By: Destiny McLennan, Ph.D (Director of Applied Research), Myron Benn (PCV Development Associate)
Thank you note to Prudential:
We are thrilled to partner with The Prudential Foundation to produce this report, and appreciate their continued support of the Good Jobs Innovation Lab. Additionally, we extend our gratitude to the Carsey School of Public Policy at the University of New Hampshire for supporting this report’s foundational research on wealth building perspectives for entrepreneurs of color.
Most small business owners want to provide wealth-building benefits to their employees — but the system isn’t built for them. From affordability concerns to administrative complexity and deep-rooted mistrust in financial institutions, the obstacles are many. Our latest report, Wealth-Building Through Good Jobs, reveals practical, tested solutions — and shows how benefits providers and community-based organizations can unlock this potential. Drawn from three years of real-world data, stories, and analysis, the report offers fresh insights to move us toward a more equitable small business economy. Yet PCV finds there are effective strategies that are not insurmountable.
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Since the 1980s, fewer Americans are working for small businesses. Market forces have skewed in favor of corporations with more than 10,000 employees – driving down wages and weakening the resilience of local communities. Nearly 57 million private-sector workers — almost half the workforce — lack access to retirement savings, and many work for small businesses with fewer than 100 employees. Without benefits, these jobs are less competitive, threatening both worker security and small business sustainability.
Inside the report you’ll gain insights around:
- Unlocking a 57-million-person market through small businesses.
Eighty-five percent of small business owners in our study said they want to offer benefits, but don’t know where to start.
Many small business owners are overwhelmed by the time and complexity it takes to set up benefits. Tech-enabled onboarding and human-centered support models can significantly reduce the burden — and help benefits providers tap a large, underserved market. - Pricing and payment models that work for small businesses.
The most effective benefit plans for small businesses use tiered pricing, pooled resources, or zero-interest credit to reduce upfront costs. Affordability remains a top concern. By meeting small business owners where they are—financially—benefits providers can dramatically expand access and adoption.
“The biggest barrier we have to providing wealth building opportunities for employees is our financial position. We operate with a negative net income, and we continue to burn cash, so we’re in a very challenged position when it comes to providing more for our employees besides a fair paycheck, job flexibility, and some other inexpensive perks.”
Offering tiered plans, interest-free borrowing against a line of credit, and registering as a Pooled Employer Provider (PEPs) can support businesses facing high up-front and ongoing costs in adopting and sustaining benefits. - How employee-ownership drives adoption and trust.
Did you know that employee-owned businesses are twice as likely to offer financial coaching and peer learning networks?
These businesses foster cultures of trust and transparency, which boosts both benefits participation and worker satisfaction. Solutions like peer mentorship and 1:1 coaching can bridge knowledge gaps and build long-term financial health.
Our insights are grounded in three years of real-world data and lived experience. Between 2021 and 2023, PCV’s Good Jobs Innovation Lab collected survey responses from hundreds of small businesses nationwide, then applied advanced machine learning to identify patterns in job quality and benefit adoption. What sets this research apart is its blend of data science with human-centered design — pairing algorithmic analysis with co-researcher interviews, peer-led learning sessions, and ongoing worker-employer feedback loops. This iterative, participatory approach gives us not only statistically sound trends, but also nuanced, actionable insights to shape how benefits providers and policymakers can better serve underestimated entrepreneurs and their employees
This study underscores that while small business owners are deeply motivated to provide critical benefits to their employees, they face persistent barriers—including high costs, knowledge gaps, administrative complexity, and mistrust in traditional providers. However, these challenges are not insurmountable. By offering flexible payment models, personalized financial coaching, peer support networks, leveraging technology, and delivering solutions through culturally relevant and trusted channels, benefits providers can begin to bridge the gap. These strategies not only reflect a clear understanding of the real-world constraints facing small business owners and their employees—they also illustrate a practical path toward greater financial stability, job quality, and a more resilient workforce.
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About the Good Jobs Innovation Lab:
Pacific Community Ventures (PCV) is a 501(c)(3) nonprofit impact investor and community development financial institution (CDFI). PCV’s Good Jobs Innovation Lab (GJIL) supports its Lending and Business Advising programs, leveraging data analytics, behavioral economics, and the perspectives of small business owners and employees to re-examine capital structures, product delivery and technical assistance interventions to address barriers to scaling good jobs in the small business ecosystem. It is committed to using outcomes and insights from these programs to lead dialogue with other entrepreneurs, CDFIs, and policymakers on how to deliver job quality-focused products, policies, and services that center the entrepreneur’s experience. It does this with the intention of providing entrepreneurs and their workers with the financial and strategic resources they need to truly grow, hire, and prosper.