Investing In Job Creation
In order to create jobs, I’d like to suggest investing more government monies in programs and resources for established small businesses — those with the greatest impact on living conditions and employment opportunities in their local communities. The vast majority of existing programs and financial resources are set aside for startups, 80 percent of whom are not in business after five years, leaving few resources for businesses that have already survived the start-up stage.
When existing small businesses are equipped with the right mix of tools — knowledge, know-how, and networks — they are able to achieve sustainable growth. This approach, both educational and relational in nature, brings together a powerful blend of resources and helps businesses become stronger and work smarter.
Spurring Growth
This approach to small business executive education is not just an idea, it’s a proven solution that the member network of small businesses at Interise, my organization, has implemented and succeeded with. Historically, after completing the curriculum our small businesses will, on average, create 1.5 new jobs per year. In 2009, during the recession, they created an average of three new jobs per businesses, accounting for a total of 456 new jobs.
We’ve found that the secret sauce to this approach is bridging the knowledge and know-how with personal relationships. Isolation is a huge barrier to success for small business owners. By sharing and learning with peers and business experts, this factor is no longer an issue.
As our local businesses flourish, so do the communities where they are located. Implementing the approach described above is particularly crucial in lower-income communities that are historically underserved. Our data show that our approach works and is effective in both major cities and secondary cities like Lowell, Worcester, and Lawrence.
Setting aside money and resources for existing small businesses is not a quick fix for the unemployment epidemic facing our nation. It does, however, address the root cause of the problem and lays the foundation of systemic change.
When it comes to job creation, small, smart and connected is the new big thing.
Jean Horstman is CEO of Boston-based Interise, a nonprofit organization that supports small businesses.
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