Economic and Minority Inclusion Plan

      Plan for Economic and Minority Inclusion A Report to: REDI – Regional Economic Development, Inc, and the SBTDC – Small Business Technology & Development Center September 30, 2013             1  

Table of Contents Plan  for  Economic  and  Minority  Inclusion………………….................3     Acknowledgements........................................................................................3     Executive  Summary.......................................................................................5   Sharp  End:  Brief  History  of  Black  Business  in  Columbia……...….7     Minority  Business  Development  in  the  US……………………………..9     Deliberate  Minority  Inclusion  (SBTDC)……………….......................11     Challenges  to  Minority  Inclusion  in  Columbia,  MO………….........26     Opportunities  for  Economic  Empowerment  in  CoMo…………...29   How  To  Start  Your  Business  Workshops………………………..........34     Methodology  –  creating  the  Black  Business  Database.....……….41   Benefits  to  Economic  Empowerment…………...................................43   The  Path  to  the  Future…………..……………….………….........................45   The  Bottom  Line……………..……………….…………....…………..............47                           2  

Acknowledgements In 2013, the Regional Economic Development, Inc. commissioned Tyree S. O. Byndom and Anthony E. Stanton of Byndom, Stanton and Associates to: • Establish a realistic baseline of African-American businesses in Columbia to provide information to establish goals, track progress and discover challenges and opportunities. • Provide an assessment of opportunities and challenges to include African-American businesses in the bigger picture of Columbia’s economy. • Assist the Small Business Technology Development Center (SBTDC) with focused strategies to connect with potential or present African- Americans entrepreneurs in Columbia, MO and Boone County • Assist the SBTDC with the facilitation of “How to start your business” workshops to the African-American market that match the times and locations that will support their needs The Authors were aided in their research by a majority of the members of the Columbia African-American business community who participated in a series of conversations addressing common business issues, challenges and provided insights and approaches for growing current levels of minority inclusion. There was willingness in the majority of the businesses to take steps to move forward, and expressed that economic and minority inclusion was an ideal that they could unite around. REDI (Regional Economic Development, Inc.) was organized in 1988 to promote positive economic expansion in Columbia and Boone County, REDI is a nonprofit, public/private partnership that works to provide increased economic opportunities for the area while maintaining a high quality of life and it also acts as a local point of contact for any company that requests information about Columbia and Boone County. In addition to providing available site and building information, comprehensive area demographics and labor availability studies, REDI organizes community tours, facilitates community leader introductions   3  

when prospective companies visit the area and acts as a liaison for local utilities and city government. REDI also serves as a liaison with the State Department of Economic Development to provide customized state incentive proposals and coordinates the Chapter 100 Revenue Bond application process. Once a company locates in Columbia or Boone County, REDI assists in groundbreaking and ribbon-cutting ceremonies. BSA would like to thank the leadership of the REDI Board of Directors and their Executive Management for allowing us to research the objectives of this report. It has truly been a humbling and monumental task that we faced in discovering ancient barriers as well as uncovering proven solutions to economic progress and we feel confident in the road forward. We are very optimistic that this report should enable REDI and it’s partners to consider the minority community in their future strategic planning, allow it to analyze the history and data and create a more robust regional and local economy, which we feel in turn will benefit all citizens and members of our county. We think that this report will be a possible template for cities under 250,000 populations, with a major university and position Columbia, MO as a leader in the nation in achieving minority parity. The Missouri Small Business and Technology Development Center (SBTDC) is a joint venture between the U.S. Small Business Administration and the State of Missouri that helps business in every stage from concept to start-up, growth to renewal, and maturity to succession. SBTDC provides professional business analysis, confidential business consultations, and business education seminars to local entrepreneurs. SBTDC assists business owners with business and marketing plans, competitive analysis, and strategic business planning to make new and existing business successful. BSA would like to thank the Staff at the SBTDC and their partners for their presence in our city, their commitment and great track record for aiding small and disadvantaged businesses in the area and applaud their willingness to focus on minority inclusion in their future planning strategies and goals.       4  

