February 06, 2014 Category: Entrepreneurs
A university is meant to be a place where new ideas and concepts are created and explored. One way this manifests is through the start-up companies which emerge from the business formation efforts of students applying what they learn to the real world. Michigan universities and colleges have recently been focused on the start-up scene, particularly in the technology sector.
Despite the recent events focusing on entrepreneurship in Michigan, such as Mhacks, a recently released report suggests that Michigan universities may not be producing as many start-up companies as may have once been perceived. The recent report by Anderson Economic Group focused on eight major university research clusters around the nation. The study found that the research corridor in Michigan did not produce many start-up companies.
The research cluster consisting of the University of Michigan, Wayne State University and Michigan State University, is known as the University Research Corridor (URC). The study showed that the URC only produced 14 start-up firms in the five-year period which ended in 2012. Eleven of the 14 start-up companies were started at the University of Michigan, while Michigan State University produced the three other new firms credited to the URC.
On the other hand, officials of the URC counter that the start-up companies created by the Michigan research alliance are of higher caliber. However, regardless of where a new company is started, it is typically engaging in thorough and smart business formation which ensures the success of a business venture. A business plan should properly assess risk and benefits of a particular business model. This will also include a proper evaluation of potential liabilities from lawsuits and governmental fines.
Source: The Michigan Daily, University research corridor gets low rank in startups, Alicia Adamczyk, Jan. 26, 2014