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The State of Entrepreneurship and Innovation in Minnesota

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The State of Entrepreneurship and Innovation in Minnesota.

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The State of Entrepreneurship and Innovation in Minnesota

  1. 1. The State of Entrepreneurship and Innovation in Minnesota April 22, 2014
  2. 2. What do the Grow Minnesota! visits tell us? STATE OF ENTREPRENEURSHIPAND INNOVATION
  3. 3. 50% 55% 60% 65% 70% 75% 80% 85% 2005 2006 2007 2008 2009 2010 2011 2012 2013 Metro Area Greater MN CREATING NEW PRODUCTS/SERVICES INTHE LAST 2YEARS
  4. 4. BUSINESSES REPORTING INCREASING PROFITABILITY 20% 30% 40% 50% 60% 70% 80% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Metro Area Greater MN
  5. 5. What are other sources telling us? STATE OF ENTREPRENEURSHIPAND INNOVATION
  6. 6. Where MN falls in national rankings #8 – Forbes’ Best States for Business (2013) #10 – Bloomberg’s Top 20 Most Innovative States (2012) #18 – Milken Institute’s Risk Capital and Entrepreneurial Infrastructure Composite Index (2012) #45 – SBE’s Policy Environments for Small Business & Entrepreneurship (2013) #46 – Fast Company’s List of Top States for Innovation (2012) #49 – SBE’s Best to Worst State Tax Systems for Entrepreneurship & Small Business (2014) #50 – Kauffman Institute’s Entrepreneurship Index (2012)
  7. 7. Kauffman Entrepreneurship Index 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% Minnesota
  8. 8. Rank of Risk Capital and Entrepreneurial Infrastructure 11 9 13 13 18 0 2 4 6 8 10 12 14 16 18 20 2002 2004 2008 2010 2012 Minnesota *Milken Institute: State Technology and Science Index
  9. 9. Comments from the field “Minnesota used to be a hotbed of entrepreneurship, but that's no longer the case.” - Star Tribune, 2011 “Minnesota’s entrepreneurial ecosystem is average at best, poor in key areas, and significantly underperforming its potential.” - Pam York, AccelerateMN, 2014
  10. 10. Comments from the field “I’m not as excited as I was 10 years ago about the climate for entrepreneurism in Minnesota.” - Gary Smaby, Quatris Fund, 2011 “The solution will likely require the same type of revolutionary thinking that helped make Minnesota one of, if the not the best, places to fund startups years ago.” - Dale Kurschner, Twin Cities Business, 2014
  11. 11. National trends • Less Venture Capital going to early stage investments • Fewer IPO’s, more mergers and acquisitions • New business starts and business churn declining since 2000 • Brain drain towards the coasts
  12. 12. How innovative is Minnesota? STATE OF ENTREPRENEURSHIPAND INNOVATION
  13. 13. 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1963 1968 1973 1978 1988 1993 1998 2003 2008 2013 Minnesota California Washington US Average Massachusetts Yearly Patents Per Capita *US Patent and Trademark Office
  14. 14. Minnesota Patent Holders 2008-2012 46% 2%6% 46% Top 10 (includes five F500) Research Institutes Individuals Other *US Patent and Trademark Office
  15. 15. How well are we turning our great ideas into new businesses? STATE OF ENTREPRENEURSHIPAND INNOVATION
  16. 16. New Business Filings in Minnesota *According to the Secretary of State's Office 0 10000 20000 30000 40000 50000 60000 70000 LLC SP's Corps Partnerships
  17. 17. Are new ideas staying in Minnesota? STATE OF ENTREPRENEURSHIPAND INNOVATION
  18. 18. 25 12 4 Minnesota-based US-based Foreign-based STARTUPS LAUNCHEDTHROUGH UMN INVENTIONS, 2007-14 *UMN Office of Technology Commercialization and Grow MN’s own research
  19. 19. How are Minnesota’s new businesses doing? STATE OF ENTREPRENEURSHIPAND INNOVATION
  20. 20. Private Sector Survival Rates 25% 35% 45% 55% 65% 75% 85% MN 2 year survival US 2 year survival MN 5 year survival US 5 year survival *By year of follow-up
  21. 21. CONCLUDINGTHOUGHTS • The climate for businesses creation and growth is not like it used to be • Adjust, adapt, or lose • Develop and support better entrepreneurial infrastructure • Revive MN’s strength in home-grown companies

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