Aspen is a place for leaders to lift their sights above the possessions which possess them. To confront their own nature as human beings, to regain control over their own humanity by becoming more self-aware, more self-correcting, and hence more self-fulfilling.
Maureen Conway, Vice President, The Aspen Institute; Executive Director, Economic Opportunities Program (opening remarks)
Israel Flores, Business Services Director, Northern Initiatives
Tristan Bredehoft, Co-Owner and Founder, Cafe Rica
Laura Owens, Chief of Staff, VChief; Consultant, Four Bands Community Fund
Eunice Straighthead, Co-Director, Oyate Studio
Lauren Starks, Director, Good Companies/Good Jobs, Economic Opportunities Program (moderator)
Transcript
Maureen Conway (00:04)
Welcome. My name is Maureen Conway. I’m a vice president here at The Aspen Institute and executive director of our Economic Opportunities Program. And it is my great pleasure to welcome you to today’s conversation, How Good Jobs Support Small Businesses: lessons from the Shared Success Demonstration. So we are here talking about this demonstration in 2022 with the generous support of the Gates Foundation. The Aspen Institute’s Economic Opportunities Program launched the Shared Success Demonstration. This initiative supports 11 unique community development finance institutions, or CDFIs as we like to call them, and it supports them to integrate job quality supports into their support for their small business clients.The Shared Success CDFIs hail from across the country. They work in rural, urban, suburban areas. They work in a variety of industries, in childcare and manufacturing and construction and a whole host of different industries. And over the past three years, they’ve pursued strategies tailored to the specifics of their communities and of the businesses that they work with, but all towards a common goal, to improve the quality of jobs for workers and build stronger, more resilient businesses. Shared Success connects what we at The Aspen Institute’s Economic Opportunities Program think of as two really crucial avenues of economic opportunity and avenues that too often run separately from each other.So the work supports small businesses and opportunities for entrepreneurship and supporting entrepreneurs and the work supports work to help people access good jobs. Shared Success tries to weave together both the good jobs work and the small business success work, creating a fabric of shared prosperity in the communities in which they operate. So why does this matter? It matters because of a vibrant economy, one that truly delivers on the promise of opportunity, it requires both a thriving small business sector and quality jobs. When people have access to good jobs, they can support their families, plan for the future, and contribute to their communities. And when small businesses can attract and retain skilled, motivated workers, they’re better positioned to innovate, grow, and serve as engines of local opportunity.Now we recognize that not everybody has the same idea. Most people have had jobs, most people have an idea of what’s a good job, but also we know, like what I think is a good job and what somebody else thinks is a good job might not exactly match up. So at the Economic Opportunities Program, we spend a lot of time thinking about, so what is a good job? We’ve done a lot of research on this. We’ve done a lot of focus groups with businesses, we’ve talked to business owners as well. And three things always seem to come up as components of a good job. So one is a concept of economic stability. So a good job should provide the wages and benefits and things people need to meet their daily needs, right? So it should help people have a basic sense of economic stability in their lives. It should provide some kind of opportunity.So this could be an opportunity to learn new skills and grow. This could be an opportunity to advance in a particular career path or it could just be the opportunity to build wealth and a nest egg that allows you the ability to plan for your future. And then the third thing is one that’s… It’s a little bit more intangible, but it’s no less important, which is this idea of respect. The idea that your work is valued, that you are treated fairly and with due consideration. That you have the ability to express your views on how work should be done and those views will be respected and taken into account. So those are the three things that come up in different forms and in different ways people might emphasize different aspects of it.And I’ll just say as a side note, and it may come up in our conversation today, when we encourage organizations to think about how they look to advance job quality, we encourage them to think about what are the aspects of job quality that are meaningful for the work that they do, and really to build a definition that helps them guide their work. So all of that is to say that’s how we think of what is a good job. And I think that encompasses a lot of things, but you may have other aspects that you think should be front and center and that’s great. Many definitions can be okay in this case. The other thing I wanted to mention about these three things is economic stability, opportunity and respect, they’re not luxuries, right?These are the basics. These are the cornerstone of the American dream, right? If we’re in a country that respects work and hard work is supposed to get your reward, then these are the kinds of things we need to see in work and in workplaces. Yet far too many people in our country lack these things. And I often say we’re facing a job quality crisis. Now there’s a lot of dimensions to job qualities I mentioned, and many of them we don’t have very good data on, but we do have good data on wages. And according to the Economic Policy Institute, more than 26 million people in the United States earn less than $17 an hour. So that’s really not a livable wage in most parts of the country, and that just makes it really challenging to do a good job, right?I often say if you want people to do a good job, they need to have a good job. And many of these workers who earn these low wages we know are employed by small businesses. But the good news is we don’t have to think about small businesses as the problem because really they can be part of the solution. And that’s what we’ve been learning in Shared Success. We’ve seen that small businesses really can make meaningful differences in the quality of jobs that they offer to their workers. We’ve seen that when they do, it’s not only good for their workers, but it also can strengthen their business. And we’ve seen that the community development finance institutions that we’ve been working with through their services really can make a meaningful difference in how businesses make choices and operationalize job quality in their business.So today we’re really excited to share what we’ve learned on this journey, what’s worked, what’s been challenging and what’s possible. And so we’re just thrilled to have you all with us for this conversation. Before I launch into our next panel and everything, I will just note, so first of all, today’s conversation is divided into two panels. And I’ll welcome our first panel in just a minute, but we’re also joined by many people virtually. So I want to spend a moment going over our technical details here. So I will just note that all of the virtual attendees are muted, but we welcome your questions. Please use the Q&A button at the bottom of your screen. Someone will be monitoring questions and can hopefully share them with us here. We also encourage you to share your perspective.I know many of you joining us online as well as folks in the room have experience with these issues. So please share your comments, ideas, resources in the chat as we go along. We always appreciate your feedback. Please take a quick moment to respond to our feedback survey at the end of the webinar. It should pop up in your browser. We encourage you to post about this conversation. You can also do that in the room, although silence your phone, our hashtag is talkopportunity. And if you have any technical issues, please contact us. You can either put something in the chat or contact us at [email protected]. This event is being recorded and will be shared via email, posted on our website and closed captions are available for this discussion, so please click the CC button at the bottom of your screen to activate them if you would like.Okay. Now that we’re done with that. It is my great pleasure to welcome our first panel for today’s conversation, examples of how small businesses and CDFIs are working together to advance job quality. My colleague Lauren Starks, Director of the Good Companies/Good Jobs Initiative at the Economic Opportunities Program will moderate our discussion today. And joining Lauren is Eunice Straight Head, Co-Director at Oyate Studio based on the Cheyenne River Reservation. Laura Owens, Chief of Staff at VChief and Consultant for Four Bands Community Fund in South Dakota. Tristan Bredehoft, Co-Owner and Founder of Cafe Rica in Battle Creek, Michigan, and Israel Flores, Director of Business Services at Northern Initiatives in Michigan. So Lauren, let me turn it over to you.
Lauren Starks (09:36)
Thanks so much, Maureen, and thank you to everyone joining us today. I echo that over the past three years, EOP has worked closely with our Shared Success cohort. We have learned so much about how CDFIs across America are integrating job quality support into their small business services with the goal of improving job quality for small business employees and building greater resilience. This is such an important time for this work, as we all know. And one of the inspirations behind this project is that it’s brought us insights about purpose, but also about possibilities. We have learned about why job quality matters to small businesses, but also very importantly, how it can be done, how it’s possible. So in this first panel, we’re going to explore the value that small business owners see in investing in job quality and learn more about their experiences partnering with CDFIs to move that work forward.We’re also going to explore how CDFIs are supporting small businesses and learn more about how CDFIs writ large could build a focus on job quality into their advising work. So I’m really happy to be here today with four phenomenal panelists. We have two small business owners with us, alongside an expert they are partnering with at two CDFIs that are in our Shared Success demonstration. I’d like to start the conversation by asking each of you to introduce yourself and your organization’s work. So we’ll start with you, Eunice. Welcome. It’s a privilege to have you here with us as co-director of Oyate Studio. Oyate has such a powerful mission of improving the lives of women and their families on the Cheyenne River Reservation. Can you tell us more about that mission and about your role as co-director?
Eunice Straight Head (11:42)
[foreign language 00:11:29]. Hi, everyone. My name is Eunice Straight Head. I am the co-director of Oyate Studio. I’m Mnicoujou Lakota from the Cheyenne River Reservation, and I’m also the 2024/2025 Miss He Sapa Win. I am here to represent the Cheyenne River Reservation and also Oyate Studio. Oyate Studio is basically based on cultural revitalization through the arts, traditional and contemporary, without the professional development and help of four bands and also everything that we do there. We provide a place of community, we create star quilts, leather belts, leather work. Like what I’m wearing today is very similar to it. Yeah, I would definitely go into more depth, but we do have a website and Instagram. We just do a lot of different things, but I’m really happy to be here and see everyone. It’s an honor to be here. It’s my second time in Washington, DC and it’s very welcoming.
Lauren Starks (12:39)
Thank you so much, Eunice. Laura, welcome. Thanks for being with us. Four Bands has been a participant in the Shared Success demonstration for two years. I know that you’re not technically part of the Four Bands staff, but I understand that you’ve had a big role in their journey so far. I think it’s really interesting how you’re bringing a lens of nonprofit technical assistance, and also you’ve had a strong focus on building capacity in rural communities. Can you tell us about how you’ve been partnering with Four Bands and Oyate?
Laura Owens (13:11)
Sure. Hi, my name is Laura Owens and I am an independent consultant who’s worked mostly with nonprofits. I’ve partnered with Four Bands for about four years now, and I’ve worked with the Oyate Studio for about two years now. So I have worked… Four Bands is in a really rural community, and so the ability to provide technical assistance to a startup business that’s just started can be a challenge. So I partner with them and partner with Eunice to really… We’ve worked deeply around HR, technical assistance, building organizational culture. And I’m really someone who they can tap into to help the Oyate Studio be the place that it is. So I am thrilled to be here. Thank you for having me.
Lauren Starks (13:58)
Thank you. Hello, Tristan. Great to have you from Battle Creek, Michigan. Tristan, I know you have a background in the restaurant industry and that has really shaped your journey. It’s helped inform what you know you want to be as a business owner, and it’s part of the story of how you started Cafe Rica with your brother Jackson. Could you tell us more about what led you to founding Cafe Rica and put you on the path to working with Northern Initiatives?
Tristan Bredehoft (14:29)
So hello, good afternoon. Thank you for having me on this panel today. My name is Tristan Bredehoft, the co-founder of Cafe Rica and Battle Creek. We really are just a place of community. We wanted to build a community. My background is in restaurants. I started about a decade ago working at a Michigan State bar and I just saw a lot of toxicity, a lot of bad behavior that was created in that environment and that really made me want to change the way that I came as a business owner. And so that’s why I wanted to be a leader in the change.
Lauren Starks (15:09)
Thank you, Tristan. And Israel, welcome. We have gotten a chance to know you over the last three years of Shared Success. You’ve been deeply involved and we’ve talked a lot together about how you’ve worked with small business owners like Tristan and others across Michigan to make sure they have the tools and the awareness to implement effective job quality strategies. Could you tell us more about your role as Business Services Director at Northern Initiatives and your involvement in the demonstration?
Israel Flores (15:39)
Absolutely. Hi, my name is Israel Flores. I am the Business Services Director for Northern Initiatives. I am also based in Battle Creek, Michigan. So actually my office is a few buildings down. So you can imagine having good coffee, it’s fantastic every morning. And a good place to be. So my role as a business services director, I am responsible to provide technical assistance to all our customers through my team. So we are again, a community development financial institution. We provide technical assistance to all our customers and be part of this success story though, I mean, Shared Success demonstration. It was actually fantastic to be part of this, not just because of the demonstration and the opportunities, but also being in a room full of people who we try to achieve the same goals.I think that was absolutely the greatest opportunity that we as an organization had, and we really appreciate that of course. So and again, being part of this success demonstration, it is really important for us to continue doing this work for the job quality as many people… I think Maureen was saying this earlier, right? What is a good job look to you? I can tell you, we can get a million different answers and we’re here to explore those answers and make sure that people are happy and also they have a good quality of life later on. And we’re going to provide support for small businesses owners.
Lauren Starks (17:12)
That is the perfect transition and we’re really lucky to have such expertise here with us to help tell that story and really explain why making good jobs a priority is not only good for workers, but it’s good for businesses and it’s good for communities. So we’re going to shift now to diving deeper. We’re going to transition a bit to hearing about why small business owners and the CDFIs that are supporting them should care about job quality and then double click on some of the strategies that CDFIs are using to support that work. So Eunice, I want to start with you and get some perspective on why job quality is so important to the mission of Oyate Studio and also just here, how have you and Four Bands been partnering to create quality jobs?
Eunice Straight Head (18:02)
Well, right now it’s a lot of professional development. There’s not a lot of opportunities for artists because right now they’re primarily artists. A lot of them didn’t know how to sew and they came in and were able to understand what’s the process behind professional development, the responsibility behind it, accountability, being able to reach that sort of… It’s a learning experience for me as well. Four Bands has taught me a lot of the foundations of what I need to do, how I can apply myself in the best way possible other than just showing up. There’s a lot more to it. So they were able to provide me role models in a way because I see them as aunties, they’re co-directors but I grew up with them.Me and Raya are both co-directors. We both grew up on the reservation, we both came back, got our degrees. Right now I’m in my master’s program and being able to look up to these women that they’re able to give back to their communities as a nonprofit, as a CDFI, they really look out for us and they’re able to be hard on me and Raya and be able to teach us all of these really important skills to have. Yeah, it’s really great. The partnership that we have with them, I can’t imagine anyone else that can understand us from where we come from and what we do.
Lauren Starks (19:22)
That’s so powerful. And building the foundation and getting the supports around you to do the work is so critical. Laura, we’ve heard how important it is for small businesses, especially in rural areas, to have a network of providers that help them navigate the challenges of advancing quality jobs. And given your experience, your background, your deep work, I would love to hear how you’ve partnered with Oyate in particular to advance those goals.
Laura Owens (19:48)
Absolutely. And before I get into that, I just wanted to shout out Raya, who’s sitting over there, who’s the co-director of Oyate Studio with Eunice. Yeah, so in a rural community, it can be challenging to access all the skills needed for a startup business. And so Four Bands has really built this vast network of people with expertise. I’m one of them who can work with their clients to really build capacity and technical assistance. And so I was partnered up with Raya and Eunice and it’s a virtual relationship. I don’t live in South Dakota. And it worked really well because like Eunice just said, she and Raya are young, they’re from the community.They came back to invest and build their community and they have all of that amazing vision and knowledge. But they didn’t have a lot of experience starting a business, building organizational culture, managing staff, putting into place policies and procedures that make a small business more efficient and effective to run. And so that’s really how we have partnered virtually every week. And one other statistic I’ll just say is that on the Cheyenne River, there’s something called a dependency rating. So it means that… It’s kind of measuring the people in the community that are dependent on the people in the job force.So where the Oyate studio is located, it’s a 92% dependency rating. And so that means that 92% of the population is dependent on the 8% of the workforce that’s working. And so I just only raise that to just show the… And that’s because the community is really a lot of elders and young people. And so I just kind of raise that to show, in addition to being rural, some of the reasons why Four Bands has this kind of vast network of resources that are building capacity to the people there.
Lauren Starks (22:04)
And building capacity is building communities and building strength. That’s so helpful to know, Laura. Thank you. Tristan and Israel, I want to hear from you on the same question here. Reasons that you believed it was important to focus on job quality. Tristan, as a small business owner, you shared your background in the restaurant industry. If you could share more, that would be great.
