organizational overview
DESCRIPTION
U.S. Department of Commerce Minority Business Development Agency. Organizational Overview. Juan Pickett, Business Development Specialist MBDA. 1. The Agency. - PowerPoint PPT PresentationTRANSCRIPT
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Organizational Overview
1
U.S. Department of Commerce Minority Business Development Agency
Juan Pickett, Business Development Specialist
MBDA
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The Agency
The Minority Business Development Agency (MBDA) is tasked with promoting the growth and competitiveness of minority-owned businesses nationwide.
By Executive Order 11625, MBDA conducts the following:
– Coordinate the plans, programs and operations of Federal agencies to strengthen minority business enterprises (MBEs).
– Promote the mobilization of activities and resources of State and local governments, businesses and trade associations, universities, foundations, professional organizations towards the growth of MBEs.
– Establish a center for the development, collection, summarization and dissemination of information for and about minority businesses.
– Provide financial assistance to public and private organizations so they may render business consulting services to MBEs.
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The Agency
MBDA’s vision is economic prosperity for all American business enterprises.
To foster the growth and global competitiveness of U.S. businesses that are minority-owned.
Our Vision
Our Mission
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Why is MBDA important
• The U.S. needs strong minority-owned firms to achieve maximum economic growth.
• The nation is failing to reap the benefits of economic parity – the creation of 16 million jobs, generation of $2.5 trillion in gross receipts and unrealized tax base exceeding $100 billion per year.
• Minority firms have the potential to contribute significantly to the balance of trade. Minority businesses are twice as likely to generate sales through exports compared to non-minority firms.
• Minority-owned firms create job opportunities for all Americans; MBEs tend to be generally more balanced in hiring minority and non-minority persons.
• In 2050, the minority community will represent 54% of total U.S. population.
• MBDA is a catalyst to build minority-owned firms of size, scale and capacity.
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Why is MBDA important
Source: U.S. Census Bureau, 2002 Survey of Business Owners, August 2006, and 2007 Special Tabulation on total minority firms for 2002.
Summary of Business Statistics by Group - 2002
GroupNumber of
FirmsTotal Gross
ReceiptsAverage Gross
ReceiptsPaid
Employees
African American 1,198,000 $88.8 billion $74,000 757,000
American Indian & Alaska Native 201,000 $26.9 billion $133,000 191,000
Asian 1,104,000 $326.4 billion $296,000 2,213,000
Hispanic 1,574,000 $222.0 billion $141,000 1,538,000
Native Hawaiian and Other Pacific Islander
29,000 $4.3 billion $148,000 29,000
All Minority 3,958,000 $661.1billion $167,000 4,675,000
All U.S. Firms (excludes publicly-held and other non-classifiable firms)
22,480,000 $8.8 trillion $391,000 55,368,000
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Our Clients
• Native Americans
• Hasidic Jewish Americans
• Native Hawaiians
• Asian Americans
• Alaska Natives
• Pacific Islanders
• Hispanic Americans
• African Americans
U.S. businesses owned and operated by the following ethnic groups:
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Our Clients
* Source: U.S. Census Bureau, 2007 Special Tabulation for Minority Firms in 2002, “2002 Survey of Business Owners.”
• Represent only 5% of all minority firms • Generate 75% of all minority-owned firms gross receipts• Provide 73% of all paid employees
The core MBDA client is a firm that generates $500,000 in annual revenue.
These firms have the following characteristics:
5%
75% 73%
95%
25% 27%
0%
20%
40%
60%
80%
100%
120%
Number of Firms Gross Receipts Paid employees
Minorityf irms($500,000and above)
Minorityf irms(Under$500,000)
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MBDA provides nationwide reach through five regional offices.
MBDA Structure
New Orleans REC
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Service Delivery
MBDA network is comprised of 46 centers which are organized as public/private partnerships.
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Service Delivery
MBDA service delivery program was developed in conjunction with the Tuck School of Business at Dartmouth College. Through this collaboration a systems-integrated approach was designed into the Agency’s service delivery model.
MBDA evaluates clients based on their business functions as outlined below:
• Strategy – plans for achieving sustainable competitive advantage and creating customer value.
• Processes – efficiencies and effective ways of manufacturing products or delivery of services.
• Architecture - organizational and value chain (outsourcing) structure to implement the strategy and key processes.
• Resources - the acquisition and management of financial, human, and technical assets.
• Systems - mechanisms for control and communication, including but not limited to management information systems (MIS).
• Employee Empowerment – delegation in a way that encourages staff to pursue strategic initiatives and continuous improvement.
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Service Delivery
• Business Consulting
• Procurement Matching
• Private Equity and Venture Capital Sourcing
• Bonding Assistance and Loan Packaging
• Strategic Partnering (e.g, Business-to Business, Teaming, Joint Ventures, etc.)
