How a Tech Boom Can Negatively Affect Local Businesses
A tech boom in a certain area can cause trouble for the non-tech companies there. This is a rather unexpected outcome of a local tech boom. But studies show that it is, in fact, true.
The reason is that the housing prices start rising as affluent tech workers start to congregate to the area. This leads to established owners having to raise their employee salaries unexpectedly in order to retain them.
A study by UCLA Anderson’s Olav Sorenson, and a colleague, tracked venture capital invested in 359 U.S. metro areas and the correlated changes in entrepreneurship, wages and employment to find that businesses that depended on sales beyond the region like manufacturers, or large accounting or consulting firms, drop in numbers, jobs, and wages when venture capital pours in.
Grow in your career by improving your management skills. Click to know more about the UCLA Post Graduate Program in Management for Professionals (UCLA PGP PRO).
Related Posts
Entrepreneurship Through Acquisition
Research by UCLA and the SCBI showed a kind of outdoor lighting that helps to minimize the human impact on insects.
How a Pay Raise May Improve Employee Performance
This article on the Berkeley website provides a few compelling reasons to give your staff a pay raise and discusses how it might improve their performance.
The Coming Together of Machine Learning and the Life Sciences is Creating Exciting Opportunities
Through computing, senior and Marshall Scholar Anna Sappington seeks answers to biological questions.
How Benchmarking Helps Entrepreneurs With Resource Allocation
This NUS Bizbeat article explains what motivates these young professionals to leave their jobs or prefer taking career breaks.
Power-Hungry AI could Affect the Climate Change Paradigm
Despite the warnings, there’s no verdict yet on the possible shift in an already stressed climatic situation due to an increase in AI-related activity
Making Real Change for Employee Mental Health and Well-being
Greg Hodge talks about how leaders across industries can make the necessary changes when it comes to employees’ mental health and well-being.
