The number of new jobs and companies created by Missouri entrepreneurs grew in 2021, according to a new report examining the impact of the state’s startup economy.
Missouri startups created 40,544 new jobs in 2021, the highest yearly total since 2017, the Show Me Jobs report finds. The report defines startups as first-time employers that have fewer than 20 employees. MOSourceLink, an entrepreneur support group that is part of the UMKC Innovation Center and funded by the Missouri Technology Corp., published the report.
New job growth last year by Missouri startups was up 11% over 2020, a year in which there was a dip in startup job growth amid the emergence of the Covid-19 pandemic. In 2020, Missouri startups created 36,604 jobs, down slightly from 37,474 in 2019.
“The long-lasting effects of the Covid-19 crisis and the measures taken to stop its spread wreaked havoc on entrepreneurs and small business owners across the state: shops closed, capital investment for new startups slowed, markets shifted, supply chains were tested and job seekers looked for better employment opportunities,” the report said.
The number of jobs created by startups in 2021 wasn’t the only figure to rebound. The number of new startups — defined as companies hiring their first employees — also jumped up last year. Missouri entrepreneurs in 2021 created 18,234 companies, up from 16,287 in the prior year.
“We know that small businesses were on the front lines of the pandemic and the economic consequences that were negatively impacting startups in a lot of ways. But the data tells us they persevered,” said Alexces Bartley, network builder at MOSourceLink. “This isn’t to say businesses have come out of the pandemic unscathed, but it certainly speaks to the perseverance of entrepreneurs.”
One significant area of growth in 2021 for Missouri’s startup economy is the technology sector, with startups in the industry creating 1,297 new jobs last year, a 74% year-over-year increase. That growth came amid a record year, both nationally and locally, for technology startup investment and exit deals.
The growth in the technology field created roles with high wages. The average salary for positions at technology startups was $93,553 in 2021, according to the report. That’s well above the average annual wage of $47,898 for employees at non-tech startups.
Since 2017, startups hiring their first employees have produced 187,430 jobs, according to the Show Me Jobs report. That represents 80.8% of new jobs in Missouri and 7.9% of the state’s workforce. Bartley said the report’s figures spotlight the startup sector’s role in seeking to boost the state’s economy.
“We collectively should really be putting our time and effort and brains, and maybe even some capital, in supporting these young businesses and encouraging people to startup business because it’s a great economic driver,” she said.
