In an op-ed published by San Diego Business Journal on the heels of the Navy Gold Coast Expo, EDC’s Jennie Brooks and Eduardo Velasquez stressed the importance of procurement from San Diego’s small and diverse businesses. Boasting the largest concentration of military assets in the world, the region has an incredible and important opportunity to tap local small businesses not only to support military interests, but also to drive inclusive economic growth. Booz Allen Hamilton is one local example; the DOD contractor increased its local spend with small businesses to more than $50 million in 2023, up 24 percent from 2022.
Every week, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week. GNOTW is sponsored by Manpower San Diego.
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For the week of August 30, 2024, here’s what we’re reading:
San Diego surpasses Inclusive Growth goal for quality jobs, and why the work isn’t over yet
On August 14, EDC held its second Inclusive Growth Roundtable, focusing on progress toward the 2030 small business jobs goal. While small businesses in San Diego have increased the proportion of quality jobs, challenges remain, particularly with lower-paying jobs disproportionately affecting marginalized groups. Continued regional collaboration is needed to support inclusive economic growth.
This summer in partnership with the Border Region Talent Pipeline K-16 Collaborative, EDC’s Advancing San Diego program convened six leading San Diego employers that collectively employ more than 24,000 San Diegans to participate in an Employer Working Group (EWG) and provide a real-time picture of the region’s talent demand for entry-level business roles. Additionally, 120 businesses were surveyed to gain a regional snapshot of talent demand, find gaps in business related training, and identify in-demand entry-level positions for individuals training to enter the workforce. Leveraging strategies from the U.S. Chamber of Commerce Foundation’s Talent Pipeline Management® framework, Advancing San Diego is excited to share the 2024 Business Talent Demand Report to serve as a snapshot of local demand for entry-level business professionals.
This report serves as a tool for education partners to understand what skills and competencies students need for entry-level business positions in San Diego County. Based on employer feedback, the report focuses on in-demand external facing roles (Customer Service Representative and Advertising, Sales, and Marketing) and internal facing roles (Purchasing and Buying and Project Managers), and highlights the demand for Accounting, Auditing, and Bookkeeping positions which were identified as high priority by EWG participants.
Key findings
Twenty percent of businesses reported a high turnover in four out of eight listed in-demand occupations.
Lack of sufficient training or education was cited as the primary reason for hiring difficulties for entry-level business positions.
For non-entry level positions, lack of sufficient industry or work experience and inadequate training or education were the primary hiring challenges.
Employers predicted the highest job growth for purchasing and buying roles over the next 24 months, noting that 30 percent of these positions take more than six months to fill.
The most challenging positions to fill included supply chain and logistics positions, finance, and project manager roles, all of which reported high turnover rates.
Hispanic and Latino, as well as Black and African American individuals are underrepresented in entry-level business positions, indicating a need for investment in equitable access to strengthen the regional workforce.
Occupation demand
San Diego’s economy is powered by its diverse industries, from defense and technology to life sciences and manufacturing, supported by more than 71,000 business jobs. However, many employers struggle to find candidates with the necessary skills for entry-level roles, particularly as technical skills become increasingly crucial. With nearly 5,400 businesses competing for talent, the shortage of qualified candidates makes it challenging to fill positions.
Sixty-three percent of surveyed businesses noted that available talent does not have the relevant training or education, highlighting the need for better access to post-secondary education, work-based learning, and internships to strengthen talent pipelines and prepare students for success.
What’s next?
Save the date: Join EDC on November 13 at UC San Diego Park & Market for Advancing San Diego’s Verified Program event. More details to come.
EDC sat down with Paula Cordeiro, PhD, Dammeyer Distinguished Professor of Global Leadership at University of San Diego’s Joan B. Kroc School of Peace Studies, to learn about an exciting new program: the Global Executive Seminar Exploring ‘Business for Good.’
The new, first of its kind program begins January 2025 and aims to serve established professionals in instituting innovative social practices to drive change.
As EDC continues to promote inclusive growth across San Diego, we know it is only with and through employer-led initiatives that we can maintain the region’s competitiveness and ensure more San Diegans can thrive here.
Here’s what Dr. Cordeiro shared:
What is the Global Executive Seminar and why introduce it now?
Business for good isn’t just a trend; it’s a critical response to our planet’s finite resources. We’ve created the Global Executive Seminar (GES) to give motivated professionals, particularly those in the mid to late stages of their careers, the knowledge, and tools to align innovative social practices with forward-thinking commercial strategies. Participants will explore models in ‘Business for Good’ through a 15-day program that begins in January blending in-person visits to businesses across Spain, Rwanda, and San Diego with online meetings and personalized consulting sessions.
Who should participate?
