Entrepreneurs claim that Detroit is one of the best cities
to start their new business ventures because there is such flexibility in the
city. The city is filled with unused
buildings and many people seeking job opportunities, all possible at a fraction
of the cost. Crime rates are still one
of the most daunting challenges in the city; however receiving loans for banks
is also extremely difficult. The bankrupt
city claims that businesses and residents are still functioning, and the
arrival of entrepreneurs will hopefully spark excitement. Inexpensive real estate costs are a huge perk
to business ventures, however the sustainability of their shops and homes is
struggling. But the pros are outweighing
the cons, and there is much hope for Detroit.
There are nearly 50 programs that support developing ventures. Whether in the technology, mentorship, food,
retail, or advertising industry, Detroit is doing its best to make a comeback.
http://www.nytimes.com/2014/04/17/business/smallbusiness/entrepreneurs-seeking-a-place-to-start-a-business-find-a-surprising-answer-detroit.html?ref=business
4 comments:
I would definitely agree. The best entrepreneurs are scared when people are greedy and greedy when people are scared. A lot of the state property are selling at next to nothing. People who have cash around can buy properties for next to nothing and hold it till prices will eventually rise. Especially as Detroit starts offering tax benefits for companies to come to Detroit, which it will have to .
I will take the cynical approach and say that budding young entrepreneurs with exciting new ideas and innovations want for the most part, to also be surrounded by passionate and driven minds like themselves. That said, Detroit may fall short of this metric when places like Silicon Valley, and now even Salt Lake City still exist. It doesn't help Detroit that access to capital, something most young companies need very early on is seldom provided. There probably aren't many venture capitalists in Detroit either.
I do not think that Detroit will forever be struggling but we are still far away from an entrepreneurial boom in Detroit. Obviously there is room for high growth and development in Detroit but the trick is getting people to go there. Low real estate prices are attractive but like mentioned above high crime rates, because it is so hard to get a loan and because there really is just a lack of industry. Highly educated people travel to highly intelligent cities with lots of employment. A good example of this would be the technology boom in Silicon Valley. Detroit needs a large group of people who see potential in the city’s future to begin developing there and if they are successful people are sure to follow.
It seems like there is a great debate of whether Detroit will actually be a breeding ground for entrepreneurs. Personally, I agree with the comment above. Detroit isn't quite ready for this because of their economy. They are indeed growing, but high crime rates are completely unattractive to these young entrepreneurs.
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