JumpStart: IdeaExchange Blog

Why don’t more minority entrepreneurs, particularly African American and Hispanic entrepreneurs, attend the array of technology based workshops, seminars, and events throughout the region, or join more of the organizations focused on emerging industries and technologies? While this is somewhat of a rhetorical question given that I’m not completely unaware of why this phenomenon exists, I pose the question nonetheless as I believe the variety of responses to this question can inform some larger strategies around inclusion for our region, state and nation. JumpStart recently put on a groundbreaking event in collaboration with a host of regional and national diverse partners entitled – Transforming the Landscape of Business In America: A Minority Business Early-Stage Capital Summit, which attracted over 250 diverse entrepreneurs, investors and stakeholders to a world class event focused on preparing more minority entrepreneurs for high growth ventures that are likely to attract angel investment and venture capital. We had a terrific mix of ethnicities, genders, and backgrounds present for the event, which got me thinking about why this rich diversity doesn’t take place on a more regular basis. A few thoughts came to mind:

• Minority leaders must create a sense of urgency around the need to get involved in the industries and opportunities of the future.
• Event planners and tech-based organizations must jointly promote their events and activities with media partners that cater to unique audiences.
• Guest speakers, panelists, or participating members must consist of and represent the diversity that exists within the community.
• The messaging as to “who should attend” must speak directly to the variety of “pain points” that different audiences are experiencing or are likely to experience if they fail to act.
• Minority entrepreneurs and stakeholders must be far more proactive in seeking out and attending events or joining organizations that are not necessarily “minority focused” but address universal issues and challenges that impact all constituents.

While the above list is by no means all inclusive, and each point could easily consume volumes of information on its own, I’d like to pay particular attention to the final point which basically places the responsibility on each individual to simply get involved. 

Ultimately you are responsible for you –- period. To the extent that you recognize that learning is continuous, and we all must continue to broaden our skills, competencies and relationships, I urge those of you who have not historically been proactive in joining associations or attending events focused on emerging industries, technologies, and strategies to do so at your earliest opportunity. To assist you in this effort, please refer to JumpStart’s event postings frequently for upcoming events taking place throughout the 21 counties of Northeast Ohio, and beyond.

I also urge event planners and “mainstream” associations and organizations to rethink your promotional campaigns to ensure your partners, messaging, and strategies are as diverse as the communities that you serve.

Collectively we can truly make a difference in better engaging more of our diverse community. 

Darrin is Chief Economic Inclusion Officer of JumpStart and President of JumpStart Inclusion Advisors. He founded and ran his own strategic planning and management assistance firm and spent 16 years in the commercial banking and finance industry. Darrin has an MBA from Baldwin Wallace College and an undergraduate degree from Mount Union College. He has led a series of workshops and seminars on matters of economic development and diversity.

One of the speakers at last week’s Minority Business Early-Stage Capital Summit (which was amazing, by the way) was Deborah Shufrin from The Initiative for a Competitive Inner City (ICIC). Her 40 minute presentation was packed with facts about inner city businesses across the nation and as a comparison, those in the Cleveland market. (By definition, inner cities are urban cores with high poverty and unemployment rates, and low median income levels). For everything I thought I knew about this topic, this research blew me away. All marketers love insightful facts, so I thought I’d share the top 5 things that surprised me about revitalizing inner cities through entrepreneurship.

As background, ICIC studied the characteristics of companies located in the largest 100 inner cities which met the following criteria: 1) had at least 10 employees, and 2) had grown from $200,000 in revenues to at least $1 million in revenues in the last 5 years. There were 557 companies included in this study, which covered 10 years of data. (I’ll call them the ICIC 100 below).

