advancing inclusive entrepreneurship and business growth ... · brief historical profile of...

AdvancingInclusiveEntrepreneurshipandBusinessGrowthinUrbanManufacturing:

LessonsfromPortlandandCincinna2

EquityCommunityofPrac1ceUrbanManufacturingAlliance

TanuKumar&ChrisSchildt,Co-ChairsJanuary25th,2017

Today’sAgenda:•  Welcomeandintroduc1ons

–  Poll–Whereareyoucallingfrom?–  5minutes

•  WhatistheEquityCoP?–  TanuKumar&ChrisSchildt,EquityCoPCo-Chairs

–  10minutes

•  Introduc1ontoToday’sWebinarandSpeakers–  TracyGray,22CapitalGroup–Facilitator

–  5minutes

•  PortlandCaseStudy–  KatherineKrajnak,SeniorIndustryLiaison,PortlandDevelopmentCommission

–  10minutes

•  Cincinna1CaseStudy–  DarrinRedus,VicePresident,MinorityBusinessAccelerator,Cincinna1ChamberofCommerce

–  10minutes

•  FacilitatedQues1onandAnswerSession–  Chris,Darrin,Katherine,andTanu

–  15minutes

•  AudienceQues1onandAnswerSession–  Pleasetypeyourques1onsintotheQues1onsboxinyourControlPanel

–  15minutes

•  Thankyou!

AdvancingInclusiveEntrepreneurshipandBusinessGrowth

TheUrbanManufacturingAllianceUMA is a coali2on of 500 members across 145 ci0es that aresustainingandgrowingmanufacturing inurbancenters.ThroughGatherings, original research, policy development, and ourCommuni2es of Prac2ce, UMA is working to ensure that ci2escon2nuetobeplaceswherewemakethings.ManufacturingmaAers, and itma\ers deeply to the health andvitality of ci1es. A strong urban manufacturing base supportsinnova1on, sustains living-wage jobs that provide a crucialpathwaytothemiddleclass,promotesHerearesomewaysUMAisstrengtheningthemanufacturingsector.


UMA’sFourCoP’sinclude:•  Equity•  LandUsePolicyandRealEstateDevelopment•  WorkforceDevelopment•  LocalBranding

WhatisaCoP:Amechanismforourmemberstoeasilyaccesseachother’sexper2seanddrivethecrea2onofresources.


TheEquityCoPAdvisoryBoard

JoseCorona–DirectorofEquityandStrategicPartnerships,CityofOaklandTracyGray–ManagingDirector,The22CapitalGroupDarrinRedus–VicePresident,Cincinna1USARegionalChamberofCommerce,MinorityBusinessAcceleratorMichelleThong–BusinessDevelopmentOfficer,CityofSanJoseAndrewBeideman–Associate,RWVentures,Chicago


www.prattcenter.net/eie


Photo: Michael Silberstein

INCLUSIVE ENTREPRENEURSHIP IN PORTLAND

UMAWebinarKatherineKrajnakPortlandDevelopmentCommission

STRATEGICPLANALIGNMENT

ObjecIve3

FosterWealthCrea1onwithinCommuni1esofColorandLow-IncomeNeighborhoods

HighGrowth

ScalableProductGrowth

GrowingSmallBusiness

MicroenterpriseBusiness

PATHSTOBUSINESSGROWTHRe

venu

e

Time

PDCPROGRAMSBusinessType PDCSupportProgramHighGrowth •  StartupPDXChallenge

•  InclusiveStartupFundScalableProduct •  StartupPDXChallenge

•  InclusiveStartupFund•  IncreaseProject•  A&OPeertoPeer

GrowingSmallBusiness

•  IncreaseProject•  MicroenterpriseandSmall

BusinessDevelopmentProgramMicroenterprise •  MicroenterpriseandSmall

BusinessDevelopmentProgram

OURAPPROACH•  Havingdirectrela1onships

withminorityentrepreneurstounderstandtheiruniquebarriers

•  Thinkingdifferentlyabouthowgovernmentcanhelpentrepreneurs

•  Facilita1ngpeer-to-peerlearning

•  Inves1nginpeopletogrownextgenera1onmentors&leaders

JoyDavis,Design+CultureLabRoslynnTellvik&SookGoh,RAFTSyrups

ECOSYSTEMWIDECHANGE

GROWSTARTUPINSPIRE

•  StartupWeekendLa1no

•  PortlandStartupWeek

•  Hispanicpros•  PitchBlack•  MercatusWebsite

•  TiEOregon•  StartupPDXChallenge

(IncubatePDX2017)•  OregonEntrepreneur

Network•  Microenterprise&

SmallBusinessDevelopmentProgram

•  InclusiveStartupFund(ElevateCapital)

•  IncreaseProject•  PortlandSeedFund•  AthleIc&Outdoor

PeertoPeer

INCLUSIVESTARTUPFUND

•  $3millionpre-seedfund–  $500KCityofPortland–  $500KMultnomahCounty–  $250KStateofOregon

•  $25-$75Kinvestments•  6monthmentoringprogram•  30companies•  Industrydiverseporjolio•  Targetfounder

demographics–  40%Blackand/orLa1no–  40%women–  20%otherunderrepresented

TyronePoole,CEO,NoAppFee.com

TEAMSELECTION

•  DiversePipeline•  MentorProgram•  FundStructure&

Capitaliza1on•  Investment

Experience

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WHAT’SNEXTSMALLBUSINESSTECHNICALASSISTANCEPARTNERSHIP

BUILDING1000STRONG

GOALS

OUTCOMES

•  Leadwithoutcomes•  Improveservicedelivery•  Facilitateinclusivecommunityofprac1ce

1000 Businessesstrongandstabilized

250Businessesachievegrowthmilestones

25Businessesscalingtodoubleortripletheirsize

100Tradedsectorstartupslaunchintothemarket

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QUESTIONS?


