Refugee Economic Contributions: Making the Case & Expanding Opportunities

Transcription

1 Refugee Economic Contributions: Making the Case & Expanding Opportunities March 18, 2015 Photo Credit: Nebraska is Home Fostering Community Engagement and Welcoming Communities is supported by the Office of Refugee Resettlement (ORR/ACF/DHHS)

2 5. Moderated Discussion 1. Opening Remarks Today s Agenda Susan Downs-Karkos, Welcoming America 2. Opportunities for Regional Economic Growth and Programming Opportunities Steve Tobocman, Global Detroit 3. Economic Impact of Refugees Danielle Drake, US Together 4. Promoting Economic Self-Sufficiency Sisay Teklu, Community Enterprises Development Services

3 Global Detroit Refugee Economic Contributions: Making the Case and Expanding Economic Opportunity Steve Tobocman, Director

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5 Global Network: Leading Rustbelt Immigrant Innovation

6 REFUGEE ECONOMIC CONTRIBUTIONS: IMMIGRANTS REPRESENT OPPORTUNITIES FOR REGIONAL ECONOMIC GROWTH

7 THE NEW AMERICAN FORTUNE 500: MORE THAN 40% OF FORTUNE 500 COMPANIES WERE FOUNDED BY IMMIGRANTS OR THEIR CHILDREN 23% 18% FOUNDED BY CHILDREN OF IMMIGRANTS FOUNDED BY IMMIGRANTS 41% NEW AMERICAN COMPANIES SOURCE: Partnership Report, The New American Fortune 500, June 2011.

8 28 Percent of Main Street

9 HIGH-TECH STARTUPS Created 25% of all high-tech firms nationally from % of Silicon Valley s high-tech firms from Duke University and UC-Berkeley

10 SUCCESSFUL Successful Venture VENTURE Capital Backed CAPITAL BACKED FirmsFIRMS Account for 25% of all venture-backed firms that have had public offerings National Venture Capital Association

11 STEM STEM SKILLS Skills AND and Degrees DEGREES International students are 3 times (38% vs. 14%) as likely to major in STEM fields Immigrants make up: 50% of all new U.S. Ph.D.s in engineering; 45% of all new U.S. Ph.D.s in life sciences, physical sciences, and computer sciences; 40% of all new U.S. master degrees in computer sciences, physical sciences, and engineering; and 25% of all practicing physicians

12 REFUGEE ECONOMIC CONTRIBUTIONS: PROGRAM OPPORTUNITIES

13 ness assistance ENTREPRENEURSHIP Creating a

14 WORKFORCE DEVELOPMENT

15 CONNECTOR PROGRAMS

16 FOREIGN DIRECT INVESTMENT (EB-5 INVESTOR VISA) AND EXPORT

17 SKILLED IMMIGRANT INTEGRATION INITIATIVES

18 IMPRINT IMPRINT is a national coalition of nonprofit groups dedicated to advancing opportunities for skilled immigrants. IMPRINT: Advocates for effective policies to support workforce integration at the national, state, and local level Disseminates promising practices and new resources for practitioners MEMBER ORGANIZATIONS Community College Consortium for Immigrant Education Upwardly Global World Education Services Welcoming Center for New Pennsylvanians Welcome Back Initiative

19 BY 2018, THE U.S. WILL FACE A PROJECTED SHORTFALL OF 230,000 STEM WORKERS

20 IMMIGRANTS CREATE JOBS FOR U.S. WORKERS Every Foreign STEM Worker With an Advanced U.S. Degree Creates 2.62 American Jobs Source: Partnership and American Enterprise Institute Report, Immigration and American Jobs, December 2012.

21 Economic Impact of Refugees Danielle Drake

22 Refugee Services Collaborative The Refugee Services Collaborative of Greater Cleveland (RSC) grew out of years of dialogue among the many refugee service agencies. Formed in 2011, the RSC launched a full calendar of joint activities in January 2012 as a result of a generous Cleveland Foundation grant. This grant enabled the collaborative to deepen and broaden its work together with monthly hands-on meetings, professional development, collection and sharing of benchmark data, and commissioning of an economic impact study.

23 RSC The RSC now has 14 member organizations, including Cleveland s 3 refugee resettlement agencies. The RSC s focus is to coordinate the work of its member agencies, which includes capacity building across organizations as an integral part of this process.

