State and local governments spend tens of billions each year wooing companies to move with tax breaks and incentive deals, Kauffman Foundations’s research finds those dollars rarely deliver broad, lasting gains.

It also showed where most new jobs—almost 80 percent—come from businesses already in-state, started and grown by entrepreneurs who tend to stay where they live. That statistic is exactly why Economic Gardening focuses on helping a home-grown firms scale, vs. chasing the next big company relocation.

Bulleted highlights:

• Home-grown firms create almost 80% of new jobs; there’s little evidence entrepreneurs move to start their business.

• Large companies (100+ employees) are around 2% of employers but receive 80–90% of incentive dollars.

• Typical incentive packages equal only 2–3% of a firm’s wage bill and often have little impact on location decisions.

• Policymakers can see where they can use EG processes and tactics to strengthen a broader regional economy—exactly where Economic Gardening operates and is intended to support.