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The Minority Business Accelerator is the The Minority Business Accelerator is the
economic development initiative of the Cincinnati economic development initiative of the Cincinnati
USA Regional Chamber designed to USA Regional Chamber designed to accelerateaccelerate
Minority Business AcceleratorMission
USA Regional Chamber designed to USA Regional Chamber designed to accelerateacceleratethe development of the development of sizablesizable minority businesses minority businesses
and and strengthenstrengthen and and expandexpand the regional the regional
minority minority entrepreneurialentrepreneurial communitycommunity.
ac·cel·er·ate [ak-sel-uh-reyt].
verb (used with object)
1.to cause faster or greater activity, development, progress,
advancement, etc., in: to accelerate economic growth.
Work of the MBA
� This is the FOUNDATIONAL TECHNICAL work of the MBA that creates “BETTER” firms.
Building MBE
Capacity
� This is the REVENUE CREATION work of the MBA that creates “BIGGER” firms.
� This is the INFLUENCING work of the MBA that is about regional inclusion efforts that creates “INSTITUTIONAL”change.
Stimulating Accelerated
Growth
Fostering Economic Inclusion
Our Opportunity:
2010 StudyMinority Business Slice of the Sales Pie
© 2010 Institute for Entrepreneurial Thinking, Ltd. ■ www.entrethinking.com
Total Sales for Cincinnati MSA
= $192.5 Billion
Total Minority
Sales = .527%
15.6%
Percentage of Minority Population, Number of Percentage of Minority Population, Number of Firms Firms and Gross Receipts Compared to All Firmsand Gross Receipts Compared to All Firms
Population
Number of Firms
Our Challenge:
2010 Study
0.1%
1.6%
11.9%
2.0%
0.2%
2.1%1.4%
0.1%
3.9%
0.05% 0.32% 0.17% 0.01%0.5%
American Indian and
Alaska Native
Asian Black or African
American
Hispanic or Latino All Minority
Total Gross Receipts
Components of the
MBA Strategy
The MBA uses a twoThe MBA uses a twoThe MBA uses a twoThe MBA uses a two----pronged strategy:pronged strategy:pronged strategy:pronged strategy:
;;;;
Improving the Improving the Improving the Improving the
readiness of readiness of readiness of readiness of
minority minority minority minority
businessesbusinessesbusinessesbusinesses
Engaging Engaging Engaging Engaging
support from the support from the support from the support from the
corporate corporate corporate corporate
community via community via community via community via
committed committed committed committed
annual spending annual spending annual spending annual spending
with local with local with local with local
minority firmsminority firmsminority firmsminority firms
Economic
Inclusion
MBA Portfolio Criteria
1. Minimum sustained sales of $1million.
2. Sales growth potential of double digit growth in the 3 to 5 years.
3. The potential to create &/or retain jobs in Cincinnati USA3. The potential to create &/or retain jobs in Cincinnati USA
4. Significant source of revenue is from mid-sized and corporate relationships.
5. Headquartered or significant operations in Cincinnati region.
6. Certified as a minority business by a reputable third party certifying agency.
7. Business owner and management must have expressed intent to grow business at accelerated pace.
No statistically significant differences between high-growth and low-growth companies in the following areas:
• The industry in which they operated;
• The gender of their owners;
• The educational attainment and business related experience of their owners;
Why some MBE Firms Grow
Faster than Others
The Gazelle Index
• The educational attainment and business related experience of their owners;
• The legacy of entrepreneurship in the owner’s family;
• Their degree of risk tolerance;
• Their degree of optimism about the future;
• The time they allocated to managing their company as opposed to growing the company; and
• Their access to external finance and capital
The Gazelle Index is a national quarterly survey of CEOs of high
performing small businesses and businesses owned by diverse groups.
African American entrepreneurs who owned high-growth companies were more likely to differ from the owners of low growth companies in the following ways:
• Their companies were operated by younger entrepreneurs.
• They set much higher annual growth targets;
Why some MBE Firms
Grow Faster than Others
• They set much higher annual growth targets;
• They were more likely to execute a business growth plan;
• They paid more attention to improving managerial efficiency; and
• They spent less time focusing on their competitors.
The lesson from this research is that if you wish to grow fast, you must plan for it and make your operations more efficient.
The Index focuses on diverse groups such as minority and nonminority-owned businesses; African American/Black-owned businesses, Hispanic-owned/Latino-owned businesses,
women-owned businesses and business owned by men.
Capacity to Succeed
• Sales
• # of Employees
The Capability to:
• Get Work• # of Employees
• # of Locations
• Size
• Get Work
• Do Work
• Get PaidMelvin J. Gravely II, PhD.
“The Capacity to Succeed”
Perform Core Capabilities to Achieve Sustainable Accelerated Growth
MBA’s
Accelerated Growth Capacity
Indicator (%weights)
15% Leader Delegation
10% Financial Performance
10%
Topline
Growth
Can/Does the CEO hand-off to capable
How does your financial metrics compare
in your industry? (via Profitcents)
Are you growing sales and profits?
