small business central valley/mother lode workforce needs 1
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Small Business Central Valley/Mother Lode Workforce Needs
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2014 California Economic Summit “Roadmap to Shared Prosperity”
Workforce and Workplace Priority:
Prepare Californians to compete in a dynamic 21st century
GOAL: Increase opportunity by providing California’s workforce—and its businesses and entrepreneurs—with the skills, knowledge, and abilities they need to grow
well-paying jobs in changing markets
California needs 1 million more AA, certificates, or industry-valued credentials.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
34%
30%
35%
California’s Job Openings by Education Level 2015-2025
HS Diploma or less Some college or Associate's degree Bachelor's degee or higher
1.9 million job open-ings will require some college or an Associate's degree
Data source: Georgetown University Center on Education and the Workforce, "Recover: Job Growth and Education Requirements Through 2020," State Report, June 2013.Analysis: Collaborative Economics
The Goal
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“Some College” is the New Gateway Into The Workforce
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Source: Georgetown Center on Education and the Workforce analysis
#StrongWorkforce
THE LABOR MARKET IS INCREASINGLY DEMANDING A MORE SKILLED WORKFORCE.
IN THE 1970s IN 1992 BY 2020
of jobs required more than a high school education.
of jobs required more training.
of job openings in the U.S. will require some postsecondary education or training-though not necessarily a four-year degree.
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#Strongorkforce
Skill Gaps Differ Across California Regions
Crosswalk
Small Business Business & Finance and Sales Marketing
and Service
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Board of GovernorsTaskforce on Workforce
“…Create more jobs through workforce training that enables small business development…”
By investing in the health of California’s small businesses by providing an entrepreneurial workforce, we are supporting the growth of our economy which supports the creation of high-value jobs and enables small business development.
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California Entrepreneurship Statistics
• California is 5th in the nation for entrepreneurial growth– And 2nd for overall entrepreneurial activity
• There are more than 283,000 entrepreneurial businesses employing nearly 850,000 individuals
Source:
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California Small Business Statistics
• According to the Kauffman Foundation, California’s small businesses comprise 98% of all businesses in the state and support 87% of total private sector jobs
• 1/3 of this workforce is employed in companies of less than 50 employees with limited infrastructure to develop their workers
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Small Business Trends
The amount of new technical information is doubling every 2 years
For students starting a 4-year technical degree, half of what they learn in their first year of study will be outdated by their third year of study
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Small Business Trends
2014 Small Business Sector “Central Valley/Mother Lode Employer Needs Survey” identified “soft skills” as the top skills gap amongst new hires
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Small Business Employer Needs
Source: Small Business Employer Survey, Central Valley/Mother Lode Region
Accounting/b
ookkee
ping
Computer ap
plications
Creativit
y/innova
tion
Critical
thinkin
g
Customer
servic
e
Diversi
ty aw
areness
Engli
sh as
a sec
ond langu
age
Leaders
hip
Oral co
mmunication
Problem
solvi
ng
Profes
sionali
sm/W
ork eth
ic
Self d
irecti
on
Sprea
dshee
ts
Team
work/co
llaborati
on
Word
proces
sing
Writt
en co
mmunication
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
NoYes
Written communication 59.2%Oral communication 54.2%Problem solving 52.6%Leadership 50.5%Self direction 48.0%Spreadsheets 46.9%Accounting/bookkeeping 45.9%Critical thinking 45.6%Computer applications 43.2%English as a second language 41.5%Professionalism/Work ethic 39.9%Customer service 34.3%Creativity/innovation 23.5%Word processing 18.9%Teamwork/collaboration 17.9%Diversity awareness 15.8%
Soft skills = entrepreneurship skills
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Essential Business Skills
Top Ten 21st Century Skills:
• Self-Awareness• Social Diversity Awareness• Resilience, especially after failure• Empathy• Communication• Adaptability• Collaboration, in person and virtually• Digital Literacy• Entrepreneurial Mindset• Analysis/Solution Mindset
Source: New World of Work: 21st Century Skills through Entrepreneurship Education
Human capital is the best predictor of a region’s success…Taskforce on Workforce
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California Entrepreneurship Statistics
• 15% of new businesses fall into these sectors:– Professional– Scientific– Technical Services
• The top 5 industries are:– Administrative/General Management Consulting Services – Custom Computer Programming Services – Engineering Services– Offices of Lawyers– Computer Systems Design Services Source:
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Central Valley/Mother Lode Entrepreneurship
Region # Businesses Total Sales (x1,000) Total Employees
Central Valley 26,624 $16,449,195 76,037
Mother Lode 3,654 $ 1,947,374 9,874
Central Valley Mother Lode
One of Largest geographic Regions in CA2.9 employees/company2nd highest total sales in CA (after LA/OC)
Counties Included: Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus and Tulare
Smallest Region in CA2.7 employees/company (lowest in CA)
Counties Included: Alpine, Amador, Calaveras, Inyo, Mariposa, Mono and Tuolumne
Source:
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Central Valley/Mother Lode Entrepreneurship
Source:
Central Valley Mother LodeProfessional, Technical & Scientific Services
