Economic Uncertainty and the Rise of Second-Chance Entrepreneurs                             By:  Justin Burkholder

As our world is increasingly acclimating to technology, it is critical to think about the role innovation and entrepreneurship play in society. Creating a business can be effective as it allows an individual to be their own boss, pursue an industry they are interested/skilled in, and the opportunity to build their team or structure. Financial capital, practical skills, a strong market, and motivation/drive are all critical factors for business owners looking to get started in their given industry. Currently, thirty-six states have “ban the box” in place which requires employers to not ask about criminal history on an initial job application. In total, seventy-five percent of the U.S. population lives in a jurisdiction that has banned the box. More states and cities are requiring the application of this policy for private employers and government. Those with criminal histories still experience discrimination in the application process to an extent in those states, along with persons of states and cities in our nation that do not enforce ban the box. Entrepreneurship can be viable as business owners may re-hire formerly incarcerated individuals or prioritize social responsibility to create change.

 

New black-owned businesses start with almost three times less in terms of overall capital ($35,205) compared with new white-owned businesses ($106,720). This disparity in capital investment declines but does not disappear even by the seventh year after startup, according to a 2017 study by Robert Fairlie. From February 2020 to April 2020, it is estimated more than three million business owners were out of work (twenty-two percent.) African Americans during that period saw a forty-one percent decrease in business ownership, with Latinx business owners accounting for thirty-two percent. Providing opportunities for minority business ownership to be restored again should consist of more financial capital investments in their firms, educating the next generation of the opportunities with entrepreneurship, and allowing minorities to have equal access to clean jobs as they increase in the coming years. 


Investments in renewable energy returned an investor a 200 percent yield compared to a 97.2 percent yield for fossil fuel investments, a Forbes 2020 study says. Green jobs are a booming industry begging for more creative minds. South Korea created an initiative in July of 2020 committing USD sixty-one billion towards jobs in sectors combating climate change. The European Green Deal in 2019 also showed a committed effort to eradicate climate change. National Geographic recently released a list of the fasted growing green jobs. Some jobs include urban growers, water quality technicians, clean car engineers, recyclers, green builders, wind energy workers. STEM programs are likened to become increasingly emphasized in education as analytics skills in mathematics and programming are sought after in green jobs today. There are numerous technical skill job programs offered for persons not qualified for construction or technology jobs. 

 

Business owners who can get ahead of the field in an industry are at an extreme competitive advantage. This requires analytical forecasting and some luck, of course. Waste management is an industry which has increased greatly in demand during covid-19, specifically dealing with medical supplies trash. Organic agriculture and ecosystem restoration are green industries that have further growth capability. Ecosystem restoration provides employment for 200,000 workers. With a transition to renewable energy soon, fossil fuel workers will then have to find new work and be trained properly in that field. 


In 2017, the sector with the most women-owned businesses 16.9 percent (192,159) were in the health care and social assistance industry, followed by professional, scientific and technical services 16.4 percent (185,649), and 11.7 percent (132,894) in the retail trade industry. The top sectors for Hispanic-owned firms were construction with 15.6 percent (50,187) of all firms, followed by accommodation and food services 13.0 percent (41,817), and professional, scientific and technical services 10.6 percent (34,292). There were 555,638 Asian-owned businesses, with 23.9 percent (132,698) in the accommodation and food services sector. Black or African Americans owned 124,004 firms in 2017 with 32.0 percent (39,714) of these firms in the healthcare and social services industry.


Black entrepreneurs listed the top motivations in 2020 for opening a business, which the graphic above depicts. Most black businesses are small businesses containing two to five employees as opposed to a solopreneur. There are struggles that entrepreneurs are facing currently. The top three include lack of cash flow/capital, marketing/advertising, and time management. The rise of technology has allowed for advances in these categories to a degree as well. Entrepreneurship is a legitimate path towards social capital and purposeful work because of the opportunity to lead a business, build relationships with the community, and potentially help the environment in the process. Re-hiring people with backgrounds is also an advantage of entrepreneurship. If you are interested in starting a business or in need of vocational skill training, contact us here and we will be of assistance!


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Employment Challenges and Recidivism in Florida

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Reworking Justice-Opportunity in the Aftermath of a Pandemic

November 9, 2020
Many Americans have seen their work experience shift drastically over the course of the past seven months. More than 40 percent of adults reported that they or someone in their families lost a job, work hours, or pay because of the virus. The adults most likely to experience economic losses because of the pandemic come from families with lower incomes (below 250 percent of the federal poverty level.) Jobless rates increased in all fifty states over the last year, however, thirty states saw unemployment rates decrease in September, according to the Bureau of Labor Statistics. African Americans over age sixteen have a 2020 quarter three unemployment rate of 13.2 percent, Latino/Hispanics 11.2 percent, Asians 10.6 percent and Whites 7.9 percent. These numbers contrast to quarter three of 2019, 5.6 percent, 4.2 percent, 2.8 percent, and 3.4 percent, respectively. The spike in minority unemployment is concerning.  Recidivism has not had a large enough sample size to draw meaningful conclusions since covid-19. The early research suggests that arrest rates have decreased significantly for those who have been recently released from jail. In a report of New York with 1,400 people being released from jail since covid-19, roughly fifty have been sent to prison. That is a 4 percent recidivism rate as opposed to the 58 percent mark from 2001 to 2008. A quote from Sheriff Ron Hain of Kane County, Illinois, depicts recidivism rates of 60 percent pre-COVID. From March 13 to June 23 of 2020, twenty-eight of the 1,000 people in their system were sent back to jail custody upon their deferral or early release. That is a recidivism rate of 2 percent. Again, a small sample size but a real-life example. The Sheriff’s Diversion Programs are shifting to serve outside the facility with satellite locations for vocational training and job placement to help keep those with chronic criminal involvement from re-offending by offering professional opportunities. Reentry service providers are demanding Congress and states to spend funding and resources for the move of people back home to reduce recidivism rates. Some of the offered solutions by advocates include additional stimulus checks to people released from prisons and jails, canceling incarceration-related debts, and expanding safety net programs to be inclusive of those with criminal records. You can read more here. Those who are being released from prison during covid-19 are finding limited jobs in familiar industries such as hospitality and manufacturing. Before the pandemic, Prison Policy Initiative reported that formerly incarcerated individuals are five teams more likely to be unemployed than the rest of society. During the pandemic, Project Return of Nashville is suggesting 75 percent of her clients are without work. To meet the needs of their clients, they bought tents and sleeping bags and were transferring people to hotel rooms. You can read more about their work here. Supply and demand have affected various industries drastically the past nine months (see below). Health had a clear increase in demand recently and transport remained essential, however, consisted of mainly empty trains. Entertainment and restaurants significantly decreased in demand and felt the dismissal of supply as well. Supply is largely dependent on the ability of the work to be completed at home or not. The government’s hesitance on spending in frozen sectors also slows the transfer of resources for businesses. The Small Business Administration’s Payment Protection Program was a helpful initiative in encouraging workers to be furloughed and retained instead of directly fired. The recovery should be better suited because of an initiative like this.

Equity Changed How We Think About Justice

July 17, 2018
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