BOSTON, Dec. 10, 2019 /PRNewswire-PRWeb/ -- Today, Interise, a national economic development non-profit, released its annual impact report. The 2019 Impact Report, An Inclusive Economy Starts Here, surveys close to 1,300 alumni businesses nationwide, and finds that the creation of an equitable small business ecosystem is critical to closing the nation's ever-widening wealth gap.
"As businesses grow and create career-track jobs paying above average salaries with better benefits, they increase the quality of life for business owners, their employees, families, and the community," said Darrell Byers, CEO of Interise. "Our research shows that there is a clear business case on how to close the wealth gap. Small business development is a proven strategy that closes the wealth gap, powering economic development and job creation across race and place."
Consistent with Interise's prior impact reports, this year's report shows that:
- StreetWise 'MBA' alumni companies experienced double-digit annual revenue growth rates, with an average annual growth rate of 36 percent.
- Minority alumni companies operating businesses in low and moderate income communities saw the largest average annual growth rate of 77 percent.
- Alumni companies created jobs at a higher rate than the private sector (4 times the national rate) with salaries higher than the national average.
- Interestingly, job creation was highest for alumni companies operating in low and moderate income areas, as this segment created jobs close to 7 times the national private sector rate.
Nancy S. Lee, PhD, Interise's Director of Research and Evaluation said, "This year Interise was able to do far more analysis related to the intersection of race and place because of the high number of alumni businesses we now have in our network. This revealed strong patterns that we will further explore. For example, the segment that experienced the greatest revenue growth and job creation is minority-owned companies located in low and moderate income areas — demonstrating clearly that race and place matter."
Other notable findings include
- Revenue outcomes are different for racial minorities and Latinx business owners. Growth among minority-owned businesses is driven by those in low and moderate income areas; while revenue growth among Latinx owned companies is driven by those in middle and upper income areas.
- In low and moderate income areas, white borrowers received twice as much in new financing as minority and Latinx borrowers, despite the businesses being similar in size in terms of revenue and full-time jobs.
- Government procurement comprised the largest portion of new contracts for minority businesses — while the smallest proportions were associated with anchor institutions and corporations.
One of the main focuses of Interise's research is to understand what are the systemic impediments that are holding back small business led economic development. Opportunities exist in strengthening systems for procurement and access to capital.
In the report, Interise also calls upon the field of economic development, state and local government, and capital providers to activate additional small business capacity building resources, aggressive goals for supplier diversity, and the creation of innovative financing tools. Interise will host a national convening in Boston (March 9-11) for visionaries, practitioners, and small business owners who are actively changing the model of economic development to create an inclusive economy; for more information, visit Interise2020.org.
About Interise
Interise builds an inclusive economy through small business development, supporting the growth of minority-owned small businesses and small businesses located in low and moderate income communities. Interise's award-winning StreetWise 'MBA'™ uses a peer-learning method to provide business owners with the knowledge, know-how, and networks necessary to grow and scale. As Interise companies grow, they contribute to local job creation and build community wealth. Interise companies historically create new jobs at 5x the rate of the private sector, and are responsible for the creation of over 30,000 new jobs. Interise partners with government agencies, anchor institutions, and business associations to make locally branded StreetWise 'MBA'™ programs available in 75+ cities, nationwide. Strategic Growth Partners include the Kauffman Foundation, the Surdna Foundation, and the Prudential Foundation.
SOURCE Interise
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