Boston has been the beneficiary of robust economic growth. Companies have moved to Boston, companies have remained in Boston, and in summary they want to be in Boston. A large reason for this desire comes from proximity to
the magnitude and the quality of education offered in / near metropolitan Boston. The quality of education is unsurpassed and high quality education attracts bright students, and bright, educated individuals are the building blocks for new companies and advanced research to occur. Companies desire access to this ideation, advanced research, and brilliant minds to feed the next generations of their businesses. High quality people, brilliant ideas, and advanced research into next generation concepts fuel growth in these businesses.
Unfortunately, Boston cannot spread out and grow its physical footprint any further as additional companies choose to locate here. It is limited by an ocean to the east and by existing cities in all other directions. Expanding large corporations have the benefits of very deep pockets, banking environments to them, and increasing stock markets. When they have an appetite for growing they have endless resources to invest in space and other resources like people and equipment. They have the ability to grow where ever they choose to locate and at whatever prevailing real estate rates demand.
This growth of large companies also limits the availability of a fixed quantity of available real estate. Escalating real estate values also limits affordability to only large and select companies. Where does this leave the little guys – start ups and scaling businesses? It leaves them without affordable space to grow that fits both their needs and affordability. They can choose to locate in Boston but their burn rates will shorten if not end their life.
Where do these companies go? They need to locate outside of Boston in more affordable locations. These cities may not offer ‘bicycle to work’ options, but they allow for a more economical approach to expenses that can prolong the life of their companies. This option also provides connections with other small businesses facing similar challenges – and willingness to innovate and collaborate others. This partnering approach can be an advantageous to all of them by
expanding knowledge, reach, experience, and market share.
Start ups can’t always attempt the home run approach, but can accumulate singles and still win the game! Or, join us @CI_Works for that advantage – in Amesbury or Gloucester.