While small businesses act as vital economic engines that drive job creation and economic development, many small business owners lack access to the resources they need to catalyze and sustain their growth.
“Generating economic opportunity is what JPMorgan Chase does each and every day. Our support of small businesses is one more way that we add value for our communities. By helping regional economies build on their core assets to develop thriving enterprises, we are helping to create jobs and build a more prosperous society.”
Why Small Businesses Are So Important to Our Economy
full-time jobs the US needs to create by 2020 to bring national unemployment back to pre-recession rates. footnote 1
of U.S. firms are small businesses(<500 employees). footnote 2
total number of small businesses in the U.S. footnote 3
of net new private sector jobs since 1993 were in small businesses. footnote 4
of total private sector employment is affiliated with small businesses. footnote 5
“America’s forward-looking companies are investing in clustered communities, because they see the return on investment. Clusters speed commercially viable ideas from the drawing board to the marketplace. These are communities with buy-in at every level and a proven support structure that nurtures success.”
JPMorgan Chase & Co.’s Response: Small Business Forward
We know that having a good business idea is only part of what it takes for entrepreneurs to build successful small businesses. Support systems are also important to help them access capital, managerial training, skilled workers, supply chains, facilities and new markets. When these supports are customized to serve “clusters” of small businesses working in the same sector, they provide a cost-effective, scalable platform that can benefit successive generations of companies.
According to research by the Initiative for a Competitive Inner City and sponsored by JPMorgan Chase & Co. that examined clusters’ contributions to economic growth in the ten largest U.S. metropolitan areas, “dominant clusters” outpaced overall regional growth by more than 300 percent between 2003 and 2011footnote 6. Small Business Forward, JPMorgan Chase & Co.’s $30 million, five-year initiative will draw on these insights to support the formation, growth and success of small business clusters around the world that will help small business owners in a variety of ways:
Promote discussion about cluster developments, commission research about best practices and support the development of strategic cluster implementation plans.
Support forums that help small business owners connect with investors, mentors, customers and competitors.
Help workforce training organizations align their programs to meet the needs of cluster firms.
Build the management skills and business knowledge of entrepreneurs.
Identify small businesses that can offer general and specialized products and services to cluster firms.
Help cluster businesses access new markets, acquire new customers and grow their revenues.
Fund efforts to develop affordable facilities that can host cluster firms and accommodate their growth as their businesses succeed.
Our Initial Grantees
We have launched Small Business Forward in the following seed markets and will rapidly expand our investments across the United States and around the world:
Bizdom is strengthening the environment for e-commerce businesses in Detroit.
Eastern Market’s new community kitchen gives small business owners access to professional kitchens and connections.
The University of Missouri-Kansas City’s Free Enterprise Center will provide growing businesses access to high tech equipment including 3D printing to help them develop new products.
LA Cleantech Incubator has brought together business, government, and academia in LA to grow the city’s cleantech sector and is now developing satellites throughout California and internationally.
The Water Council connects freshwater research, innovation, education, and business development to make Milwaukee a hub of water technology.
The New Jersey Innovation Institute applies the intellectual and technological resources of the New Jersey Institute of Technology to challenges identified by industry partners.
New Orleans BioInnovation Center is a health sciences incubator that supports promising, high growth companies.
Grand Central Tech brings together New York-based companies to offer access to free support and vital services.
Washington Interactive Network is growing interactive media and technology companies that are generating high-quality jobs in across Puget Sound.
BioSTL is building the regional infrastructure in the bioscience sectors of health and healthcare IT.
At JPMorgan Chase & Co., our goal is simple — always do what’s right for the communities where we do business and be a strong, stable financial leader they can trust. We are committed to building lasting relationships and providing innovative services that cater to their needs.
“In Chicago, we are pursuing bold new strategies to grow our economy. JPMorgan Chase’s support of the Austin Manufacturing Innovation Park is a key element of this remarkable public-private partnership that will bring hundreds of good jobs to Austin and the West Side”
- Anthony Carnevale, Nicole Smith, and Jeff Strohl. Center on Education and the Workforce, Georgetown University, Recovery: Job Growth and Education Requirements Through 2020, http://cew.georgetown.edu/recovery2020
- U.S. Census Bureau, SUSB, CPS; International Trade Administration; Bureau of Labor Statistics, BED; Advocacy-funded research, Small Business GDP: Update 2002-2010, www.sba.gov/advocacy/7540/42371
- SBA Frequently Asked Questions, March 2014,http://www.sba.gov/sites/default/files/FAQ_March_2014_0.pdf
- Bureau of Labor Statistics, BED. See http://www.sba.gov/advocacy/10871
- U.S. Census Bureau, SUSB, CPS; International Trade Administration; Bureau of Labor Statistics, BED; Advocacy-funded research, Small Business GDP: Update 2002-2010 www.sba.gov/advocacy/7540/42371
- Zeuli and Nijhuis, The Missing Link: Clusters, Small Business Growth and Vibrant Urban Economies, ICIC, 2014