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The insufficiency of education alone

It was difficult for program coordinators to determine whether the mentors and entrepreneurs paired together would develop a personal rapport, which is necessary for the process to be effective.

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Persuading financial institutions to lend to ADME participants was also difficult. When lenders agree to act as partner organisations, they are not required to commit to funding ADME participants. While there was an understanding that these groups would lend on the basis of character and adopt a more flexible approach when assessing candidate's financial backgrounds, this was not always the case.

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Illinois has launched a business incubator for high-potential minority entrepreneurs to drive job growth in deprived communities. The scheme selects entrepreneurs on the basis of their individual potential and provides them with six to eight weeks of business training, a mentor with experience in their field and preferential access to state-linked financial institutions.

Launched this year, the pilot program is being run in three cities across Illinois Chicago, Peoria and Rockford with the aim of identifying and supporting high-potential aspiring minority and women entrepreneurs. To discern the highest potential entrepreneurs, program organisers partnered with Gallup to develop an Entrepreneur Viability score, which is the primary means of assessing applicants. These results are supplemented by additional competency questions developed by the state in partnership with Gallup.

When combined with the BP10 assessment, the process produces a viability score for each entrepreneur with a value between zero and Applicants with the highest scores are selected to participate in the program. That was the most important thing: people that could go out and create jobs. The course itself consists of a six- to eight-week training program delivered through the Illinois Small Business Development Centre. The curriculum was designed specifically for the ADME program and aims to give participants an understanding of all key aspects of building and running a business.

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Delivered through workshops with approximately 15 people, the sessions focus on marketing strategies, financial planning, customer relations and managing human resources, among other things. Personal business mentors are assigned once the participant has completed the training course. They are selected based on the relevance of their experience, industry knowledge and ability to provide practical, ongoing guidance.

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The point is to build relationships that outlast the program and can be useful in the long-term. One key element in making the relationship between mentor and entrepreneur work is partnering mentors with participants who have businesses of similar sizes.

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We wanted to make sure they were as closely aligned as possible so that mentors understand the same concepts. Although external organisations were drawn on to source some mentors, they were selected primarily through the connections of ADME administrators. As well as opening doors to people, ADME makes capital more accessible. After completing the training process, entrepreneurs are connected directly with a partner financial organisation based on the amount they are looking to borrow.

Although there are no specific lending requirements for financial institutions who agree to be partner organisations, the understanding is that they will look more sympathetically at ADME participants. The aging of the baby boomers, immigration, and the continued evolution of family structure in America have transformed our society, influencing the incidence and the profile of U.

Perhaps the single largest demographic shift affecting the United States since is a rapid increase in the Latino population. The Immigration and Nationality Act of paved the way for a new influx of workers and families from Mexico, Central America, and South America, among other world regions. In , U.

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As a result, the U. In fact, Latinos now represent a larger share of the poor than African Americans Figure 2. In , 56 percent of poor Americans were white, 32 percent were black, and 10 percent were Hispanic.

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Today, 42 percent of the poor are white, 23 percent are black, and 29 percent are Hispanic. While poor Hispanics have overtaken poor blacks in number, members of these two groups were about equally likely to be poor in 27 percent , much more so than whites 10 percent. The Latino poor remain somewhat more regionally concentrated than their black counterparts, but nonetheless represent a much larger part of the poverty picture today than four decades ago. Amid this diversifying population, the foreign born are more likely to live in poverty today than in , although their poverty rates have stabilized and fallen somewhat since the early s.

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Poor Population, and Source: U. Poor people today are much more likely to be of working age than those in Fully 57 percent of individuals below the poverty line in were between the ages of 18 and 64, up from 43 percent in This results from the confluence of at least two trends. As the boomers enter retirement age, the elderly share of the poor will undoubtedly increase onceagain, but working-age adults and their children seem likely to account for the vast majority of the poor in years to come. A third demographic trend, the rise of single-parent households, also altered the picture of poverty in America during the past four decades.

In , 86 percent of children lived in married-couple families, a share that dropped to 61 percent by That increase was partially offset by the movement of single mothers into the labor force, which increased their earnings and reduced their poverty rate, especially in the mid- to late s. Poverty is often associated with unemployment and long-run detachment from the labor market. Scholars like William Julius Wilson and Charles Murray may disagree on the causes of that detachment, but both have vividly portrayed the relationship between a lack of work and poverty in America.

Many poor people 46 percent in do live in households where the head of household works. In only a little more than one-third of those families, however, did that person work full-time, year-round.

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Yet in recent years, poverty in the United States has become more strongly associated with a lack of work. The share of poor adults who worked at least a portion of the year held steady through the s at a little over 40 percent, declined during and after the recession, and never rose again during the recovery of the s Figure 3. Post Great Recession in , about one-third of poor adults worked at any time during the year. A lack of stable employment is especially evident in extremely poor neighborhoods, where at least 40 percent of individuals live below the poverty line.

From to , only 47 percent of all working-age individuals both poor and nonpoor in those extreme-poverty neighborhoods worked full-time, year-round, versus 63 percent nationally. These labor market trends among the poor mask important differences by gender that can be viewed through the lens of worker skills.

In , about two-thirds of poor adults held no more than a high school diploma. Poverty scholar Rebecca Blank finds that among these individuals, the share of women in the labor force rose from to , while the share of men declined. These trends coincided with policy changes that encouraged low-income single mothers to work and with long-run economic changes primarily technological changes and globalization that reduced the availability of jobs for less-skilled menin fields such as manufacturing.

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Share of Poor U. Labor market trends have been especially worrisome for young, less-educated black men. In , 28 percent of black males aged 18 to 24 lived below the poverty line, up from just 20 percent in Georgetown economist Harry Holzer finds that the employment and labor force activity of toyear-old black males deteriorated significantly after Notify me.

Description Examines economic development and job creation in different physical and social settings to forge a new agenda for community economic development in minority neighborhoods show more. Product details Format Hardback pages Dimensions x x Review quote "This book is highly recommended, and its in-depth treatment of the historical and social context of concentrated poverty and policy alternatives would make it particularly useful in a graduate seminar The editors have done a remarkable job of putting together a volume in which each chapter seems to build on the examples and policy recommendations of the others.

Rather than being an assortment of articles on a theme, the chapters together create a 'collective wisdom' of community economic development. Given the economic distress that continues to plague minority communities in the United States, the book will be of interest to a broad array of urban planners and scholars. Practitioners and applied scholars will find useful frameworks for promoting, designing, and implementing holistic, community-based metropolitan economic development plans.

The collection's challenges to status quo thinking about 'best practices' translate into reasoned approaches for nongentrifying, nondisplacing, and economically and socially effective economic development.