JumpStart has come under withering criticism from a small group of entrepreneurs who argue that the Cleveland economic development group employs a bloated infrastructure, is too risk-averse and doesn’t create enough jobs to justify the tax dollars it receives.
The now-public criticism comes primarily from Marc Canter, Ron Copfer and Mike Burkons. Their list of complaints (and JumpStart’s response) is too lengthy to discuss in substantial detail, but anyone who’s interested is highly encouraged to check out a lengthy post on Canter’s blog titled “Challenging JumpStart.”
The post, which makes for fascinating reading, is a long e-mail chain that contains the entrepreneurs’ complaints to and about JumpStart, plus replies from JumpStart executives Ray Leach, CEO, and Cathy Belk, chief relationship officer. (Disclosure: JumpStart is an investor in MedCity News’ parent company, MedCity Media.)
“Many in Cleveland and Northeast Ohio feel that JumpStart has not been successful, and we’re demanding to see the evidence to back up JumpStart’s claims” of job creation, Canter said.
Somewhat ironically for JumpStart, this very public criticism comes at a time when the organization’s star has arguably never shone brighter. In a recent visit to Cleveland, President Obama lauded JumpStart’s work and held it up as a model for other cities to emulate. In addition to investing in Northeast Ohio startups, typically with initial funding of $250,000, JumpStart’s model consists of coaching and other business development services for entrepreneurs and young companies.
JumpStart has invited Canter, Copfer, Burkons and any other of the region’s entrepreneurs to a public March 21 “engagement meeting.” The meeting has two objectives — gathering ideas on how the region’s entrepreneurs can be better supported, and answering questions about JumpStart and the region’s business environment.
“We’ve read Marc’s comments and appreciate his passion,” Belk said. “We want to further engage on this topic with him and others in the Northeast Ohio community, to gather ideas and opportunities, and to provide more information about our operations.”
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But it sounds like it’ll take more than just that to get Canter and friends to show up. Prior to the meeting, Canter wants JumpStart to answer a series of questions about the organization’s funding, spending and job-creation statistics. The list of questions can be found in the e-mail chain on Canter’s blog.
“We’re demanding written answers to [the] questions … before we show up at any meeting,” said Canter, CEO of Digital City Mechanics.
JumpStart was founded in 2004 and has received $27.5 million in state funding over its lifetime. That figure accounts for about 45 percent of JumpStart’s overall funding, Belk said.
