MAPA Group Partner Bill Generett wrote about economic inclusiveness for ID8 Nation:
Today, a disturbing commonality unites our nation’s high-growth regional economies. African Americans, Latinos and many women are not benefitting from the prosperity created in these economies. This economic disconnect and the resulting economic imbalance has created two separate and different societies around race, class and gender.
One society (Society No. 1) is made up of the direct beneficiaries of the economic prosperity created within the regions. It comprises a select class of highly educated white males and a small subset of equally elite minorities. This group owns the vast majority of the high-growth companies and fills the good jobs they create. The successful, high-growth companies in these regions are creating new economic development (expensive housing, high-end retail, good public schools and fine dining) that benefit the members of this society.
The other, much larger society (Society No. 2) is mostly comprised of women, Latinos, African Americans and disconnected white people. Their connection to the good jobs and high-growth entrepreneurial opportunities in Society No. 1 is insignificant. The largest job growth for Society No. 2 members is in low-wage service sector industries. Very little economic development has occurred in most of these communities. In a few instances, economic development in Society No. 1 does spread to Society No. 2, but when it does, it is often inequitable and provides few tangible benefits for the members of the latter.
Our nation’s inability to connect and expand the impact of Society No. 1 to its disconnected counterpart must be addressed. Regional economies can’t be strong or sustainable if large segments of their populations are not fully integrated into these economies. Stakeholders in high-growth regions must create clusters of high- growth entrepreneurial companies that create an economic impact that is broad, inclusive and transformational.
The year 2045, when the United States will be majority Latino and African American, is fast approaching and high-growth regions are not prepared. The regions that are successfully transforming their economies have every right to pause and celebrate wins. However, celebrations should be proportional to the size of the victory and the self-congratulation in many high-growth regions seems unnecessarily large. Confetti can obscure a region’s ability to see opportunities and threats. The demographic challenges that all regions face dictate that we move forward with a clear mind.
Read the entire article, The Innovation Economy Must Include Everyone.