Proven Model for Inclusive Economic Development | 10-Year Series
Small business owners in low- and moderate-income communities and/or from historically disadvantaged social and economic groups often lack the business knowledge and management know-how necessary for second-stage growth. Additionally, they are often excluded from the networks that comprise the larger business ecosystems, including financing and procurement. To catalyze a more inclusive and equitable small business ecosystem, Interise developed the StreetWise 'MBA'™.
According to Intersise's 10-Year Report, companies that successfully completed a StreetWise 'MBA'™ program outperformed the private sector as a whole, consistently achieving net new job growth in both boom and lean economic years. Even in the Great Recession, Interise businesses continued to create jobs.
Interise stimulates economic revitalization in low- and moderate-income communities through job creation, wealth generation, and the fostering of community leadership. We do this by building the organizational capacity of established, growth-oriented businesses — those beyond the start-up stage — enabling them to continue to grow. Interise's capacity building program, the StreetWise 'MBA'™, uses a peer-based model that provides small business owners with the knowledge, know-how, and relationships they need to achieve scale. Interise focuses on small businesses located in low- and moderate-income communities and/or owned by racial and ethnic minorities.
Key findings from Interise's 10-Year Report show that capacity building support has large, positive effects on job creation and business health; gains in employment, revenue growth, and access to capital are persistent over time; underlying the gains in employment and business health are positive changes in the behaviors of small business owners.
We find that job growth rates are higher for Latino- and black-owned businesses relative to other alumni segments. As seen in Figure 2 below, taken from the report, the network as a whole has high job growth rates in the first two years following graduation from a StreetWise 'MBA' program; this growth continues, but at a slower pace in the third year. In contrast, Latino-owned businesses have a dramatic increase in the second year, and higher than average growth in the third year. Patterns also differ between black-owned and white-owned businesses (Figure 3).
Business growth is consistent across alumni segments: Interise alumni generate wealth by growing revenues. On average, alumni businesses experienced revenue growth of 7.5 percent per year. Minority-owned businesses, as well as those located in low- to moderate-income communities experienced similar trends of consistent, positive revenue growth over time, as shown in Table 5 from Interise's 10-Year Impact Report.
Check out Interise's 10-Year Report below to further explore the role of two factors on business outcomes: the income-level of the area in which businesses are located, and the race and ethnicity of the business owner.