Historically a major player in the machinery, textile, and jewelry industries, Providence experienced an extended period of decline beginning with the Great Depression. As the rest of the nation began the protracted process of recovery during the late 1930’s, Providence was instead coopted by organized criminals who distracted from meaningful economic growth and eroded both the efficacy and legitimacy of the public sector. Even as formal crime declined during the late 20th century, the entrenched legacy of cronyism and corruption resulted in detrimental mismanagement of public investments and further stagnation.
But in the past decade, Providence’s economic development efforts have become increasingly targeted and effective. The state legislature has passed a number of statutes aimed at incentivizing small business development. Perhaps because of these legislative efforts, the city has seen a rise in new restaurants as well as in artisanal crafts in recent years. Concurrently, large and competent players such as Betaspring—a startup accelerator that has helped to launch more than 70 companies that have cumulatively secured more than $25 million in funding—and Andera, a software as a service company that employs close to 100 people.
But in the past decade, Providence’s economic development efforts have become increasingly targeted and effective. The state legislature has passed a number of statutes aimed at incentivizing small business development. Perhaps because of these legislative efforts, the city has seen a rise in new restaurants as well as in artisanal crafts in recent years. Concurrently, large and competent players such as Betaspring—a startup accelerator that has helped to launch more than 70 companies that have cumulatively secured more than $25 million in funding—and Andera, a software as a service company that employs close to 100 people.
Nearly two centuries after inventor and entrepreneur Thomas Edison bestowed the moniker Paris of the West on the city, Detroit retains only remnants of the architectural and cultural elements that made it worthy of that name. A geographical nucleus of the Eerie Canal, the Great Lakes, and rail lines of the larger Midwest, Detroit attracted aspiring entrepreneurs and industrialists throughout the 19th century. This period of innovation culminated in Henry Ford’s implementation of the assembly line and the subsequent cementation of the automobile industry in the city. The full economic potential of that industry was realized during the postwar era, when the automobile industry brought relative prosperity to more than one million workers.
As the increased attention towards imports began to threaten domestic production, cracks began to appear in the very fabric of Detroit. Poor economic conditions prompted a wave of urban flight caused the city’s population to halve between 1970 and 2010. At the same time, crime became epidemic and a dwindling population created revenue issues for the municipal government, which is currently billions of dollars in debt. These issues were only exacerbated by the collapse of the automobile industry during the 2008 financial crisis.
Thankfully there are remarkable and innovative individuals like Dan Gilbert, chairman and founder of Quicken Loans, with the mindset necessary to view the decline of Detroit as an opportunity. As 2012 fellow Max Nussenbaum wrote in an article published by the Huffington Post, “Detroit because the city is full of empty spaces, just waiting for me—for us—to fill them up.” Gilbert shares this sentiment, as illustrated by the fact that he moved Quicken’s corporate headquarters to downtown Detroit in 2010 in order to launch a privately funded urban revitalization effort of unprecedented scale. Close to 100 small businesses have moved into building purchased and renovated by Gilbert, many of those portfolio companies of his venture capital firm—Detroit Venture Partners.
As the increased attention towards imports began to threaten domestic production, cracks began to appear in the very fabric of Detroit. Poor economic conditions prompted a wave of urban flight caused the city’s population to halve between 1970 and 2010. At the same time, crime became epidemic and a dwindling population created revenue issues for the municipal government, which is currently billions of dollars in debt. These issues were only exacerbated by the collapse of the automobile industry during the 2008 financial crisis.
Thankfully there are remarkable and innovative individuals like Dan Gilbert, chairman and founder of Quicken Loans, with the mindset necessary to view the decline of Detroit as an opportunity. As 2012 fellow Max Nussenbaum wrote in an article published by the Huffington Post, “Detroit because the city is full of empty spaces, just waiting for me—for us—to fill them up.” Gilbert shares this sentiment, as illustrated by the fact that he moved Quicken’s corporate headquarters to downtown Detroit in 2010 in order to launch a privately funded urban revitalization effort of unprecedented scale. Close to 100 small businesses have moved into building purchased and renovated by Gilbert, many of those portfolio companies of his venture capital firm—Detroit Venture Partners.
Unlike Providence and Detroit, New Orleans never experienced a destructive industrial collapse that transformed its image. Though not without their own respective setbacks, the port and shipbuilding; oil and gas; tourism and culture; and aerospace manufacturing industries have remained strong since their nascence. And though these industries brought a great amount of economic growth to the city over the past century, deep-seated socioeconomic striation prevented this growth from laying the foundation for a strong future for all the people of New Orleans.
When Hurricane Katrina made landfall in 2005, it left portions of the city in ruins, underscoring and aggravating the social, racial, and economic issues inhibiting job creation and growth in New Orleans. But the hurricane also instilled in the city a new spirit, perhaps best epitomized by Idea Village co-founder and CEO Tim Williamson, who noted that in the wake of the hurricane, “Everyone was an entrepreneur overnight because we all had to rebuild houses, neighborhoods, networks—with limited resources.” In addition to Idea Village—a startup accelerator responsible for creating 2,000 jobs through its portfolio of companies—Venture for America has partnered closely with the community of entrepreneurs dubbed Launch Pad, the 3D printing behemoth Turbo Squid, and the analytics behemoth Federated Sample.
When Hurricane Katrina made landfall in 2005, it left portions of the city in ruins, underscoring and aggravating the social, racial, and economic issues inhibiting job creation and growth in New Orleans. But the hurricane also instilled in the city a new spirit, perhaps best epitomized by Idea Village co-founder and CEO Tim Williamson, who noted that in the wake of the hurricane, “Everyone was an entrepreneur overnight because we all had to rebuild houses, neighborhoods, networks—with limited resources.” In addition to Idea Village—a startup accelerator responsible for creating 2,000 jobs through its portfolio of companies—Venture for America has partnered closely with the community of entrepreneurs dubbed Launch Pad, the 3D printing behemoth Turbo Squid, and the analytics behemoth Federated Sample.