Executive  Summary     The  Gains   Once  hobbled  by  a  lack  of  capital,  lack  of  access  to  government  and  private-­‐sector   market  opportunities,  and  a  lack  of  managerial  talent,  minority  businesses  face  a   vastly  different  reality  today.  Since  the  1980s,  with  support  from  expanded   government  and  corporate  supplier  diversity  programs  as  well  as  other  initiatives,   minority  firms  as  a  whole  have  seen  their  revenue  rise  by  about  10  percent   annually,  have  created  23  percent  more  jobs,  and  have  enjoyed  an  overall  growth   rate  three  times  higher  than  that  of  traditional  businesses.   The  Gap   Even  though  the  number  of  minority  businesses  has  reached  unparalleled  heights,   their  proportion  does  not  yet  fully  reflect  the  growing  size  and  importance  of   minority  communities  in  the  United  States—soon  to  account  for  40  percent  of  the   population.  Fueling  the  disparity  is  the  fact  that  minority  businesses  are   disproportionately  represented  in  low-­‐growth  and  no-­‐growth  sectors.  They  also   tend  to  rely  on  personal  debt  and  family  financing  over  business  loans,  equity,  and   other  tools  that  are  otherwise  commonly  accepted  in  the  capital  markets.  As  a   result,  minority  businesses  often  lack  the  size,  scale,  and  capabilities  of  their   majority  counterparts.   A  shift  in  mind  set  is  required  for:   • REDI  and  SBTDC—elevating  minority  business  development  to  a  higher  level  in   terms  of  strategic  importance  and  fostering  increased  collaboration  between   minority  entrepreneurs,  consumers  and  employees     • The  City,  the  Chamber  of  Commerce,  MU,  State  of  MO—recognizing  the  critical   importance  of  minority  business  in  economic  development  and  fostering  the   growth  of  not  just  small  businesses,  but  those  companies  of  size  and  scale   that  are  positioned  in  growth  industries     • African-­‐American  entrepreneurs—growing  businesses  of  size  is  the  major   imperative,  requiring  the  entrepreneur  to  use  all  aspects  of  corporate   supplier  diversity  progress  and  assume  broader  leadership  roles—in  their   communities  and  on  major  corporate  boards.     Specifically,  to  achieve  greater  numbers,  size  and  scale  and  expand  their  capabilities,   minority  businesses  “community”  must  proactively  close  the  gap  by:     5  

• Viewing  minority  business  development  as  a  tool  for  regional,  and  economic   development     • Diversifying  or  expanding  minority  businesses  to  seize  opportunities  in  high-­‐ growth  industries   • Building  capacity  and  capabilities  of  minority  businesses  to  provide  more  value-­‐ added  products  and  services     • Growing  these  businesses  beyond  the  “sole  proprietorship”  model  of  business   ownership     • Expanding  the  use  of  mergers,  acquisitions,  and  strategic  partnerships  to  achieve   capital  equity     • Fully  accessing  and  deploying  the  capabilities  of  the  financial  markets  for    minority  business  development     • Aggressively  responding  to  major  trends  in  global  supply  chain  management.    The   good  news  is  that  minority  entrepreneurs  can  indeed  close  the  gap  with  their   competitors  in  the  broader  business  community  if  they  operate  innovatively;   radically  change  the  way  they  think  about  their  business,  their  customers,   and  their  competition—  and  move  aggressively.  The  bad  news  is  that  those   businesses  that  won’t  or  don’t  make  transformative  changes  to  close  the  gap   will  ultimately  fail.  The  growth  rate  for  these  firms  will  begin  to  slow,  and  a   limited  number  of  jobs  will  be  created  within  our  society.       The  Challenge    Closing  the  gap  for  minority  businesses  requires  that  all  the  major   players  in  the  field—  The  Chamber  of  Commerce,  The  City  of  Columbia  and  Boone   County,  major  and  minor  local  universities,  the  United  Way  and  of  course  minority   entrepreneurs  and  support  organizations  themselves—shift  their  mindset  and  their   focus  to  embrace  the  plan  for  economic  and  minority  inclusion.    Past  and  current   efforts—while  successful  in  making  some  gains—will  prove  inadequate  in  resolving   the  remaining  disparity  and  in  achieving  future  progress.  Efforts  must  be   consolidated  and  resources  allocated  with  precision  to  home  in  on  the  most   promising  and  powerful  opportunity:  building  minority  businesses  of  size.    The   overarching  conclusion  is  that  only  large  minority-­‐owned  businesses  can  create  the   kind  of  explosive  and  transformative  growth  that  is  needed  to  invigorate  minority   communities,  inner-­‐city  markets,  minority  entrepreneurs  and  business  leaders,  and   both  the  local  and  national  economies.       The  Benefits  for  the  Future  -­‐  The  Economic  and  Minority  Inclusion  Plan  will  be   challenging  to  pursue,  but,  if  successful,  its  benefits  will  accrue  not  only  to  the   entrepreneurs  who  succeed  but  also  to  corporations  and  society  as  a  whole.       6  

