Article -> Article Details
| Title | How a Tech Boom Can Negatively Affect Local Businesses |
|---|---|
| Category | Education --> Colleges |
| Meta Keywords | How a Tech Boom Can Negatively Affect Local Businesses |
| Owner | john mathew |
| Description | |
| A tech boom in a certain area can cause trouble for the non-tech companies there. This is a rather unexpected outcome of a local tech boom. But studies show that it is, in fact, true. The reason is that the housing prices start rising as affluent tech workers start to congregate to the area. This leads to established owners having to raise their employee salaries unexpectedly in order to retain them. A study by UCLA Anderson’s Olav Sorenson, and a colleague, tracked venture capital invested in 359 U.S. metro areas and the correlated changes in entrepreneurship, wages and employment to find that businesses that depended on sales beyond the region like manufacturers, or large accounting or consulting firms, drop in numbers, jobs, and wages when venture capital pours in.A tech boom in a certain area can cause trouble for the non-tech companies there. This is a rather unexpected outcome of a local tech boom. But studies show that it is, in fact, true. The reason is that the housing prices start rising as affluent tech workers start to congregate to the area. This leads to established owners having to raise their employee salaries unexpectedly in order to retain them. A study by UCLA Anderson’s Olav Sorenson, and a colleague, tracked venture capital invested in 359 U.S. metro areas and the correlated changes in entrepreneurship, wages and employment to find that businesses that depended on sales beyond the region like manufacturers, or large accounting or consulting firms, drop in numbers, jobs, and wages when venture capital pours in.A tech boom in a certain area can cause trouble for the non-tech companies there. This is a rather unexpected outcome of a local tech boom. But studies show that it is, in fact, true. The reason is that the housing prices start rising as affluent tech workers start to congregate to the area. This leads to established owners having to raise their employee salaries unexpectedly in order to retain them. A study by UCLA Anderson’s Olav Sorenson, and a colleague, tracked venture capital invested in 359 U.S. metro areas and the correlated changes in entrepreneurship, wages and employment to find that businesses that depended on sales beyond the region like manufacturers, or large accounting or consulting firms, drop in numbers, jobs, and wages when venture capital pours in.A tech boom in a certain area can cause trouble for the non-tech companies there. This is a rather unexpected outcome of a local tech boom. But studies show that it is, in fact, true. The reason is that the housing prices start rising as affluent tech workers start to congregate to the area. This leads to established owners having to raise their employee salaries unexpectedly in order to retain them. A study by UCLA Anderson’s Olav Sorenson, and a colleague, tracked venture capital invested in 359 U.S. metro areas and the correlated changes in entrepreneurship, wages and employment to find that businesses that depended on sales beyond the region like manufacturers, or large accounting or consulting firms, drop in numbers, jobs, and wages when venture capital pours in. | |