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Despite robust economic growth since the 2008 Recession, a surprising number of people have yet to share in the prosperity of this uneven recovery with the chance to contribute to its success. While the unemployment rate is low, the US also is experiencing low levels of workforce participation. A recent American Enterprise Institute Report reports a 300 percent increase in the last 50 years in non-working men between the ages of 25 and 54.
Sky high unemployment rates plague particular subsets of the population whose track record and lack of recent work histories make employers reluctant to hire them. Across the US, an estimated 564,708 people are homeless on any given night.
We are inspired by the grit and determination that is moving people from the periphery of society to the center of the economy, full of belonging, pride and optimism.
The Roberts Enterprise Development Fund is a venture philanthropy in the US that exclusively invests in a solution to this problem, with evidence behind it. The core focus is to build a robust and growing national network of employment social enterprises, the successful brand of businesses that invest the money they make into helping their employees get a lasting shot at a better life.
Social enterprises are double bottom line businesses whose social mission is to offer people facing barriers the chance to work, and the support to remain employed. A job at a social enterprise provides so much more than a paycheck – it provides stability, a sense of pride and purpose, a real path to self-sufficiency, and hope. People have a real job with managers that support their success while receiving access to the supports they need to strengthen their soft and hard skills so that they can succeed at work.
The Mathematica Jobs Study shows that one of every four individuals employed had never held a legitimate job, and nine of every ten did not have stable housing the year before their social enterprise employment. Seven of every ten of these individuals received government benefits as the primary source of income before working in these social enterprises. The benefits go beyond economics as many of these workers experienced violence and trauma, with histories of substance abuse and mental health issues.
Social enterprises generate a social return of $2.23 for every $1 they spend by earning revenue from the sale of products and services. Those employed reduce reliance on publicly funded entitlements, becoming earners who contribute to the economy and pay taxes.
It is inspiring to witness the grit and determination that is moving people from the periphery of society to the center of the economy, full of belonging, pride and optimism. Transforming lives, one job at a time, is an investment that works.
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Original contribution by Carla Javits is the President and CEO of The Roberts Enterprise Development Fund