As folks consider transitions in careers, this USD program gives executives the tools to develop new models and practices as the foundation for new ideas or improving their existing businesses. Board members and advisors in both the for-profit and nonprofit sectors interested in best practices that are rooted in positive economic and social impacts are also welcome.
How will participants benefit?
Participants will have on-location learning at high-performing, sustainable organizations in Spain, Rwanda, and the San Diego region. In each location, we’ll showcase business leaders who have successfully balanced economic success with social and environmental impact. The seminar experience offers a global network of like-minded professionals with whom participants can collaborate, share knowledge, and form partnerships. Participants will develop action plans built on principles and strategies that can generate both financial returns and positive social and environmental outcomes.
Give us a glimpse into what you’ll focus on in San Diego.
In addition to setting the course foundation, we’ll meet with leaders from local companies including 100 percent employee-owned business Taylor Guitars, recognized globally for its commitment to social and environmental responsibility, and Dr. Bronner’s, a global leader in the certified B Corporation movement.
What can participants expect to learn in Spain and Rwanda?
Participants will meet with leading businesses in Barcelona who exemplify business for good as well as with Mondragon, the world’s largest business co-op in Bilbao. In Rwanda, participants will see the beauty and incredible rebirth of this Land of a Thousand Hills and learn about unique partnerships between businesses and government, empowering the region to become the fastest growing economy in Africa.
What is the time commitment and schedule?
January 2025: 3 days in San Diego
April 2025: 5 days in Spain
July 2025: 5 days in Rwanda
October 2025: 2 days wrap up in San Diego
What are the fees and deadlines?
Registration details are available here. Final registration deadline and fees are due December 31, and a $2,000 early bird discount is available through October 4.
On August 14, EDC hosted its second Inclusive Growth Roundtable of the year, convening 40 regional stakeholders, service providers, and small business leaders to share the latest data on quality small business jobs and ground-truth our findings.
The 2030 Inclusive Growth goals focus on three key pillars core to any strong regional economy: quality small business jobs, a skilled talent pipeline, and thriving households. EDC analyzes the region’s progress to each goal annually. During the August gathering, we focused specifically on the region’s progress toward adding 50,000 new quality small businesses jobs by 2030. EDC currently defines a quality job as a business with fewer than 100 employees that offers at least $23 per hour and provides health insurance.
EDC’s Vice Chair of Inclusive Growth Lisette Islas kicked off the dialogue reminding us why this work matters, and celebrating the intentional and collaborative journey we have been on as a region since 2017. We’ve seen significant progress in San Diego becoming a more inclusive economy, but there is more work to be done. Below is a recap of the data shared, insights gathered, and issues we see on the horizon.
The backbone of San Diego’s economy
In San Diego, small businesses represent 98 percent of all firms and account for 59 percent of total employment. The impact that small business owners have on local jobs cannot be overstated. Despite significant contributions, small businesses struggle to keep up in an increasingly expensive market.
The smaller the business, the larger the challenge for providing a competitive wage. In fact, small businesses offer 38 percent lower average wages compared to companies with more than 100 employees. Microbusiness (<4 employees) face the largest challenge when it comes to relative compensation. This trend has worsened since EDC began tracking quality jobs data in 2017, with the relative wage gap widening even more last year.
Quality small business jobs surge
The latest data shows that small businesses have steadily increased the proportion of quality jobs, with 28.8 percent of all small business jobs now meeting the wage threshold including health benefits. The latest data refresh shows that quality small business jobs surged last year. So much so, the region has nearly surpassed the 2030 Inclusive Growth goal, adding 48,481 new quality jobs.**
The data is gratifying and certainly reflects the importance and impact of efforts to increase opportunities for more small business owners, but there is more than this metric to unpack.
Inclusive Growth remains paramount
The world has changed dramatically in the last seven years since EDC launched the Inclusive Growth Initiative. In that time, the region experienced tremendous economic growth followed by a global pandemic that curtailed progress. Those hit the hardest were women and people of color in San Diego. Since then, we’ve seen a strong economic recovery, yet rising tides have not lifted all boats.
San Diego’s lowest paying occupations are disproportionately held by marginalized and under-invested-in populations. While the surge in quality jobs is reassuring, the reality is that more than two-thirds of small business jobs still fall below the wage threshold and larger businesses still have the advantage when it comes to paying competitive wages.
Also important to note, lower paying jobs are disproportionately held by people of color who are noticeably underrepresented in the highest paying occupations in town. For example, more than half of Healthcare Support occupations in San Diego, which include nursing, medical, and dental assistants, are held by Black or Latino people, but the average total wage is below $20 per hour. Conversely, less than 20 percent of Computer and Mathematics occupations, which include statisticians, programmers, and software developers, are held by Black and Latino people but pay more than $50 per hour on average.