• Market Promotion of Clients to Prime Contractors and Other Buyers
Based upon result of systems-integrated review, MBDA provides the following services:
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Performance
• New Jobs Created• Dollar Value of Contracts Awarded• Dollar Value of Financing Transactions
Awarded
• 2,001 New Jobs • $1.7 Billion in Contracts • $278 Million in Financing
Fiscal Year
Agency Funding
Total Contracts &
Financial Opportunities
Awarded
New Jobs Created
Return on Agency
Investment(ROI)
FY 08 $28.5 M $2.1 B 5,316 74x
FY 07 $29.9 M $1.8 B 3,506 59x
FY 06 $29.8 M $1.6 B 4,254 53x
FY 05 $29.8 M $1.6 B 2,270 54x
FY 04 $29.7 M $1.6 B n/a* 54x
FY 03 $29.0 M $1.1 B n/a 38x
FY 02 $28.3 M $1.7 B n/a 60x
FY 01 $27.9 M $2.2 B n/a 79x
MBDA’s performance criteria is based on:
January 1 through August 25, 2009, MBDA has created:
* The Job Creation measure was established in fiscal year 2005.
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Performance
37%
2%19%
11%
7%
7%
8%4% 2% 3% 1%
32%
2%
37%
5%
4%3%
9%4% 2%1%1%
MBE Firms Receiving Services by Industry Classification
in FY 2008
MBE Firms AwardedContracts by Industry Classification
in FY 2008
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Case Study 1
Annual Sales: $6 million $7.2 million $1.2 million
Number of Employees: 10 18 8 Non-Minority 50% -
Client Stats
Recorded Client Impact:
Service Provided by MBDA:
Dollar Value of Awarded Contracts: $1.2 million 10/1/2008 – 12/5/2008Percent Increase in Sales: 20%Number of New Contracts: 7Number of Contract Sources: 7New Jobs Created: 8Percent Increase of Employee Resources/Capacity: 80% in employee capacity
Before After
Description: Client needs assessment, contract acquisition matching
and bid assistance.
Number of Client Service Hours: 97
Firm: AISLocation: Chicago, ILEthnicity: Hispanic AmericanIndustry: IT Consulting/Security, Data Warehousing
Increase
Date Awarded
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Case Study 2
Annual Sales: $37 million $50 million $13 million
Number of Employees: 35 65 30 Non-Minority - -
Client Stats
Recorded Client Impact:
Service Provided by MBDA:
Dollar Value of Finance Assistance: $6.5 million 9/30/2008Dollar Value of Awarded Contracts: $13.3 million 2/27/2008-5/22/2008Percent Increase in Sales: 35%Number of New Contracts: 3Number of Contract Sources: 1New Jobs Created: 30Percent Increase of Employee Resources/Capacity: 86% in employee capacity
Before After
Description: Client needs assessment, contract acquisition matching,
bid assistance, and construction related consulting.
Number of Client Service Hours: 31
Firm: NECCILocation: New York, NYEthnicity: African AmericanIndustry: Interior Finish Construction
Increase
Date Awarded
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Case Study 3
Annual Sales: $15 million $410 million $395 million
Number of Employees: 21 TBD - Non-Minority 57% -
Client Stats
Recorded Client Impact:
Service Provided by MBDA:
Dollar Value of Awarded Contracts: $395 million 4/3/2009Percent Increase in Sales: 270%Number of New Contracts: 1Number of Contract Sources: 1New Jobs Created: TBDPercent Increase of Employee Resources/Capacity: TBD
Before After
Description: Client needs assessment, contract acquisition matching,
bid assistance, and administrative management consulting.
Number of Client Service Hours: 4
Firm: CIILocation: Albuquerque, NMEthnicity: Hispanic AmericanIndustry: Environmental Engineering and Technology Services
Increase
Date Awarded
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Case Study 4
Annual Sales: Start-Up $3.027 million $3.027 million
Number of Employees: 0 2
Non-Minority 0% -
Client Stats
Recorded Client Impact:
Service Provided by MBDA:
Dollar Value of Finance Assistance: $30 million 12/2/2008Dollar Value of Awarded Contracts: $3.027 million 1/15/2009Percent Increase in Sales: 100%Number of New Contracts: 2Number of Contract Sources: 1New Jobs Created: 2Percent Increase of Employee Resources/Capacity: 100% in employee capacity
Before After
Description: Creation of the Joint venture, secured SBA approval of the joint venture and assisted with proposal to the Army Corps of Engineers.
Number of Client Service Hours: 34
Firm: GS&A CJVLocation: Alto, NMEthnicity: Hispanic AmericanIndustry: Commercial Construction
Increase
Date Awarded
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Case Study 5
Annual Sales: $3.0 million $7.9 million $4.9million
Number of Employees: 20 25 5 Non-Minority 43% -
Client Stats
Recorded Client Impact:
Service Provided by MBDA:
Dollar Value of Awarded Contracts: $ 4,998,196 7/10/2008Percent Increase in Sales: 20%Number of New Contracts: 1Number of Contract Sources: 1New Jobs Created: 5Percent Increase of Employee Resources/Capacity: 25% in employee capacity
Before After
Description: Procurement Services/Procurement LeadNumber of Client Service Hours: 33
Firm: RSCLocation: Fargo, NDEthnicity: Native AmericanIndustry: Construction
Increase
Date Awarded
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New Strategic Focus
• Increase focus to minority-owned firms with $1 million or more in revenue.
• Create a new generation of $100 million in annual revenue businesses.
• Continue to expand minority businesses globally.
• Foster growth of minority businesses into key innovative industries:
– Clean Energy
– Green Technology
– Healthcare
– Information Technology