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Business and Job Development in the U.S.

Issue

“Without adequate income poor people are unlikely to acquire assets. . . . Similarly, lack of asset ownership limits income opportunities, such as starting a business.”

— Closing the Wealth Gap through Self-Employment

Funding

12% of foundation dollars to combat poverty in the U.S. in 2007 funded small business or job development programs

Challenge

How can we empower people to achieve financial security?

Strategy

Build entrepreneurial capacity and economic independence of low-income women through business management training, loans, and technical support

Case Study

Women’s Initiative for Self Employment, California

Helps high potential, low-income women, especially women of color and immigrants, achieve business ownership
Offers training at 7 sites in the San Francisco Bay Area
Provides childcare and transportation stipends, low-interest loans, and matched savings accounts (IDAs)
Funded in part by the U.S. Small Business Administration, corporate donors, and private and community foundations

Results

Over its 20-year history, helped low-income women develop more than 1,600 businesses
Disbursed over $800,000 in loans and leveraged $1.8 million from other sources
Clients more than tripled their household wealth within two years after training

Research Sources

Women's Initiative

Closing the Wealth Gap Through Self-Employment
Karuna Jaggar and Elizabeth de Renzy
7/2008

Cadence Helps Women Take Initiative
Silicon Valley Business Journal Giving Guide 2008-2009
9/2008

Women's Initiative Business Students Graduate Prepared for Success
Oakland-Berkeley Alameda County Globe
6/2008

Zellerbach Family Foundation Annual Report 2007

Research Studies: Minority Women Business Owners Center for Women's Business Research