Detroit, Michigan: Dan Gilbert has been investing in Detroit tremendously, and now he wants to encourage technology startups to do the same when he speaks at TechCrunch Disrupt in San Francisco.
Back in 2010, I was very pleased to see him move Quicken Loans and their 3,800 employees to Detroit. That employment figure has now grown to 12,000. Job creation has an enormous ripple effect on economies.
How Would These Repercussions Help Detroit?
The creation of 1 job means that the employee (assuming an average income of $33,000 USD annually) will be able to pay taxes, and fund the maintenance and development of their community.
Last but not least, the employee will be able to purchase groceries and all the other things that people usually buy, and the use of paid services resulting in:
- An increase in revenue for the stores he/she shops at, taking them a little step closer to expansion and the creation of new jobs for customer service. This type of job especially is created locally (which is one of the things Detroit would benefit from most).
- An increase in revenue for wholesalers which takes them a little step closer to expansion, resulting in a need for more workers, hence more job creation.
- An increase in revenue for manufacturers and farmers, taking them a little step closer to expansion and job creation as stated above. They will need more hands as they expand.
- An increase in demand for raw materials used by manufacturers, leading to the expansion of raw material suppliers as well.
- An increase in jobs indirectly related to the sale of products and services, for example: information technology department jobs.
- An increase in calls to the many third-party firms contracted by manufacturers, wholesalers, and retailers to do various things, including but not limited to: cleaning, pest control, repairs, maintenance of equipment, information technology work, and more.
Just to name a few…
As for 12,000 jobs? Well, that’s a very good start. Job creation is one of the best ways to revitalize Detroit’s economy, and Dan Gilbert hopes to convince those in the San Francisco startup scene to invest in it, as Quicken Loans can’t do this by themselves. An economy with a diverse array of industries is best.
Where does one go to find potential investors for technology ventures? San Francisco is definitely a good place to start! San Francisco has a massive number of technology startup companies and prospective investors relative to the rest of the U.S.
Imagine if they chose to invest in Detroit. These small businesses may even hire more people per unit of products/services provided due to the fact that small businesses often cannot afford the capital-intensive business model that large corporations use.
Dan Gilbert is also the founder and chairman of Rock Ventures, and he is the majority owner of the NBA basketball team Cleveland Cavaliers.