Welcome to the Small Business Run Down. Each day, we bring you stories and trends that impact small business owners and their workforce.
Today, the father of the 401(k) says small business needs help, independent workers generate a lot of revenue, and Wharton to close a famed development center.
Ted Benna, who is often called the “father” of the 401(k) retirement plan, is on a mission. He wants to expand the access of retirement plans to small businesses, which are less likely to offer the programs than much larger businesses.
The Number: 36%. Thirty-six percent of workers in the private sector don’t have access to a contribution program like a 401(k).
The Quote: “Small employers believe the 401(k) is too complex and expensive — and it is. They aren’t aware there are, in fact, better alternatives available to them.”
The Number: 5.6 million. More than 5 million skilled independent workers generated $135 billion in revenue in 2018.
The Quote: “It’s not only that these markets have higher than average revenues per skilled freelance worker. The implication is that their impact on local economies is greater because of their ability to draw revenue from outside their market and provide highly specialized services that are critical to growing local businesses.”
The prestigious Wharton School is closing its center, which has provided services to small businesses in Philadelphia for nearly 40 years, at the end of the month. The Wharton Small Business Development Center counts Urban Outfitters among its roster.
The Number: $500,000. The center received $500,000 in state and federal funding, which will likely be re-distributed to other similar institutions.
The Quote: “A lot of companies owe their success and support and stability to the work we did there.”