Minority  communities  will  enjoy  both  stronger  economies  as  well  as  a  new  breed  of   leadership—one  capable  of  effecting  change  in  the  community  and  society  at  large.   The  following  Executive  Summary  is  adapted  from  the  THE  NEW  AGENDA  FOR   MINORITY  BUSINESS  DEVELOPMENT  -­‐  Prepared  by  The  Boston  Consulting  Group  June   2005.    We  submit  this  report  for  further  study  as  one  of  the  first  steps.    This  should  be   used  in  conjunction  with  the  findings  of  our  full  report.               The  Sharp  End:  Brief  History  of  Black  Business  in  Columbia,  MO   The  Authors  of  this  report  debated  in  length  of  exactly  what,  and  how  much   information  to  share  about  the  members  of  the  Black  communities  history  in   Columbia,  Missouri.    The  most  effective  approach  that  we  found  was  to  be  viewpoint   of  our  history  and  to  focus  specifically  on  the  Black  business  history,  even  though   we  recommend  that  anyone  that  is  a  public  servant  and  an  engaged  citizen,  should   take  the  time  to  study  the  full  history.    This  viewpoint  will  be  our  summation  of  the   personal  and  recorded  accounts  from  elders  who  lived  during  the  time,  the  scholars   and  the  reporters  who  have  studied  and  learned  from  our  archives,  and  the   institutions  and  the  laws  that  guided  us.     Columbia,  Missouri  was  incorporated  in  1821,  and  though  Blacks  were  always  apart   of  the  community  as  slaves  and  some  freemen,  they  weren’t  fully  considered  apart   of  the  economy,  statistically,  until  around  1865.    As  it  was  considered  in  that  day   due  to  Jim  Crow  laws,  Blacks  were  only  allowed  to  be  in  “black  areas”  which  were   the  bottomlands,  in  close  proximity  to  the  railroads,  cemeteries,  land  of  steep  slopes,   and  other  areas  with  low  appeal  for  residential  development.    This  was  land  that   was  abandoned  by  the  White  community  because  of  flooding  and  the  5-­‐25%  steep   slope  on  the  land  that  made  it  difficult  to  build  upon.    It  is  in  this  location  that  we   find  the  beginning  of  the  Black  business  community  in  Columbia,  Missouri.    The   Sharp  End,  as  it  was  called  was  the  business  district  but  there  were  4  total  areas  that   comprised  of  the  Black  area.    These  locations  were  Cemetery  Hill,  Railroad  Row,   West  End  and  the  Sharp  End  District.    These  were  the  only  areas  that  was  allowed   for  the  Black  community,  but  it  was  a  biracial  efforts  that  created  these  locations   because  they  were  designed  by  the  local  city  government,  and  the  Black  community   had  to  develop  these  highly  undesirable  areas,  which  is  why  is  was  very  tough  to   leave  or  move  from  these  areas  later  in  the  next  century.    During  these  times,  the   Black  business  community  thrived  and  in  the  1950’s  numbered  near  61  businesses,   because  they  had  100%  of  the  Black  business  and  about  30%  of  their  total  business   came  from  the  White  community  as  well.    But  only  in  the  professional  district  was   there  any  interaction,  based  on  services  rendered.    One  of  the  main  reasons  that  this   area  was  targeted  was  that  there  was  a  sewer  issue,  but  for  good  reason.    City   sewers  were  extended  last  into  the  Black  neighborhoods  and  when  they  were,  Black   and  White  landlords,  make  almost  no  effort  to  connect  the  houses.    For  example,  city   wide  only  5%  of  Black  houses  were  connected  to  a  sewer,  in  contrast,  to  80%  of   White  houses.    Even  with  this  smell,  this  was  home  and  the  center  of  the  community,     7  

