FORBES LIST OF 20 MOST MISERABLE CITIES: THE MIDWEST IS HIGHLY REPRESENTED, BUT…

There is no greater demonstration of the impact that businesses have on cities and regions than what has been occurring in the Midwestern Unites States. The closing of factories and the loss of middle income jobs has led to a steady outward migration of residents of which the biggest gainers have been southern states like Florida, Texas, and my current state of residence Tennessee.

According to the Council of State Governments , close to half of the cities with 100,000 or more residents who lost population are in the Midwest (18). Ten of the cities undergoing the sharpest population declines are from four states in this region — Chicago, Illinois (-6.9%); Gary (-21.9%) and South Bend (-6.1%), Indiana; Detroit (-25%) and Flint (-18%), Michigan; and Akron (-8.3%), Cleveland (-17.1%), Cincinnati (-10.4%), Dayton (-14.8%), and Toledo (-8.4%), Ohio. Thus, it is no coincidence that this region would be heavily represented amongst Forbes’s 20 Most Miserable Cities list.

MOST MISERABLE CITIES

As the chart below demonstrates, the Midwest represents 60% of the cities on Forbes’s top 20 most miserable cities list. Michigan, Illinois, and Ohio house the majority (9)of the Midwestern cities on the list – (1) Detroit, my hometown, (2) Flint,  (7) Warren, (3) Rockford, (4) Chicago, (9) Lake County, (11) Toledo, (17) Cleveland, and (20) Youngstown.

Detroit, topping Forbes’s list, along with its metropolitan sisters of Flint and Warren, has been suffering as a result of loss of population, the auto industry’s troubles, and automakers’ decisions to build plants in the South and outside of the US. Flint , which is currently being operated by a governor installed emergency financial manager  (EFM), and Detroit , which will likely see an EFM by month’s end, have been plagued by violent crime, high unemployment, extremely low property values, and a significant loss off residents with taxable incomes. Warren has also been hit by falling home values.

BUT…

Despite the ails of the most “miserable” cities, you can find glimmers of hope in their entrepreneurial communities, particularly amid its female populations. Amongst Forbes’s list of the best 15 cities for female entrepreneurs , 27% are located in the Midwest, equal to that of the South, the biggest gainer in overall population.

Forbes reported that “Women have been starting businesses at a higher rate than men for the last 20 years” and that they will be responsible for creating “over half of the 9.72 million new small business jobs” by 2018. While women may not be able to completely rescue cities like Detroit, Flint, or Gary, given that 27% of the best cities for female entrepreneurs are located in the Midwest, they will play a vital role in any potential economic recovery or stability that this region sees.

MIDWESTERN BUSINESS WOMEN TO WATCH

There are great examples of social entrepreneurship as well as for-profit endeavors popping up from women throughout the Midwest.

Veronika Scott in Detroit

While still a junior at the College of Creative Studies in Detroit Veronika Scott founded the Empowerment Plan and decided to embark upon the mission of helping the homeless of Detroit by providing them with the Element S coat, which also acts as a sleeping bag. The Empowerment Plan also trains and employs homeless women in the manufacturing process.

Laura Bennett in Akron/Cleveland

Recognizing how for many of us that our pets have become surrogate children, Laura Bennett founded Embrace Pet Insurance . Embrace has been recognized by NorthCoast 99 as one of the great workplaces in Northeast Ohio. Ms. Bennett has also formed, Burning River Coffee Community , a mentoring group for women entrepreneurs in high-growth-potential companies.

 Allison Carmen in St. Louis

Believing that one person’s trash is another’s treasure, Allison Carmen, founded MaterialMix, a reusable materials brokerage firm. A waste management specialist, Ms. Carmen seeks to create software that aids industrial manufacturers and construction and demolition professionals in meeting environmental regulations and recycling requirements.

An examination of these women’s enterprises demonstrates that a key to business success in locations that are not considered to be the most desirable is making certain that either your product or service specifically meets the needs of those within the immediate community like Ms. Scott’s, or that your business transcends local and state boundaries like Ms. Bennett’s and Ms. Carmen’s. Thus, as these women have demonstrated, even though you may not live in one of the best cities for women entrepreneurs there is still opportunity to start and grow a business.

In fact, some have found it advantageous to do business in these most miserable cities because of a large potential pool of labor, low rents/prices for housing as well as commercial space, fewer competitors, and support for entrepreneurs. Would you consider one of these “most miserable” cities to start or expand your business?

Carolyn K. Broner, Ph.D.

Dr. Carolyn K. Broner is an Assistant Professor at Ashford University in the College of Business and Professional Studies in the department of Leadership and Organizational Studies. She holds a doctorate in management with a focus in leadership and organizational change and has conducted research in the areas of leadership, charisma, organizational change and development, and entrepreneurship. She has also owned businesses in the beauty industry and editorial services arenas. Prior to moving into the collegiate and business worlds Dr. Broner was a high school teacher who taught social studies and entrepreneurship in metropolitan Detroit, Michigan.

More Posts