But the unemployment rate for workers without high school degrees rose during this time. Either finance is refused or the cost of finance is greater. This is due to the higher risk and greater likelihood of failure. They are typically located near high-rent areas, major business centers, and transportation and communications nodes. Inner cities can offer a competitive advantage to companies that benefit from proximity to downtown business districts, logistical infrastructure, entertainment or tourist centers, and concentrations of companies.
Competitive clusters create two types of potential advantages.
The first is for business formation. The article points out that many businesses are leaving Manhattan. In the 1950s there were around 1,000,000 manufacturing jobs in New York. Today there are only 260,000 manufacturing jobs. In apparel the number has been cut by one-third in 25 years.