• Marketing Consulting Services• Engineering Services• Human Resources Consulting• Photography Studios• Process, Physical Distribution, Logistics
Consulting
Professional, Technical & Scientific Services
• Title Abstract & Settlement Offices• Marketing Consulting Services• Photography Studios• Human Resources Consulting Services• Veterinary Services
Repair and Maintenance
• General Automotive Repair• Commercial & Industrial Machinery &
Equipment Repair & Maintenance• Automotive Glass Replacement Shops• Automotive, Body, Paint, & Interior Repair
& Maintenance• Car Washes
Specialty Trade Contractors
• Tile and Terrazzo Contractors• Drywall and Insulation Contractors• Electrical Contractors• Plumbing, Heating & Air Conditioning
Contractors• Site Preparation Contractors
Specialty Trade Contractors
• Site Preparation Contractors• Structural Steel & Pre-cast concrete
Contractors• Plumbing, Heating & Air Conditioning
Contractors• Electrical Contractors
Food Services & Drinking Places
• Drinking Places• Full Service Restaurants• Limited Services Restaurants• Caterers• Snack & Nonalcoholic Beverage Bars
Personal and Laundry Services
• Linen Supply• Dry Cleaning & Laundry Services• Photofinishing Laboratories• Nail Salons• Funeral Homes and Funeral Services
Construction of Buildings
• Commercial & Institutional Building Construction
• New Single-Family Housing Construction• Residential Remodelers• Industrial Building Construction• New Housing Operative Builders
Administrative and Support Services
• Professional Employer Organizations• Landscaping Services• Telephone Answering Services• Packaging and Labeling Services• Employment Placement Agencies
Personal and Laundry Services
• Beauty Salons• Coin Operated Laundries & Dry Cleaners• Nail Salons• Linen Supply• Funeral Homes & Funeral Services
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Data Limitations Regarding Entrepreneurship
• Data does not include sole proprietors• Data does not include home-based businesses• Data does not include non-profit businesses• Data does not include businesses that do not report
wage data• For a company to be included, it must be a registered
small business enterprise in the State of California
Source:
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Central Valley/Mother Lode Top JobsSmall Business Sector
SOC Code Job Title43-4051 Customer Service Representative
41-2031 Retail Salesperson
43-3031 Bookkeeping, Accounting and Audit Clerks
13-1199 Business Operations Specialists
11-9199 Managers, all others
43-9061 Office Clerks
43-3051 Payroll and Timekeeping Clerks
11-1021 General and Operations Managers
43-6011 Executive Secretaries and Administrative Assistants
43-4071 File Clerks
Source:
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Central Valley/Mother Lode RegionTop Job Trends - Small Business
Region 2013 Jobs 2016 Jobs % Change
● South Central Valley 73,599 78,464 6.6%
● Central Valley & Mother Lode Region 126,007 133,378 5.8%
● State 1,138,168 1,202,336 5.6%
● Nation 9,860,918 10,353,697 5.0%
Source: EMSI
California is a set of regional economies, not a monolithic one…..Taskforce on Workforce
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Central Valley/Mother Lode Percentile Earnings
$15.20/hr $25.09/hr $43.52/hr10th Percentile Earnings Median Earnings 90th Percentile Earnings
Source: EMSI
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Central Valley/Mother Lode Percentile Earnings by Wages
Occupation 10th Percentile Earnings Median Earnings 90th Percentile Earnings
General and Operations Managers (11-1021) $21.97 $40.36 $84.14
Managers, All Other (11-9199) $15.96 $22.33 $30.26
Business Operations Specialists, All Other (13-1199) $16.17 $29.87 $48.13
Bookkeeping, Accounting, and Auditing Clerks (43-3031) $11.28 $16.92 $23.94
Payroll and Timekeeping Clerks (43-3051) $10.87 $17.81 $24.82
Customer Service Representatives (43-4051) $10.69 $15.97 $26.52
Executive Secretaries and Executive Administrative Assistants (43-6011) $14.82 $22.34 $33.06
Source: EMSI
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World of Work Trends for the 21st Century
By 2020, more than 40 percent of the American workforce, or 60 million people, will be freelancers, contractors and temp workers.
Source: Intuit 2020 Report
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World of Work Trends for the 21st Century
• For many work will no longer be a place• Freelancers will gain recognition as a segment of the
workplace• Teams of the future will be like movie crews
– Chosen based on specific results they can deliver
• Technical skill + “soft skills”+ experience = high value
By 2020, more than 40 % of the American workforce, will be freelancers, contractors and temp workers…………………………..Intuit 2020
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Top U.S. 10 Fastest Growing Freelance Opportunities
• PowerPoint Creation 35.4% +• Accounting 23.3% +• Report Writing 20.5%+• Illustration 19.9%+• Photoshop Design 19.4%+• 3D Rendering 17.3%• eBay Auctions (listings & fulfillment) 16.2%+• Facebook Marketing 16%+• Sales 14.8%+• Android Development 14.8% Source: Forbes.com
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The Value of Experience
According to Internships.com, 69% of companies with 100 employees offered full-time jobs to their interns in 2012. Recent studies show that:• On average interns earn $6,900 more than non-interns for
starting salary• On average, only 30% of graduating seniors have job offers
before graduation• After completing an internship, that figure rises to 58%
Source: Internships.com
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21st Century Worker = Soft Skills + Technical Skills + Experience
Technical Skills + Soft Skills + Experience • Stackable Certificates
– Build “technical skills”
• Soft Skills = “Essential Business Skills”– Entrepreneurial/Intrapreneurial Mindset = Soft Skills
• Job Experience in Field of Study– Work Experience– Job Shadowing– Apprenticeships– Internships
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Lorinda ForrestSmall Business Deputy Sector NavigatorCentral Valley & Mother Lode
San Joaquin Delta College