NORTH BAY BUSINESS JOURNAL EVENT

Best Places to Work 2008 Awards Reception

September 25, 2008, 5:30-7:30 p.m., Doubletree Hotel, Rohnert Park

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Database finds North Bay hotbed of mid-sized homegrown business

NORTH BAY, May 15, 2008 – The North Bay is home to one of the nation’s highest concentrations of homegrown, second-stage companies, according to an online database launched today by the Edward Lowe Foundation of Michigan.

According to the tool at www.youreconomy.org, an average 43.2 percent of all jobs in the North Bay are with homegrown companies in development between startup and maturity, compared with a 39.5 percent average in California and 37.9 percent in the nation. By comparison with other urban counties, San Francisco’s economy is made up of 35.7 percent of second-stage company jobs and Santa Clara, 36.1 percent.

The research identifies these stage-two companies as those with 10 to 99 employees and revenues between $1 million and $50 million. They are also described as having intentions and capacity to grow and have demonstrated a steady rate of growth. They often also face common challenges that startups and mature companies do not.

According to Lowe, Sonoma County had the highest concentration in the North Bay at 44 percent of all jobs, followed by Napa at 43 percent and Marin at 40.5 percent. Solano had 40.2 percent.

Among North Bay counties, Marin has the highest rate of jobs in stage-one, startup companies with 44.6 percent of jobs in the classification, compared with 32.3 percent in California and 30.8 percent nationally. Approximately 31.7 percent of Napa jobs are with stage-one establishments compared with 38 percent in Sonoma.

The Lowe foundation, which offers support services to second-stage companies, created the database to help regions shape economic policy.

“Today, more regions are turning to entrepreneurship as an economic development strategy, but it is hard to know where to focus resources due to a lack of information about business communities,” explained Mark Lange, executive director of the foundation.

“Most communities have limited resources,” Mr. Lange said. “By understanding the direct impact of employer categories and business stages, communities can channel their programs, recognition and support to the most appropriate business segments. What’s more, over time they’ll be able to measure the results of specific economic- and business-development programs.”

A representative from the foundation visited the North Bay last week.

Edward Lowe, best known for his invention of cat litter, created the $100 million foundation to support companies in the second stage of growth. The organization has a database of 33 million companies from 1990 to 2006, which can be searched at no charge. The foundation compiled the statistics in collaboration with Dun & Bradstreet Inc. and Walls & Associates Consulting.

More information is at www.youreconomy.org/guide/?region=guide.

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