1. A small number of early-stage high growth firms in the inner city can create dramatic job growth. The ICIC 100 firms created 63,000 jobs between 1999 and 2007. By comparison, 458,000 firms across all inner cities in the U.S. lost 49,300 jobs.
2. Place matters. It’s actually not true that you can create jobs anywhere and all locations benefit similarly. To create jobs for inner city residents, it is much more efficient to do so with companies located in inner city locations. ICIC’s data shows that to create 100 jobs for inner city residents, you need companies that hire 450 people located in the inner city, whereas you need companies that hire 850 people in the rest of the central city and 1,450 people in the broader region.
3. Entrepreneurs leading these companies are participating to their communities. 70% of the leaders of the ICIC 100 have lived in inner cities at some point in their lives, and 30% are living there now. They recognize the importance of creating businesses, and jobs, directly in these neighborhoods.
4. These entrepreneurs are highly educated! 77% have an advanced degree vs. 23% of U.S. small business owners.

5. These firms have higher productivity and lower turnover than comparable U.S. companies their size. This is perhaps not surprising because on average, they offer higher compensation as well as better benefits (healthcare, bonuses, and retirement plans) compared to U.S. firms overall. They also spend 2x as much on training.

It has made intuitive sense to me that entrepreneurship in urban locations is one way to create jobs for inner city residents, and should be part of the urban agenda for that reason. Here, the facts prove it out. So how can we encourage more entrepreneurship in inner cities in Northeast Ohio? The Summit isn’t just enough, and the JumpStart Inclusion Advisors are here but can’t do it alone. What ideas do you have?

Cathy Belk is the Chief Marketing Officer of JumpStart. She specializes in branding, marketing communications, and business management. She brings 16+ years of experience in a variety of marketing and business roles, but gets her energy from working daily with entrepreneurs and their growing companies.

Time is running out my friends. You only have a few days left to register for one of the most exciting and worthwhile events to hit our region in quite some time. Transforming The Landscape of Business In America: A Minority Business Early-Stage Capital Summit will truly be a game changing experience for those that make the investment. As I recognize that times are hectic right now with the holidays upon us and a host of year-end activities pulling us in many directions, I thought I would provide a little food for thought as you consider whether attending this event is truly worth your time. So without further ado, here are my top 12 reasons why you should be at The Intercontinental Hotel on December 3rd:

1. To better understand how growing diverse and inner city businesses positively impacts ALL citizens in the region
2. To hear new and positive messages and strategies relative to growth, hope and prosperity for our community
3. To learn new and innovative approaches to growing more vibrant job creating companies in the midst of rapidly changing technologies
4. To best position your business or business idea for investment consideration as you kick off 2010
5. To learn and adopt new strategies for creating wealth as an investor and/or business owner
6. To better understand the emerging markets and industries if you are even considering entrepreneurship
7. To better understand the challenges and pitfalls of growing a successful company and how to address these concerns
8. To clearly understand precisely what investors are looking for when they choose to invest in a business venture
9. To understand the unique and critical differences between what a bank looks for versus what an investor looks for
10. To better understand how to position your business for alternative forms of capital when traditional credit is so difficult to come by
11. To see live investor presentations from diverse entrepreneurs that are currently raising capital for their high growth businesses
12. To network and build relationships with some of the nation’s foremost thought leaders in creating wealth in challenging environments

I could certainly add to this list, but I imagine you get the idea. We can only guarantee seating at the event if you register in advance by no later than the close of business on Monday, November 30th. Don’t miss out on this rare and groundbreaking opportunity designed to give you the specific information you need to chart your path to success in the coming year.

Hope to see you there!

Darrin is Chief Economic Inclusion Officer of JumpStart and President of JumpStart Inclusion Advisors. He founded and ran his own strategic planning and management assistance firm and spent 16 years in the commercial banking and finance industry. Darrin has an MBA from Baldwin Wallace College and an undergraduate degree from Mount Union College. He has led a series of workshops and seminars on matters of economic development and diversity.