Tristan Bredehoft (22:29)
Yeah, absolutely. So when I started in the restaurant industry 10 years ago, I was very, very green, zero experience at all. So I didn’t know any of the norms that came with the restaurant industry. So when I jumped in, I started seeing things like… Well, one in Michigan, the tipped wage is $3. And so it really creates this financial scarcity. For me, myself when I was there, I was like, “Oh, man, I need to get paid. I need to make money. I need to make rent.” And as a college student, that’s a huge part of my life. And so it made me do things like steal from the business to actually get more tips from the people that really employed me, the customers. And so I just didn’t like that.And then I also saw things like sexual harassment on a day-to-day basis, and it was even encouraged by the management staff. So that was another reason I just was very… I didn’t like the restaurant industry. And then that really transitioned to me when I started to look at building a business. I vowed to myself that I would never want any of my employees to feel that way. I didn’t want them to feel like they didn’t know where their next paycheck was coming, that they had to do things that were against store policy. I didn’t want them to feel unsafe and I wanted them to feel heard and seen. So that was the three main reasons why I decided I wanted to be a good employer.
Lauren Starks (23:58)
And just to carry on, can you tell us more about your work with Good for Michigan and the path that led you to Northern Initiatives?
Tristan Bredehoft (24:08)
Yeah, so because that was the mission that we led with, we led with Compassion. Israel noticed that. He saw what we were doing for the restaurant industry, what we were doing to be a good job. And so he approached us and was like, “Hey, here’s some extra training, some extra resources that could help you move that mission forward.” And so then we got connected with the Good for Michigan team and went through a cohort and it really opened up what is possible to be a good job. It’s not just about pay, it’s not just about PTO, it’s about respect, being good for the community, being good for the environment. And so that actually led us to winning the Good for Michigan Governance Award where we are the top business in those three categories, community, sustainability and employer. And that actually led us to our next goal, which is wanting to be B Corp certified. And so we’re trying to get that done by the end of 2025.
Lauren Starks (25:13)
You all talk about it with such ease, but I think we all know that we’re not in this work because it’s easy and we know there are challenges. It’s not a straight line and there are a lot of folks that you need to have around you to help you reach those next levels. And so hearing that journey, we know that wasn’t easy, so that’s fantastic. Speaking of these challenges and lessons learned along the way, I want to pivot to thinking with you about how has… Particularly you Eunice, Four Bands have been a part of the process of overcoming challenges in the process of advancing quality jobs at Oyate?
Eunice Straight Head (25:51)
Like Laura said, the dependency rates. Livable wage is something that Raya and I are very aware of and what we’re trying to get to, which is like $20 an hour in the survey of the State of South Dakota. Right now, we pay our employees about $15 an hour and the lowest paying job in Taco John’s, for example, one of those places is $11.50 an hour, and some of them have to go home and provide for five families in their household. Right now, I had to come back and live with my mom, even though I got my bachelor’s, got my master’s, came back, and worked a full-time job.I do live with my mom because of our housing, we don’t have a lot of places to come back and live, so that’s hard on us too. But we see every single challenge, every single month is always something different. It was my first time writing a policy with Laura here and it was something different. It was something that I have never had to think about until now, especially when you’re starting up from the ground up. Having these foundational parts of this business is really helping us create a good work environment, which is not really a lot on the reservation, but I’m super thankful for every challenge that comes my way because every single one is a lesson and we face it with a positive mindset every single time.
Lauren Starks (27:20)
The learning mindset, right? And the teachable moments. I’m the daughter of a second grade teacher, so I always figure out a way to weave in the teaching angle. Tristan, what strategies have you used to face challenges that have come up along that path to B Corp certification?
Tristan Bredehoft (27:37)
Yeah. Like Eunice said, the main focus you have is livable wage, but I learned quickly that that’s not the only way to make people feel secure. So we used what we’ve learned from NI and Good for Michigan as a way to understand flexible scheduling, understanding that the employees really want to be heard and seen. And so we changed the way that we manage. We are managing with a let’s talk to our team first instead of just doing a command and directive kind of way. So we really brought them into all those things and it really has created a good environment for people to learn and grow and exceed. We’ve had art shows where our employees are the leading artists. We’ve had them create new menu items, so we really just get them all involved so that we can get over those hurdles.
Lauren Starks (28:32)
I want to pause on that for a moment because you said something that’s so important to the work that we’ve done and what we’ve learned in Shared Success is this aspect of worker voice and bringing that into the work and really letting that inform and help you build priorities to create and build and advance higher quality jobs. And I’ll put this to others on the panel who want to respond as well, but could you say more about that aspect of your work? How did you do that? How did you bring worker voice into this work and what did that do for you?
Tristan Bredehoft (29:06)
So we just started by just having non-formal talkings, like hey… They’re little huddles we call them. Like, Hey, what’s going on? What’s working well, what’s not? And just paying attention and hearing and just asking the question to start. That’s how we started. And then as we start building policies and core values, we really learn to bring them in and so that again, they have that voice, they have the way to move the business to a place that they also want to see it in.
Israel Flores (29:35)
Sorry, I just want to say that I think you say a key word, policy. So you need to have those things in place, right? Even if you’re in a restaurant. I think it’s a small business. I think it’s one of those things right now that because you are a small business, you don’t think that you need an employment handbook, for example, that you don’t need a job description. Absolutely right. So you need to have those in place in order to make sure that everybody follows the policy and the rules and the place to become a really good work environment, which is what they create. Last night we had this conversation with Tristan, right? They have to make a really hard decision to… They need to let somebody go for not following the policy. Again, this is the rules that they implement and that’s job quality. It was hard. It’s not an easy decision, but you have to follow those because it’s what you want to create that environment for job quality for your employees.
Eunice Straight Head (30:37)
Just to follow up on the flexibility part, there are moments where our employees can’t really make it to work. Staying in South Dakota, we don’t really have the luxury of driving or walking just right to our work. Sometimes just to get across to get to the nearest Walmart is like two hours away. So our cars is a big part of us. Sometimes our employees cannot make it. So Raya and I take it out of our day and make sure we go pick them up. Whenever women are crafting traditionally in Lakota culture is like we join as a group and we do it together. We share laughs, we share everything. So having that culture implemented and how these women are contributing to their community means a lot.So just after graduation season, we were able to make eight custom CEBs for our local high school where Raya and I graduated, and some of their students are graduating because they’re all predominantly mothers. They’re all mothers, sometimes they’re gone from work at times they have to take off. So that’s really hard, but we always make sure to accommodate them because we understand the cultural significance of what comes to preparing a graduate, especially since it’s such a small percentage of indigenous graduates. So we just want to make sure that we’re contributing to not only our generation, but the next generation.
Laura Owens (31:46)
And I would just add one other thing. Oyate Studio means the People’s Studio, and I think that Eunice and Raya have done a really beautiful job at setting a vision for what that means. There’s a manufacturing component to it where they’re making star quilts. There’s also a co-working artisan space that I think is really motivating to workers. So as Eunice said, 100% of the staff are women. They are mostly the primary breadwinners and caretakers of their families. And they’ve created a really motivating and safe inclusive environment at Oyate Studio and also built in a lot of Lakota traditional values such as… I don’t know, Eunice, if you want to say how you start off your day every day. I think this is actually pretty cool, but I think one of the reasons is it’s a high-quality job and it’s really impacting the community. It’s known as a place that has good jobs, but also a fun place for artists where you can come and create… Try out whatever you’re doing. But I’ll just let Eunice say how they start their day because this is cool.
Eunice Straight Head (33:03)
Oh, yeah. Before, we wait for everyone to come inside and we smudge together. We smudge together to cleanse ourselves, let go of everything that’s outside of these walls and we come into the studio not only to work, but just be together. So every single hand and everything that touches the star quilt, these women and workers and us have a part in it, whether it’s actually physically making the quilts or it’s me and Raya doing QuickBooks for the first time.
Lauren Starks (33:37)
And there’s something so powerful with the image of all of us putting our hands on this work and creating something that’s stronger together and really is about our Shared Success. So before we take questions from our audience, I want to give a moment for each of you to share a closing thought, and this is the aha moment. Was there something that along the way you’ve realized has been key to effectiveness in this space? And I’m going to start with you, Israel, and then we’ll work our way this way.
Israel Flores (34:09)
Sure. Well, I think an aha moment but also, I think what ‘s important is to recognize all the job… Actually all the work that has been done, for example, and I just put it right here next to me, Tristan, right? And Cafe Rica, we as an NI… Me as a person I will not take credit for any of that. At the end of the day, they are the ones who are making those decisions and making those changes. I think our responsibility as an organization is to provide that support so they can have the tools, the resources and everything else to be successful. I think they will be the small businesses, they will be creating and helping the economy, local economy where believe it not, I think if you have a better wage, you will be living better.You will spend more dollars locally. Also, people who know that they are doing that job, of course I will want to spend my dollars in that business, right? But also if you think about it, it’s also healthy, right? I mean, because you are living with less stress when you are in a good environment. Again, I certainly hope that one day, if you are in Battle Creek, please go and visit Cafe Rica. It’s a whole different environment. It’s one of those places that if you go to a Starbucks or any other coffee place, you will see people who are so serious, all the workers. You walk into Cafe Rica, you’ll hear people, employees singing, laughing, talking about it, creating this environment where you’re having a meeting, an important meeting, right? And by having all of that around you, it makes your meetings more productive, but you’re feeling good and of course feeling good as community members love to be there and also you see the employees really happy.
Tristan Bredehoft (35:58)
One of the aha moments, I think it came right before Northern Initiatives linked us up with Good for Michigan. But while pay is great, it’s not everything that makes it a good job. And I was having a meeting with a former employee that I was like, “Hey, I want you to stay. Here’s more money.” And they still chose to leave. And then when I started going through the Good for Michigan cohort, I understood all these vast different things that a business can do to make it a good job. Now, at first I was a little daunting. I was like, whoa, there’s so much to do. But then it clicked in me. I was like, there’s so much to do. I can start anywhere, start small and just work my way up. As long as the goal is to get better. It’s all about the progress. It’s not about what’s ahead of me.
Laura Owens (36:51)
I think for me, the aha moment with Oyate Studio was really around flexibility. As I mentioned, our workforce is mostly 100% women, and we were having trouble giving schedules, doing a consistent eight hour shift. And so what we ultimately are still continuing to work on is the women can go home after school to care for children. We’re very flexible. They can go back in the evenings if they have availability or on the weekends. And I think really just meeting people where they are and understanding that it is a community, and that this is a place that is providing consistent, really special jobs, but that we really need to meet people where they are.If someone isn’t showing up for work, it’s not because they’re sleeping in, it’s because maybe their car broke and that is going to take a two-hour drive to go fix it, several days for the car to get fixed, several days for it to come back. That happened to an employee recently who hit a deer, and so that employee is out and now their person on the line isn’t there for making the quilts. So we just had to be more flexible and also develop a bench of artisans that we can call in to, who might not be there every day, but are willing to come in if we need extra staffing. So flexibility and meeting people where they are.
Eunice Straight Head (38:29)
Definitely making it work where we can. We don’t have… Can you guys hear me okay? Yeah. We’re really good at making do with what we have. If there’s one mindset that Rya and I go in with our leadership and Four Bands is that we make it work with what we can. We rely on our community, we rely on other people. Our small business, we had to get used to a new POS system inventory, and what we did is we went to go visit other businesses and what they used, especially locally, that’s what we try to do our best on. But my aha moment would definitely be when we had our partnership with 3 Feathers, when we had our partnership with Four Bands, just seeing the resources of people and their knowledge and skills and what they can provide for what this can grow into. We are just a seed and a little sprout right now, but we are hoping to become something bigger and that is giving back to our community next generations. My dream and Raya’s dream is to have our own studio where we’re able to give scholarships to native students and just grow bigger than the space… We already outgrew our space with how many employees we have right there, right now. And just the support is the aha moment for me.
Lauren Starks (39:48)
Thank all of you for such an inspiring conversation. You’ve left us with such a moment. This is possible. We’re going to take a couple of questions from our audience now, and we have team members throughout the room who have microphones. Raise your hand if you have a question and we also have our audience online submitting questions.
Laura Flamm (40:13)
Good afternoon. My name’s Laura Flamm and I’m with Kaiser Permanente’s Impact Spending department. My question is, what role would you like to see large institutions, especially anchor institutions like hospitals, healthcare systems, universities, play in advancing this work? Thank you.
Israel Flores (40:38)
Well, I mean, again, so we are looking at this demonstration: how important is your quality? Of course we would love for them to be part of that. Again, creating those opportunities not just to create better pay as we were talking about, but also the environment. I think many places, though you will see that, that it’s going to be toxic places. Again, we’re talking about these small businesses, but for bigger organizations and companies, yeah, we would love to see that. Again, to be honest with you, I would love to see bigger corporations sharing their profits, having a living wage or better wages for their employees because they don’t need all those billions of dollars in their pockets. They can easily share those with all the people, and I’m telling you, we will be a better place.
Speaker (41:37)
I just wanted to respond to your question real quickly and then I have one for you. I think one of the things that large institutions can do is purchase from small businesses that are embodying these kinds of values to help these entities grow and thrive. And I know that the Cafe Rico is working on some partnerships with the local hospital system as an example to purchase coffee. So there’s a role there. My question for you or for each of you is what is one of the moments that’s brought you the most joy in interacting with people on your team and in creating the culture and work environment that you’ve been fostering?
Tristan Bredehoft (42:17)
I can go first. I really enjoy seeing my team members move on to what they really want to do in life. As a coffee shop, it’s like a stepping stone where an in-between, for the most part, it’s not normally a career choice. And so we always ask our teammates when they first get in, “What are your goals outside of work and how can we help you accomplish those?” Through the many years we’ve been in business, we’ve made multiple connections with different types of people, so we always try to plug them into those people. And so I really like seeing my team flourish and eventually leave.
Laura Owens (42:58)
I’ve really enjoyed supporting and watching Eunice and Raya make their vision happen. They’ve grown into just… I mean, they’ve always been amazing leaders, but really amazing managers and really cultivating a special place. So that’s been very fun for me.
Eunice Straight Head (43:20)
Just to respond to that question, for sure, it’s supporting small businesses. I know a lot of people are, “Well, I’m not native. Can I buy this?” Yes, you can. Especially if you are supporting an indigenous business and you know it’s from the reservation, you know where it’s coming from and we’re happy to share the story with you. We’re not going to… Unless we keep ceremonial knowledge, that’s completely appropriate, but we’re more than happy to share the story of the Star quilt, the story of the buffalo, the leather, everything that we do, there’s a purpose and a meaning behind it, and it’s something that you can carry on with you and you’re able to share our stories.And I think that’s the most important form of representation and support that we can get from our customers. Yeah. And we also have a quilt that Raya and I brought just to share. There’s a lot of hands that went into this. And one thing that I do want to mention is that everyone in this room does support communities, support people. Just like the star quilt. There are multiple hands that touch this quilt. It’s like Raya and I did the quilting. The team completely put the star quilt together and satin’s very hard to work with, believe it or not. But without all of them being able to be here and show you their work, this is the physical embodiment of the spirit and love that they put into Oyate Studio.And they come in everyday to create these. Right now we average about five quilts a day, and we’ve probably made about 300 plus in the past four or five months. So they go out. 3 Feathers came and trained the quilters and the seamstresses of how to make this. But just like businesses and resourcing and network and support, everyone has their hands in this star quilt. It’s more than just an artifact. It’s more than just what we do. It’s everyone here that’s able to support us. That’s the physical embodiment of our star quilts and being able to elevate and bring awareness and support cultural and traditional revitalization within our people. This is the people’s studio.
