These events are getting a lot of buzz. To learn more, check out our meetings just click on the box to the right: "Register for Our Startup Meetup."

For our Jan. 14, 2009 Startup Meetup at Kokomo's Island Cafe at the Mall of America, -- sponsored by Comcast Business Class -- we already have 140 RSVPs. This is shaping up to be our largest event yet.

Startups Will Be Critical Force in Fueling Economic Growth

Call us optimistic, but the silver lining out there is that Startups will play an important role in firming up the economy in the months and years ahead. It's the nature of new ventures to fill voids and find new opportunities.

The number of new business filings in Minnesota is holding steady or growing compared to last year. That means feeder system of future growth is still doing its job of creating the next wave of mature businesses.

I remember in the early 1980s when the phrase "Rust Belt" was coined to describe the devastated parts of the industrial north. Steel mills and factories were decimated in that recession.

Books on the coming economic catastrophe began to appear. Home mortgage rates were 16 percent, the prime rate was 21 percent. The end was near. How we'll we ever replace the industries that were collapsing all around?

A little company called MicroSoft struck a deal to provide and operating system to IBM as it launched its first personal computer.

It wasn't a giant company that created the next economic boom. It was a small company. No one saw it coming.

So, as the DOW struggles and world markets are quaking, we're counting on you startups to do your part.

Startup Meetups Return with a Bang

September saw the return of our Startup Meetup networking events after a brief August break. We had 90 people show up at the fabulous Kokomo's Island Cafe at the Mall of America on Sept. 17.

The mix of people and businesses represented was as impressive as the number of attendees.

There is an old saying that the world is run by the people who show up. Whether you're starting a business or trying to do business with startups, it really does pay to show up. That means coming to our Startup Meetups, Chamber of Commerce newtworking events, and making the rounds at other meet and greet events.

This might be a good time to register for our Startup Meetup group. That way you'll get email updates on upcoming events. Just click on the box to the right to get started.

At One Time Rodney Dangerfield
Was a New Business

Talk to the founder of just about any startup company and you'll find a hint of Rodney Dangerfield just below the surface.

Entrepreneurs are celebrated and even revered as icons of the great American spirit of striving individualism. Let me clarify, entrepreneurs with a proven record of success are revered. When Bill Gates was 19 years old and starting Microsoft, few people could see past his teenage complexion. No one could imagine what he would accomplish. He wasn't revered until later....billions later.

Unfortunately, startups don't get the respect they deserve. Maybe it's because of the myth that most fail in the first year. The truth is that upwards of 85 percent survive the first year and beyond.

You've probably encountered some form of this disrespect already. Maybe it's a doubting supplier that offers cash-only terms. Or it's some business professionals who won't take on clients who haven't been around at least two years.

One of the reasons we started New Business Minnesota is that we saw an opportunity to serve this overlooked and under-appreciated market. We saw enormous potential.

Numerous studies in recent years identify the same thing, including a recent one from the SBA Office of Advocacy.

Hold onto your laptop, the SBA has identified startups as not just important, but as vital to economic development.

The importance of new business formation to state economies is outlined in the SBA's study: "Small Business and State Growth: An Econometric Investigation." This is from the executive summary:

"Small firm establishment births have a larger impact than any other factor examined on GSP (Gross State Product), SPI (State Personal Income), and total state employment....

The authors conclude that this general finding reveals that state efforts to promote small business formation will be more fruitful in terms of generating economic growth than virtually any other policy option in our models."

Let's take a look at the impact you are having toward building a better Minnesota.

In 2004, the Gross State Product (GSP) was $225.6 billion. If small business births increase by 5 percent, as they study suggest, GSP would increase by 0.465 percent or $1.05 billion.

The report continued:

"Our general finding is that states have few options in this area for enhancing GSP, SPI, and employment growth rates.

"Instead, our results indicate that the most fruitful policy option available to state governments is to establish maintain a fertile environment for new establishment formation. Every one of our models indicates that states with more new small firm establishments grow at a higher rate over time, even after we control for the level of economic activity and a variety of other factors."

The thousands of new business that start up each month do matter. New businesses are a serious source of growth in income and employment. The more research I come across about new business formation continually confirms the value of startup entrepreneurship to the economy.

We're not the only ones to recognize that. Look to the advertisers in New Business Minnesota if you're seeking resources that won't treat you like Rodney Dangerfield. They are Certified Startup Friendly. You'll get the respect you deserve and the support you need to grow you enterprise.

As you strive to get your businesses established, you will face hardships and you will wonder if the strain, pain and sacrifice are worth it. The answer is Hell Yes! Remember, the state of Minnesota is counting on you.

Patrick Boulay
Publisher