OUR MISSION

Start Small Think Big is a non-profit organization bringing high-quality financial development services and civil legal assistance to residents of the South Bronx. Start Small is located in the heart of the South Bronx, in New York’s 16th Congressional District. The Bronx remains the poorest urban county in the United States, and NY16 the poorest congressional district.  Start Small’s mission is to empower our clients, over 80% of whom are low-income and minority women, to increase their economic opportunities and build sustainable financial independence. 

What are the problems that we are working to address?

40% of people in the South Bronx live below poverty, compared to 21% citywide. The Bronx is one of only five counties in the United States where more than 30% of households are headed by single women and generally, these households are more likely to be impoverished. Indeed, the poverty rate among Hispanic single mothers in the Bronx approaches 60%. The median family income in the South Bronx is less than half the citywide median ($23,073 v. $48,743). (U.S. Census) 

The majority of Bronx households have few assets, are highly vulnerable to economic shocks (job loss, illness, unexpected expense), and suffer extreme financial distress. In the South Bronx specifically, more than 80% of households have no money at the end of the month – a rate nearly twice as high as the NYC average (48%) and three times higher than the national average (26%). (NYC Office of Financial Empowerment (OFE)) Furthermore, Bronx residents’ assets are further eroded by high-cost fringe financial services. Compared to NYC as a whole, Bronx households are more than twice as likely to be unbanked—meaning they have no checking or savings account. (The Mott Haven/Melrose neighborhood, where Start Small is located, has the highest percentage of unbanked households in NYC (56%). (NYC OFE)) Instead, these households use fringe financial services like check cashers to pay bills, cash payroll checks, and buy money orders. These fringe financial services are much more expensive than mainstream financial services and further erode Bronx residents’ already limited income.

A lack of income and disproportionately high expenses present serious challenges to savings and asset accumulation. Among the unbanked in the South Bronx, less than one-third have savings of $25 or more. (NYC OFE) Worse yet, most Bronx residents’ net worth is negative.  Almost 75% of South Bronx residents have some outstanding debt and, almost 40% carry a credit card balance over $4,000-- more than 17% (or more than 2 full-months) of a typical household’s annual income (of $23,073). (NYC OFE)

The current credit crisis is further straining South Bronx households. As the economic downturn continues, financial problems become legal problems – first default and collection claims followed by bankruptcy.  This is particularly damaging to the poor who lack access to civil legal services. Significantly, at least 80% of low-income Americans who need civil legal assistance do not receive any. (Legal Services Corporation)

Over recent years, the volume of consumer credit cases has risen dramatically in NYC, and in the Bronx in particular. Today in the Bronx, consumer credit cases represent 65% of total civil filings, a substantially larger percentage than the city-wide average (just over 50%). (The Urban Justice Center) Worse yet, the Urban Justice Center estimates that at most 4% of defendants in these cases are represented, leaving nearly all defendants without legal guidance. 

When you have limited means, credit problems quickly become bankruptcy problems. Significantly, consumer debt problems are the 3rd leading cause of personal bankruptcy filings. (Harvard University) Unfortunately, the failure rate among New Yorkers filing pro se for bankruptcy is a staggering 90%. (Crain’s New York Business) But despite these odds of failure – made worse by the recent revision and complication of the bankruptcy code and the increased cost of filing -- more and more consumers are attempting to file for bankruptcy on their own. The need for pro bono bankruptcy advice is great, and growing.

The implications of these statistics are profound. The majority of Bronx households have limited income, little money left at the end of the month, little ability to save, and negative net worth.  Bronx residents are thus highly vulnerable to any economic shock (job loss, illness, family emergency), which threatens even their basic necessities.

When individuals first come to Start Small, they see no way out of their present situation. They feel trapped and powerless. We help these clients take control of their lives -- one step at a time. We help them develop knowledge, skills, networks and a plan.  In short, we help them to start small, addressing the emergent issues and pressing needs, while continuing to think big about their plans for the future.

What have we accomplished so far?

To date, Start Small served over 500 clients, more than 80% of whom are low-income minority women. Through a partnership with the NYC Mayor’s Office of Financial Empowerment, we provided approximately 300 hours of personal financial counseling services to more than 150 individuals. Through a partnership with the Women’s Housing and Economic Development Corporation, we provided more than 1,500 hours of public benefits counseling services, to approximately 350 individuals, helping them to access benefits, tax credits and other government services valued at close to $100,000. We have provided close to 1,000 hours of small business legal advice to over 70 individuals, helping them protect their businesses, their intellectual property, and their personal assets. Finally, in partnership with the Business Outreach Center Network’s Childcare Business Development Project, we have helped almost 10 home-base childcare providers (all of whom were low-income minority women) develop and enhance their Bronx-based businesses.

In our short two-year history, Start Small has brought close to $500,000 worth of pro bono and in-kind financial and legal services to the South Bronx through strategic partnerships with over thirty law firms, banks, credit unions, for-profit and not-for-profit organizations, and academic and governmental institutions.