Business

Goldman Sachs 10,000 Small Businesses Graduates Continue to Outperform U.S. Small Businesses

National entrepreneurial learning program with presence at Miami Dade College demonstrates power of investing in small business owners to drive growth and create jobs

Miami – In a new report from Babson College released today (July 8), the small business owners who have completed the educational component of the Goldman Sachs 10,000 Small Businesses program grow their revenue and create jobs at rates that outperform the broader economy. The report surveyed approximately 2,300 of the nearly 5,000 who have now benefited from the program, including at Miami Dade College (MDC).

goldman-sachs-logoThe report, Stimulating Small Business Growth: Progress Report on Goldman Sachs 10,000 Small Businesses, details the progress of the thousands of small businesses that have participated in the 10,000 Small Businesses program launched to help entrepreneurs across the United States grow their businesses and create jobs.

“In just 18 months after completing the program, 76.0 percent of program graduates increased their revenues and 57.1 percent created new jobs, said Dr. Kerry Healey, President of Babson College, which is the academic partner of 10,000 Small Businesses.

MDC, the only program in Florida where business owners can access the 10,000 Small Businesses management education program, has already graduated 99 local business owners since it was launched in September 2013, and an additional 34 scholars are currently taking classes bringing the total number of participants to 133 to date.

Dr. Eduardo J. Padrón
Dr. Eduardo J. Padrón

“The findings in the Babson study confirm what graduates from the program have been reporting all along – that the 10,000 Small Businesses initiative is helping participating business owners expand their businesses and grow our local economy. In Miami-Dade County, this is huge,“ said Dr. Eduardo J. Padrón, President of Miami Dade College. “Several of our graduates have taken their business to a whole new level.”

“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.

“The report clearly shows the positive impact the 10,000 Small Businesses program at MDC is having and can continue to have on our South Florida economy,” added John Hall, Executive Director of Goldman Sachs 10,000 Small Businesses at Miami Dade College.

Key Findings

  1. 10,000 Small Businesses graduates are more likely to report revenue growth and job creation than U.S. small businesses generally – results are seen within six months of graduation, and notably businesses are still growing 18 months after completing the program
  2. With nearly twice the sample size of last year’s inaugural report, and now including data 18 months out from the program, Babson reports that:
  • 67% of participants have reported increasing their revenues just six months after graduating, which rises to 76% after 18 months
    • Compared to 45% of U.S. small businesses according to a survey by the National Small Businesses Association (NSBA)
  • 46% of participants have reported creating net new jobs just six months after graduating, which rises to 57% after 18 months
    • Compared to 22% of U.S. small businesses according to that same survey by (NSBA)
  1. The program maintains a 99% graduation rate and fosters a marketplace where 84% of graduates do business together
  • Those who collaborate with others generally more often report growth in revenues and growth in jobs. The number of business owners reporting increased revenue and/or increased jobs generally increases along with the intensity of the type of collaboration
  1. 10,000 Small Businesses is supporting business growth for an underserved market of established firms, going beyond the heavily supported startup market
  • 10,000 Small Businesses mainly serves mature businesses, looking to grow to the next level. The typical business comes into the program with $692,000 in revenues, 11 employees, and having been in business 11 years
  1. Capital works and is a key driver of business growth. 10,000 Small Businesses owners who acquired capital were 13% more likely to grow revenues, while creating, on average, 33% more jobs than those who did not acquire capital
  2. What’s good for employees is good for business. When entering the program 77% of businesses report providing on-the-job-training for all or most employees and 32% provide medical and/or dental coverage to all or most employees. Eighteen months after graduating, these rates rise to 86% and 43%, respectively.

“Through 10,000 Small Businesses, we see businesses grow their revenues and create new jobs, while we learn more about a critical sector of the economy−small businesses that are not new or from any particular industry, but develop or flourish through models of peer learning and business collaboration,” commented Patricia G. Greene, Babson College Professor, National Academic Director for Goldman Sachs 10,000 Small Businesses and Lead Author of the Report.

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