Speaker (45:25)
One of the problems I’ve always had with small businesses, how you deal with post… Otherwise, you work a job for a certain number of years and then you retire. And in other words, bigger companies provide post-retirement benefits like a pension, retiree health insurance and things like this. I often see small businesses really only using workers in the way you described your restaurant. You work here for a few years, you help the restaurant prosper, you make some money, and then you move on to something else. There’s really no long-term help for the people that actually worked for you. Or maybe some guy might’ve spent 20 years working there and leave and he doesn’t really have anything to take with him. So how do small businesses deal with that post-retirement issue?
Tristan Bredehoft (46:11)
That is one of the biggest hurdles. Yes. Now I think the way that we can counteract that is all these bigger corporations will charge you as much as they want. And I think small businesses just have to know what their worth is and start charging what the market is actually out there. For us, since we’re close with… Israel’s in our community, we see everybody so often. We get very personal with that connection. And so when we’re thinking about our business and raising prices or just doing things that are better for the business to succeed and even survive, we end up getting apprehensive about doing something that will help us bring in benefits for the long-term. So I think it’s just starting with knowing your worth and charging that.
Lauren Starks (47:07)
We have time for one more question. I’m sorry. I think-
Speaker (47:14)
[inaudible 00:47:12], used a term I’ve never heard before. What is smudging?
Eunice Straight Head (47:18)
Oh, you light sage and you cleanse and purify and pray with it. So that’s what we do. We pick it up locally. Sometimes in the summer we go as a team. Raya and I went with a couple of other coworkers and it was after work and we went to go harvesting. And you give back to the land and then you bring it. And we have it all over in our studio. So we’re able to smudge and cleanse ourselves and purify ourselves from outside of the studio and outside the building because we’re not at work. And you put your love and thoughts and good things into the work that you’re creating. It will reward you with something beautiful.
Lauren Starks (47:55)
Well, thank you all so much for the questions. This work matters. This work can be done and it’s more beautiful when we’re doing it together.
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About Shared Success
Good jobs and strong businesses are vital to the well-being of communities across the country. Yet millions of workers struggle with poor-quality jobs, and small business owners often struggle to find and retain the employees they need. Shared Success, a project of the Aspen Institute Economic Opportunities Program (EOP), shows how building better jobs can uplift both sides at the same time. Supported by a $12 million investment from the Gates Foundation, EOP partnered with 11 community lenders to integrate job quality programming into their small business support services, supporting the needs of employees while helping small businesses succeed.
Welcome. My name is Maureen Conway. I’m a vice president here at The Aspen Institute and executive director of our Economic Opportunities Program. And it is my great pleasure to welcome you to today’s conversation, How Good Jobs Support Small Businesses: lessons from the Shared Success Demonstration. So we are here talking about this demonstration in 2022 with the generous support of the Gates Foundation. The Aspen Institute’s Economic Opportunities Program launched the Shared Success Demonstration. This initiative supports 11 unique community development finance institutions, or CDFIs as we like to call them, and it supports them to integrate job quality supports into their support for their small business clients.The Shared Success CDFIs hail from across the country. They work in rural, urban, suburban areas. They work in a variety of industries, in childcare and manufacturing and construction and a whole host of different industries. And over the past three years, they’ve pursued strategies tailored to the specifics of their communities and of the businesses that they work with, but all towards a common goal, to improve the quality of jobs for workers and build stronger, more resilient businesses. Shared Success connects what we at The Aspen Institute’s Economic Opportunities Program think of as two really crucial avenues of economic opportunity and avenues that too often run separately from each other.So the work supports small businesses and opportunities for entrepreneurship and supporting entrepreneurs and the work supports work to help people access good jobs. Shared Success tries to weave together both the good jobs work and the small business success work, creating a fabric of shared prosperity in the communities in which they operate. So why does this matter? It matters because of a vibrant economy, one that truly delivers on the promise of opportunity, it requires both a thriving small business sector and quality jobs. When people have access to good jobs, they can support their families, plan for the future, and contribute to their communities. And when small businesses can attract and retain skilled, motivated workers, they’re better positioned to innovate, grow, and serve as engines of local opportunity.Now we recognize that not everybody has the same idea. Most people have had jobs, most people have an idea of what’s a good job, but also we know, like what I think is a good job and what somebody else thinks is a good job might not exactly match up. So at the Economic Opportunities Program, we spend a lot of time thinking about, so what is a good job? We’ve done a lot of research on this. We’ve done a lot of focus groups with businesses, we’ve talked to business owners as well. And three things always seem to come up as components of a good job. So one is a concept of economic stability. So a good job should provide the wages and benefits and things people need to meet their daily needs, right? So it should help people have a basic sense of economic stability in their lives. It should provide some kind of opportunity.So this could be an opportunity to learn new skills and grow. This could be an opportunity to advance in a particular career path or it could just be the opportunity to build wealth and a nest egg that allows you the ability to plan for your future. And then the third thing is one that’s… It’s a little bit more intangible, but it’s no less important, which is this idea of respect. The idea that your work is valued, that you are treated fairly and with due consideration. That you have the ability to express your views on how work should be done and those views will be respected and taken into account. So those are the three things that come up in different forms and in different ways people might emphasize different aspects of it.And I’ll just say as a side note, and it may come up in our conversation today, when we encourage organizations to think about how they look to advance job quality, we encourage them to think about what are the aspects of job quality that are meaningful for the work that they do, and really to build a definition that helps them guide their work. So all of that is to say that’s how we think of what is a good job. And I think that encompasses a lot of things, but you may have other aspects that you think should be front and center and that’s great. Many definitions can be okay in this case. The other thing I wanted to mention about these three things is economic stability, opportunity and respect, they’re not luxuries, right?These are the basics. These are the cornerstone of the American dream, right? If we’re in a country that respects work and hard work is supposed to get your reward, then these are the kinds of things we need to see in work and in workplaces. Yet far too many people in our country lack these things. And I often say we’re facing a job quality crisis. Now there’s a lot of dimensions to job qualities I mentioned, and many of them we don’t have very good data on, but we do have good data on wages. And according to the Economic Policy Institute, more than 26 million people in the United States earn less than $17 an hour. So that’s really not a livable wage in most parts of the country, and that just makes it really challenging to do a good job, right?I often say if you want people to do a good job, they need to have a good job. And many of these workers who earn these low wages we know are employed by small businesses. But the good news is we don’t have to think about small businesses as the problem because really they can be part of the solution. And that’s what we’ve been learning in Shared Success. We’ve seen that small businesses really can make meaningful differences in the quality of jobs that they offer to their workers. We’ve seen that when they do, it’s not only good for their workers, but it also can strengthen their business. And we’ve seen that the community development finance institutions that we’ve been working with through their services really can make a meaningful difference in how businesses make choices and operationalize job quality in their business.So today we’re really excited to share what we’ve learned on this journey, what’s worked, what’s been challenging and what’s possible. And so we’re just thrilled to have you all with us for this conversation. Before I launch into our next panel and everything, I will just note, so first of all, today’s conversation is divided into two panels. And I’ll welcome our first panel in just a minute, but we’re also joined by many people virtually. So I want to spend a moment going over our technical details here. So I will just note that all of the virtual attendees are muted, but we welcome your questions. Please use the Q&A button at the bottom of your screen. Someone will be monitoring questions and can hopefully share them with us here. We also encourage you to share your perspective.I know many of you joining us online as well as folks in the room have experience with these issues. So please share your comments, ideas, resources in the chat as we go along. We always appreciate your feedback. Please take a quick moment to respond to our feedback survey at the end of the webinar. It should pop up in your browser. We encourage you to post about this conversation. You can also do that in the room, although silence your phone, our hashtag is talkopportunity. And if you have any technical issues, please contact us. You can either put something in the chat or contact us at [email protected]. This event is being recorded and will be shared via email, posted on our website and closed captions are available for this discussion, so please click the CC button at the bottom of your screen to activate them if you would like.Okay. Now that we’re done with that. It is my great pleasure to welcome our first panel for today’s conversation, examples of how small businesses and CDFIs are working together to advance job quality. My colleague Lauren Starks, Director of the Good Companies/Good Jobs Initiative at the Economic Opportunities Program will moderate our discussion today. And joining Lauren is Eunice Straight Head, Co-Director at Oyate Studio based on the Cheyenne River Reservation. Laura Owens, Chief of Staff at VChief and Consultant for Four Bands Community Fund in South Dakota. Tristan Bredehoft, Co-Owner and Founder of Cafe Rica in Battle Creek, Michigan, and Israel Flores, Director of Business Services at Northern Initiatives in Michigan. So Lauren, let me turn it over to you.
Lauren Starks (09:36)
Thanks so much, Maureen, and thank you to everyone joining us today. I echo that over the past three years, EOP has worked closely with our Shared Success cohort. We have learned so much about how CDFIs across America are integrating job quality support into their small business services with the goal of improving job quality for small business employees and building greater resilience. This is such an important time for this work, as we all know. And one of the inspirations behind this project is that it’s brought us insights about purpose, but also about possibilities. We have learned about why job quality matters to small businesses, but also very importantly, how it can be done, how it’s possible. So in this first panel, we’re going to explore the value that small business owners see in investing in job quality and learn more about their experiences partnering with CDFIs to move that work forward.We’re also going to explore how CDFIs are supporting small businesses and learn more about how CDFIs writ large could build a focus on job quality into their advising work. So I’m really happy to be here today with four phenomenal panelists. We have two small business owners with us, alongside an expert they are partnering with at two CDFIs that are in our Shared Success demonstration. I’d like to start the conversation by asking each of you to introduce yourself and your organization’s work. So we’ll start with you, Eunice. Welcome. It’s a privilege to have you here with us as co-director of Oyate Studio. Oyate has such a powerful mission of improving the lives of women and their families on the Cheyenne River Reservation. Can you tell us more about that mission and about your role as co-director?
Eunice Straight Head (11:42)
[foreign language 00:11:29]. Hi, everyone. My name is Eunice Straight Head. I am the co-director of Oyate Studio. I’m Mnicoujou Lakota from the Cheyenne River Reservation, and I’m also the 2024/2025 Miss He Sapa Win. I am here to represent the Cheyenne River Reservation and also Oyate Studio. Oyate Studio is basically based on cultural revitalization through the arts, traditional and contemporary, without the professional development and help of four bands and also everything that we do there. We provide a place of community, we create star quilts, leather belts, leather work. Like what I’m wearing today is very similar to it. Yeah, I would definitely go into more depth, but we do have a website and Instagram. We just do a lot of different things, but I’m really happy to be here and see everyone. It’s an honor to be here. It’s my second time in Washington, DC and it’s very welcoming.
Lauren Starks (12:39)
Thank you so much, Eunice. Laura, welcome. Thanks for being with us. Four Bands has been a participant in the Shared Success demonstration for two years. I know that you’re not technically part of the Four Bands staff, but I understand that you’ve had a big role in their journey so far. I think it’s really interesting how you’re bringing a lens of nonprofit technical assistance, and also you’ve had a strong focus on building capacity in rural communities. Can you tell us about how you’ve been partnering with Four Bands and Oyate?
Laura Owens (13:11)
Sure. Hi, my name is Laura Owens and I am an independent consultant who’s worked mostly with nonprofits. I’ve partnered with Four Bands for about four years now, and I’ve worked with the Oyate Studio for about two years now. So I have worked… Four Bands is in a really rural community, and so the ability to provide technical assistance to a startup business that’s just started can be a challenge. So I partner with them and partner with Eunice to really… We’ve worked deeply around HR, technical assistance, building organizational culture. And I’m really someone who they can tap into to help the Oyate Studio be the place that it is. So I am thrilled to be here. Thank you for having me.
Lauren Starks (13:58)
Thank you. Hello, Tristan. Great to have you from Battle Creek, Michigan. Tristan, I know you have a background in the restaurant industry and that has really shaped your journey. It’s helped inform what you know you want to be as a business owner, and it’s part of the story of how you started Cafe Rica with your brother Jackson. Could you tell us more about what led you to founding Cafe Rica and put you on the path to working with Northern Initiatives?
Tristan Bredehoft (14:29)
So hello, good afternoon. Thank you for having me on this panel today. My name is Tristan Bredehoft, the co-founder of Cafe Rica and Battle Creek. We really are just a place of community. We wanted to build a community. My background is in restaurants. I started about a decade ago working at a Michigan State bar and I just saw a lot of toxicity, a lot of bad behavior that was created in that environment and that really made me want to change the way that I came as a business owner. And so that’s why I wanted to be a leader in the change.
Lauren Starks (15:09)
Thank you, Tristan. And Israel, welcome. We have gotten a chance to know you over the last three years of Shared Success. You’ve been deeply involved and we’ve talked a lot together about how you’ve worked with small business owners like Tristan and others across Michigan to make sure they have the tools and the awareness to implement effective job quality strategies. Could you tell us more about your role as Business Services Director at Northern Initiatives and your involvement in the demonstration?
Israel Flores (15:39)
Absolutely. Hi, my name is Israel Flores. I am the Business Services Director for Northern Initiatives. I am also based in Battle Creek, Michigan. So actually my office is a few buildings down. So you can imagine having good coffee, it’s fantastic every morning. And a good place to be. So my role as a business services director, I am responsible to provide technical assistance to all our customers through my team. So we are again, a community development financial institution. We provide technical assistance to all our customers and be part of this success story though, I mean, Shared Success demonstration. It was actually fantastic to be part of this, not just because of the demonstration and the opportunities, but also being in a room full of people who we try to achieve the same goals.I think that was absolutely the greatest opportunity that we as an organization had, and we really appreciate that of course. So and again, being part of this success demonstration, it is really important for us to continue doing this work for the job quality as many people… I think Maureen was saying this earlier, right? What is a good job look to you? I can tell you, we can get a million different answers and we’re here to explore those answers and make sure that people are happy and also they have a good quality of life later on. And we’re going to provide support for small businesses owners.
Lauren Starks (17:12)
That is the perfect transition and we’re really lucky to have such expertise here with us to help tell that story and really explain why making good jobs a priority is not only good for workers, but it’s good for businesses and it’s good for communities. So we’re going to shift now to diving deeper. We’re going to transition a bit to hearing about why small business owners and the CDFIs that are supporting them should care about job quality and then double click on some of the strategies that CDFIs are using to support that work. So Eunice, I want to start with you and get some perspective on why job quality is so important to the mission of Oyate Studio and also just here, how have you and Four Bands been partnering to create quality jobs?
Eunice Straight Head (18:02)
Well, right now it’s a lot of professional development. There’s not a lot of opportunities for artists because right now they’re primarily artists. A lot of them didn’t know how to sew and they came in and were able to understand what’s the process behind professional development, the responsibility behind it, accountability, being able to reach that sort of… It’s a learning experience for me as well. Four Bands has taught me a lot of the foundations of what I need to do, how I can apply myself in the best way possible other than just showing up. There’s a lot more to it. So they were able to provide me role models in a way because I see them as aunties, they’re co-directors but I grew up with them.Me and Raya are both co-directors. We both grew up on the reservation, we both came back, got our degrees. Right now I’m in my master’s program and being able to look up to these women that they’re able to give back to their communities as a nonprofit, as a CDFI, they really look out for us and they’re able to be hard on me and Raya and be able to teach us all of these really important skills to have. Yeah, it’s really great. The partnership that we have with them, I can’t imagine anyone else that can understand us from where we come from and what we do.