and  during  the  evenings,  the  Sharp  End  area  the  only  place  that  Blacks  would  go  for   entertainment.    All  public  historical  accounts  from  the  White  leadership  in  that  day   refer  to  the  process  of  slum  clearance  as  an  effort  to  clean  up  that  area,  and  to   develop  the  land  and  make  life  better  for  the  Black  citizens  in  the  area.         Timeline  for  the  destruction  of  the  Sharp  End  District:     1949  –  Federal  Housing  Act  –  5  components  to  build  public  housing,  and  finance   slum  clearance   1950  –  the  City  Council  applied  for  a  grant  of  $147,350  to  study  slum  conditions  –   the  initial  study  was  completed  by  the  Columbia  Ministerial  Alliance   1952  -­‐  A  Land  Clearance  Redevelopment  Authority  was  created  that  year  after   voters  passed  an  ordinance  to  form  a  housing  authority.  According  to  the  authority’s   papers  archived  at  the  Western  Historical  Manuscript  Collection  at  the  University  of   Missouri-­‐Columbia,  the  ordinance  had  failed  at  the  polls  twice.   1954  -­‐  The  Federal  Government  had  amended  the  housing  act,  and  cities  all  over  the   country  were  using  federal  money  for  urban  renewal  and  public  housing.       April  1956  -­‐  The  ordinance  finally  passed  in,  and  the  first  meeting  of  the  Land   Clearance  Redevelopment  Authority  took  place  that  June  in  consultation  with  the   Mayor  and  City  Council,  the  Planning  and  Zoning  Commission,  the  Chamber  of   Commerce  and  the  Columbia  Real  Estate  Board.    According  to  its  papers,  the  group   had  the  \"objectives  of  slum  clearance  and  urban  renewal.\"  Members  also  wanted   minimum  housing  standards  for  the  poor.    The  LCRA  chose  a  126-­‐acre  tract  in  the   Douglass  neighborhood  for  its  first  urban  renewal  project.  The  tract  was  an  odd   shape  bordered  by  Walnut,  Pendleton,  First  and  Seventh  streets.  It  included   Douglass  School  and  Park  and  the  Sharp  End.    There  were  386  families  and  61   businesses  that  would  need  to  be  relocated.    The  only  Black  buildings  from  that  time   are  the  Black  Churches  and  the  home  of  one  of  the  creators  of  Ragtime  music,  John   W.  “Blind”  Boone.   1966  –  The  Post  Office  was  built  and  dedicated  and  is  on  the  land  that  used  to  be  the   Sharp  End.     Why  should  we  be  aware  of  the  past?     The  Authors  of  this  report,  added  this  brief  historical  timeline  because  in  talking   with  the  members  of  the  African-­‐American  community,  especially  some  of  the  long   standing  businesses,  there  were  still  strong  feelings  associated  with  the  history  of   this  area  and  there  have  been  multiple  times  that  there  have  been  efforts  for  some   recognition  of  this  area,  publicly.    We  also  talked  to  some  elders  in  the  White   community,  who  currently  have  businesses  on  this  land,  to  hear  their  thoughts  and   feelings  and  one  and  all  of  them  shared  that,  in  their  hearts  and  minds,  they   legitimately  feel  that  they  were  trying  to  aid  the  process  of  development  in  the  Black   community.    It  is  also  our  feelings  that  even  though  many  feel  that  it  was  a   systematic  and  conscious  effort  of  the  part  of  the  White  community  to  destroy  the   Black  area,  we  feel  that  locally,  even  though  history  shows  that  there  were  many   entities  preying  on  the  Black  community,  that  locally,  most  of  the  major  decision-­‐   8  