During the event, we also shared recently conducted survey results of 603 local small business owners which found that people of color have contrasting challenges when it comes to owning a business. Done together with SBDC, the survey results revealed that securing necessary funding is a major challenge for nearly two-thirds of minority small business owners. This highlights the importance of programs that tailor outreach, education, and funding resources for minority business owners to stay competitive in San Diego.
EDC’s commitment to increasing quality small business jobs with an inclusive lens is embedded into our programmatic work, yet we recognize that the road ahead will require sustained regional collaboration. We invite you and your organizations to join this movement so that San Diego remains competitive, and that all businesses and their employees continue to benefit from the region’s economic success.
** A previous version of this blog incorrectly stated 30.3 percent of all small business jobs now meet the wage threshold including health benefits, and that small businesses added 60,234 new quality jobs to the region, surpassing our Inclusive Growth goal. The data has been corrected and updated in line above as of September 5, 2024.
Every week, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week. GNOTW is sponsored by Manpower San Diego.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of August 23, 2024, here’s what we’re reading:
Commute with Enterprise, Dr. Bronner’s partner on vanpool program
EDC investor Commute with Enterprise recently partnered with Vista-based Dr. Bronner’s to launch its employee vanpool program. As part of a commitment to sustainability and employee welfare, the partnership will reduce Dr. Bronner’s carbon footprint and support its 360+ employees amidst the region’s rising cost of living through reduced commuting expenses.
EDC, WTCSD host international delegations during BIO
Kicking off this year’s BIO International Convention, San Diego Regional EDC and WTCSD hosted an Invest in San Diego breakfast event together with Boston Consulting Group and Biocom. The regional ‘pitch’ event spotlighted San Diego’s competitive advantages to more than 100 life sciences professionals and delegations from South Korea, Canada, Taiwan, France, and more. ➝ Read More
WTCSD supports Nano PharmaSolutions in securing $17K in grants and full-time employee
A small San Diego-based life sciences business, Nano PharmaSolutions (NPS) hoped to increase capacity and scale globally. Following a competitive application process, NPS was selected to join WTCSD’s MetroConnect export accelerator, where it won $17,450 in combined grants, submitted international patents in eight international regions, and joined WTCSD’s South Korea and Netherlands trade missions to meet with potential investors. ➝ Read More
Eight San Diego companies win $35K in grants via Export SBDC
The Export Small Business Development Center (SBDC), housed at WTCSD, helps small businesses secure funding for export promotion activity at no cost. Through Export SBDC’s free consulting, eight San Diego-based companies were awarded a total of $35,000 in STEP grants—and your company could be next. ➝ Read More and Get Support
Every week, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week. GNOTW is sponsored by Manpower San Diego.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of August 16, 2024, here’s what we’re reading:
Together with Alexandria Real Estate Equities, Inc. and Novo Brazil Brewing Co., join us August 22 at EDC’s annual Summer Bash. Meet our keynote speaker Vividion Therapeutics’ President and CEO Aleksandra Rizo, and enjoy a lively evening celebrating all that makes San Diego: Life. Changing.
How would it feel if all your employees truly loved their job at your company? What if your entire team was dedicated to your company’s mission, vision, culture, and values?
These questions formed the foundation of a wonderful and impactful discussion that a small group of our EDC board members and investors got to have with retired WD-40 CEO Garry Ridge last month.
If you knew Garry when he was on our board or crossed paths with him over the years in San Diego, you know that he is relentlessly dedicated to people, culture, and continuous learning and growth. You feel it in every conversation you have with him and in every presentation you hear him make. Garry never viewed himself as a manager of people, but rather a coach who had the privilege of helping every team member he supported meet their true potential while finding joy and meaning in the work. And even in his retirement, Garry is still coaching and helping other business leaders grow to see themselves in new and different lights, and to find and embrace every learning moment.
As the summer months wind down, Garry’s words serve as a great reminder to make sure we are always putting the needs of our teams first, and that we are continuously challenging ourselves to live the missions, visions, and values we so often speak of—because “happy people create happy communities” right here in San Diego.
While our EDC board and executive committee do not meet in the month of August, we hope to see many of you at our Summer Bash on August 22 for an inspiring keynote from Vividion Therapeutics President and CEO Aleksandra Rizo, local drinks and bites, live music, and more than 350 innovators like you.
Every week, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week. GNOTW is sponsored by Manpower San Diego.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of August 9, 2024, here’s what we’re reading:
Ready to join EDC and Alexandra Real Estate for our summer party on August 22? We’ll enjoy an inspiring keynote from Vividion Therapeutics’ President and CEO Aleksandra Rizo, hosted food and drinks, good vibes, live music, and more than 350 San Diego: Life. Changing. innovators like you!