Lauren Starks (19:22)
That’s so powerful. And building the foundation and getting the supports around you to do the work is so critical. Laura, we’ve heard how important it is for small businesses, especially in rural areas, to have a network of providers that help them navigate the challenges of advancing quality jobs. And given your experience, your background, your deep work, I would love to hear how you’ve partnered with Oyate in particular to advance those goals.
Laura Owens (19:48)
Absolutely. And before I get into that, I just wanted to shout out Raya, who’s sitting over there, who’s the co-director of Oyate Studio with Eunice. Yeah, so in a rural community, it can be challenging to access all the skills needed for a startup business. And so Four Bands has really built this vast network of people with expertise. I’m one of them who can work with their clients to really build capacity and technical assistance. And so I was partnered up with Raya and Eunice and it’s a virtual relationship. I don’t live in South Dakota. And it worked really well because like Eunice just said, she and Raya are young, they’re from the community.They came back to invest and build their community and they have all of that amazing vision and knowledge. But they didn’t have a lot of experience starting a business, building organizational culture, managing staff, putting into place policies and procedures that make a small business more efficient and effective to run. And so that’s really how we have partnered virtually every week. And one other statistic I’ll just say is that on the Cheyenne River, there’s something called a dependency rating. So it means that… It’s kind of measuring the people in the community that are dependent on the people in the job force.So where the Oyate studio is located, it’s a 92% dependency rating. And so that means that 92% of the population is dependent on the 8% of the workforce that’s working. And so I just only raise that to just show the… And that’s because the community is really a lot of elders and young people. And so I just kind of raise that to show, in addition to being rural, some of the reasons why Four Bands has this kind of vast network of resources that are building capacity to the people there.
Lauren Starks (22:04)
And building capacity is building communities and building strength. That’s so helpful to know, Laura. Thank you. Tristan and Israel, I want to hear from you on the same question here. Reasons that you believed it was important to focus on job quality. Tristan, as a small business owner, you shared your background in the restaurant industry. If you could share more, that would be great.
Tristan Bredehoft (22:29)
Yeah, absolutely. So when I started in the restaurant industry 10 years ago, I was very, very green, zero experience at all. So I didn’t know any of the norms that came with the restaurant industry. So when I jumped in, I started seeing things like… Well, one in Michigan, the tipped wage is $3. And so it really creates this financial scarcity. For me, myself when I was there, I was like, “Oh, man, I need to get paid. I need to make money. I need to make rent.” And as a college student, that’s a huge part of my life. And so it made me do things like steal from the business to actually get more tips from the people that really employed me, the customers. And so I just didn’t like that.And then I also saw things like sexual harassment on a day-to-day basis, and it was even encouraged by the management staff. So that was another reason I just was very… I didn’t like the restaurant industry. And then that really transitioned to me when I started to look at building a business. I vowed to myself that I would never want any of my employees to feel that way. I didn’t want them to feel like they didn’t know where their next paycheck was coming, that they had to do things that were against store policy. I didn’t want them to feel unsafe and I wanted them to feel heard and seen. So that was the three main reasons why I decided I wanted to be a good employer.
Lauren Starks (23:58)
And just to carry on, can you tell us more about your work with Good for Michigan and the path that led you to Northern Initiatives?
Tristan Bredehoft (24:08)
Yeah, so because that was the mission that we led with, we led with Compassion. Israel noticed that. He saw what we were doing for the restaurant industry, what we were doing to be a good job. And so he approached us and was like, “Hey, here’s some extra training, some extra resources that could help you move that mission forward.” And so then we got connected with the Good for Michigan team and went through a cohort and it really opened up what is possible to be a good job. It’s not just about pay, it’s not just about PTO, it’s about respect, being good for the community, being good for the environment. And so that actually led us to winning the Good for Michigan Governance Award where we are the top business in those three categories, community, sustainability and employer. And that actually led us to our next goal, which is wanting to be B Corp certified. And so we’re trying to get that done by the end of 2025.
Lauren Starks (25:13)
You all talk about it with such ease, but I think we all know that we’re not in this work because it’s easy and we know there are challenges. It’s not a straight line and there are a lot of folks that you need to have around you to help you reach those next levels. And so hearing that journey, we know that wasn’t easy, so that’s fantastic. Speaking of these challenges and lessons learned along the way, I want to pivot to thinking with you about how has… Particularly you Eunice, Four Bands have been a part of the process of overcoming challenges in the process of advancing quality jobs at Oyate?
Eunice Straight Head (25:51)
Like Laura said, the dependency rates. Livable wage is something that Raya and I are very aware of and what we’re trying to get to, which is like $20 an hour in the survey of the State of South Dakota. Right now, we pay our employees about $15 an hour and the lowest paying job in Taco John’s, for example, one of those places is $11.50 an hour, and some of them have to go home and provide for five families in their household. Right now, I had to come back and live with my mom, even though I got my bachelor’s, got my master’s, came back, and worked a full-time job.I do live with my mom because of our housing, we don’t have a lot of places to come back and live, so that’s hard on us too. But we see every single challenge, every single month is always something different. It was my first time writing a policy with Laura here and it was something different. It was something that I have never had to think about until now, especially when you’re starting up from the ground up. Having these foundational parts of this business is really helping us create a good work environment, which is not really a lot on the reservation, but I’m super thankful for every challenge that comes my way because every single one is a lesson and we face it with a positive mindset every single time.
Lauren Starks (27:20)
The learning mindset, right? And the teachable moments. I’m the daughter of a second grade teacher, so I always figure out a way to weave in the teaching angle. Tristan, what strategies have you used to face challenges that have come up along that path to B Corp certification?
Tristan Bredehoft (27:37)
Yeah. Like Eunice said, the main focus you have is livable wage, but I learned quickly that that’s not the only way to make people feel secure. So we used what we’ve learned from NI and Good for Michigan as a way to understand flexible scheduling, understanding that the employees really want to be heard and seen. And so we changed the way that we manage. We are managing with a let’s talk to our team first instead of just doing a command and directive kind of way. So we really brought them into all those things and it really has created a good environment for people to learn and grow and exceed. We’ve had art shows where our employees are the leading artists. We’ve had them create new menu items, so we really just get them all involved so that we can get over those hurdles.
Lauren Starks (28:32)
I want to pause on that for a moment because you said something that’s so important to the work that we’ve done and what we’ve learned in Shared Success is this aspect of worker voice and bringing that into the work and really letting that inform and help you build priorities to create and build and advance higher quality jobs. And I’ll put this to others on the panel who want to respond as well, but could you say more about that aspect of your work? How did you do that? How did you bring worker voice into this work and what did that do for you?
Tristan Bredehoft (29:06)
So we just started by just having non-formal talkings, like hey… They’re little huddles we call them. Like, Hey, what’s going on? What’s working well, what’s not? And just paying attention and hearing and just asking the question to start. That’s how we started. And then as we start building policies and core values, we really learn to bring them in and so that again, they have that voice, they have the way to move the business to a place that they also want to see it in.
Israel Flores (29:35)
Sorry, I just want to say that I think you say a key word, policy. So you need to have those things in place, right? Even if you’re in a restaurant. I think it’s a small business. I think it’s one of those things right now that because you are a small business, you don’t think that you need an employment handbook, for example, that you don’t need a job description. Absolutely right. So you need to have those in place in order to make sure that everybody follows the policy and the rules and the place to become a really good work environment, which is what they create. Last night we had this conversation with Tristan, right? They have to make a really hard decision to… They need to let somebody go for not following the policy. Again, this is the rules that they implement and that’s job quality. It was hard. It’s not an easy decision, but you have to follow those because it’s what you want to create that environment for job quality for your employees.
Eunice Straight Head (30:37)
Just to follow up on the flexibility part, there are moments where our employees can’t really make it to work. Staying in South Dakota, we don’t really have the luxury of driving or walking just right to our work. Sometimes just to get across to get to the nearest Walmart is like two hours away. So our cars is a big part of us. Sometimes our employees cannot make it. So Raya and I take it out of our day and make sure we go pick them up. Whenever women are crafting traditionally in Lakota culture is like we join as a group and we do it together. We share laughs, we share everything. So having that culture implemented and how these women are contributing to their community means a lot.So just after graduation season, we were able to make eight custom CEBs for our local high school where Raya and I graduated, and some of their students are graduating because they’re all predominantly mothers. They’re all mothers, sometimes they’re gone from work at times they have to take off. So that’s really hard, but we always make sure to accommodate them because we understand the cultural significance of what comes to preparing a graduate, especially since it’s such a small percentage of indigenous graduates. So we just want to make sure that we’re contributing to not only our generation, but the next generation.
Laura Owens (31:46)
And I would just add one other thing. Oyate Studio means the People’s Studio, and I think that Eunice and Raya have done a really beautiful job at setting a vision for what that means. There’s a manufacturing component to it where they’re making star quilts. There’s also a co-working artisan space that I think is really motivating to workers. So as Eunice said, 100% of the staff are women. They are mostly the primary breadwinners and caretakers of their families. And they’ve created a really motivating and safe inclusive environment at Oyate Studio and also built in a lot of Lakota traditional values such as… I don’t know, Eunice, if you want to say how you start off your day every day. I think this is actually pretty cool, but I think one of the reasons is it’s a high-quality job and it’s really impacting the community. It’s known as a place that has good jobs, but also a fun place for artists where you can come and create… Try out whatever you’re doing. But I’ll just let Eunice say how they start their day because this is cool.
Eunice Straight Head (33:03)
Oh, yeah. Before, we wait for everyone to come inside and we smudge together. We smudge together to cleanse ourselves, let go of everything that’s outside of these walls and we come into the studio not only to work, but just be together. So every single hand and everything that touches the star quilt, these women and workers and us have a part in it, whether it’s actually physically making the quilts or it’s me and Raya doing QuickBooks for the first time.
Lauren Starks (33:37)
And there’s something so powerful with the image of all of us putting our hands on this work and creating something that’s stronger together and really is about our Shared Success. So before we take questions from our audience, I want to give a moment for each of you to share a closing thought, and this is the aha moment. Was there something that along the way you’ve realized has been key to effectiveness in this space? And I’m going to start with you, Israel, and then we’ll work our way this way.
Israel Flores (34:09)
Sure. Well, I think an aha moment but also, I think what ‘s important is to recognize all the job… Actually all the work that has been done, for example, and I just put it right here next to me, Tristan, right? And Cafe Rica, we as an NI… Me as a person I will not take credit for any of that. At the end of the day, they are the ones who are making those decisions and making those changes. I think our responsibility as an organization is to provide that support so they can have the tools, the resources and everything else to be successful. I think they will be the small businesses, they will be creating and helping the economy, local economy where believe it not, I think if you have a better wage, you will be living better.You will spend more dollars locally. Also, people who know that they are doing that job, of course I will want to spend my dollars in that business, right? But also if you think about it, it’s also healthy, right? I mean, because you are living with less stress when you are in a good environment. Again, I certainly hope that one day, if you are in Battle Creek, please go and visit Cafe Rica. It’s a whole different environment. It’s one of those places that if you go to a Starbucks or any other coffee place, you will see people who are so serious, all the workers. You walk into Cafe Rica, you’ll hear people, employees singing, laughing, talking about it, creating this environment where you’re having a meeting, an important meeting, right? And by having all of that around you, it makes your meetings more productive, but you’re feeling good and of course feeling good as community members love to be there and also you see the employees really happy.
Tristan Bredehoft (35:58)
One of the aha moments, I think it came right before Northern Initiatives linked us up with Good for Michigan. But while pay is great, it’s not everything that makes it a good job. And I was having a meeting with a former employee that I was like, “Hey, I want you to stay. Here’s more money.” And they still chose to leave. And then when I started going through the Good for Michigan cohort, I understood all these vast different things that a business can do to make it a good job. Now, at first I was a little daunting. I was like, whoa, there’s so much to do. But then it clicked in me. I was like, there’s so much to do. I can start anywhere, start small and just work my way up. As long as the goal is to get better. It’s all about the progress. It’s not about what’s ahead of me.
Laura Owens (36:51)
I think for me, the aha moment with Oyate Studio was really around flexibility. As I mentioned, our workforce is mostly 100% women, and we were having trouble giving schedules, doing a consistent eight hour shift. And so what we ultimately are still continuing to work on is the women can go home after school to care for children. We’re very flexible. They can go back in the evenings if they have availability or on the weekends. And I think really just meeting people where they are and understanding that it is a community, and that this is a place that is providing consistent, really special jobs, but that we really need to meet people where they are.If someone isn’t showing up for work, it’s not because they’re sleeping in, it’s because maybe their car broke and that is going to take a two-hour drive to go fix it, several days for the car to get fixed, several days for it to come back. That happened to an employee recently who hit a deer, and so that employee is out and now their person on the line isn’t there for making the quilts. So we just had to be more flexible and also develop a bench of artisans that we can call in to, who might not be there every day, but are willing to come in if we need extra staffing. So flexibility and meeting people where they are.
Eunice Straight Head (38:29)
Definitely making it work where we can. We don’t have… Can you guys hear me okay? Yeah. We’re really good at making do with what we have. If there’s one mindset that Rya and I go in with our leadership and Four Bands is that we make it work with what we can. We rely on our community, we rely on other people. Our small business, we had to get used to a new POS system inventory, and what we did is we went to go visit other businesses and what they used, especially locally, that’s what we try to do our best on. But my aha moment would definitely be when we had our partnership with 3 Feathers, when we had our partnership with Four Bands, just seeing the resources of people and their knowledge and skills and what they can provide for what this can grow into. We are just a seed and a little sprout right now, but we are hoping to become something bigger and that is giving back to our community next generations. My dream and Raya’s dream is to have our own studio where we’re able to give scholarships to native students and just grow bigger than the space… We already outgrew our space with how many employees we have right there, right now. And just the support is the aha moment for me.
Lauren Starks (39:48)
Thank all of you for such an inspiring conversation. You’ve left us with such a moment. This is possible. We’re going to take a couple of questions from our audience now, and we have team members throughout the room who have microphones. Raise your hand if you have a question and we also have our audience online submitting questions.
Laura Flamm (40:13)
Good afternoon. My name’s Laura Flamm and I’m with Kaiser Permanente’s Impact Spending department. My question is, what role would you like to see large institutions, especially anchor institutions like hospitals, healthcare systems, universities, play in advancing this work? Thank you.
Israel Flores (40:38)
Well, I mean, again, so we are looking at this demonstration: how important is your quality? Of course we would love for them to be part of that. Again, creating those opportunities not just to create better pay as we were talking about, but also the environment. I think many places, though you will see that, that it’s going to be toxic places. Again, we’re talking about these small businesses, but for bigger organizations and companies, yeah, we would love to see that. Again, to be honest with you, I would love to see bigger corporations sharing their profits, having a living wage or better wages for their employees because they don’t need all those billions of dollars in their pockets. They can easily share those with all the people, and I’m telling you, we will be a better place.
Speaker (41:37)
I just wanted to respond to your question real quickly and then I have one for you. I think one of the things that large institutions can do is purchase from small businesses that are embodying these kinds of values to help these entities grow and thrive. And I know that the Cafe Rico is working on some partnerships with the local hospital system as an example to purchase coffee. So there’s a role there. My question for you or for each of you is what is one of the moments that’s brought you the most joy in interacting with people on your team and in creating the culture and work environment that you’ve been fostering?
Tristan Bredehoft (42:17)
I can go first. I really enjoy seeing my team members move on to what they really want to do in life. As a coffee shop, it’s like a stepping stone where an in-between, for the most part, it’s not normally a career choice. And so we always ask our teammates when they first get in, “What are your goals outside of work and how can we help you accomplish those?” Through the many years we’ve been in business, we’ve made multiple connections with different types of people, so we always try to plug them into those people. And so I really like seeing my team flourish and eventually leave.
