SOURCE: Ewing Marion Kauffman Foundation

Ewing Marion Kauffman Foundation

November 20, 2013 08:00 ET

U.S. Mayors Gain Insights Into Metro Entrepreneurship Issues From Two New Kauffman Foundation Reports

Two Studies, Released at the Mayors Conference on Entrepreneurship, Reveal First-Time Metro Business Startup Data and Show How Cities Can Nurture Cultural Entrepreneurs

KANSAS CITY, MO--(Marketwired - Nov 20, 2013) - Metropolitan entrepreneurship issues are the focus of two new Kauffman Foundation reports being released today at the Mayors Conference on Entrepreneurship held in conjunction with Global Entrepreneurship Week. At the conference, hosted by the Foundation in partnership with the city of Kansas City, Mo., mayor's office, mayors and entrepreneurship experts from around the country will discuss ways to promote startup activity and encourage higher levels of entrepreneurship in their cities.

"This is the first time mayors from across the country have come together for the sole purpose of exploring entrepreneurship opportunities and overcoming challenges," said Dane Stangler, vice president of Research and Policy at the Kauffman Foundation. "These papers and the conference discussions will offer valuable insights for these city leaders, and we hope it is just the beginning of an ongoing national discussion."

"I'm so grateful to the Kauffman Foundation for bringing together mayors from across the country to Kansas City to learn about how we can cultivate entrepreneurship in our communities," said Kansas City Mayor Sly James. "Information sharing is the best way for ideas to flourish and it's fitting that Kansas City is the hub for the newest entrepreneurial research, considering we're on our way to becoming America's most entrepreneurial city." 

The first paper, "How Cities Can Nurture Cultural Entrepreneurs," discusses the importance of cultural entrepreneurs, particularly since the Great Recession, and provides concrete steps that mayors and the public sector can follow to promote cultural entrepreneurship.

Economists and city planners increasingly have documented the roles artists play in local economies. As cities have better understood artists' contributions to the metropolitan economic base -- for example, by attracting cultural industry firms and bringing in income from outside the city through exports of books, recordings, visual art and other creations -- their appreciation of and support for artists also have grown.

Noting that artists are many times more likely to be self-employed than are scientists and engineers, and that traditional policies and services don't effectively support artists' aspirations and occupational training needs, the paper offers seven strategies that mayors and city council members may champion to foster creative entrepreneurs:

  • Know who your local artists are.
  • Encourage convening and equipment-sharing artists' centers.
  • Develop sustainable artist studio and live/work buildings.
  • Provide entrepreneurial training tailored to artists and designers.
  • Build networking and marketing opportunities for artists.
  • Embed artists in city development strategies.
  • Partner with local arts and policy faculty for entrepreneurial research and training.

The second paper, "The Most Entrepreneurial Metropolitan Area?," reports on federal government data -- available to the public for the first time -- on business startups at the metropolitan area level. By decomposing into four population size classes, this report can provide more effective peer-to-peer comparisons of Metropolitan Statistical Areas (i.e., large vs. large, and small vs. small). 

The paper compares the trends in 40 metropolitan areas with higher numbers of startups over the past two decades to the significant national downward trend in overall new firm formation starting after 2006. Nationally, the trend reversed and started to recover in 2011. No metropolitan area escaped this downward trend, but there are differences among regions in the timing of the downturn and subsequent recovery.

The paper demonstrates that Metropolitan Statistical Areas of different locations and sizes can have similar measures of startup density. Surprisingly, many of the MSAs that performed well in the evaluation are not commonly thought of as significant locations of startup activity.

The largest MSAs -- those with populations greater than 1 million -- fared slightly better through the recession and have experienced slightly stronger recoveries, though none has returned to pre-downturn levels.

Download the papers.

About the Kauffman Foundation
The Ewing Marion Kauffman Foundation is a private, nonpartisan foundation that aims to foster economic independence by advancing educational achievement and entrepreneurial success. Founded by late entrepreneur and philanthropist Ewing Marion Kauffman, the Foundation is based in Kansas City, Mo., and has approximately $2 billion in assets. For more information, visit, and follow the Foundation on and

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