10% Advisory Board
Support
20% Operational Disciple
15% Strategic Planning
15% Leader Delegation
20% Marketing, Sales &
CRM
Who’s questioning your answers?
Do things usually run in the way they’re
supposed to?
How well do you Repeat ably Get and
Keep customers?
How’s your scan, plan, act, and adjust
to the market process?
Can/Does the CEO hand-off to capable
functional leaders?
An intense, one-on-one, service delivery model
based on the needs of growth companies.
Growth Strategy Development and Review Merger and Acquisition
Support
MBA Growth Building Model
ReviewGrowth Plans / Strategic Plan Analysis
/ Advisory Board / Staff Development
Strategic AccessContractual Opportunities / Capital Access /
Corporate Relationships
SupportDeal Structuring / Pre Due-Diligence
Assistance / Financial Proformas
Profitability and Financial AnalysisEnterprise Valuation / Financial
Proformas and Analysis
Strategic Alliance Structuring•Ownership Structuring / Corporate
Governance / Business Development
Organization Development •Ownership Design / Compensation
Analysis /Policy and Guidebook
Development
Quantitative Measures of Success
• Revenue/Profit
• Square Footage
• Philanthropic Contribution / Board seats• Philanthropic Contribution / Board seats
• Employees (Total, Local, Minority, Women)
• Non organic growth activity
– Expanding customer base e.g. B2G
– Mergers and acquisitions
• Creating minority spending opportunities
• Participating in other management growth opportunities
Our 2013 Goal Setters:• Fifth Third Bank
• Macy’s Inc.
• Messer Construction Co.
• Metro
• Miami University
• Monarch Construction
• PNC Bank
• Procter & Gamble
• The Christ Hospital
• Al Neyer
• American Red Cross
• ArtsWave
• Catholic Health Partners
• Cincinnati Children’s Hospital Medical Center
• Cincinnati Bell
• Cincinnati Center City Development Corporation
(3CDC) • The Christ Hospital
• The Kroger Co.
• Toyota Motor Engineering &
Manufacturing, North America
• Turner Construction Co.
• U.S. Bank
• United Way of Greater Cincinnati
• University of Cincinnati
• University of Cincinnati Medical Center
• Uptown Consortium
• Urban League of Greater Cincinnati
• Viox Services
• Xavier University
(3CDC)
• Cincinnati Enquirer
• Cincinnati Reds
• Cincinnati State Community & Technical College
• Cincinnati USA Regional Chamber
• Cintas Corporation
• Dinsmore & Shohl
• Duke Energy
• Ethicon Endo-Surgery
• Fidelity Investments
2014 Portfolio Firms:• Kanu Investments, Inc.
• LaVERDAD Marketing & Media
• Megen Construction
• Muñoz Brandz
• OCG Telecom
• Pathfinder/MPI Management Consultants
• PEP
• Quality Associates
• Abel Building Systems
• Apex Environmental Services, LLC
• Aunty’s Homemade Food
• Best Upon Request
• Che International Group
• Coolant Control
• Diversified Facility Solutions • Quality Associates
• RCF Group
• SFA Architects
• SMART IT Staffing
• Sterling Print Solutions
• TechSoft Systems
• Trio Enterprises
• TriVersity Construction Company
• Validex
• Vivian Llambi & Associates
• World Pac Paper
• XLC Services
• Diversified Facility Solutions
• Diversitech
• DNK Architects
• Environmental & Safety Solutions, Inc.
• Foxx & Company, CPA’s
• Foxx Construction
• GT Industrial Supply
• Hightowers Petroleum Co.
• Hi-Mark Construction
• Jostin Construction
• We strive to build the MBA for a diverse economy
• The economy of the future must have diverse
MBA Pipeline
must have diverse representation in today’s fastest growing industries.
– Are you in one of these industries?
– Will you be?
22
“Creating a Pipeline”
Start Up Assistance &
Lending
Greater Cincinnati Greater Cincinnati MicroMicro--Enterprise Enterprise
InitiativesInitiatives
Business Literacy
Urban League
Small Bus. Assist.
Center &
AABDP
Business Development
Hamilton County Development
Center
Workforce Development
Cincinnati State
Cincinnati Minority Business Collaborative
InitiativesInitiativesAABDP
New Venture/Start Up & Certification
Minority Business Assistance Center
@ AACC
Training, Networking, Advocacy
African American Chamber &
Hispanic Chamber
MBE Certification & Corporate Engagement
Ohio Minority Supplier
Development Council
Accelerated Growth &
Expansion
Minority Business
Accelerator
Start-Up Growth Sustaining
Minority BusinessMinority Business
Accelerator Accelerator
Cincinnati USA’s
Entrepreneurial Ecosystem
24