Laura Owens (42:58)
I’ve really enjoyed supporting and watching Eunice and Raya make their vision happen. They’ve grown into just… I mean, they’ve always been amazing leaders, but really amazing managers and really cultivating a special place. So that’s been very fun for me.
Eunice Straight Head (43:20)
Just to respond to that question, for sure, it’s supporting small businesses. I know a lot of people are, “Well, I’m not native. Can I buy this?” Yes, you can. Especially if you are supporting an indigenous business and you know it’s from the reservation, you know where it’s coming from and we’re happy to share the story with you. We’re not going to… Unless we keep ceremonial knowledge, that’s completely appropriate, but we’re more than happy to share the story of the Star quilt, the story of the buffalo, the leather, everything that we do, there’s a purpose and a meaning behind it, and it’s something that you can carry on with you and you’re able to share our stories.And I think that’s the most important form of representation and support that we can get from our customers. Yeah. And we also have a quilt that Raya and I brought just to share. There’s a lot of hands that went into this. And one thing that I do want to mention is that everyone in this room does support communities, support people. Just like the star quilt. There are multiple hands that touch this quilt. It’s like Raya and I did the quilting. The team completely put the star quilt together and satin’s very hard to work with, believe it or not. But without all of them being able to be here and show you their work, this is the physical embodiment of the spirit and love that they put into Oyate Studio.And they come in everyday to create these. Right now we average about five quilts a day, and we’ve probably made about 300 plus in the past four or five months. So they go out. 3 Feathers came and trained the quilters and the seamstresses of how to make this. But just like businesses and resourcing and network and support, everyone has their hands in this star quilt. It’s more than just an artifact. It’s more than just what we do. It’s everyone here that’s able to support us. That’s the physical embodiment of our star quilts and being able to elevate and bring awareness and support cultural and traditional revitalization within our people. This is the people’s studio.
Speaker (45:25)
One of the problems I’ve always had with small businesses, how you deal with post… Otherwise, you work a job for a certain number of years and then you retire. And in other words, bigger companies provide post-retirement benefits like a pension, retiree health insurance and things like this. I often see small businesses really only using workers in the way you described your restaurant. You work here for a few years, you help the restaurant prosper, you make some money, and then you move on to something else. There’s really no long-term help for the people that actually worked for you. Or maybe some guy might’ve spent 20 years working there and leave and he doesn’t really have anything to take with him. So how do small businesses deal with that post-retirement issue?
Tristan Bredehoft (46:11)
That is one of the biggest hurdles. Yes. Now I think the way that we can counteract that is all these bigger corporations will charge you as much as they want. And I think small businesses just have to know what their worth is and start charging what the market is actually out there. For us, since we’re close with… Israel’s in our community, we see everybody so often. We get very personal with that connection. And so when we’re thinking about our business and raising prices or just doing things that are better for the business to succeed and even survive, we end up getting apprehensive about doing something that will help us bring in benefits for the long-term. So I think it’s just starting with knowing your worth and charging that.
Lauren Starks (47:07)
We have time for one more question. I’m sorry. I think-
Speaker (47:14)
[inaudible 00:47:12], used a term I’ve never heard before. What is smudging?
Eunice Straight Head (47:18)
Oh, you light sage and you cleanse and purify and pray with it. So that’s what we do. We pick it up locally. Sometimes in the summer we go as a team. Raya and I went with a couple of other coworkers and it was after work and we went to go harvesting. And you give back to the land and then you bring it. And we have it all over in our studio. So we’re able to smudge and cleanse ourselves and purify ourselves from outside of the studio and outside the building because we’re not at work. And you put your love and thoughts and good things into the work that you’re creating. It will reward you with something beautiful.
Lauren Starks (47:55)
Well, thank you all so much for the questions. This work matters. This work can be done and it’s more beautiful when we’re doing it together.
So joining me here… let’s see, who’s going to sit next to me? Okay, great. So sitting next to me is Viola Mai, Director of Development and Impact at ICA Fund in California. Sitting next to Viola is Betsy Biemann, CEO of Coastal Enterprises in Maine. And sitting next to Betsy is Barbara Magnoni, President of EA Consultants and Adjunct professor at the School of International and Public Affairs at Columbia University, and also a regular collaborator with the Financial Access Initiative at NYU. Thank you all so much for joining this conversation. This conversation we’re going to be talking about building, sustaining, and scaling job quality work within CDFIs. And the previous panel really set the stage beautifully for this conversation. They really gave us a flavor of how CDFIs work with small business, how it really is contextualized to the community to the specifics of a business. They really just highlighted the ways in which CDFIs have broadened the scope of what they do to support small businesses and to incorporate a focus on job quality.So in this panel we really want to explore a little bit more. What does it take for a CDFI to add this focus? The work involves building your internal capacity, thinking about the organization’s strategic focus, how does this fit? How do you build new skills and new knowledge that you might need to do the work? And it also requires building external capacity and building new relationships. So Israel actually mentioned the relationship with GOOD for Michigan, so there’s new relationships and new partners that may also need to be brought into the work. So we’re going to dig into all of these things about what it needs to be able to grow and flourish in more communities. So you’ll notice Barbara is not Tim Ogden who was on the agenda and you may have been expecting, but very unfortunately is dealing with some health issues and could not be here with us live. Although, may be here with us virtually.But I’m really thrilled that Barbara’s joining us, and Barbara and Tim have worked closely together, so they did a little mind meld yesterday and she’s totally ready, not that she needed it. So anyway, let’s jump in and I want to start the conversation of course with asking you each to introduce yourself. And Betsy, I’m just going to start with you. If you could tell us about yourself, how you got to CEI and CEI’s approach. Which actually, you’ve been doing for quite some time in terms of integrating job quality into the work. Okay. I’m going to give a little shout-out to Betsy was also a job quality fellow with us here at The Aspen Institute. So we’ve really loved partnering with Betsy for many, many years. So Betsy.
Betsy Biemann (00:03:22)
Great. Well, it’s wonderful to be here. Thank you for including me on the panel. So about myself, I’ve worked in economic community and workforce development for probably the last 30 years. I’m dating myself. Just all as strategies to advance economic opportunity across the US. In 20 of those years I’ve been working as a practitioner in Maine and rural places and previously for nine years worked at the Rockefeller Foundation as a grantmaker and an impact investor, but all the time working at the intersection of the nonprofit public and private sectors and looking at ways to leverage the various resources, partnerships, relationships, know-how across to really maximize the impact for low-income communities. Along the way, I’ve also served on the board of the Opportunity Finance Network, the Trade Association of Community Loan Funds, as well as served for 10 years on the board of a place-based foundation in Maine that does impact investing. So I’ve seen a lot of the different perspectives for ways to advance this work.I’ve been at CEI for nine years as CEO. For those of you who don’t know CEI, we’re a forty-eight-year-old CDFI, one of the early rural CDFIs. And our mission is to build a more just vibrant and climate-resilient future for people and communities in Maine and in other rural regions across the country. To give you a sense of scale, we have a small business loan portfolio with about 450 small business loans that totals around $76 million and we advise around 1600 entrepreneurs a year. We also, over time, have developed a number of financing subsidiaries that make venture capital investments, tax credit investments, and real estate investments regionally and nationally. And we can talk later about how we’ve infected them with our good jobs work as well.But I think historically we always cared about good jobs, but I think when I got to CEI, we started sort of asking, “Well, we want to be maximizing our resources.” So not just creating any job, but good quality jobs that I think if you had asked everyone in the organization what is a good job, you would’ve gotten 50 different answers. So one of the things that we did was some research and conversation with employers and workers and we benefited from sharing with PCV, a CDFI partner that had done research in this area, and developed a framework that I can talk about a little later. But really that has helped us be a tool for informing our lending but also for working with small business owners because we believe that good jobs are good for the small business, good for the workers, and ultimately good for the communities where the small businesses and workers live and exist.
Maureen Conway (00:06:32)
Great. Thank you so much, Betsy. Viola, I’m going to come to you next. You also have a great history in this work, not just at ICA, but you also worked at Self-Help. So I’m wondering if you can just tell us a little bit about your journey into this work and about ICA Funds approach to job quality, which is a little distinct because you do more of the investing than lending. So maybe you could just share a little bit about that and about your background in this work.
Viola Mai (00:07:00)
Yes. And I have the great pleasure of going after Betsy, who has an amazing career. But I feel like for me in how I approach my professional life and my personal life, it’s always about how do I democratize systems? So I’m a child of immigrants. My father was a small business owner and it was really common for me to be in elementary school and just trying to figure out tax terms that he would ask me about. And I was like, “This is crazy.” And then growing up, I did go into finance. I have an econ degree, and I began to understand all of the crazy systems that our society has created to manage finance, but it also gate-keeps a lot of folks, especially if you are not a native English speaker or you come from a rural area or you just don’t have access to those networks.And so every part of my career has really been how can I help leverage my skill to share knowledge and share resources? Because we know the two have to go hand in hand. You can teach someone how to do something, but you also need to make sure they have access to those networks, those resources, capital, things like that. So that’s what initially drew me to my work at Self-Help. So I was at Self-Help for about four years. I was there helping raise mission supportive deposits. Self-Help is a national credit union, so they do mission supportive lending, but oftentimes their client base doesn’t have enough capital to support the lending projects that they wanted to do. So I would go to different institutions, different high net worth individuals and work with them to move their money. That was a really big popular phrase, move your money.And through my work, I was so excited about the big scale projects that Self Help was doing. But me personally, I’m based in the San Francisco Bay Area. I never really saw how those projects impacted the main streets that I lived on, what’s happening with the small businesses in my community. And that was really the transition that made me really love ICA’s work. So just zooming out a little bit, ICA Fund, we are a provider in the San Francisco Bay Area. We work with local small businesses, but we really offer the gamut of services. We do a business accelerator where we work with about 40 businesses every year, really comprehensive business coaching paired with a personal advisor. We also have the ICA community. So entrepreneurship is very lonely, it can be really hard to find people who are in the same position or going through the same struggles.So we operate the ICA community to really bring space where folks feel safe to network and also learn from each other. We also have a great peer mentorship program going through the community right now. And then lastly, but also super, super importantly, we run an investment fund. So actually the fund was originally named Fund Good Jobs back in the day when it first started. So the investment fund through which we do primarily equity investments, but we also do convertible debt and some new products that we’re thinking of, more working capital stuff. All of it’s just centered on how can we support small businesses in accelerating their growth, but really supporting their local community. We want everything at ICA to be about creating vibrant communities, creating community wealth because at the end of the day, that’s where you live and we want to make sure that we can support the continuation of that, make sure the people like where they live and are really building for the future.
Maureen Conway (00:10:30)
Yeah. Great. Wonderful. Thank you. And Barbara, I want to come to you now. You also have an amazing career and have done a lot of work with small businesses in a variety of contexts. And coming to work with us on Shared Success, I think the job quality aspect was a little bit new for you. So tell us a little bit about the work that you do and also what was interesting to you about coming to work on Shared Success?
Barbara Magnoni (00:11:01)
Yes. Okay. Yeah. So my name is Barbara Mangoni and as Maureen said, I’ve been working in the financial inclusion space for years, but never really focused on job quality the way this project is. The closest I’ve gotten was when I started a company in Mexico in 2019. We were offering FinTech services in low-income communities and we’d hired women over 40 who tended to be excluded from the working population and ended up in a lot of informal jobs to offer these services in low-income communities. And everybody advised us to pay them on commission and we just didn’t feel like that was right. They needed to feed their families and pay their rent, and take care of their kids, and commission just wasn’t going to cut it.So we flipped the risk and gave them basic salaries and focused a lot on HR to make sure that they were motivated and doing well. Our retention rates were through the roof. We had 50 employees, we only lost one, and that was for a health reason. Which is unheard of in the Mexican financial sector, probably in the US financial sector as well, which I’m not as familiar with. And it just got me thinking about the possibilities of a business model that looks different that does center around the HR piece and makes sure that people are happy and feel good in their jobs.So anyway, when Tim brought this project along that he was talking to Aspen EOP with, to me it was really exciting. Because I thought, “Wow, we can learn a lot more about what these opportunities are and what these business models can look like.” And I’ll just say working with FAI is a really great way to do that. For those of you not familiar with the Financial Access Initiative at NYU Wagner, they do research a little bit differently. They really poke into the deep understanding of the reasons people make the choices they make, particularly in the financial space. And that was a really great approach for understanding this project a little bit better. So that’s what brought me here.
Maureen Conway (00:13:27)
Great, thank you so much. So I’m going to transition a little bit because I know that you’ve touched on a little why you do the work that you do, and the urgency of this work looks a little bit differently in different places in different communities. So Betsy, I’m wondering if you can start just talking about why this focus on job quality is important to Maine and what that means for Maine, and what kinds of outcomes you’re seeing in the work that you do.
Betsy Biemann (00:13:56)
So in case you’re not that familiar with Maine, we’re half of the landmass of New England, but we only have about 1.3 million people who live there and lots, and lots, and lots of trees and lobsters. You’ve heard about the lobsters probably more than the trees. But we’re really still transitioning from a 19th century economy to a 21st century economy. And it used to be that you could graduate from high school and walk across the street and get a job at the paper mill or be a stern man on a lobster boat and make a decent living. And starting in the 1970s that started to change. And today we are a small business state. Almost well over 90% of the businesses in Maine are small businesses and well over half of all Mainers work in small businesses, but small businesses typically don’t have that HR department.You’re a baker who’s talented at baking and you’ve started a bakery or you are that lobsterman and you’re hiring a stern man and you don’t necessarily know about the New Merit program, which is a retirement program that Maine has started so that small businesses who don’t have a retirement savings program can make sure that their employees have a way to save money for their retirement. But we have this wonderful team at CEI who can help. So the way we really started, I noted that we had always cared about good jobs, but we didn’t really have a definition. And we did some of this research and participatory research, really talking to small businesses and learning from our peers and developed a framework that is seven different aspects of a good job. And we’ve really used that to then both inform our small business loan decisions and even to help set the interest rate that we charge depending on whether a small business provides good jobs or is interested and committed to improving the quality of their jobs. But also to really help guide our conversations with small business owners.A lot of the businesses we work with and finance are in the natural resource-based sectors, so they are seasonal often. We work with a malt house that malts barley. Well, barley doesn’t come to work at 9:00 in the morning and go home at 5:00. Though when you’re malting barley, it’s a 24-hour process. So working with that small business owner who has literally an award-winning barley malting operation and provides malted barley to over 120 beer and other craft breweries, he needed help to figure out how do I make these jobs that people are going to want to stay in when part of the year you might have to work well after 5:00 in the afternoon, or come in well before 9:00 in the morning? And how does one structure and remunerate those positions in a way that folks can see a future and can also see having a family and doing what you have to do as an individual while having that job.Also, we’ve done work with Mussel and Kelp Aquaculture company. Again, you get on the boat, you go out, rain or shine. It can be very unforgiving weather conditions and if your kid has a doctor’s appointment at 11:00, you can’t just motor back into the harbor. So these are complicated jobs and there is some flexibility that the small business owner has and we help them figure out how can their business model and the realities of their small business best create jobs that pay a living wage, provide paid time off, provide an opportunity for wealth building or retirement savings? Have some kind of a health benefit or health stipend, give people at least two weeks notice. Because schedule notice is very inexpensive to provide, but can be very stressful and very expensive for a worker if they don’t have it.Performance reviews process that lead to increases in one’s compensation as well as opportunities for training or tuition. So again, you can improve your wages either at that business or another one. So those are all the kinds of things that we do. We advise over around 125 businesses per year in our small business lending, Maine based work. But we also over time have started working with our venture capital subsidiary that is working with more growth oriented businesses across New England and the Northeast. As well as our new markets subsidiary, which is investing in much larger rural manufacturing companies across the nation. Where the smallest one I think has about 65 jobs and often has north of 200 or even 300. So we’ve managed to integrate a lot of this thinking and that framework into how we work both in Maine as well as nationally and are seeing really important results.
