METRO DETROIT: A WOB BA$TION

 

 

In the last 10 yrs± & 20 yrs±, American Women Owned BIZES (WOB) have come a long, long way. Simply put the # of WOB have grown 45.2% in the past decade± & 108.8% in the last 20 yrs± WOW! The growth of Employment w/i those same firms & time periods were fairly modest (by comparison) at 7.1% and 26.8%, respectively. $ales on the other hand from WOB over the last 10 yrs± & 20 yrs± have had almost spectacular increase of 46.8% and 98.2%, respectively. WOW, again!

 

We shall analyze WOB by major Metro Area data (the 50 biggest Metro Areas). Our focus shall be on Metro Motown b/c that’s our home area AND b/c the growth of WOB have been outstanding here both in terms of # and of $ales. From ’07–’16, the # of WOB has increased 121.4% (ranking #2 in % growth). Sales/Revenue from the WOB (by #) in metro Detroit have been wonderfully robust, increasing 63.8%. (It is 9th among the 50 biggest metro markets.) No surprise that New York City & Los Angeles are numbers 1 & 2 in each category by totals. But Detroit is winning by growth in number of Bizes and $ales. Relatedly, American Express (the publisher of the WOB study) has developed a “power index” of sorts that combines all 3 variables (# of Bizes, Employment & Revenues) from a growth perspective. It lists Metro Motown as #8. (CHA, NC is #1, SD, CA is #2 with DLS, TX & MNS, TN being tied for 3rd.)

Table 1: Trend in Growth of Women-Owned Firms in Metro Areas, ’07-’16
  Metro Area ’16 Top 5 #s + Detroit % ∆, ’07-’16 (Rank)
Number of Firms New York NY/NJ/PA 876,300 44.9% (27)
Los Angeles CA 635,100 55.0% (19)
Miami FL 453,100 94.7% (4)
Chicago IL/IN/WI 376,900 39.0% (29)
Atlanta GA 308,600 75.8% (6)
Detroit MI 256,400 (8) 121.4% (2)
Sales ($000) New York NY/NJ/PA $139,888,300 47.8% (15)
Los Angeles CA $94,820,200 18.8% (38)
Chicago IL/IN/WI $50,618,800 14.8% (41)
Dallas TX $47,211,700 68.0% (8)
Miami FL $41,473,000 55.3% (13)
Detroit MI $25,110,200 (11) 63.8% (9)
Employment New York NY/NJ/PA 657,600 29.4% (15)
Los Angeles CA 438,700 12.9% (39)
Chicago IL/IN/WI 265,200 -0.6% (48)
Washington  DC/VA/MD/WV 224,200 27.9% (16)
Dallas TX 220,600 46.1% (5)
Detroit MI 151,800 (10) 24.5% (23)

 

Now to Metro Motown’s $pecific $ucce$$ b/c of WOB. We can all understand why places such as NYC, LA, CHI-TOWN, MIA and DLS succeed. It is size. Size Matters!” (Godzilla, 1998) The # of WOB, as well as the # of those Employed by those Bizes and the Sales from them are all likely to be WOB winners in mammoth metro markets. As for Metro Motown it is ONLY the 14th most populous Metro Area in the US (US Census Bureau, 2015 Estimate). So its success is not based on size but on its “newness” as an entrepreneurial haven or hot spot. While very old (Detroit was incorporated in 1806) its “newness” as an entrepreneur’s playground and a wonderful opportunity for success is very recent. Local and state governments have been very supportive of entrepreneurs (especially women entrepreneurs), offering new programs and funding certain markets such as tech and real estate like the Michigan Small Business & Technology Development Center (SBDC). In 2015, the SBDC counseled over 5,000 businesses, helped start 354 new businesses, created 2,041 new jobs and provided $206M in capital to new businesses. Others include NEIdeas the Small Business Association of Michigan, and the Michigan Women’s Foundation. Detroit shares some of these characteristics with Memphis (National Association of Women Business Owners, etc) and San Antonio (Small, Minority, Women and Veteran Owned Business Enterprise Program, among others). Young people with great ambition, and especially young bright women are attracted to such an environment and to such an opportunity. Today, WOB is a hallmark of new growing bizes themselves. Their $ub$equent $ucce$$ breed$ more $ucce$$. Truly more than ever b-4 women find it relatively easy to succeed here, to get funding here, and to find productive partners, here. The “new” Detroit is truly a renaissance for business and in particular for Women Owned Bizes.

 

Advertisements

About bernacmd

For over 24 years, University of Detroit Mercy Marketing Professor Michael Bernacchi, Ph.D., J.D, has produced "uNDER tHE mIKE-rOSCOPE", a newsletter discussing current "marketing and advertising¹s bends, trends & ends." A well-know fixture in Detroit and national media, UDM's marketing guru has made several appearances on CNN's "Talk Back Live," the Voice of America worldwide radio network (VOA), ABC, CBS, NBC, MSNBC and on the pages of Sports Illustrated, Time, TV Guide, the New York Times, USA Today, the Wall Street Journal and the Washington Post, to name a few. At University of Detroit Mercy, he has taught courses in Marketing Management, Consumer Behavior, Marketing Communications, Research and Corporate Social Responsibility and Sports and Entertainment Marketing. Michael Bernacchi can be reached at 313-993-1116 or bernacmd@udmercy.edu. Please appropriately attribute the following for their work on uNDER tHE mIKE-rOSCOPE: Yen Ju Lee Robert Rouse Vidhyasagar Natarajan Eric Baumgardner & Ian Young
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s