This coming December 3rd marks a very pivotal day in our region’s ongoing economic growth and development. For over three years now I have referenced our regional and national collaboration efforts in working with some of the best and brightest professionals and investors across the country that are dedicated to assisting and investing in high growth minority, women, and inner city based businesses. I am delighted to share that these organizations have partnered with JumpStart to put on what will truly be a groundbreaking event for entrepreneurs and entrepreneurial stakeholders across the region and beyond.  These same organizations have been responsible for growing some of our nation’s largest and most successful diverse businesses over the past decade, and currently play a direct role in shaping Urban policy for the Obama Administration. The Initiative for a Competitive Inner City (ICIC), The Marathon Club, and The Institute for Entrepreneurial Thinking are partnering with JumpStart and a cast of other regional and national partners to put on: Transforming the Landscape of Business In America: A Minority Business Early-Stage Capital Summit. This one of a kind summit in Northeast Ohio will feature the following:

• A special presentation by ICIC – the national non-profit founded by renowned Harvard Economist Dr. Michael Porter, in addressing the critical role that inner city and diverse businesses play in shaping our nation’s economy, and the disproportionate impact these firms play in creating jobs and wealth for minority populations
• An Entrepreneurs Panel (Moderated by our very own April Miller Boise of Thompson Hine) – Minority equity-backed entrepreneurs will speak to their experiences in successfully raising equity capital, and address the myths, misconceptions, and realties of working with Angel, Venture & Private Equity firms
• An Investors Panel (Moderated by the President of The Marathon Club, Carmen Ortiz-McGhee) – Minority and Inner City focused Equity Funds from across the country speak to their specific investment criteria; the “do’s and don’ts” when raising capital; the emerging trends and industries attracting investment, etc.
• A Luncheon with Keynote – Dr. William Pickard, who successfully runs one of the largest minority enterprises in the nation, will deliver the keynote address. Dr. Pickard’s holdings include, but are not limited to:
  • Owning several automotive companies located in five states and Canada
  • Holding a significant ownership stake in five African-American newspapers including the 100-year-old Chicago Defender and the 77-year-old Michigan Chronicle
  • Owning multiple McDonald’s restaurants
  • Organized the Detroit Partners who are the local partners in the Detroit MGM Grand Casino
  • Serving as a Professor of Urban Entrepreneurship in Academia
• A Minority Angel Investors Panel (Moderated by the Founder & President of The Institute For Entrepreneurial Thinking, Melvin Gravely II, Ph.D.) – Successful angel investors speak to the benefits of early-stage investing as a wealth creation strategy, encourage more minorities to become angel investors, and address the critical need to have more minorities investing in high growth minority businesses
• An Entrepreneurial Showcase –- Some of the most promising early-stage minority businesses that have been working with JumpStart over the past few years give their investor presentations to attendees to provide a snapshot of some of our region’s largest minority-owned firms of tomorrow.

Wow! I don’t think I can fully capture my enthusiasm and sense of progress for our region as we continue to work towards economic empowerment for all of our region’s citizens, but suffice it to say that this is something you truly do not want to miss. In case you’re wondering whether or not this event is for you, consider the following points concerning who should attend:

• Existing minority, inner city, and woman-owned businesses (at every level) looking to grow their businesses and seeking investment partners
• Current or aspiring entrepreneurs who desire to learn more about the specific criteria investors look for when making an investment decision
• Investors looking for promising high growth minority, women and inner city businesses
• Philanthropists interested in supporting initiatives that specifically address traditionally underserved markets
• Economic development professionals seeking to better understand one of the fastest growing markets in the nation – The Emerging Domestic Market
• Current job seekers looking to explore entrepreneurship as a means to economic self-sufficiency and wealth creation
• Individuals who desire to learn more about becoming Angel Investors in high growth, emerging businesses

In short, there is clearly something for every stakeholder of entrepreneurship! This will be a one of a kind event in Northeast Ohio and space will be limited so I encourage you to register today!

Darrin is Chief Economic Inclusion Officer of JumpStart and President of JumpStart Inclusion Advisors. He founded and ran his own strategic planning and management assistance firm and spent 16 years in the commercial banking and finance industry. Darrin has an MBA from Baldwin Wallace College and an undergraduate degree from Mount Union College. He has led a series of workshops and seminars on matters of economic development and diversity.