Maureen Conway (00:19:50)
Great. Thank you so much Viola. I’m coming to you next because I bet things are a little different in the Bay Area.
Viola Mai (00:19:58)
Very.
Maureen Conway (00:19:59)
And maybe some of the businesses are a little different than that. So I’m wondering if you could just share some examples from the work that you do and why this is important in the communities. You mentioned that a little bit. Say a little more about why it’s important in the communities where you live.
Viola Mai (00:20:17)
Yeah. So I feel like everyone probably thinks of San Francisco, Silicon Valley, Tech AI, money. Yes. And at the same time, our region has one of the highest income gaps of any area in the nation. And because of the highest highs, we also have the lowest lows. So that’s why it’s so important to have quality jobs to help people build wealth. In the area, also homeowners… We typically think in terms of wealth building homeownership is the easiest thing. Get real estate, let it gain value over time. But also in the San Francisco Bay Area, it’s one of the most expensive real estate markets in the world. So in the interim, what can you do? So a lot of folks have been turning to small business as a way to take back ownership of their life and then just really create a good quality business, source of jobs for people in their community. And I actually do want to raise up two products that ICA Fund has been using, and I want to say that they’re not new. We’ve been working on these things for years and years and years.So the first one is our good employer Matrix. So through our accelerator program we do really focus on the people strategy of how as a solopreneur, someone with just one employee, how do you actually build the strategy to higher up? How do you promote people? And then also, as Israel was saying earlier in the first panel, having job descriptions, just having uniform policies. So our people strategy module is part of that. And then as part of people strategy, we also talk about the GEM, which it’s just a scale of what no benefit looks like. And we also break it out. I believe now it’s three categories. It’s a very quickly evolving changing thing because so many things change about our world, so we have to move with the economy and society. But we have a scale of what does it look like for no benefit, what’s one step up, what’s another step up? All the way to what is the perfect way you can operate in this specific benefit capacity?And we break it out over different categories so folks can look at that and see what’s either a low cost or no cost option until they get enough revenue to maybe invest in that retirement plan or that health insurance plan. So we have this as a tool that’s accessible. We also have another product, it’s called the ISA impact note. And this is actually an investment note where we have co-created with the investment recipient. What are the different social impact goals that you want to achieve with your business? It might be creating X number of jobs. It might be, “Oh, I want to provide a profit sharing plan.” Or, “I want to create an advisory board for my business so I can make sure I’m meeting community needs.” So we insert five of those goals into the ISA impact note, and when an entrepreneur meets that, they actually get a portion of our equity ownership returned back to them.So that actually allows them to both meet their social impact goal and also make a financially good decision. So those are some of the tools, but definitely something about ICA is we are in the heart of Silicon Valley and we see so much innovation around us and actually that’s what we pride ourselves on, we innovate with the quickly changing world. Because our area has one of the highest income disparities in the nation, we really think it’s imperative for us to center small businesses and quality jobs in order to reduce that wealth gap and really make sure that we love and enjoy the community that we’re in.
Maureen Conway (00:24:03)
Great. Thank you so much. So Barbara, I’m coming to you now because we’ve heard from Maine, we’ve heard from the Bay Area, and you’ve done a lot of research on the financial lives of low-income workers across the country and even globally. So I want you to comment on how they think about job quality and what that means to them. But also you’ve been doing work lately for Shared Success, talking to both the business owners and their workers. And I’m wondering if you can share just some of the highlights from what you’ve been hearing.
Barbara Magnoni (00:24:35)
Sure. So I’ll start with some of the research that we’re working on right now with FAI. We’re just starting a project called Small Firm Diaries here in the US that’s based on prior work, on household financial diaries, and also global small firm diaries. That work has really informed a lot of the thinking around just the challenges small business have that we’re incorporating into our analysis, including this project. One of the big highlights of both the individual household studies and the global firm level studies is that low-income households and small businesses are dealing with a lot of unpredictability and a lot of financial volatility. And maybe that sounds intuitive, but it has a lot of repercussions in terms of the choices that they have to make and the trade-offs that they have to face.In the workspace or in the job quality space, one of those is the trust gap. And I hate to call you out Tristan, because you said this, I don’t know, in a very open way and I don’t want to call out any illegal activity any more than it’s already been mentioned, but I think it’s a really-
Speaker 6 (00:25:59)
Statute of limitations.
Barbara Magnoni (00:26:03)
But it is a really great example that you mentioned earlier of the trust gap. Where maybe an employer doesn’t have enough security in their cash flow to pay workers more or doesn’t prioritize it. So workers might take a little money off the top if that’s accessible to them, because they don’t feel like they’re being treated well. And then the employer might look at workers in a different way because they don’t really trust them anymore, and so they’re micromanaging or not managing as well.So this volatility has incredible repercussions for the quality jobs and what that looks like in the end. As Maureen said, we have had the enormous pleasure of speaking with 77 small businesses in this project individually and 50 workers from those businesses. And it’s something that we have tried to tease out. And what we found really interesting is that small business owners and their workers both agree that creating a more supportive work environment is important to them. And in many cases, most important to them. And that speaks a lot to closing this trust gap. It speaks a lot to how we bridge this gap between worker and employer. So I’m just going to mention a couple of things that we’ve unpacked from that concept.One is communication. Again, I think Tristan spoke to that really well. Having a huddle or having this moment of just talking to your workers and understanding them can be really powerful. Another that maybe hasn’t come up as much but we’ve heard, is autonomy. Giving workers the space to make decisions, to control their environment. To say, “Hey, this doesn’t work. Can I fix it?” And taking the lead on doing that is very powerful as well. Growth opportunities. We met a business that is an ICA investor that has actually leveraged a lot of the learning and the contacts from ICA to put in place some management skills. They have a management team that’s been promoted from below, so with no management experience. And when they do their huddle or their weekly meeting, they actually read a management book together and comment on it and learn from it, so it’s kind of like getting a little mini weekly MBA every single week to help build up those skills. Which is pretty cool and amazing.And finally, another thing that we’re seeing, and again, we saw this quite a bit in Maine. But in a lot of different places is investment in workers, not just productivity, but safety and reducing some of the tedium around work. So buying machines or investing in technology that takes some of the really yucky work away from workers so they can focus on the more interesting things, or less tedious things, or less even physically difficult things. All of those aspects are things that we’re bundling into the concept of a supportive work environment, which can really help build this trust gap.
Maureen Conway (00:29:25)
Great. Thank you so much. So now I want to shift gears a little. So I mentioned at the opening that doing this work requires capacity building, and thinking both internally and externally for the organization. So Viola, I’m going to start with you and focus first on the internal piece. You’re on the leadership team at ICA and you’ve just spent a lot of time thinking about what are the systems, what are the capacities and all of that, that you need on your team and inside the organization. So I’m wondering if you could just comment on what it takes to build that internal capacity to do job quality work?
Viola Mai (00:30:06)
This is going to be a boring answer, but it has to come from the top. If this is something that is valued by the organization, it really has to be institutionalized. And ICA Fund is super lucky because our board of directors is very, very aligned. Our whole management team, including our CEO Allison, who’s sitting in front of me, super, super aligned with job quality. So then we’re able to make sure that trickles through and is embedded in our goals, and is in our products and not just an afterthought. So I think one of the biggest things is make sure you have buy-in from the top of the organization. And if you’re not there, so if you are maybe a project manager or an associate and you’re just trying to get folks to think about job quality, I actually think one of the most important things is to present the story in terms of the client impact and also the economic impact. And they’re both really important.And I think having both pieces and presenting that to whoever might be a larger decision maker and having it trickle up is really, really key for making this work supported throughout the organization. Also, someone else in our Shared Success demonstration mentioned this, but it might be easiest to get this kind of work introduced through a pilot, but that also silos it from all of the other parts of the organization that would also benefit from knowing about the work and implementing job quality work. So something I’ve been thinking about separately, and ICA does have this, but include it in your strategic vision. Everyone has a five-year strategic plan, or three, or what have you. But if you can get job quality in there, then it gets into people’s goals and then the team then will operate with that in mind. And then hopefully it doesn’t leave the strategic vision once you do your visioning process again, maybe it then becomes a core value in organization. But that’s my fast and dirty version of how do you get this work happening?
Maureen Conway (00:32:07)
Yeah. No, I really appreciate that. I also love how you think about adding that to people’s goals. And Betsy, just building on that, in your role as CEO… I remember visiting Coastal Enterprises in the 1990s and they had a concern about good jobs because Maine needed good jobs and everything, but it was not institutionalized. So I’m wondering if you can just talk about what it took in terms of institutionalizing that focus at CEI.
Betsy Biemann (00:32:42)
Sure. So I really resonated with a lot of the things that you said, but I certainly know at CEI if it had just been me coming in and saying, “I’m the new CEO and we’re going to now start working on good jobs.” And it stopped there, it would’ve stopped there. Because we’re a very democratic organization. I don’t know. There’s a lot of, yes, inclusive, collaborative and really want to get. So I’d say the first thing that we did after we decided this was a key strategic effort of the organization was to start building a team and really wanting to hire a terrific, dedicated team with expertise in the private sector, in senior manager. And I will put her on the spot, but Cynthia Murphy is here, who was that person and she’s really driven this work.But brought not only deep commitment to growing good jobs in Maine, but just experience from an international career working in management in all different sizes of organizations. And thinking very carefully and strategically about how you build people and build teams. And since then we’ve added Taben and Cameron who some of you have met, and they’re really the locus of what I’d consider the practice development, leadership, and learning around good jobs in our organization. Then we created this clear and pragmatic tool that I mentioned, the framework with the seven elements of it, but have really over the last probably seven or eight years integrated that throughout our lending process.If you’re growing jobs, if you have jobs, we look at the job quality as part of our due diligence on a loan. Our scorecard is part of our investment memo. Everyone is trained in and understands how that is an integral part of our decision making. And similarly on the business advising side, we have a lot of business advisors who didn’t have and don’t have deep specific knowledge, but this great team has developed resources that they can use very easily. Thirdly, we walk the talk. One of the first things we did when we decided to do this is look at our own jobs. Do they fit all of these? We can’t go out and ask small businesses to do something we are not doing ourselves, so that was an important part.Just communicating regularly, telling stories at all staff meetings and not just communicating within the program team or the lending team, but our accounting folks need to know about this and our IT team needs to know about this. Everyone needs to understand and really appreciate the importance of it. And I’d say finally, make it easy to incorporate it. Again, our good jobs team has been terrific. They have these grab and go resources. So if a business advisor who’s not on the good jobs team, but say maybe one of our sector in child care or in aquaculture talks with a small business owner and they say, “Oh, I’d love to figure out how we can support retirement savings for our folks, but we don’t have any money to do it.” There’s the follow-up email draft with the links embedded in it, and off it goes. So making it very simple and seamless with all of our work. So those are some of the things that have worked for us and we’re continuing to grow and evolve the work.
Maureen Conway (00:36:36)
Yeah. Great. Thank you. Thank you both so much. Because I will just say I talked to a number of organizations that are like, “Oh, that job quality thing, that’s so interesting. I’m totally there, but what do I do?” So I think you gave them a lot of what do I do’s? So that was really terrific. And now we’re going to go to the outside part of it, because it’s not just within your organization, you also need partners. And Viola, I’m going to come back to you because I know the director of development is part of your job. So I’m thinking about funders is of course important, but there’s other partners too, so I’m wondering if you could just talk about the external partners that are important in this work.
Viola Mai (00:37:13)
Yeah. I will just say ICA Fund is really lucky to have really trust-based funders who believe and align with the mission of our work and trust that we will design the programming that will help us achieve our mission. I know that not every organization is that lucky. A lot of organizations, especially right now, we’re all dealing with a difficult fundraising environment. So I would say now more than ever, one approach to make sure that this job quality work really gets not just started but really sustained, is to really normalize those talking points. Earlier I said the economic story and the impact story, and I think that’s double underlined, bold font for funders. If you are interested in trying to get this work started and figuring out how to make this not just a one-time pilot, but something to be sustained, it’s really about making sure that you really are capturing the impact of what job quality means.Because we all just heard from these amazing entrepreneurs about what it really looks like for their employees, their community? And also I think for folks like me who at ICA, I’m writing grants, talking to funders, tracking data, uploading stuff on Salesforce, it’s like my job then to really encapsulate what does this actually mean though? What does it do when we do this at scale? What does it look like if we can help 100 Cafe Rica’s? So I think that’s super, super important if you are looking to get funding for this kind of work and continue it.And then I would say too, it’s also helpful to start with a pilot. Like, “Here’s a cool idea we have and here’s what we want to achieve. And I’m really hoping XYZ funder, if we’re successful in this, we can make this into a fully fledged program.” So that might be a way to step into a little bit of funding that can help evolve into something bigger. And I will say, I’ve been in fundraising for almost eight years, and that is typically how you get to those bigger pools of money. You start with a small pilot, a project, gain trust from the funder, and then eventually that becomes a really long-lasting partnership. Not just from a dollar basis, but who they connect you with and what opportunities to speak up about the work that they give you. All of it’s really a true partnership. So I would say get really clear about your storytelling and look for folks who are partners for the long run, if you have that ability.
Maureen Conway (00:39:55)
Masterclass from the development director. And Betsy, I’m going to come to you. You have a lot of experience engaging in funders in this, but you also were a funder for a long time, so maybe you can reflect on that experience and just share what has drawn funders to this kind of work.
Betsy Biemann (00:40:17)
So it’s interesting, despite the fact that we have this great track record, we have not been able to raise project funding from a lot of foundations. I think some of the issues were not in the Bay Area, so when we go to national funders, they might care about good jobs, but they don’t care about Maine, they care about their geographic footprint, which is somewhere else. Or they care about Maine if they’re maybe Maine funders, but they don’t necessarily care about good jobs, they care about something else. So we’ve had a hard time finding that Venn diagram of folks who care about Maine and good jobs. So I think that we’ve then switched strategies and instead as we’ve integrated our good jobs through all of our work, we have taken slices of our good jobs advising and been able to build them into say, a project grant over here or there.And some of those are federal and some of those are private. The other thing that has been helpful, and kudos to the Casey Foundation, because of our good jobs work, they’ve made two PRIs to CEI. So a 4 million ten-year investment in our small business lending and a 1 million investment in one of our venture capital funds. It’s focusing on good jobs. So that capital enables us to grow our lending, which grows some of our revenues. So in this way, instead of what I consider almost a vertical, here’s a grant to do this one thing, it’s across our organization and we’re able to scrape together the resources that we need to continue this good work.I have to say I’m still a little puzzled. I think part of the problem is that I’ve drunk the Kool-Aid and I think this is really valuable work. And I know if I were back at the Rockefeller Foundation, I would be funding this work. But foundations have boards, they have strategies, they have their theory of change. And if you don’t fit in that theory of change, it’s really hard. You put yourself in a pretzel to try to secure that funding. But part of our excitement about being part of this initiative, the Shared Success initiative, has been how do we collectively put the value and the potential of this work forward in a compelling way, in a national way such that we can bring funders along and excite them about investing in this kind of work nationally.
