A few weeks ago, we shared what the data tells us about homeownership: when families have a stable place to live, the return shows up across generations. For every dollar invested in helping families buy homes, communities see $5.25 in return. Across 11,000 households, that’s $283 million invested and $1.48 billion in economic benefits over time.
Business development is another part of that story.
The latest social return analysis shows that when access to capital and support reaches the businesses that have been systemically shut out, the return is also significant. The report looks at nearly $560 million in business development efforts over the next decade and projects $1.1 billion in societal benefits, with a social return of $19 for every dollar invested.
Across 5,000 businesses, each entrepreneur supported is projected to gain $117,836 in additional net income. Those businesses are expected to create nearly 8,000 jobs over 10 years, with each employee projected to gain $68,231 in additional net income.
That means more income for business owners and workers. More stability for households. More money moving through local businesses and neighborhoods. The report also projects approximately $139 million in additional tax revenue from income gains alone.
When a local business has the right support at the right time, it can become a foundational part of the community. It can hire local. It can buy from another local vendor. It can help a family build savings, take on a lease, make payroll, or plan beyond the next emergency.
That is how more dollars keep circulating in the community.
For Black entrepreneurs and entrepreneurs of color, access to that kind of support has never been equal. Redlining, credit discrimination, limited access to generational wealth, and long-standing barriers have shaped who gets capital, when they get it, and what terms they are asked to accept.
Business development is not separate from the work of closing the racial wealth gap. It is one of the ways we get there.
In the 3rd and final part of of this series, we’ll turn to commercial development and look at what the analysis tells us about ownership, investment, and what it means when communities have a stronger stake in the places being built around them.
Read the full report here.
In Gratitude,
The GroundBreak Coalition Team