makers,  were  unconscious  of  the  long  term  affects  that  these  decisions  would  have   on  this  community.    One  last  reason  for  sharing  this  brief  history,  was  because  of   when  one  of  the  Authors  of  this  report  had  discussions  with  most  of  the  current   members  of  the  City  Leadership,  and  asked  them  if  they  were  aware  of  the  history  of   the  Sharp  End,  they  were  unaware  of  the  history  of  this  area.    We  feel  in  order  to   make  sounds  decisions  on  development,  especially  in  this  area,  the  history  must  be   fully  comprehended,  in  order  to  not  repeat  past  mistakes,  and  to  further   disintegrate  trust  between  the  Black  and  White  communities.    The  current  leaders   didn’t  cause  this  problem,  but  by  all  accounts,  inherited  the  opportunity  to  change  it,   or  trust  their  children  to  deal  with  it  in  the  future.       How  can  we  move  forward?   It  is  still  said  to  this  day  from  members  of  the  Black  community  that  “It  takes  a   village  to  raise  a  child,  and  the  Sharp  End,  and  the  Douglass  High  School  area,  was   our  village”.    What  most  people  were  unaware  of,  was  that  this  area  was  the   collective  center  of  the  Black  community,  and  while  called  a  slum  to  outsiders,  was   the  social  and  economic  center,  the  heart  of  the  Black  community,  and  this  segment   of  the  community,  still  has  not  fully  recovered  from  this  loss,  to  this  day.  This  report   shows  that  a  focus  on  Economic  and  Minority  Inclusion  could  be  an  answer  to   their  concerns  and  a  bridge  to  a  prosperous  future  for  all  citizens,  no  matter  the   complexity  of  our  past  issues  and  feelings,  and  debates  about  what  is  just  and  fair.           We  feel  that  the  solution  is  economic,  not  social.     Minority  Business  Development  in  the  US     Minority  business  development  has  been  one  of  the  main  tools  used  by  national,   state  and  local  government,  in  order  to  combat  the  rising  tide  of  crime,  disparity  and   poverty  in  many  cities  across  our  nation.    There  have  been  many  lessons  learned,  as   well  as  shortcomings  to  goals  and  objectives  desired.    All  in  all,  there  have  been   efforts  to  stimulate  the  economy  and  to  include  all  citizens  in  the  process  of   contributing  to  become  productive  members  of  society.       On  one  side,  there  have  been  some  successes,  with  many  minority  businesses   growing,  in  average  revenue  and  employee’s  per  business,  at  rates  that  have   significantly  outpaced  those  achieved  by  businesses  overall.    But  on  the  other  side,   there  have  been  setbacks  to  progress,  with  many  minority  businesses  having  to  yet   expand  beyond  small  and  often  family  run  operations.    But  for  all  of  the  progress   and  learning,  the  number  of  minority  businesses  still  leaves  minorities   underrepresented  in  the  arena  of  commerce.   For  the  purposes  of  this  report,  the  focus  in  on  African-­‐American  owned  businesses,   but  a  minority  owned  business  is  one  that  is  defined  as  a  business  that  is  at  least  51   percent  owned  and  controlled  by  one  or  more  members  of  the  that  minority  group.     9  

