Tuesday, May 7, 2013

Local startups project more jobs, nearly $1 billion in revenue

The results from the second annual Charlotte-area Entrepreneurial Growth Index came out Tuesday morning, and the numbers are encouraging, says Terry Cox, president and CEO of Business Innovation & Growth Council (BIG), which conducted the study. 
The index is a measure of the health of the region's entrepreneurial companies, and this year's findings are based on the responses of 120 local startup companies. 
Here are some key findings: 
  • Projected revenue for 2013 is $960 million, an 18 percent increase over 2012 revenue of $817 million  and a three-year average growth rate of 37 percent. 
  • a 24 percent three-year average growth rate in employment, including full-time, part-time and contract positions, with a projected 928 employees. Forty-two percent of those are contractors. 
  • The average headcount per company is now 49 employees, with an average weighted salary of $54,000. In 2012, the average headcount was 30 employees per company with an average salary of $55,000. 
  • Funding sources for businesses surveyed:
    • 56 percent: self-funded. 
    • 19 percent: angel investments. 
    • 13 percent: bank financing. 
    • 5 percent: private equity.  
    • 2 percent: grants. 
  • Twenty percent of the companies were founded in the past two years. Fifty-two percent are less than 5 years old. 
  • Of the respondents, 84 percent are located in Charlotte, while 16 percent are in the outlying cities and towns. 
  • The breakdown by sector: 
    • 47 percent: technology.
    • 11 percent: business services.
    • 8 percent: technology-based education.
    • 7 percent: health care.
    • 5 percent: retail.
    • 5 percent: marketing.
    • 4 percent: transportation and distribution.
    • 14 percent: other.