February 4, 2019
We started the year with the usual symphony of economic retrospective and prospective reports. By the middle of January, there’s no shortage of economic outlook reports: pieces showing a look back at earnings for the average worker and a peep into the expected earnings in 2019. Or year-in-review reports touting historically low unemployment rates in the American workplace while lamenting worker shortages in an array of industries, from trucking to medical technicians. The glance-back and the look-forward nature of these reports are important to understanding where we are or could be in our economy at any moment in time.
One economic marker that sticks out in this time of a generally good economy is the 3% decrease in overall wealth among Americans. The decrease is linked to long-standing wage stagnation, loss or dilution of employer-paid benefits like health insurance and a guaranteed pension, among other things like the decline of homeownership among the working class after 2008, and a wide and ever-growing wealth divide. Without direct and dramatic intervention, the overall wealth decline is projected to continue.
Most Americans are workers, and two out of every three are employed by small- to mid-sized businesses. When we look under the hood at the top-level numbers reported in our own reports and those from others – to the effect of economic conditions on individuals, families and communities – we see that the foundation of economic security is almost always a good-paying job in a prospering company, or a prospering company providing good-paying jobs.
At Advantage Capital we realize this and define our impact accordingly, looking at what happens on the ground for individuals, families and communities when companies grow, and create and retain high- quality jobs. It is this business growth with the corresponding growth in good-wage, good-benefits jobs that is the hallmark of how we not only define impact, but also how we measure it. We invest in the growth of job-generating businesses because that growth is what changes outcomes and outlooks for everyday citizens. We know this is the prescription to strengthen local communities, economies and households.
Recently, Advantage Capital was recognized for paying attention to the real effect, the impact, of our business investments not just on the investee companies themselves, but also on people and places. The Real Leaders Magazine’s inaugural listing of the top 100 Impact Firms in the country listed our firm at #21. We qualified because of the dollars invested and the good our investing does at every level.
Two of the companies we invested in also made the list, Advanced Enviro Systems (26) and Waste Farmers (67). Both were recognized – like us – for building profitable companies, while including a greater good in their overall mission and strategy. These two portfolio companies – along with hundreds of others we’ve invested in – also help create the impact we’re seeking: providing good jobs, with good wages, creating the platform for economic security, and providing overall real and positive impact.
We know the importance of doing business in a way that makes a measurable impact. We’ve been operating under this impact investing strategy and mission for more than a quarter of a century. We are happy to be recognized by Real Leaders for our efforts and we look forward to what we, and the other 99 companies on the list, do next as a force for good.
The investments, portfolio companies and recommendations listed on this website represent only a sample of companies that have received investment capital from Advantage Capital-related entities. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities highlighted herein or contained in any other information provided by Advantage Capital. Past performance is no guarantee of future results. For a full list of companies, please click here.