 Under  this  definition,  African-­‐American  currently  represent  approximately  13.1%   percent  of  the  U.S.  population—yet  minority-­‐owned  businesses  account  for  only  7%   percent  of  all  U.S.  businesses.    African  American-­‐Owned  Firms  Generate  $136  Billion   in  Economic  Output  to  the  U.S.  Economy  and  Create  about  910,000  Jobs.   The  Evolution  of  the  Minority  Business  Development   Since  minority  business  development  first  emerged  as  a  national  priority  in  the  late   1960s,  the  challenge  of  developing  strong  and  robust  minority-­‐owned  businesses   has  undergone  a  gradual  but  continuous  process  of  reinvention.   1960-­‐1970    Early  policy  makers  were  active  in  designing  a  wide  range  of  programs   that  sought  to  assist  ethnic  minorities  in  building  competitive  capabilities  by   providing  access  to  previously  inaccessible  opportunities—  specifically  in   education,  housing,  employment,  and,  most  importantly,  business.     1970-­‐1980.    As  political  agendas  shifted:     • The  federal  government  and  many  large  urban  centers  began  to  launch   programs  for  small  minority-­‐owned  firms,  providing  access  to  purchasing   opportunities  with  governmental  agencies  as  well  as  limited  financing.     • At  roughly  the  same  time,  major  corporations  began  to  recognize  that   urban  communities  were  critical  to  their  continued  economic  growth  and   development.  Therefore,  these  private  players  created  similar  programs  to   provide  procurement  opportunities  to  minority-­‐owned  suppliers  located   near  their  headquarters  or  major  facilities.     • In  addition,  federally  mandated  requirements  for  prime  contractors   increased  the  pressure  on  their  major  corporate  suppliers  to  find  ways  to   incorporate  minority-­‐owned  businesses  in  the  execution  of  awarded   contracts.     1980-­‐1990  Increases  in  set-­‐aside  programs  caused  large  government  contractors   and  those  companies  conducting  business  with  state  and  local  governments  to  be   more  aggressive  in  developing  subcontract  opportunities  for  minority-­‐owned   suppliers.  Assistance  programs  through  the  U.S.  Small  Business  Administration   (SBA)  and  the  U.S.  Department  of  Commerce’s  Minority  Business  Development   Agency  (MBDA)  began  to  recognize  the  critical  importance  of  improving  the   capabilities  of  these  suppliers.  Corporations  began  to  deepen  their  commitment  to   minority  business  development  programs,  as  well  as  creating  opportunities  for   women-­‐owned  businesses,  and  programs  begin  to  increase  dramatically  both  in   number  and  quality.       10  

1990-­‐2000  During  this  decade,  a  variety  of  challenges  to  the  set-­‐aside  requirements   of  government  programs  begin  to  emerge.  Corporate  programs  assumed  the   leadership  role  in  minority  business  development,  providing  opportunities  for  the   growth  and  development  of  small,  medium-­‐sized,  and  large  minority-­‐owned   businesses.  With  this  change,  however,  came  strong  pressure  for  minority-­‐owned   businesses  to  provide  higher  levels  of  quality,  deliver  excellent  service,  and  offer   competitive  prices.   2000-­‐Present  During  the  21st  century,  the  challenges  facing  minority-­‐owned   businesses  have  increased  dramatically.  Government  pressures  to  dismantle  set-­‐ aside  programs  have  escalated,  and  major  global  competition  and  the  tightening  of   global  supply  chains  beset  corporations.  In  addition,  the  tragic  events  of  September   11,  2001,  have  changed  all  lives  and  businesses  in  the  United  States.  Therefore,   minority  businesses  face  the  new  millennium  threatened  by  forces  that  would   confound  even  the  largest  and  most  prolific  businesses.  These  challenges  seem   monumental—but  where  there  is  significant  threat  there  is  also  significant   opportunity.    During  the  current  administration  there  has  been  many  efforts,  and   support  for  Small  Business  and  Minority  development  in  high  growth  and  clean   energy  sectors,  and  it  has  been  said  that  growing  entrepreneurs  and  economic   empowerment  and  building  the  middle  class  is  the  way  forward  to  the  future.       Deliberate  Minority  Inclusion  in  Columbia,  Missouri     We  were  asked  what  could  be  done  to  assist  the  Small  Business  Technology  and   Development  Center  to  connect  with  the  new  future  African-­‐American  entrepreneurs?         Byndom,  Stanton  and  Associates  started  this  process  by  first  assessing  the  current   relationship  between  the  African-­‐American  community  and  the  Small  Business   Technology  and  Development  Center  (SBTDC).    We  looked  at  their  digital  and   offline  presence,  their  advertising  and  marketing  strategies,  and  their  overall  brand   as  an  organization  as  well  as  their  personal  connections  in  the  community  and  came   up  with  a  list  of  actions  that  can  be  implemented  that  will  strengthen  their   relationship  with  the  present  and  future  African-­‐American  business  leaders.     The  Authors  and  the  SBTDC  and  REDI  had  already  worked  together  for  6  months   leading  up  to  this  report,  because  the  momentum  stalled  because  we  needed  the   minority  businesses  at  the  table,  and  there  was  no  list  of  database  currently   available  anywhere  in  the  City  or  State.    Actually  the  statistics  weren’t  even   available,  because  the  numbers  were  so  small.         So  BSA  started  by  going  out  into  the  community  and  started  interviewing  many  of   the  African-­‐American  Business  leaders  and  we  discovered  that  there  was  little  to  no   relationship  between  the  SBTDC  and  the  African-­‐American  community  and  there   weren’t  many  people,  youth,  elders  or  businessperson’s  who  were  aware  of  the   organization,  their  purpose,  location  or  richness  in  resources.    Even  though  the  main     11  

