Suits and tutus? Anything goes in Austin—even extending to the city's business culture. And that's a very good thing. There's no question that Austin is a unique maelstrom of culture and intellect that has long attracted what Richard Florida called "The Creative Class [7]" in his 2004 bestseller.
Florida's premise that those who create for a living—some 40 million or more of us—are those who will change the world and who will transform business culture. From engineering to theater, biotech to education, architecture to small business, enterprises and community organizations—the profession doesn't matter as much as the type of people in them. This creative class was predicted to be the driver—the ones who determine how workplaces are organized, what companies will prosper or go bankrupt, and even which cities will thrive—or not.
It's been seven years since the Harvard Business Review named the book a "major breakthrough," and it's clear that Austin’s creative business culture is just one reason that we’re among the cities that have thrived. After all, one of the chief reasons that companies—and people—choose to relocate here is because of that creativity. Forbes ranked Austin first among its 2011 list of "The Next Big Boom Towns in the U.S. [8]" – basing the rankings on job growth (past performance and the last two years), family (percentage growth in children aged 5-17), growth in educated migration, population growth and attractiveness as places to settle, make money, and start businesses.
Austin's business leaders are far from buttoned-up, and that open-minded attitude has paved the way for some pretty significant business success. Michael Dell is just one example, as is GSD&M. But there are many others in all sectors—small and large companies, technology and community, arts and education.
"Creativity is paramount to business innovation," says Sloan Foster [9], principal, Red Dragonfly, a company that helps early- and mid-stage companies achieve the next level of growth through marketing and business development—and an accomplished artist and photographer. "Apple didn't become Apple because they saw the computer as a computer—Steve Jobs saw possibility and looked at creative ways to apply the technology he created. He turned the way we listen to music and see video completely upside-down."
There's no doubt that the savviest of business leaders have many of the same characteristics as prima ballerinas and symphony composers—originality, creativity and a conviction that what they're doing will change the world. And these are the kinds of characteristics that have far-reaching implications, the kind that improve life both qualitatively and quantitatively. Here's a sampling of how Austin's own creative class is making a difference.
Austin’s Entrepreneurial Spirit: A Place to Hang One’s Creative Hat
Austin is ranked 51st on the Innovation Cities Top 100 Index for 2011 [10]—in between Leipzig, Germany and Madrid, Spain. Austin also ranks first among cities where the "business opportunity is greatest for growing companies," according to Expansion magazine [11], and the city leads the nation in "Small Business Vitality [12]" rankings, according to The Business Journals On Numbers (2011).
Part of the reason for all the accolades is that the city and its business culture have worked hard to cultivate innovation. From city and community initiatives to business organizations, Austin has made business innovation and a supportive entrepreneurial spirit a priority.
"Business people have to use creativity every day in business to solve problems, optimize resources and maximize profitability," says Foster. "Marketing and business is all about creativity. How do you differentiate yourself in the market when the world in general has become highly commoditized?"
From fiercely independent local businesses (think BookPeople [13]) to the organizations that support them (think Bootstrap Austin [14] and Door64 [15]), Austin is home to a wealth of creative assets. For example, BiGAUSTIN [16] was the first micro-lending organization in Austin and has helped thousands of businesses get started and become successful. The organization offers entrepreneurial education, business counseling and flexible loans.
The Austin Technology Council [17] is another pivotal organization for entrepreneurs, representing more than 200 technology companies. ATC's focus is on vice president and C-suite-specific programs and forums to better help executives run their businesses. The group is also dedicated to region-specific data collection and analysis (such as compensation, employee satisfaction, issues, and business surveys), as well as community advocacy—especially workforce development, local business growth, and charitable initiatives.
Art and Business
Entrepreneur.com ranked Austin as a top "Creative Center [18]" in 2010, but that comes as no surprise to those who live and work here. The intersection of art and business seems more commonplace here—from art in offices to CEO's who have equal passions for both art and for running successful businesses.
For example, the Austin Creative Alliance [19] provides direct services to more than 50 emerging arts groups and more than 400 member organizations and individual artists—including advocacy and cultural policy to keep the arts alive and well in Austin. That advocacy—and the group's sponsorship of Austin's New Works Theatre Community [20]—resulted in a $90,000 Mellon Foundation [21] Planning Grant. And local arts organizations Rudemechs [22], Fusebox [23] and the Theatre Action Project [24] are all graduates of ACA's Sponsorship Program.
ACA is also working with Pew Charitable Trusts [25] to help bring that organization's Cultural Data Project [26] to Texas to serve artists, those who fund them, and arts organizations. And, through a partnership with Fractured Atlas [27]—a nonprofit organization that offers artists access to funding, healthcare and education, ACA also helps the area’s cultural workers obtain affordable health insurance.
Foster is also working with ACA on an event to bring art and technology together (Bits, Bytes and Bids) that is designed to shine the light on creativity in the business environment. The event includes art donated from those in Austin's tech industry for a silent auction, as well as the opportunity to bid on and cook with some of Austin's top executive chefs.
"I have found that technologists are creative and they often have a hobby of art, or cooking, or something else creative," she explains. "They use this creativity and apply it to their businesses and drive it to success with the vision."
Austin's Quality of Life Spawns Creativity
Austin's quality of life is another creative plus for business—and that's just one reason many businesses make their home here. Austin area company relocations and expansions in 2011 included Apple, Inc., Farmers Insurance, Oracle, PayPal, IBM Samsung, St. Jude Medical, Borland Software, Demand Media, Intel, Hewlett-Packard, Motorola, National Instruments, TECO-Westinghouse, and the U.S. Internal Revenue Service, among other organizations.
Known as an incubator for countless businesses, Austin also boasts several stellar resources for many start-up companies, including Austin Ventures [28]—one of the region's most active venture capital firms with $3 billion under management across 9 funds—and the IC2 Institute [29], the interdisciplinary research unit of the University of Texas at Austin that is home to such renowned entrepreneurial programs as the Austin Technology Incubator [30]; the Bureau of Business Research [31]; and the Global Commercialization Group [32].
And, as the home to the University of Texas [33]—the fifth-largest in the country with an enrollment of nearly 49,000 (as of spring 2011), including 38,549 undergraduates—as well as such other distinguished colleges and universities as St. Edward's University [34], Southwestern University [35] in Georgetown, and Texas State University [36] in San Marcos, Austin is also home to a talented, highly educated and creative employee and entrepreneur base.
"Creativity is paramount to innovation and to U.S. success in a global economy," says Foster. "Everyone is creative—and in Austin, it is alive and well."