24 Economic Impact Study Paid for by a grant from the Cleveland Foundation Conducted by Chmura Economics & Analytics For calendar year 2012

25 Summary of Findings Three resettlement agencies spend about $4.8 million a year helping refugees to start new lives in the Cleveland area. From that investment of mostly federal dollars comes an annual economic impact of nearly $50 million. Refugees placed in the Cleveland area typically find employment within five months of their arrival in the country despite the fact that many lack English proficiency.

26 Cleveland's refugee families tend to attain self-sufficiency sooner than refugees in other cities. Refugees find jobs! About 75 percent of Cuyahoga county s refugees over age 16 are employed, compared to 57 percent of the general population. Refugees are 23 percent more likely to start a business than native-born residents and have started more than 40 small businesses in CLE in the last decade.

27 Refugees tend to put down roots and spark secondary migrations, attracting others from their cultures as they succeed. About 250 refugees have bought houses in the area. Refugees are thriving in Cleveland and are at or above average compared to national norms in socioeconomic integration.

28 The member organizations of the RSC spent an estimated total of $4.8 million on refugee services in The total economic impact of refugees in the Cleveland area was estimated at $48 million and 650 jobs for The total fiscal impact of refugees in the Cleveland area was estimated at $2.7 million in tax revenue to local and state governments in 2012.

29 What s that Number? 10 to 1 Return on Investment?! "These are on par with venture capital type returns," Daniel Meges (economist who led the research)

30 Spread the News! October 2013 Press Release stating the findings of the economic impact study June RSC receives additional grant money funding for Public Awareness campaign October 2014 Refugee Summit Held at Cleveland City Hall

31 Refugee Summit October 30 th 2014

32 200 people in attendance!

33 Dream Neighborhood

34 As of January 2015, there are 53 active foreclosures. There are 145 vacant properties; 88 of which are condemned. Through a collaborative effort with the City of Cleveland, these properties will be pushed to demolition and condemnation while engaging in a program to acquire 20 vacant and abandoned homes each year within the targeted area.

35 These properties will then be marketed to a group of pre-screened investors with a sales price of $5,000. A subsidy of $30,000 from the City of Cleveland is being requested to aid with the rehabilitation. Upon completion of the rehabilitation, investors will be required to rent to refugees through a restrictive covenant.

36 Through the collaborative effort of the Stockyard, Clark-Fulton & Brooklyn Centre Community Development Office and its partners, wrap around services will be provided to both investors and refugees to provide support to both parties. CLeveland Councilmen Councilman Joe Cimperman Ward 3 Councilman Brian Cummins Ward 14 Councilman Matt Zone Ward 15

37 Additional Support February 2015 Meeting with Director of Economic Development Additional Money granted to ECDI specifically for refugees to start businesses Money granted to commission creation of a 5 year Strategic Plan for the Dream Neighborhood

38 Next Steps Public Awareness Campaign Films highlighting Refugee Success stories June 20 th World Refugee Day Celebration Speaking Engagements Meeting with funders/donors/mentors/volunteers Create Dream Neighborhoods in others area of Cleveland

39 Questions/Comments? Danielle Drake

40 Promotes Economic Self-Sufficiency SISAY TEKLU EXECUTIVE DIRECTOR Website:

41 Mission The Mission of Community Enterprise Development Services (CEDS) is to assist refugees/asylees in particular and low-tomoderate income Denver metro residents in general attain economic self-sufficiency through asset ownership, business ownership and financial literacy services.

42 Our clients are coming from all over the World Clients come from all over the world

43 PROGRAM HIGHLIGHTS

44 Borrowers' Profile Borrowers are newcomers (refugees) from all over the World Types of business: transport, ethnic grocery and restaurant, day care, beauty salon, accounting service, Auto shop, etc Amount of investment: not more than $50, Employment: basically self employment OUTCOMES Average earning before starting business $9.00/hour ($9.00 *40 hours*4 weeks*12 months = $17,280). Earning after starting business taking taxi cab business as example: $ /month *12= $60, (gross income) The refugee entrepreneur becomes self-employed & tax payer. We work with Daycare and Home Health Care Providers Taxi/Uber/Truck drivers Store and Restaurant Owners Professional services Accountants, IT, etc Cleaning Service Providers Hairstylists Auto Mechanics and MORE!

