Los Angeles — UCLA economists announced Thursday that they have created a tool to track online microbusinesses and show how they are contributing to the region’s economic growth.
According to UCLA Anderson School of Management, economists Leila Bengali and William You are important for the first time to develop an index to track online microbusiness activity at the national, state, core-based statistical area (CBSA) and county levels. To monitor the activities of economic drivers that are often overlooked.
“Our aim was to measure online micro-enterprise and create indicators that address aspects that correlate with local labor markets and economic activity,” Bengali and Yu said in a joint statement. “Indexes and reports show, through statistical methods, the unique characteristics and substantive impact of micro-enterprise owners and their businesses on the local economy.”
According to economists, this index leverages data provided by GoDaddy’s Venture Forward initiative. This is a multi-year research effort to quantify the impact of online microbusinesses on the local economy.
Venture Forward analyzes the economic impact of 20 million US online microbusinesses created by GoDaddy customers. A microbusiness is defined as a separate domain name with an active website (such as an online store), with a majority of employees of 10 or less.
The first data-based economist report looks at how online micro-enterprise progressed during a pandemic and identified regional factors that contributed to the nation’s distribution of such companies and their formation and growth. doing.
Jeremy Hartman, Vice President of Venture Forwards at GoDaddy, said: “This index and report provides an easy way to harness this impact for everyone. It also helps everyone understand the unique needs of microbusiness owners.”
Bengali and Yu reached four conclusions in the report.
— — Digital infrastructure: Broadband facilitates the formation and success of online microbusinesses. This is because the labor market tends to be more successful in counties with a high percentage of residents with broadband access.
— — Access to education and skills training: At least some indicators of the relationship between human capital and skill training are actively associated with online microbusiness, even after managing the characteristics of different counties.
— — Access to capital: Formal lenders support online microbusinesses, but regression analysis and case studies also suggest that these online microbusinesses need to access capital in a different way or in smaller quantities than other businesses. ..
— — Micro-enterprise and local economy: County with high per capita online microbusiness tended to have a stronger labor market when measured by unemployment and employment-to-population ratios, and even after adjusting for other factors. The findings, combined with research evidence from GoDaddy, suggest that online microbusinesses are contributing to economic growth at the regional level.
This report is one of a series of analyzes performed by UCLA Anderson Forcast.
What are microbusinesses, and why is UCLA tracking them? – Press Telegram Source link What are microbusinesses, and why is UCLA tracking them? – Press Telegram