WHY STATEMENT LAUNCH CHA exists to build a thriving Chattanooga where every individual who dreams of a business can be confident that the community will stand with them, removing obstacles and creating opportunities for their success. Thriving Chattanooga - A thriving Chattanooga is a place where all Chattanoogans have an opportunity for meaningful employment and engagement in the community they love. It’s a place where individuals can launch and grow businesses that provide the goods and services needed to sustain a healthy local economy and to create quality and accessible jobs. Every Individual - Our conviction is that people from ALL backgrounds have strong ideas, passion and grit with which to build these future businesses and grow existing ones. Our focus has been to support underrepresented entrepreneurs, specifically minorities, women and people born in low-wealth communities. Stand with Them - All entrepreneurs have dreams that are equally powerful and inspiring, yet many that we work with lack access to opportunities because of systemic injustices, educational barriers or having the confidence to navigate the startup experience. These Chattanoogans need focused support to overcome these obstacles. This vision is vital for the future of our community because business ownership: • Helps people find pathways to economic prosperity1 • Provides full-time or supplemental income • Provides the opportunity to improve their quality of life2 • Allows for economic mobility3 • Strengthens confidence - which leads to improved quality of life and more rigorous pursuit of goals4 • Removes obstacles • Bridges the gap that educational barriers have created • Creates generational impact • Empowers populations that have been historically marginalized5 • Facilitates job creation6 • Creates increased access to goods and services within communities • Builds resilience in the community 1
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The median net worth of a business owner in the U.S. is $497,000 compared to $94,000 for a non-business owner. Kauffman Foundation, “Business Owners, Financial Risk, and Wealth” 2010.
On the LAUNCH Alumni survey, reported uses for the increased business income were: “Allowed me to meet monthly expenses (36.8%),” “Reduced stress regarding my personal finances (31.6%),” “Allowed me to pay off debt (36.8%),” and “Allowed me to build savings (47.4%).”
Entrepreneurs whose businesses survive more than 5 years exhibit greater upward economic mobility than wage workers over a 5 year period. Business ownership is correlated with higher savings: entrepreneurs in the lowest 20 percent of the income distribution have roughly 10 times more savings relative to their income than do non-entrepreneurs. Pew Research Center, “Pathways to Economic Mobility” 2008.
On the LAUNCH Alumni Survey, 95.2% agreed or strongly agreed with the statement, “I have greater confidence in my ability to successfully operate a business.” 92% reported agreeing or strongly agreeing with the statement, “I feel empowered to start or grow a business.”
In 2013, the net worth of white households was $144,200, roughly 13 times that of black households ($12,200). The net worth of white households was roughly 10 times that of households headed by a Hispanic ($14,000). Pew Research Center analysis of data from the Federal Reserve’s Survey of Consumer Finances, 2016.
“Most of the net new jobs in the U.S. are created by new and young companies.”, Kauffman Foundation, EShip Summit Playbook Draft 2.0, 2018.
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