Report on entrepreneurship climate in West Michigan released

GRAND RAPIDS, Mich. — According to a new report, West Michigan is falling behind comparable regions in the development of entrepreneurial companies, which are the main engine of growth in the U.S. economy. But the region has many intrinsic strengths and has much to offer entrepreneurs.

The first report on the Entrepreneurship Climate in West Michigan was commissioned by Grand Valley’s Seidman College of Business and was designed to assess the components of the entrepreneurial environment in West Michigan. The survey was modeled after Louisville’s two successful studies, conducted in 1996 and 2005. The full report can be downloaded here ( PDF ).

H. James Williams, dean of Grand Valley’s Seidman College of Business, cited companies like Amway, Autocam, Cascade Engineering, Gordon Food Service, Meijer, Padnos Iron & Metal, Perrigo, Steelcase, Universal Forest Products and many others as examples of West Michigan’s strong history of entrepreneurship.

“What we need is a coordinated strategy for mobilizing the resources we do have to achieve maximum impact, along with a plan for enhancing our capacities, over time, to promote and support entrepreneurship,” Williams said. “We simply must continue to develop and enhance a culture that encourages and supports entrepreneurs and entrepreneurship.”

According to the report’s findings, Grand Rapids is a diverse city, but it has problems with population growth and young adult retention. The city also has a significant shortage of venture capital in all stages of entrepreneurial funding. The region also is not creating new ideas at rates equal to comparable cities and falls behind in the size of the workforce that is the primary source of new ideas. Compared to like cities, Grand Rapids ranks lower in patent generation, percentage of adults with bachelor’s degrees, and people employed in creative occupations — all indicators of the talent pool from which new businesses are created.

On the positive side, Grand Rapids has a business climate that is welcoming to new businesses.  While noting the shortcomings in the entrepreneurial climate in the region, a survey of business leaders shows that many believe Grand Rapids is a great place to start and grow a company because of the quality of life and access to inexpensive workspace. The report also notes that Grand Rapids has a history of marshaling resources to make great changes in the community.