Small Business, Big Impact

SMALL BUSINESS, BIG IMPACT:

Philanthropy’s Untapped Opportunity to Advance Health and Equity

October 28, 2019
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OVERVIEW

KEY TAKEAWAY

Leaders in philanthropy increasingly recognize the role of business in advancing their objectives. To date, the primary focus of most efforts to engage business has been on large companies. Yet, small businesses are an untapped resource and should be a valuable partner in creating opportunities to advance health, equity and an inclusive economy.

BACKGROUND

Over the last year, Public Private Strategies (PPS) conducted research funded by the Robert Wood Johnson Foundation to better understand opportunities for philanthropy to engage small business in advancing health equity, defined as creating equal opportunities for all individuals to achieve the healthiest life possible. The report details ways to effectively and efficiently engage small business owners in this work. As part of this research, PPS conducted close to 100 interviews with small business leaders, philanthropic and ecosystem actors across the country.

KEY FINDINGS

Small business owners are leading members of their communities, but efforts to engage them should respect the unique traits of the small business community. Top takeaways for engagement include: 
A small business impacts the financial lives of nearly 30 % of americans.

Small business owners are numerous and diverse

There are 30 million small businesses across the United States, representing over 90% of all businesses in the country. What’s more, 43% of small businesses are found in low-wealth communities. Diverse entrepreneurs are starting businesses at higher rates creating jobs and income in these economically-disadvantaged areas.

Business ownership is a driver of wealth creation

Business ownership is a proven path to addressing the racial wealth gap. On average, business-owning households hold more than twice the wealth of their wage-earning peers and the wealth-creation impact is more pronounced for business owners of color.
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The voice of small business owners is trusted

Knowing what is on the minds of small business owners can help identify priorities in a specific place or across the country. Additionally, support from small business can strengthen the case for policy proposals that advance healthy communities.

Efforts to engage small business owners have to make sense for them

Small business owners are stretched thin and pressed for time. Business owners typically carefully choose where and how to engage, with an eye toward prioritizing activities that advance the business and address their pain points. 
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Rethink the current engagement model with “business” to include small business

Absent purposeful action, the opportunity to harness the power of small businesses will be missed. Engaging small business in advancing health and equity objectives will require foundations to consider collaborations that move beyond the usual suspects to include nontraditional partners. 

Listening between partners needs to improve

Philanthropy needs to invest in infrastructure that allows them to listen to and engage small business. Additionally, foundations need to increase dialogue and identify opportunities for cross-sector funding collaboratives to amplify impact of traditional community development. 
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RECOMMENDATIONS FOR PHILANTHROPY

In addition to the above takeaways about small business engagement, our recommendations for philanthropy are organized into seven areas of opportunity. These include: 
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COMMUNITY STABILIZATION

Shape the ways that the public thinks about and understand the role and value of small businesses, including to advance health equity.
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WEALTH BUILDING

Generate income and build assets through entrepreneurship and business ownership, especially for diverse business owners and communities.
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BUSINESS BUILDING

Create incentives and opportunities for small businesses to meet health and wellness needs.
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BETTER BUSINESS, STRONGER FAMILIES

Help small business owners and their employees increase family economic stability.
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POLICY & ADVOCACY

Engage small business in the public policy process, utilizing their voices to advocate for policies and programs that advance health equity. 
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LEADERSHIP & ENGAGEMENT

Advance strategies that deepen leadership capabilities, and connect small business leaders to each other and relevant stakeholders as part of a process to improve community health.
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IDEAS & INFLUENCE

Shape the ways that the public thinks about and understand the role and value of small businesses, including to advance health equity.

ADVANCE HEALTH EQUITY & INCLUSIVE ECONOMIES

INFORM PRIORITIES & PROMOTE POLICIES

LEARN MORE

This report inspires and promotes better engagement of small business owners into existing and future efforts to promote health, equity and economic inclusion in communities nationwide.
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