Tech is crucial to the community’s growth—but so are KC’s other great companies.
From the streets of the KC Startup Village to the shovel-ready companies that are part of Digital Sandbox KC—Kansas City is literally abuzz with the renaissance in growing technology ventures.
This startup movement is putting Kansas City on the map, attracting new talent and adding to the economy’s bottom line in the region. But it isn’t—and shouldn’t be—the only talk in town.
The efforts that are fueling Kansas City’s drive to become America’s most entrepreneurial city depend on a diverse ecosystem of microenterprises and Main Street retailers, second-stage and innovation-led businesses.
To build an environment where entrepreneurship can truly flourish, all types and sizes of businesses must be supported.
Four Corners of Entrepreneurship
The smallest of the small businesses, sole proprietors and microenterprises, provide day care, medical assistance, landscaping or consulting services to larger organizations.
While the businesses themselves may be small, their presence in the Kansas City economy is certainly not. The majority of businesses are sole proprietors, and our region boasts more than 130,000 of them.
The next biggest population of small businesses belongs to Main Street—the restaurant owners, engineers, nail salons and retailers that hire employees and strive to deliver great service. As you drive around the city, pay attention to how many of these businesses line the streets.
High-growth does not necessarily mean high-tech. A study by the University of Missouri Extension in partnership with MERIC described “Cheetah Firms” as businesses that have at least doubled their employees in the past five years. Construction, retail trade, professional scientific and technical services, health care and social assistance make up the bulk of these high-growth firms.
Even though they dominate the national spotlight because of their high economic impact, innovation-led businesses only account for a small percentage of total Kansas City businesses. These tech-based businesses include bio, digital and advanced manufacturing. The “innovation” in these innovation-led companies typically involves intellectual property that contributes to a strong competitive advantage in the marketplace and serves as a foundation for a high rate of growth.
Grow Local, Support Local
These local business owners are the people who make our communities vibrant. They are often found sponsoring the softball team, supporting charities or leading nonprofit boards.
Our small businesses—all of them—need support not just from economic development groups and technical assistance providers, but from you. For a fun summer activity, try buying all of your consumables at work and at home for one month from a locally owned business.
In addition to the equity resources being sought by high-growth, high-tech businesses, funding options like microloans need to be available to the very small business. For the independent retailer, easy licensing and permitting is important. For the growth business, support for exporting and access to bank financing.
Making Kansas City America’s most entrepreneurial city means building a comfortable nest to incubate all kinds of emerging and growth businesses.