1. Strategies for Reducing Poverty in Inner Cities: Stimulating Private Sector Investment The Opportunity Dividend Summit Detroit, MI March 2, 2010

2. Summary Poverty in the Inner City Challenges Faced by Inner City Firms and Solutions ICIC’s Research Drives Inner City Job Creation 1 2 3

3. Inner cities face serious poverty and related challenges that can be alleviated through business development strategies. 1 2 3

5. Inner cities are also home to one-fifth of U.S. poverty and one-third of minority poverty. Source: State of the Inner City Economies (SICE) database; ICIC analysis. 0.1% of U.S. Land Area 31% of U.S. Minority Poverty 19% of U.S. Poverty 8% of U.S. Population

6. Poverty can be targeted more effectively through business development and job creation. We need a strategy focused on building businesses in inner cities. Solution to Poverty Shift emphasis from the consequences of poverty: transfer payments, Medicaid, etc. Job Creation and Firm Formation to Starting and owning businesses, as well as moving up the management hierarchy, are the most sustainable ways to build income and wealth in inner cities. To reduce poverty, cities need to create jobs that are geographically and occupationally accessible to inner city residents. Inner city economies will not prosper by a focus solely on regional economies - they have special economic issues and opportunities.

8. Overall inner city performance has significantly trailed regional performance. 1998-2007 In ten years, the largest 100 inner cities created no net jobs. Source: State of the Inner City Economies (SICE) database; ICIC analysis. Job Growth CAGR Net Job Change Rest of Region 1.2% + 6.7 m Rest of Central City 0.9% + 1.4 m Inner City - 0.1% - 50,000

9. The findings from ICIC’s 10 years of research on the fastest growing inner city firms have broad implications for inner city firms and policy makers. 1 2 3

12. ICIC’s research team focuses on ways to use policy work and city engagement to improve the local environment for businesses and reduce poverty in inner cities. 1 2 3

15. www.icic.org