Support Local Startups to Improve Economic Future – Marin Independent Journal

The Marin economy faces three fundamental structural challenges that must be addressed to ensure continued prosperity for the next generation.

First, our county has a rapidly aging population. Despite the pandemic-induced influx of young families moving to Marin’s natural beauty, our median age has continued to rise, rising from 47.1 in 2020 to 48.1 in 2023, according to the U.S. Census Bureau. That makes Marin the state’s oldest county among counties with a population of 250,000 or more. By comparison, California’s median age is 37.2.

Second, our North Bay region has consistently lagged behind the state of California and other comparable regions in job creation. In 2022, the North Bay ranked last among large regions statewide in regional job growth. If you separate Marin from the rest of the North Bay counties, the picture does not improve. Over the past 10 years, according to the California Employment Development Department, while California has added 6.3 percent of jobs, Marin has lost 3.7 percent of the jobs located in our community.

Third, official projections from the California Department of Finance predict that Marin’s population will decline by more than 6% from the beginning to the end of the 2020 decade.

Combined, these three demographic and economic trends should cause concern for all Marin residents. There are huge implications for our future, from the erosion of our tax base to school closures to the lack of economic mobility resulting from the inability to create jobs in our community at a healthy rate.

But the growing momentum of the North Bay startup community should give reason for optimism that these challenges can be positively impacted by the collective action of community leaders building Marin’s economic future. Startups play a disproportionately large role in job creation—according to a 2022 U.S. Census Bureau study spanning the past five decades, the rate of job creation “is noticeably higher for young firms than for old ones—the net rate of job creation hovered around 15% to 20% for younger firms… but hovered around 0% and was often negative for more established firms.”

North Bay investors need to support local startups and work to combat job losses in North Bay. This will create good-paying jobs and the kinds of careers our kids will come home to. We need to invest local capital in the best and brightest entrepreneurs in our community.

We need to leverage startups to kick-start a job creation renaissance in North Bay. This vision can lead to:

• Lots of new jobs: Dozens of fast-growing startups are operating along Highway 101 from Sausalito to Healdsburg, employing thousands of residents.

• Growing urban centers: Jobs are moving out of San Francisco (often toward remote work) and driving workers to local urban centers, boosting Marin’s economy.

• Expanded opportunities: Startup jobs bring benefits as growing companies hire local entrepreneurs to provide services and improve economic opportunities for all Marin residents.

• Younger population: New jobs in the economy will attract workers between the ages of 18 and 35 to live in Marin and help stem the projected population decline.

• A healthier environment: Local jobs increase the opportunities for people to commute by walking, cycling and using public transport, which will improve traffic and the quality of our lives and the health of the planet around us.

• More Housing: Well-paying jobs improve the economics of proposed housing projects and help alleviate the housing deficit in the community.

This future is entirely within our reach, given the talent and resources available throughout the Marin community. Now it is our responsibility to take the necessary steps to make it a reality.

Let’s do everything we can to support local entrepreneurs who are taking risks to become the next generation of local job creators – let’s recognize their names and leverage the power of this community to ensure their success, brightening the future for all of us.

Zachary Kushel is the founder and managing partner of Marin Sonoma Impact Ventures, a regional venture capital fund based in Corte Madera. Learn more at msivfund.com.