Building Inclusive Local Economies...• Expands from local to regional, national and international markets • Results in more resilient and adaptive businesses • Results in quality

Building Inclusive Local Economies Growing Existing Small Businesses

© 2018, Interise. All rights reserved. Permission required for reproduction and distribution.

U.S. Conference of Mayors 86th Annual Meeting June 8-11, 2018

SINCE 2007, WORKING WITH PARTNERS IN 73 CITIES TO GROW

EXISTING SMALL BUSINESSES…6,000+ and counting!


INTRODUCING INTERISE

ECONOMIC INCLUSION Mayors Want Concrete Solutions


BRIDGING AMERICA’S WEALTH GAP Opportunity to Accumulate Wealth

Good for families, the US economy, and your city


We cannot create or allow to be created two cities in one, of haves and

have-nots. You have to build a city for the middle class.

- Mayor Turner


“BOOTSTRAPS” DOESN’T TELL FULL STORY

Education, marriage, family structure, full-time employment –

none of this can explain the gap, and none can close it.

Source: Traub et al, The Asset Value of Whiteness.


WHY EXISTING SMALL BUSINESSES? Proven Impact

• >50% of new businesses don’t exist after 5 years

• 20% of small businesses are employers

• 60% of private sector’s jobs are created by existing small

employer firms

ESTABLISHED, GROWTH-ORIENTED SMALL BUSINESSES HAVE A LARGER

IMPACT ON LOCAL ECONOMIES.


CLOSING THE WEALTH GAP

THROUGH GROWTH OF EXISTING SMALL BUSINESSES

• African-American business owners have 12x the wealth

of African-American non-business owners.

• Business ownership decreases the racial wealth gap by a factor of 3.


UNLOCKING SECOND-STAGE GROWTH

INTERISE BUSINESSES

consistently create jobs at

6.1 times the rate of the

PRIVATE SECTOR,

with an average salary

of $52K.

INCLUSION REQUIRES ECOSYSTEM APPROACH

An inclusive system leverages the growth of existing small businesses equitably


SYSTEMIC CHANGE In order to optimize the whole,

we must improve relationships

among the parts.


CAPACITY BUILDING: ON-RAMP TO INCLUSION


• Creates opportunity to access knowledge, know-how, networks, and capital

• Grows business leaders committed to continuous learning

• Expands from local to regional, national and international markets

• Results in more resilient and adaptive businesses

• Results in quality job creation – salaries, benefits, staff development

• Strengthens your city’s economic resilience and increases local wealth

• Builds and Strengthens Social Capital and Trust


THE CONTRACTING FACTOR


MORE JOBS, WITH HIGHER WAGES, SALARIES, AND BENEFITS

– THAT’S THE CONTRACTING FACTOR.


#IMPACTMATTERS in HOUSTON

• Jobs created or maintained: 292

• Average new employee salary: $59,200

• Average full-time staff hired locally: 81%

• Average revenue growth: 45%

• Average value per new contract: $390,000

JOB CREATION BUSINESS GROWTH


2015 IMPACT IN HOUSTON

If you are committed to

equitable and inclusive economic

development in your city,

we should talk.

Jean Horstman, Chief Executive Officer

[email protected]

617.350.6301

Thank you!


Documents

Building Inclusive Local Economies...• Expands from local to regional, national and international markets • Results in more resilient and adaptive businesses • Results in quality