SPRINGFIELD – Marking a significant milestone for Employment Social Enterprises and the thousands of Illinois residents they serve, a new law that will provide ESEs with greater access to business assistance programs, technical support, grants, loans and procurement opportunities was signed into law Friday, thanks to support from State Senator Celina Villanueva and State Representative Jawaharial Williams.
“This legislation recognizes that economic development and workforce development go hand-in-hand," said Villanueva (D-Chicago). “Employment Social Enterprises prove every day that investing in people creates stronger businesses, stronger communities and a stronger Illinois economy. By ensuring these organizations have access to the same economic development resources available to other businesses, we’re opening new doors for innovation, job creation and economic opportunity for Illinoisans who have too often been left behind.”
ESEs are mission-driven, revenue-generating businesses that combine commercial enterprise with workforce development. These enterprises provide employment, job training and supportive services to individuals facing significant barriers to employment, including those with experiences of incarceration, homelessness, disabilities, substance use disorders and mental health challenges. In Illinois more than 1.7 million Illinoisans are justice impacted, more than 200,000 Illinoisans are experiencing housing instability and more than 2 million Illinoisans have a mental health condition.
The new law, House Bill 3751, will formally include ESEs within the Illinois Department of Commerce and Economic Opportunit’s Office of Economic Equity and Empowerment and authorize the Office to engage ESEs in workforce development, business training and economic empowerment initiatives while integrating ESEs into outreach, education, technical assistance and business assistance programs. The goal is to create opportunities to scale these economic engines and employ more Illinois residents.
“Employment Social Enterprises create real jobs while helping people overcome barriers to employment,” said Williams (D-Chicago). “This law acknowledges the tremendous value these organizations bring to our workforce and economy by ensuring they have a seat at the table in Illinois’ economic development efforts.”
ESEs have demonstrated significant economic and social impact, both across Illinois and around the country. Research has found that employment social enterprises generate an estimated $2.23 in benefits for every $1 spent, producing returns for taxpayers, governments and businesses while reducing reliance on public assistance and lowering recidivism.
The legislation was supported by the Illinois Resourcing Employment Social Enterprises Together (IL RESET) coalition, representing more than 33 ESEs across Illinois.
Redefine Alliance
“Today marks an important milestone for employment social enterprises across Illinois,” said Manie Grewal, head of policy at Redefine Alliance. “This law recognizes that businesses can create both economic opportunity and social impact, the third such law passed in the country. By ensuring employment social enterprises have access to the state's economic development ecosystem, Illinois is investing in innovative businesses that strengthen communities, expand our workforce and create pathways for talented people who have been sidelined by the labor market. Redefine Alliance is grateful to Governor Pritzker, Senator Celina Villanueva, Representative Jawaharial Williams and the bipartisan coalition of legislators and advocates who helped make this vision law.”
New Moms
“At New Moms, we are always exploring innovative ways to support young moms’ pursuit of economic mobility,” said Anne VanderWeele, vice president of policy & government affairs at New Moms. “We know that when families have the peace of mind a reliable income provides, they are better able to pursue further employment and educational goals. Our employment social enterprise, Bright Endeavors, provides real-time job training and experience through paid transitional jobs in our manufacturing business. We also contribute to the local economy with a thriving small business. It’s a win for them, a win for us and a win for our community."
AutonomyWorks
“Every day we see individuals transform their lives through meaningful work, job training and supportive services,” said Dave Friedman, CEO of AutonomyWorks. “Access to the Office of Economic Equity and Empowerment means organizations like ours will be better positioned to grow, hire more people and strengthen the communities we serve.”
Mechanista
“For Employment Social Enterprises, this is more than recognition, it is validation that our business model belongs within Illinois’ economic development strategy,” said Lisa Thompson, board president of Mechanista. “At Mechanista we believe women belong everywhere, including every workplace. Today only 2% of automotive mechanics are women, and we are committed to changing that. We provide a safe and inclusive space where young women can learn automotive repair while creating an empowering, educational experience for every customer.”
About Employment Social Enterprises
Employment Social Enterprises are revenue-generating nonprofit and for-profit businesses that produce goods and services while providing paid employment, workforce training and supportive services to individuals facing barriers to employment. By reinvesting in workforce development and creating pathways to economic self-sufficiency, ESEs strengthen local economies while advancing Illinois’ commitment to equity, innovation and inclusive economic growth.
House Bill 3751 was signed into law Friday and goes into effect Jan. 1.