Maureen Conway (00:43:08)
Great. Yeah. Go ahead.
Viola Mai (00:43:10)
Can I just respond to something that Betsy said, which was actually super, super important. This is also why it’s so critical to embed job quality work into the organization. If you are able to make it a core kernel or a mission part of the organization, you don’t then have to go around chasing different pools of project funding because ultimately then what you’re doing is finding funding partners for the nonprofit and not a specific other project, which maybe is just maybe a bit easier. You don’t have to look for that Venn diagram. So just tagging on explaining why it’s so important to get that top down, all around, everyone buy-in for job quality.
Maureen Conway (00:43:54)
Great. Thank you. And Barbara, this is a perfect segue to you because the research that you do has been critical to providing insights and often to funders about what the value of work is and how they should think about their investments. So what do you think funders will want to know about this work? And also, can you share a little bit of what we are learning?
Barbara Magnoni (00:44:15)
Yeah. So I spoke earlier about some of the qualitative visits that we’ve been doing, but we’ve also been surveying small businesses in the program to understand what they’ve been learning, doing, and why they’re doing it through a more quantitative survey. So we have preliminary data, I don’t want to get too stuck on it, from our inline survey. Which is about 158 businesses across the 11 CDFIs. And 92% have made a job quality improvement over the last two years, which is a pretty crazy number. Yeah. 84% also have said that they believe this has impacted some business outcome. So whether it’s retention, productivity, et cetera, but some kind of business outcome. Which is also really exciting as we think about that kind of linkage to business outcomes that we’ve been talking about as a convincing argument to support the work. And then back to my comment earlier, 73% are seeing an outcome around the supportive work environment that we were talking about, which is important to workers obviously and businesses as well.So I’ve got a ton more numbers, but I’m only going to share these three for now. But they’re pretty encouraging. It’s pretty exciting to see how this program has moved forward. And the really important piece of this is the CDFI linkage. Without the CDFIs, this would not have been possible. And yet CDFIs are under so much pressure to do everything and to do it well, and to do it profitably and to reach scale. And to serve customers with appropriate… Should I go on? Serve customers with products that are appropriate at reasonable interest rates for credit products so that you’re not creating more problems than solutions. And there’s just a lot of pressure. Tim and Joyce actually wrote a piece on this, looking at US microfinance or US financial institutions and what they could teach global microfinance institutions. Which is a little bit of a switch from the normal approach.But because the US financial institutions do have this really unique mission to serve the underserved in a way that is very different in global microfinance. In global microfinance, everybody is underserved. So you have some really good credit customers there in the underserved that maybe they don’t have a formal credit history, but they have good incomes, they have a big family with lots of jobs. They’ve been paying informal loans regularly and on time forever. They’re not as excluded from financial sector credit worthiness as the folks that are served by this community of CDFIs. So it is a really difficult thing.Tim actually asked me to quote a paper, which I probably won’t quote well, but called Financial Inclusion Trilemma. But the point of this paper here in the US is that financial institutions here in the inclusion space are asked to provide good non-predatory products at scale profitably. And the paper posits that those three things together can’t happen. And what that suggests is that there’s a real case for donors to step in if they want to serve these communities in the way that they need to be served. And this is just another layer onto it, the good jobs piece. Whether it’s special programming or embedded, which I think makes a lot of sense, is really important.
Maureen Conway (00:48:38)
Great. Thank you. So I’m going to ask them one more round of questions, but I want everybody to know I’m going to be coming to you all soon, so be ready. So last question for you, Betsy. As a CDFI leader, you’ve been involved in and worked with industry associations. And I’m just curious, what are your thoughts on industry associations, other intermediaries, or other players and the role that they can play in terms of supporting and growing this kind of work?
Betsy Biemann (00:49:11)
Well, as Barbara just very eloquently noted, practitioners are busy doing a lot of stuff in the trenches that’s very hard. And one of the great roles that I think networks or trade associations can play is as a convener, a best practice capturer and sharer because we don’t have the time or the money to do it. So when I was a funder, I sometimes would support a multi-site, multi-ear initiative. Where there was a central organization that might manage the money, might organize the cohort meetings, something like The Aspen Institute does so well. And it was a great way, a complimentary way to let the practitioners do what they were good at and to channel a little money to them to help them advance their practice and also show up for the meetings.But then to lean on the trade association or convener to do what they’re good at. Which is to bring folks together, manage the money, make sub-awards, maybe bring in communications people. So as those best practices are identified, they can help to figure out how to leverage their national networks and their strategic communications knowledge and capacity to get the word out either through a trade association to other practitioners or to a broader set of policy or practice folks. So I certainly think that those types of organizations can be really valuable. There’s also, we haven’t talked about policy much today. But we have found that in Maine not only do we advocate for policies that are benefiting small businesses and workers, but also when they make a new policy, even if it might be for larger companies, like our recent earned paid leave policy is only for employers who are 10 employees over.But it starts a conversation where then a lot of that is in the news. And then we can work with the smaller businesses who might say, “Oh, my competitor down the block has got 12 employees and he’s starting to do this. So I better start it too, otherwise my folks are going to want to work for him.” So there are direct as well as these ripple effect ways that the public policy and state and municipal government play an important role in this ecosystem. So those are just a couple of examples of ways that that ecosystem can work together and can be moving this work forward.
Maureen Conway (00:52:12)
Great. Thank you so much. I’m glad you brought up the policy angle. Viola, to you, are there other partners that you all work with other than funders that are important to supporting this work?
Viola Mai (00:52:25)
Yeah. I would really echo Betsy’s point about policy and also I would say local chambers of commerce, local, municipal, and also state level government. Those are really good resources to tap. A lot of them have repositories or lists of all the different organizations in your area that do X, Y, Z. It’s really important, I think, to be aligned with those organizations so that the organizations, the practitioners don’t have to do that extra work of trying to yell out into the wilderness like, “This is the stuff we do.” I also want to really make a plug for organizations like Opportunity Finance Network that help convene different CDFIs. So oftentimes for us CDFIs, we only can fill one part of the capital stack for a business. Do we have a very clear idea of what we invest in? What kind of loan do we do? What kind of investment do we do? What kind of equity investment do we do?And ICA actually has an example of an entrepreneur who has been really resourceful. He originally created his restaurant, it’s a Japanese fast casual chain. But he created it and wanted to figure out how to make this a business. So he first went to an incubator, it is called La Cocina. La Cocina’s had their 20th anniversary. Really, really cool organization if you’re interested. But he went to La Cocina and he’s like, “I need capital. How do I do this?” So then La Cocina referred the entrepreneur to different CDFIs in an area such as ICA. Entrepreneurs went through our accelerator program. Also, then got financing from another CDFI microloan, and then came back to us and got an equity investment.So all of us working together was what made this business now into a franchise model. He just opened his first franchise location, he’s now six locations, 41 employees strong. But it was because he was able to tap into this network of providers that were convened by organizations like OFN that he was able to meet all of those different needs. And then now he’s super successful, although still trying to grow, still trying to hire more folks, create more quality jobs. But I just want to make a plug for those network conveners because they help make the whole system work.
Maureen Conway (00:54:48)
Great. I love that. And I love the really different context and models you brought up. And Barbara, I’m just wondering if you have any other comments on this idea having seen a range of things in your work?
Barbara Magnoni (00:55:01)
Yeah. I’ll mention a couple of things just on Viola’s point. We definitely saw that in our interviews and even in our survey. I don’t have the numbers in front of me, but people aren’t learning about job quality from only one source, they’re learning about it from different sources. They’re interacting with different organizations in their communities. So the more those organizations are aligned and connected, the more powerful the interventions can be. And that’s maybe an opportunity for the future to really push that. The second comment, which is mushy-gushy that I was going to make was just this group of really diverse organizations that we were so kindly welcomed into as external actors, has been just such a pleasure to get to know.And I think as a community of practice, there’s a lot of power in having this incredibly diverse community, serving really different types of clients and really different client communities. You got a little bit of a taste of that today for those of you who don’t know them. But it’s not easy to align conversations from North Carolina to South Dakota, to the Bay Area, to Maine. And there’s a lot of sharing that happens and beyond just amplifying the lessons, amplifying the voices, I think the individuals in this group, this broader group of CDFI people… I don’t know what to call you. It’s hard work and you don’t always want to prioritize it either. And having a group around you that checks in that is also doing the hard work is a really effective and powerful thing, at least from what I’ve seen. So that’s been really exciting and I think obviously one of the strengths that Aspen brings to this.
Maureen Conway (00:57:00)
Thank you. Great. Well, thank you all. And we are open for questions, if anyone has questions. Yes. And we do have mics coming. Yeah. And please introduce yourself when you ask a question.
Molly Scott (00:57:14)
Sure. My name is Molly Scott. I’m from the Urban Institute. I’m a big fan of your work, I’ve been following it for a while. My question is about the business case for the CDFIs themselves. What have you learned about how including job quality impacts or not the loan performance? Does it help you when you’re underwriting in terms of making better loans and being more successful on that level as well? Just curious.
Betsy Biemann (00:57:51)
So this is a very initial perspective from our venture fund where we have a little bit more in terms of years of data, but we have seen that… And it’s correlation, not necessarily causation. But the companies in the venture fund portfolio that have been working on good jobs, so our more recent portfolios, that either have higher quality jobs or have been making improvements in their jobs are growing faster than the other businesses in the portfolio. So that’s an interesting data point that we’re obviously following. And as time goes on, we will have more data that we can make pronouncements like that about. But that was very promising.And we also get tons of anecdotal information about this company, which used to have a lot of turnover issues and paid a lot of… This is in our small business loan portfolio, but a company that had a lot of turnover, paying a lot of overhead, and as we helped them, should have changed that picture. One of the things was they hadn’t been able to take on contracts because they didn’t have the capacity, and so they were then able… So we see those kinds of more micro examples all the time. And as the work goes on, we’re able to start collecting more of that data, seeing more of those examples and over time, see the performance in… Happily, we have very low non-performing rates in our small business loan portfolio anyway, but we’re able to see company by company how the job quality work is really contributing to the success of the businesses.
Viola Mai (00:59:45)
I’ll also take a shot at answering that and ICA, we don’t operate a traditional loan fund, we have an equity fund. But for us, it’s actually a really key source of due diligence when we see how entrepreneurs implement job quality work and how they’re really addressing their business to help it have a real tangible business plan and scale. That to us tells us, “Okay, actually this probably is going to be a good investment.” So it’s a key part of how we assess the viability of our investments. But then also it’s about business resiliency. So when there’s investment in good jobs, that also means that the entrepreneur is not the one weakness point. When there’s investment in the management team at the business, there are people who can take over if God forbid something happens. So I think there’s absolutely an economic case for it. Happy to talk more about how the performance of our fund has been going and how we’re seeing it play out in terms of the due diligence in our scorecard.
Speaker (01:00:47)
I have a few questions from our live stream, if we have time for two questions. Our first question is, “As described, small businesses often are a supportive anchor for communities. Can each of you discuss the Venn diagram to access the money with small businesses as an actor? As described, small business often is a supportive anchor for communities, can you each discuss the Venn diagram to access the money with small business as an actor?”
Maureen Conway (01:01:25)
I don’t know, [inaudible 01:01:26].
Viola Mai (01:01:32)
Can we answer that offline, maybe get some clarification?
Speaker 6 (01:01:34)
Yes. We will ask for clarification and get back to that person. The following question is, “Small companies and nonprofits, in my experience, tend to be very averse to providing or thinking about disability accommodations and rely on carve outs around the number of employees to get around them. How do you work with small businesses to get them to understand that accommodations are usually not expensive or onerous? Disabled employees provide a lot of value and that they can see a lot of benefits from doing more than the legal bare minimum.”
Barbara Magnoni (01:02:06)
Can I just give an example, maybe not take a stab at answering the broader question? But I touched on the idea of making investments to make the work at small businesses a little bit less tedious. Some businesses specifically referred to disabilities as part of that. The work was difficult for people with disabilities, or even people who just couldn’t stand on their feet a whole day without getting pain, or people who couldn’t lift certain equipment. So one of the really, I think, exciting things about some of the larger loan funds and equity funds is that they’re giving enough capital to small businesses to invest in machinery that makes the small businesses a lot more friendly to people with some sort of physical disadvantage. Or even just more broadly, women, older people, everybody.
Betsy Biemann (01:03:13)
I can think of two examples. I’m not sure how much they’ve been in our good jobs work versus just the folks we work with, but who are great examples. There’s a company in the Skowhegan area, the Good Crest. And the founder of that company is an occupational therapist, and her twin sister actually runs a company called Main Grains that makes flour using an old milling technology and for the artisanal bakery market. But Heather started the Good Crest and purposefully crafted the workforce opportunities around folks with different physical and mental abilities so that they can be part of the company.That was her purpose really, was to create a workforce that would be a welcoming environment and a very positive work environment for folks with varying abilities in that company. Another one is a mushroom production company where they were having issues around how they had organized their factory floor and it wasn’t working that well. And our good jobs team helped them recognize that there were some functions that folks with developmental disabilities would be great at. So they partnered with a local nonprofit that works with and supports those folks and can coach them. And they restructured their operations such that folks who were doing the packaging could focus on the packaging, and then other folks could do other functions.And had a partnership where folks came in and they had a coach for a while to help them get the training and support they needed. And it was an extraordinarily positive step for that company across the board, both from a financial and a workplace productivity and happiness perspective. So those are sort of just two examples of businesses that have absolutely incorporated people with differing abilities to have a successful working experience in a sustained way.
Maureen Conway (01:05:42)
Great. Great. Thank you. So I think unfortunately that brings us to close, but thank you for your comments. I think that was a great question because I feel like it demonstrates just the problem solving, the uniqueness of this work. But also, again, what is possible? That these things are possible and we just have to think about how we do it. So thank you all for joining us. We will be sharing more from all the things that we’ve been learning from Shared Success. I didn’t do this in the beginning, which was a real failing on my part, but I want to acknowledge that many of the other Shared Success folks are in the room from the different CDFIs around the country. So I hope those of you who are in the room will join us for the reception downstairs and get to know them and get to know their work a little. They all do something a little different. They’re all really amazing and fascinating. So I hope that you will join us.For those of you who are online, thank you so much for joining the conversation. Please do again, respond to our feedback survey. And then finally, I just do want to thank my many colleagues for their help and support in putting on this event. These events take a whole team. So Amanda Fins, Maya Smith, Bryn Morgan are around somewhere. Joyce Klein maybe stepped out. Oh, there you are. She’s right in front of me. I can’t see anymore. Lauren Starks. The whole team, just really amazing. So I thank them and I hope you’ll join me in thanking them and thanking our amazing panel.
Learn More
About Shared Success
Good jobs and strong businesses are vital to the well-being of communities across the country. Yet millions of workers struggle with poor-quality jobs, and small business owners often struggle to find and retain the employees they need. Shared Success, a project of the Aspen Institute Economic Opportunities Program (EOP), shows how building better jobs can uplift both sides at the same time. Supported by a $12 million investment from the Gates Foundation, EOP partnered with 11 community lenders to integrate job quality programming into their small business support services, supporting the needs of employees while helping small businesses succeed.
On May 21, the Aspen Institute’s Economic Opportunities Program hosted “How Good Jobs Support Small Business Success.” The event marked a key milestone in the Shared Success project, a multi-year demonstration launched in 2022. Through this effort, EOP has partnered with 11 community development financial institutions (CDFIs) across the country to integrate job quality strategies into small business services, helping businesses grow stronger while improving workplaces for their employees. At the convening, CDFIs, small business owners, evaluators, and workforce advocates gathered in Washington DC and online to reflect on what it takes to achieve “shared success,” where businesses and employees can thrive together.
