An independent study of Goldman Sachs 10,000 Small Businesses found that participating businesses experience dramatic revenue growth and create jobs, including in New York City where LaGuardia Community College administers the program.
The second edition of the report, Stimulating Small Business Growth, is based on a study conducted by Babson College, ranked by U.S. News and World Report as the number one undergraduate and graduate business school in entrepreneurship for 18 and 21 consecutive years.
The program at LaGuardia, now in its fifth year, has guided participants to expand their businesses, increase revenues, create jobs and make a positive impact on the local economy. Because of LaGuardia’s focus on results and deep commitment to students, the College was selected by Goldman Sachs as the first partner site of 10,000 Small Businesses and has helped forge the program into what it is today.
In operation at 25 locations around the world, 10,000 Small Businesses is a $500 million investment to help entrepreneurs by providing them with greater access to education, financial capital and business support services. The program maintains a 99% graduation rate and creates opportunities for collaboration among program alumni. LaGuardia has graduated more than 470 small businesses from the program.
“10,000 Small Businesses provides small business owners with the tools and strategies they need to take their businesses to the next level and to create jobs,” said Dr. Gail O. Mellow, president of LaGuardia. “Goldman Sachs has done a tremendous job of investing in the future of our community by creating this program.”
Babson reports that globally 10,000 Small Businesses has bolstered revenues for 67% of participants within six months of program completion; that percentage grows to 76% 18 months after graduation. Comparatively, the National Small Business Association (NSBA) 2014 Year-End Economic Report indicated just 45% of business owners reported increased revenues over the prior 12 months.
“These results confirm that small businesses continue to play a central role in spurring economic growth and job creation in their communities and nationwide and we are so pleased to see how this program has contributed to their success,” said Dina Habib Powell, president of the Goldman Sachs Foundation and head of the firm’s impact investing business.
10,000 Small Businesses at LaGuardia alumni Rhys W. Powell is the president and founder of Red Rabbit, LLC, which delivers healthy, made from scratch meals to schools and camps around New York City. Since participating in the program revenue has gone up 800% and Red Rabbit has gone from providing meals at just 30 schools to providing over 20,000 meals per day at 150 school and camp locations.
Mr. Powell credits 10,000 Small Businesses for teaching him how to implement a management structure built to support growth. “What I learned in the program gave me the skills to take Red Rabbit from a founder-run organization to a management-run organization,” he said.
Jessica Johnson, president of Johnson Security Bureau, Inc. and graduate of the first 10,000 Small Businesses cohort at LaGuardia in 2010, can also attest to the growth observed in Babson’s study. The company, which provides professional transport, guard, patrol and protective services, has had a 600% increase in revenues.
Babson’s study also found that 46% of 10,000 Small Businesses participants have reported creating new jobs within six months of graduation; that figure rises to 57% after 18 months. These increases in workforce dwarf the 22% of new job creation cited in the NSBA report.
Stimulating Small Business Growth indicated businesses that created jobs within six months of completing the program was slightly higher in New York City at 47.3%
Johnson Security Bureau, Inc. is among those to boost the number of employees having increased their staff six fold in the five years since participating and Red Rabbit has had 1,000% growth in workforce.
Both continue to stay connected with 10,000 Small Businesses through workshops and networking events, as well as through business opportunities. Red Rabbit has collaborated with several alumni including Frazier & Son and is board member of GreenHouse Eco-Cleaning.
The report findings show that 84% of program alumni have done, or are doing, business with each other. 10,000 Small Businesses keeps graduates connected through alumni workshops and programs.
Most program alumni are also reinvesting in their businesses as 86% are providing on the job training for new employees, which is up from 77% before participating in 10,000 Small Businesses. Additionally, more business owners report providing medical and dental benefits to their teams than before they completed the program.
10,000 Small Businesses is unlike other business development programs, as it focuses on established small businesses, rather than start-ups; the typical participant has been in business for 11 years.