In a new report from Babson College, the small business owners, especially those who have completed the educational component of the Goldman Sachs 10,000 Small Businesses program have created more jobs at rates that outperform the bigger companies, based on a survey of 2,300 of the nearly 5,000 who have now benefited from the program.
The report 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 Kerry Healey, President of Babson College, which is the academic partner of 10,000 Small Businesses.
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)
- 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
- 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
- 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
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, with an additional 20% of alumni providing these benefits to some employees
— Businesses who absorb these costs and provide these benefits to employees are generally as likely to grow as alumni generally
“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,” said Patricia G. Greene, Babson College Professor, National Academic Director for Goldman Sachs 10,000 Small Businesses and Lead Author of the Report.
Goldman Sachs10,000 Small Businesses is based on the broadly held view of leading experts that greater access to this combination of education, capital, and support services best addresses barriers to growth for small businesses.
The program 10,000 Small Businesses is guided by an Advisory Council is co-chaired by Goldman Sachs CEO Lloyd C. Blankfein, Bloomberg founder and 108th Mayor of the City of New York Michael R. Bloomberg, Berkshire Hathaway chairman and CEO Warren Buffett, among others.