Some of the quotes below have been lightly edited for clarity. Read the full transcript here.
Grounding Job Quality in Community, Culture, and Care
At a time when small businesses – often referred to as the backbone of our economy – face many challenges, this project has shed light on why job quality matters to them and highlighted innovative strategies to engage, support, and incentivize small businesses to improve job quality. The first panel, moderated by Lauren Starks, director of EOP’s Good Companies/Good Jobs Initiative, explored the value that small businesses see in investing in job quality and their experiences of working with CDFIs and their partners to improve the quality of jobs at their businesses. The panel also shared practical insights from the demonstration on how CDFIs could build a focus on job quality into their advising work.
For Eunice Straight Head, co-director of Oyate Studio on the Cheyenne River Reservation, and Laura Owens, who had worked closely with Oyate in partnership with Four Bands Community Fund, job quality begins with culture. They discussed examples of how they’ve created a motivating, safe, and inclusive environment at Oyate Studio and built in Lakota traditional values, noting how scheduling flexibility, for instance, has been informed by culture. “The Oyate team are all mothers,” said Straight Head, when asked how workers’ perspectives inform her company’s approach to job quality. “It’s graduation season for many of their families, and sometimes they need to take time off work. That can be challenging, but we always make sure to accommodate them because we understand the cultural significance of preparing a graduate, especially since a smaller percentage of Indigenous students graduate [compared to national averages]. We want to make sure that we’re contributing not only to our generation, but the next generation.”
Oyate Studio, which trains and employs Native American women to make artisanal products, is as much a space for cultural revitalization as it is for economic opportunity. The studio offers not just a paycheck, but healing, community, and intergenerational leadership. Laura Owens, chief of staff at vChief and consultant for Four Bands Community Fund — a CDFI participating in Shared Success — emphasized the need for responsive, flexible support in Oyate Studio’s rural contexts, where challenges like transportation and child care require creative solutions. “If someone isn’t showing up for work, it’s not because they’re sleeping in,” Owens said. “It’s because maybe their car broke and that is going to take a two-hour drive to go fix it, several days for the car to get fixed, several days for it to come back.”
Tristan Bredehoft, co-owner of Cafe Rica in Battle Creek, Michigan, shared how his experience in the food service industry, which is characterized by low wages and a toxic work culture, inspired him to create something better. With support from Northern Initiatives — a Michigan-based CDFI and Shared Success grantee — and the Good for Michigan program, Cafe Rica embedded job quality into its operations. One way Cafe Rica approaches job quality is by opening a line of communication. “We always ask our teammates when they first get in, ‘What are your goals outside of work, and how can we help you accomplish those?’” said Bredehoft. He continued, “Through the many years we’ve been in business, we’ve made multiple connections with different types of people, so we always try to connect [our employees] with those people.”
While open communication helps create a supportive culture, structure is equally important. Israel Flores, business services director at Northern Initiatives, reminded attendees that intentions aren’t enough — structure matters, and that’s what creates a consistent, supportive environment. he said “So you need to have [job descriptions and an employee handbook] in place in order to make sure that everybody follows the [same] policy and rules.”
Scaling What Works Through Alignment, Data, and Long-Term Partnerships
With millions of Americans working in low-quality jobs—characterized by low wages, unsafe conditions, and negative impacts on individual and family well-being—the crisis of job quality in the US demands urgent action to scale effective strategies that address these challenges. The second panel, moderated by Maureen Conway, a vice president at the Aspen Institute and executive director of EOP, explored how funders, intermediaries, and CDFIs can scale job quality across geographies and business types.
Viola Mai, director of development and impact at ICA Fund, another Shared Success grantee, outlined how job quality is both an investment strategy and a tool for due diligence in ICA’s equity portfolio. She said, “If [job quality] is something that is valued by the organization, it really has to be institutionalized.” Mai explains that when job quality is embedded in your organizational mission, you’re not just pitching a program — you’re inviting funders into your values.
Betsy Biemann — a Job Quality Fellow and CEO of Shared Success grantee Coastal Enterprises, Inc. (CEI), — echoed the importance of long-term relationships, and also noted the value of research and evidence to build support for the work. CEI has embedded job quality across its small business advising, lending, and venture portfolio, using program-related investments from funders to support and evaluate impact. Biemann shared early evidence that businesses focused on job quality are outperforming their peers. In CEI’s venture portfolio, companies that either have higher quality jobs or have been making improvements in their jobs are seeing faster growth. “It’s correlation, not necessarily causation,” she said, “but it’s promising.”
Barbara Magnoni, president of EA Consultants, shared preliminary findings from the Shared Success midpoint evaluation, a survey of 158 businesses across the 11 CDFIs participating in the demonstration:
92% reported making job quality improvements; and
84% reported positive business outcomes, including better retention and productivity.
These numbers are early findings, but they indicate that CDFIs can make a difference in how their small business clients design jobs and that improving job quality can contribute to business success.
Shared Success, Shared Momentum
Across both panels, a common theme emerged: job quality is a set of values embedded in practice. From the hyperlocal to the national, Shared Success highlights how advancing job quality in small businesses is not only possible — it’s already happening. What we’ve seen through the Shared Success initiative is that small businesses can make meaningful improvements to job quality—and when they do, it’s not just good for workers, it’s good for business. CDFIs have demonstrated they can play a vital role in helping business owners take important steps to improve job quality. And as panelists made clear, continued progress will require deeper partnerships, stronger data and research, a willingness to reexamine assumptions about what makes a good job and what is good business, and a shared commitment to building an economy in which everyone has the opportunity to thrive.
Meet Our Speakers
Betsy Biemann
Chief Executive Officer, Coastal Enterprise Inc.
Betsy is the chief executive officer of Coastal Enterprises Inc. (CEI), which works to grow a just, vibrant and climate-resilient future for people and communities in Maine and rural regions nationally. Before joining CEI in 2016, Betsy led “Growing Maine’s Food Industry, Growing Maine,” a project of the Mossavar-Rahmani Center for Business and Government at Harvard University, and consulted for companies, foundations and nonprofits. From 2005-2012 she was president of the Maine Technology Institute, investing in companies and initiatives seeking to grow high-potential sectors of Maine’s economy. Prior to her move to Maine, Betsy was an associate director at The Rockefeller Foundation, where she managed a national grant and impact investment portfolio aiming to increase employment in low-income communities across the US and was a Warren Weaver Fellow in the inaugural cohort of this Rockefeller program bringing early career professionals into the philanthropic field from across the globe. She started her career working in international development, principally in sub-Saharan Africa.
Betsy serves on the board of the New Growth Innovation Network. She has served as the vice chair and policy committee chair of the Opportunity Finance Network, on the boards of the Elmina B. Sewall Foundation and the Maine Philanthropy Center, as well as on the Federal Reserve Bank of Boston’s Inclusive Economies Working Group. She earned her B.A. at Harvard University and her master of public administration at Princeton University’s School of International & Public Affairs. Betsy is the mother of two adult children and lives in Brunswick, Maine with her husband and their dog.
Tristan Bredehoft
Tristan Bredehoft is the co-owner and founder of Café Rica in Battle Creek, Michigan. Bredehoft and his brother, Jackson Bredehoft, began the venture in 2016 when they entered the world of online retail. Today, the Café Rice team has consistently worked towards creating a unique and handcrafted coffee experience, emphasizing quality and community engagement. Bredehoft also serves as a business development consultant for Breaking Bred Hospitality.
Israel Flores
Business Services Director, Northern Initiatives
Israel Flores is director of business services for Northern Initiatives (NI), working out of the Battle Creek office. Israel started at NI as a business development specialist in 2018 and was promoted to the director position in 2020. A certified professional coach, Israel specializes in working with entrepreneurs to make their business dreams a reality.
His professional background in the business, nonprofit, and education sectors has given him a wealth of experience in business management, community engagement, and community organizing. Israel is also a fellow with the W.K. Kellogg Foundation, and he now lives in Battle Creek with his wife, two children, and two dogs.
Barbara Magnoni
President, EA Consultants
Barbara Magnoni leads field research for the U.S. Small Firm Diaries, a project of the Financial Access Initiative (FAI) at NYU Wagner that uses high-frequency data and in-depth interviews to capture key decisions and turning points in small businesses’ financial lives. With FAI, she is also a lead researcher on an evaluation of the Aspen Institute’s Shared Success program, focused on improving job quality for workers of small businesses in the United States. Her recent work includes the Resilient Appalachia Data Initiative, which explores how small businesses in rural Appalachia adapt to climate and economic shocks.Over her 25-year career, Barbara has worked in more than 40 countries, advising financial institutions, investors, and policymakers on inclusive finance strategies. Her client-focused approach has shaped product design and strategy for organizations such as Axa in the Philippines, BanRural in Guatemala, Compartamos in Mexico, and JUMO in East Africa. She has advised partners including Leapfrog Labs, the City of New York, the Government of Mexico, UNDP, and the IFC.She is the founder of EA Consultants, co-founder of Andares, a network advancing women’s leadership in financial inclusion in Latin America, and co-founder of Noahui Soluciones, a Mexican fintech employing women from underserved communities to deliver financial services.Barbara holds a master’s degree in international affairs from Columbia University, where she also teaches as an adjunct professor. She is fluent in Spanish, English, and Italian.
Laura Owens
Chief of Staff, vChief, Consultant, Four Bands Community Fund
Laura Owens is chief of staff at vChief and a consultant to Four Bands Community Fund for three years. As a part of Four Bands Community Fund’s Job Quality program, Owens worked with small business owners to design and implement strategies to improve job quality, such as creating employee handbooks, leave policies, and training programs for new hires. Owens has dedicated over 15 years to advancing equity and driving positive social impact across the nonprofit, philanthropic, and government sectors. Previously, Owens worked at the National “I Have A Dream” Foundation for almost ten years, wearing many hats including overseeing the Human Capital function, Board Development, Affiliate Relations, Fundraising and Special Projects such as the development of a National College Savings Account and a post-secondary success program for students from under-resourced communities. Prior to that, she worked at the New York City Department of Education, where she developed a performance management system for an office of 200, trained teachers and superintendents on a new online data and knowledge sharing system, and oversaw the charter school application review process. She earned a master’s in public administration from the Robert F. Wagner Graduate School of Public Service at New York University and a bachelor of arts from Loyola University Maryland.
Eunice Straight Head
Co-Director, Oyate Studio
Eunice Straight Head is the co-director of Oyate Studio and is from the Cheyenne River Sioux Tribe. Oyate Studio is an art studio based on the Cheyenne River Reservation, home to the Thitunwan (People of the Plains) of the Oceti Sakowin. Oyate Studio specializes in creating artisanal products and provides a fully resourced coworkspace to teach and learn new art forms with aspiring Native artisans. Straight Head is also a photographer who creates portraiture, documentation, and landscape photography.
Viola Mai
Director of Development and Impact, ICA Fund
Viola Mai is a finance professional dedicated to democratizing financial systems with 10 years of experience across her work with nonprofits, for-profits, and volunteer collectives. She began working in the CDFI industry in 2018, partnering with individuals, corporations, and government agencies to aggregate and move capital in support of community-focused economic development.
Mai currently serves as director of development and impact at ICA Fund, where she oversees the organization’s fundraising strategy and impact measurement program. Prior to her role at ICA, Mai led national capital raising efforts and administered investment note programs at Self-Help Federal Credit Union.
Mai also volunteers with Asian Pacific American Leadership Institute, a nonprofit that builds community power by developing local civic leadership, and Cut Fruit Collective, a grassroots organization that cultivates resilient communities through visual arts and intergenerational storytelling.
Maureen Conway
Vice President, The Aspen Institute; Executive Director, Economic Opportunities Program
Maureen Conway serves as vice president at the Aspen Institute and as executive director of the Institute’s Economic Opportunities Program (EOP). EOP works to expand individuals’ opportunities to connect to quality work, start businesses, and build economic stability that provides the freedom to pursue opportunity. View Maureen’s full bio.
Lauren Starks
Director, Good Companies/Good Jobs, Economic Opportunities Program
Lauren Starks is the director ofGood Companies/Good Jobs, an initiative of the Aspen InstituteEconomic Opportunities Program. The Good Companies/Good Jobs Initiative focuses on building the incentives for companies to pursue a shared success model, in which workers thrive while contributing to the success of a healthy business, and on advancing actionable strategies needed to ensure more jobs are good jobs.
Lauren comes to the Institute from the US Department of Commerce’s Economic Development Administration, where she served as the first lead for the Good Jobs Challenge program, one of six Investing in America’s Communities programs created under President Biden’s American Rescue Plan. Under her guidance, the program reached thousands of stakeholders, received over 500 applications, and executed technical assistance resulting in $500 million invested across the US to strengthen and scale locally driven workforce systems and partnerships.
Lauren has previously served in senior policy roles focusing on equity and economic mobility. In particular, as chief of staff to the general counsel at the US Department of Education (ED), she was responsible for complex interagency initiatives including the implementation of a career readiness program impacting over 250,000 individuals annually. As senior policy advisor at the White House Domestic Policy Council, Lauren designed strategies targeting postsecondary affordability and the removal of barriers to education and employment. As senior policy advisor within ED’s Office of the Under Secretary, she helped launch public-private partnerships focused on advancing opportunity for low-income individuals.
Lauren has received awards and recognition from the American Association of University Women, the US Department of Education, the US Department of Defense, Columbia University, and Yale University.
A native of Atlanta, Lauren earned a Bachelor of Arts in Ethics, Politics, and Economics from Yale. She holds a law degree from Columbia, where she was a Harlan Fiske Stone Scholar. Lauren and her husband, Geoffrey, live in Washington DC and have two children.
About This Event
Job quality is vital not only for workers, but also for small businesses and communities. Yet too many jobs today miss the mark on one of the key characteristics of a good job: providing enough pay to live on. Only 56% of full-time workers in the United States make enough money to cover their families basic needs. This problem is particularly acute at small businesses. Nearly 60% of low-wage workers work at businesses with fewer than 100 employees, and 35% of low-wage workers work at micro-businesses with fewer than 10 employees. Small businesses also struggle to address other characteristics of a good job, like providing adequate benefits, stable scheduling, and a positive work culture.
Recognizing this context, in 2022, the Aspen Institute Economic Opportunities Program (EOP) launched the Shared Success project, funded by the Gates Foundation. The project supports 11 community development financial institutions (CDFIs) across the country to integrate job quality support into their small business services with the goal of improving job quality for small business employees and building business resilience. Three years later, EOP has seen how grantees have used innovative approaches to recruit, advise, and incentivize small businesses to improve job quality.
In this event, which took place on May 21, from 3:00 to 5:00 p.m. ET, online and at the Aspen Institute’s office in Washington DC, heard from leaders of CDFIs, their small business clients, philanthropic supporters, and other experts, and wel discussed the lessons learned from Shared Success, ranging from practical tips about strategies for engaging small businesses in discussions of job quality to the range of job quality improvements CDFI clients helped their businesses make. This was an important discussion on small business support strategies that help businesses and workers both thrive, achieving Shared Success.
About Shared Success
Shared Success, a project of the Aspen Institute Economic Opportunities Program, shows how building better jobs can simultaneously uplift workers while also driving small business success.
About the Economic Opportunities Program
The Aspen Institute Economic Opportunities Program advances strategies, policies, and ideas to help low- and moderate-income people thrive in a changing economy.
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