Advancing Inclusive EntrepreneurshipStrategic Overview of

The Minority Business Accelerator

Cincinnati USA Regional ChamberNovember 9, 2016 1


Our Mission

To accelerate the development of sizable minority businesses and

strengthen and expand the regional minority entrepreneurial community.


Why Is This Important?

• By 2050, Ethnic Minorities will represent half of U.S. Population

• Today, roughly half of all pre-school age children represent ethnic minorities

• America is living longer with more projected retirees than workers contributing to Social Security

• Widening Economic Disparities (unemployment, income, wealth, etc.) threaten entire financial/economic system

• Accelerated Globalization


What Are The Disparities?

• Whites have 13X the net worth of Blacks & Hispanics (largest gap since 1989)• Over the past 25 years, the wealth gap has nearly tripled according to Brandeis University

$139 $141

$17 $11 $16 $14

2010 2013

Wealth Gap Widens ($K)White Black Hispanic

Pew Research Center report released 12/14


What Are The Disparities?

• Minority households' median income fell 9% between 2010 and 2013, compared to a drop of only 1%for majority households

• Despite increases in business starts and revenues, Black owned businesses generate less than 1% of U.S GDP, and less than 4% when factoring in Hispanic owned firms

• Only 1 in 18 African American & Hispanic firms > 1 employee versus 1 in 5 for majority firms

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Black Americans Hispanic Americans White Americans

Unemployment Rate

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Black Americans Hispanic Americans White Americans

Jobless and not looking for work or working part-time


Driving Realities & Opportunity

• Economic Inclusion has become a national imperative

• Cities/Regions/Businesses across the country more aggressively adopting inclusion strategies

• National Foundations and federal government aggressively partnering with leading organizations and communities

• Unique talent/business attraction/retention opportunity


Brief Historical Profileof Accelerator

� Founded in 2003

� Product of Cincinnati Action Now (CAN) Commission

� Emphasis on African American- & Hispanic-owned businesses

� Address well-documented economic disparities by stimulating high growth entrepreneurship and job creation

� 2004 Portfolio consisted of 20 firms with average revenues of $6.7 million

� Early “Spending” from area corporations with local minority firms of ~ $100 million at inception


3,500+jobs

created

Current State

32high

performing minority

businesses

9different industry

categories

$1B aggregate

annual sales


Industry Distribution

Current State

$31Million avg. annual sales/firm


MBA Brands


Our 2016 Goal Setters

11


Our 2016 Goal Setters

12


5 Year Growth Objectives & BHAG

• Increase Aggregate Annual Revenues of Portfolio by:

$1 Billion

• Create:

3,500 additional jobs

13


Increase Aggregate Annual Revenues by $1 Billion

• Enhanced engagement with Portfolio Companies

• Deepen partnering efforts with Goal Setters

• Catalyze a robust high growth pipeline

• Support minority business attraction efforts

General approach



• New markets, product lines, exporting, “pivoting”

• M&A, Joint Ventures – majority/minority

• Deepen understanding/positioning for equity capital

• Continue capacity and capital readiness efforts

Strategies & Tactics – (Portfolio Firms)


• Identify new opportunities for Portfolio Companies

• Identify industry verticals with minimal/no MBE representation

• Identify core strategic needs of each Goal Setter

Optimize efforts with Goal Setters



Create 3,500 Additional Jobs

• By-product of growing larger scale MBEs

• Disproportionate impact on underserved communities

• Intentional focus on challenged populations

• Leverage with foundations and philanthropic partners

• Unrecognized partner in the war on poverty

Impact & Realities


18

Accelerator Portfolio Companies/Pipeline Firms (CMBC)

9 Business Assessments9 S.W.O.T Analysis9 Capital Readiness9 Capacity Building9 Client Readiness9 Strategic Introductions

The AcceleratorBusiness Acquisitions

DivestituresBusiness Creation

New ContractsJoint Ventures

Majority/Minority DealsEquity Financing

(Business Attraction/Relocation)

(Talent Attraction/Retention)

Corporate Partners/Goal Setters

9 Identifying Spend Goals/Opportunities9 Leveraging “Business Case” for Inclusion9 Strategic Sourcing/Partnering Needs9 Optimization of new/existing MBE vendors9 Industry Verticals with little/no MBE Spend9 Client Succession Planning Strategies

Visual Snapshot


Thank you

19

QuesIon&AnswerSessionToaskaques1ontypeyourquesIonunderthe“Ques1on”sec1ononyourcontrolpanelandwe

willreadyourques1ontothegroup.Pleaseincludeyourorganiza1onwithyourques1on.

TanuKumar

ChrisSchildt


DarrinRedus

TracyGray

KatherineKrajnak

What’sNext?TheEquityCoPwillcon1nuetotellthestoriesofinclusion

acrosslanduseandrealestatedevelopments,workforce,advancedmanufacturing,policycrea1on,andmore.

[email protected]

Anddon’tmissUMA’snextprogram!TheWorkforceCommunityofPrac0ceWebinar:

“StrategiesandPrac1cestogetYouthonManufacturingShopFloors”Tuesday,February28that2pmEST

Signupatbit.ly/ShopFloors


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