The number of industrial manufacturing relocations and significant expansions fell from an average of 5,139 per year for 1995-2000 to 3,162 in 2005

The understanding that the most important goal in economic development is attracting out-of-state business establishments is flawed. As such, less attention is given to helping existing firms grow and helping new firms start up. In the New Economy, entrepreneurship is much more important than firm attraction is to economic success. Consider the fact that the number of industrial manufacturing relocations and significant expansions fell from an average of 5,139 per year for 1995-2000 to 3,162 in 2005. Assuming that each of these establishments creates 100 jobs, this means that, in any year, they were responsible for creating around 316,000 new jobs. In contrast, small firms (with fewer than 100 employees) created three times as many (946,000) jobs in 2005.