Economic Opportunity Initiative

In 2004, Portland launched the Economic Opportunity Initiative (EOI), grounded in best practices and driven by measurable outcomes to help propel people out of poverty. With neighborhoods quickly revitalizing, citizen input focused our efforts on improving individual income and reaching residents who had been left behind.

RFP #11-12 for Economic Opportunity Initiative-Microenterprise >

View a portfolio of our current projects >

About Portland EOI

Goal

Increase the income and assets of low-income participants by at least 25% within three years of their enrollment in the Initiative.

Vision

Genuine change requires a significant and sustainable increase in people’s income and assets. It also requires time to achieve life and career changes for people at zero to 50% MFI (our target population).

One size does not fit all

The Initiative supports a coordinated portfolio of 33 workforce and micro-enterprise projects for adults and youth ages 18 to 25. There are multiple routes to success because one size does not fit all.  Each project is tailored to a specific group of participants, is intensive, long-term, and provides comprehensive supports to give participants a real shot at success.

Results

• The first graduating class, (07/08), far surpassed their income and business revenue increase goals of 25%. Two hundred and two initial graduates were at least making a real living wage ($16/hr. for family of 3) with benefits, or their businesses increased gross revenues by an average of 245%.
• In 08/09 about 2600 participants were served and the three-year program graduates achieved similar success with 90% of the program's workforce goals met and 80% of the Microenterprise goals attained.
• Employment, advancement and Microenterprise success was a little more difficult to achieve in 09/10 with the recession in full swing. However, the EOI program seems to have been able to protect many of its participants, having met 85% of workforce goals for participants (set 3 yrs. prior), despite the recession. Microenterprises suffered more, achieving only 67% of their goals. Because the populations that EOI serves are the most hard hit by the recession, we are pleased that our participants are largely continuing to see their incomes rise.
  

Focus

• Youth and Adult Workforce Development
  Short-term intensive training, placement, and long-term retention in career track jobs. Employers are involved in designing sector specific training so that we graduate the workers they need.
• Entrepreneurship
  Intensive micro-enterprise technical assistance, planning life skills, business training support services, and access to capital when a business is truly ready for it.

Funders and Partners

HUD was an early partner, helping solve the regulatory hurdles and welcoming an innovative use of Community Development Block Grant funds. Portland City Council committed general fund dollars. Strong interim reports prompted the City Council to increase financial support in subsequent years. A major start-up grant from the NW Area Foundation, and partnerships with Worksystems, the Oregon Department of Labor, and United Way have been important. Leveraged resources generated by the City for all projects include: Individual Development Accounts, credit repair services, legal services, healthcare for formerly homeless and setting aside qualifying minor civil and criminal offenses, reinstatement of drivers' license, and reduction in fines.

A National Model

Portland is now working to assist multiple cities in Minnesota to explore replication of the Initiative at the request of the NW Area Foundation. The National League of Cities and the Center for Law and Public Policy are using Portland as an example of poverty reduction on the local level. In 2009, the International Economic Development Council presented the human capital investment award to EOI.

What works?

Apply best practices, focus on people not places, and build a system that leverages resources, builds community and tracks individual achievement.

People-based strategies

Portland researched local and national best practices and shifted from neighborhood revitalization programs that improved the streetscape, but didn’t lift residents’ incomes, to replicable, people-based strategies, designed to propel households out of poverty by significantly increasing individual incomes. 
» Elements of Best Practices

Real change takes time

The Initiative funds community-based organizations to work with small groups defined by some commonality, such as ethnicity, language, industry, or entrepreneurial ambition.  Community-based organizations tailor the project to the group, equipping participants with the specific tools they need to move toward economic and personal stability. 

Leverage resources

By negotiating on the behalf of 34 small projects, PDC can help them access services of value to all:

• Pro Bono Legal Aid: micro-entrepreneurs receive free legal services, including incorporating, drafting contracts, lease agreements, and copyrighting.
• In-depth credit repair assistance and financial education; access to alternative to payday loans
• Free Market Research: Participating micro-enterprises can obtain free customized reports on business-to-business information, customers and industry trends.
• Matched Savings Accounts: Savings toward education, homeownership or a small business investment are matched $3 for every $1 contributed by participants.
• Credit Access: Some EOI Microenterprise programs have their own small loan programs
• Clean Slate: fix minor criminal or civil issues that are barriers to work such as suspended driver’s licenses, unpaid fines, and expungeable offenses
• Mental health assistance: the support of a personal coach will soon be available to participants who need more or a different type of one on one time support than casemanagers can provide

Resources & Publications

Contact us

For more information, contact Lynn Knox, Program Manager at 503-823-2385 or email.