What’s economic dynamism and why should we care?

By Steve Warner

A recent NYT article entitled Where Are the Start-Ups? Loss of Dynamism is Impeding Growth pointed to data indicating that many economies, including the United States, are lackluster. Nationally, productivity growth has slumped and there are fewer start-ups, or less economic dynamism – meaning fewer new ideas and fewer young, highly productive start-up businesses to replace older, less productive ones.

In Charleston | SC, we’re running counter to the national trend. We’re seeing new job creation, an influx of skilled talent, increasing entrepreneurial activity, and investor confidence – all signs that economic dynamism, or higher rates of start-up activity, are creating more wealth and opportunity on all levels, throughout our regional economy.

Look at the data from 2011-2016 reflecting the employment impact of entrepreneurship in Charleston’s regional economy:

  • The Charleston metro ranks 14th nationally in growth of jobs at young, private sector firms age five years or less, with 22.5% job growth, according to Brookings’ Metro Monitor 2018
  • The Charleston metro ranks 3rd nationally in median wage growth, at 16.5%, and the employment rate (share of individuals 18-64 currently employed) grew 7.5%

Just this week the Corporate Technology Group law firm and DIG South sponsor, Morris, Manning & Martin, released its Forecasting Charleston Area Technology Growth report calling this community a “hotbed of opportunity for entrepreneurs, venture capitalists, private equity funds, and strategic partners.”

Saying “the best is yet to come,” the firm pointed to:

1) a rising tide of established tech companies and new startups

2) an influx of ‘snowbird’ venture capitalists moving south, bringing capital and expertise

3) growth and diversity of our economy, with new multinationals like Boeing, Volvo, and Mercedes-Benz

4) VC firms seeing viable opportunities and less competition than Silicon Valley and Boston

5) lower operating costs for startups and a business-friendly tax environment

Charleston’s growing venture capital and private equity sector is fueling our entrepreneurial ecosystem. Please contact us if you have an interesting project for us to consider, or if you want more information about opportunities in the Charleston | South Carolina market.

Contact Us:

Steve Warner
Phone: 843.760.4539
Mobile: 843.906.8305
Email: swarner@crda.org

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