Recommendations for Field Building and Funding at the Local Level
A collaboration between Next Street and Common Future
Executive Summary
At the end of 2019, Next Street and Common Future set out to assess small business support and capital ecosystems in nine cities: Atlanta, Indianapolis, Los Angeles, Minneapolis-St. Paul, New York, Portland, Richmond, San Antonio, and St. Louis. The goal was to understand the needs of entrepreneurs of color and identify programs that could be built or scaled to create more equitable outcomes.
Two months in, the COVID-19 pandemic began. The project had to adapt city by city, and in some places step back entirely. This report captures what we learned about community-driven ecosystem building, and what funders, practitioners, and ecosystem builders can carry into future work.
Top Line Takeaways
1. Trust Is Built Locally
Outside Teams Start at a Deficit: In seven of nine cities, neither the project team nor the program officer was local, which slowed trust-building.
Local Leaders Close the Gap: Two paid project leads per city, one with access to underserved communities and one with access to decision makers, grounded the work and opened doors.
2. Community Readiness Comes First
Timing Shapes Participation: Atlanta postponed its assessment to focus on pandemic response. Portland shifted to research only, with funder convenings and a playbook for later community engagement.
Self-Determination Includes Opting Out: Minneapolis-St. Paul stakeholders, already heavily studied, asked for funding of known solutions over new research and ultimately chose not to proceed.
3. Data and Lived Experience Must Work Together
Data Gets Road-Tested: Quantitative findings were validated through interviews and focus groups, and updated when they conflicted with local experience.
Smaller Groups Get Missed: Asian-Pacific, Indigenous, informal, and micro businesses were underrepresented. Nearly every city lacked culturally relevant services across racial groups.
4. Assessments Need a Path to Funding
Participation Implies a Promise: Stakeholders expect that giving their time will lead to implementation funding. Without clarity, distrust of philanthropy grows.
Follow-On Funding Works: In Los Angeles, a quick follow-on grant launched the Los Angeles County Initiative for Inclusive Small Business.
5. The Network Is the Outcome
Silos Were Universal: Every city described its ecosystem as disjointed or segregated.
Connection Matters as Much as Data: Participants in every city said the relationships built during the process were as valuable as the findings.
Recommendations for Funders and Practitioners
Compensate Local Expertise: Pay local leads at rates on par with core consultants, and compensate other stakeholders for their time.
Build on Existing Work: Coordinate with prior and ongoing studies so new research adds value rather than repeating it.
Align Funders Early: Convene funders before an assessment begins to set expectations on available implementation dollars. A local funders community of practice can sustain this over time.
Offer a Range of Solutions: Include low-cost moves, such as shared reporting and better coordination, alongside larger investments.
Invest in Shared Measurement: Help organizations define and track key performance metrics so the ecosystem can assess itself.
Download the Full Report
Explore the full report for detailed lessons on community engagement, stakeholder design, and post-assessment funding.