45 Borrowers Uber Taxi Hood Cleaning Ethnic Restaurant Insurance Business

46 LEARNING EXPERIENCE Disbursed in total 60 loans in the amount of $685,000 ( ) Maintained 100% loan repayment. HOW? Pre loan and post loan TA, including training Quality loan underwriting Personal relationship with each borrower Presence in the community be active in the community Effective usage of co-signers and references Encourage borrowers for another round loan Follow latest developments change and intent to change or quit business and be flexible to accommodate. Know your limits and support clients to graduate from micro-loan

47 Individual Development Account (IDA) The goal of the refugee IDA program is to help low-income refugee individuals and families attain economic/financial self-sufficiency through behavioral change from consumption on impulse to prudent savings and investing to acquire assets and/or acquire skills.

48 Why? Refugees can t attain the desired asset development on their own What Resources needed Objective limitations Income to own assets *$5000 to own vehicle *$5000 to be pharmacy technician *$10,000 to own taxi cab business *$5500 to own home Covering the specified costs for a recently arrived working refugee is almost impossible. A minimum wage of $8.23/hr. is barely enough to cover basic needs let alone to own assets Financial education and TA Access to mainstream financial education and technical assistance resources Without culturally and linguistically appropriate financial education and TA a recently arrived refugee cannot benefit from available mainstream services. Access to finance Access to mainstream loan capital to acquire wealth enabling assets Recently arrived refugees can t get access to finance due to lack of equity, credit history, collateral, and business work experience in the US, coupled with linguistic and cultural limitations.

49 How? The ORR- IDA can promote Asset development and Economic Self-sufficiency What IDA Program Intervention Additional Resources Income to IDA saving and matching: own assets $5000 to own private vehicle $4500 pharmacy technician certificate $10,000 to own taxi cab business $5500 to own home Vehicle: to be purchased by combining IDA matched savings and low interest lending partners. Education: the total of matching and saving can cover the program cost. Financial aid is available if necessary Business: our micro loan program is a key catalyst to promote business and cover the difference Training and TA Community Enterprise is equipped and uses customized, culturally and linguistically appropriate curriculum and trainers. Home: an amount above the total of saving and matching can be covered by Colorado Housing and Finance Authority (CHAFA) and sometimes by seller Community Enterprise will leverage its existing base of trained volunteer financial education and asset goal trainers. Access to finance Refugees can predominantly cover the need for finance from the total of their IDA savings and matching. Our micro-loan program is positioned to finance business asset goals.

50 Asset Ownership Education- 17% Home-17% Vehicle- 39% Vehicle Business Home Education Business-27%

51 LEARNING EXPERIENCE Assisted 310 low income refugees to own assets (53 homes, 83 businesses, 52 education and 122 vehicles) $930,000 clients savings available for matching Amount of money mobilized in the economy $10,140, refugees were also borrowers of the microenterprise loan (Synergy I) 9 women refugees who bought homes are also enrolled in the home based childcare (Synergy II)

52 Home based child care Objectives Train and incentivize refugee women and men to establish highquality, licensed childcare businesses that promote healthy child development behaviors and create well-paying self-employment opportunities for refugee women and men. Link newly arrived refugee parents with culturally appropriate childcare businesses, thereby allowing them to seek employment opportunities.

53 Home based childcare Current Performance and challenges CEDS has 14 licensed home based childcare businesses. 21 enrolled clients are in the process to be licensed Challenge: all childcare program clients are recently arrived, culturally different and low academic background. CEDS is facing tremendous challenges to walk clients through the licensing process. Strict rules and regulations: Colorado s strict childcare rules and regulations is a major factor for many refugee clients not to be eligible. As compared to other ventures, childcare service is financially not attractive.

54 Learning Area - Licensed Childcare Businesses Learning Area - Licensed Infant Area Licensed Parent Communication Licensed

55 Financial Education

56 Promotes Economic Self-Sufficiency SISAY TEKLU EXECUTIVE DIRECTOR Website:

57 Moderated Discussion

58 Additional Resources We Global Network Resources - Global Detroit Resources - Economic Impact of Refugees in the Cleveland Area Report - IDA Practitioner s Guide, ISED solutions

59 Additional Resources Welcoming Refugees Website Coming Soon - A Guide to Immigrant Economic Development Toolkit

60 Speaker Contacts Steve Tobocman, Global Detroit Danielle Drake, US Together Sisay Teklu, Community Enterprises Development Services - steklu@cedsfinance.org

61 Join Us! Deeper Dialogue Thursday, March 26, 3:00pm Eastern To join us, send an to hannah@welcomingamerica.org with Name: Organization: Location: What you would most like to discuss during the call:

62 Thank you for joining us today! Fostering Community Engagement and Welcoming Communities is supported by the Office of Refugee Resettlement (ORR/ACF/DHHS)