INTERISE INSIGHT: Creating Good Jobs
Jobs and wages are major topics in the national conversation about our economy. Unemployment is down, but jobs with good wages are still hard to come by, leaving many workers scrambling to get by.
Interise’s 2016 Impact Report shows the power of small business to create good, local jobs in the communities where they’re needed most. In 2015, StreetWise ‘MBA’™ alumni created jobs at nine times the rate of the private sector. Alumni from 2012, 2013, and 2014 created 2,129 new jobs and retained 10,978. 65% of these businesses were minority-owned or located in low- or moderate-income census tracts.
The average annual salary of the jobs that Interise alumni created was $52,466, as compared to the national average of $49,630. The average hourly wage for jobs created by Interise businesses was $20.
In 2015, Interise alumni created 5.8 new jobs per business. Minority-owned companies created 7.2 jobs per business.
StreetWise ‘MBA’™ alumni rounded out the foundation of a good salary with 72% of firms offering paid sick time, 80% offering paid vacation, 82% offering paid holidays, and 48% providing formal job training opportunities. Almost 60% of alumni businesses provided health insurance. These components of a good job are supported by the CEO’s behavior change: 78% of alumni reported having established procedures to assess human resource needs and 75% reported having procedures to manage employee performance.
The capacity-building support provided by the StreetWise ‘MBA’™ catalyzes job creation. Interise is researching additional factors to leverage for creating good jobs where they’re needed most. The first of these is the #ContractingFactor, and how contracts enable small businesses to create more jobs with higher salaries and benefits than small businesses without contracts.
#ImpactMattersInterise’s 2016 Impact Report is based on our annual assessment of StreetWise ‘MBA’™ alumni. The questionnaire was sent to 1,669 alumni from 2013, 2014, and 2015 cohorts to collect 2015 business outcomes and CEO behavioral data, yielding a response rate of 52%.