high-value entrepreneurial businesses. City decision-makers should support the creation and success of local entrepreneurships as well.
Competitive Advantages in Miami
Fortunately, Greater Miami has competitive advantages to achieve its potential economic growth. These advantages lie in the six types of existing large, high-value entrepreneurial businesses:
- Advertising companies.
- Consulting firms.
- Financial intermediary companies.
- Medical device and pharmaceutical businesses.
- Passenger transit and transportation services.
- Software and software-enabled businesses.
While the Miami metro area already has these types of companies, there are too few of them compared to the average numbers in other major cities. The existing businesses are also too young, having only been established for about 10 years. However, nearly all of these industries are expected to generate more employment opportunities and knowledge-intensive jobs.
Enhancing These Advantages and Generating High-Paying Jobs
With the ingredients to become a leading prosperous U.S. city, Miami decision-makers only need to support them to make it happen. They can start by recognizing that the high-value potential and scalability of a company ultimately leads to economic development and increased pay for employees. Next, decision-makers should focus on supporting businesses that have 50 or more employees because they pay more than smaller companies, which has a significant impact on the economy.
Finally, they should ensure that large, high-value entrepreneurial businesses are well-connected to encourage them to reinvest financial capital, knowledge and other resources into newly founded companies. Taking these steps can create local economic growth based on the competitive advantages that are already established among Miami’s entrepreneurial companies.
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