SACRAMENTO VALLEY JOB GROWTH FUELED BY LOCAL ENTREPRENEURS

First of its kind study notes that 1 in 5 Valley workers are self-employed – outpacing national average


MODESTO, California, October 21, 2004 – A new study released by the Great Valley Center concludes that job growth in the Sacramento Valley over the past decade was overwhelmingly due to the formation of new businesses formed by local entrepreneurs.

The report, "The Entrepreneurial Sacramento Valley", analyzed more than a decade of data demonstrating that individuals engaged in starting up their own businesses – so-called entrepreneurs – were the single biggest driver of economic growth and job creation in the 10 county Sacramento Valley. The report was released by the Great Valley Center in order to proved business people, community leaders and policymakers with an overview of the current entrepreneurial climate.

According to the report, the opening and closing of new firms in the region outpaced the Silicon Valley. On average, about 20% of firms in the Sacramento Valley are created or closed annually, compared to about 13% in the Silicon Valley. Butte County for example, led the North Valley at 28%. The question is whether the region can nurture a climate that allows that firms to thrive and survive.

"All the numbers indicate that entrepreneurship is the primary source of economic development," said John Melville, author of the study and president of the Menlo Park based Collaborative Economics, "Encouraging greater entrepreneurship needs to be the top priority of the region."

The Great Valley Center supports organizations and activities working to improve the economic, social and environmental well-being of California’s Great Central Valley. It receives major support from The James Irvine Foundation. Full copies of the report are available online at www.greatvalley.org.


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