purpose  of  this  outreach  was  initially  to  create  a  database  of  African-­‐American   businesses,  our  secondary  purpose  was  to  assess  the  current  relationship  and  in  fact   introduce  these  individuals  to  our  client.    Even  though  the  question  that  was   presented  to  us  was  what  can  be  done  and  not  what  can  you  do  to  introduce  the   SBTDC  to  the  community.    We  discovered  that  a  personal,  one  on  one,  open   conversation,  not  totally  focused  on  business,  but  a  casual  communication  style,  was   the  best  approach  possible  to  gain  rapport.    We  also  discovered  that  there  was  a  lot   of  mistrust,  long  standing  hurts  and  resentments  that  were  expressed.    We  felt   compelled  to  instead  of  tell  the  SBTDC  what  could  be  done,  to  simply  introduce  the   small  and  medium-­‐sized  businesses  in  the  African-­‐American  community  to  the   organization  and  build  a  temporary  bridge  between  the  two  entitles.     We  found  a  total  of  125  (see  database  for  more  details)  African-­‐American   businesses  in  Columbia,  Missouri  and  Boone  County.    There  were  12  business   owners  that  were  aware  of  the  SBTDC.    But  of  those  12  businesses,  5  businesses   were  unaware  of  the  current  location  or  website,  2-­‐3  harbored  misplaced   resentments  that  resulted  in  lack  of  trust  from  similar  organizations  like  the  SBA,   and  the  City  of  Columbia,  and  2  mentioned  that  when  they  did  reach  out,  for  access   to  loans  or  assistance,  they  were  offered  paperwork  and  not  contacted  again  for   additional  follow-­‐up.    However,  because  of  the  Author’s  relationship  with  this   community  demographic,  every  one  of  these  individuals  expressed  at  least  some   interest  in  reviewing  the  resources,  utilizing  the  support  and  receiving  more   information  from  the  SBTDC  in  the  future.     Even  though  there  was  little  awareness  or  connection  with  the  SBTDC  and  the   African-­‐American  community,  there  were  quite  a  few  people  who  were  aware  of  the   leadership  role  of  the  Director  of  the  SBTDC,  Virginia  Wilson,  they  were  aware  that   she  had  longevity  in  her  position,  shared  that  she  had  a  good  reputation,  that  she   was  a  good  role  model  in  the  community  and  that  she  was  an  African-­‐American   woman.    We  feel  that  this  is  a  great  strength  of  the  organization  and  should  be  used   as  a  catalyst  for  accelerating  and  solidifying  the  connection  with  this  population  in   Columbia  and  Boone  County.             We  did  find  a  gem  that  the  organization  has  at  its  disposal.    The  “Grow  Mid-­‐ Missouri”  logo  could  be  used  as  a  powerful  tool,  to  spread  brand  awareness     12  

throughout  the  community  and  the  region.    Many  people  would  be  able  to  resonate   with  this  brand  awareness  and  then  direct  them  to  the  various  organizations.   Our  professional  assessment  of  the  Small  Business  Technology  and  Development   Center  is  that  it  is  in  a  great  central  location,  have  a  gracious  host  and  partner  in  the   REDI,  which  is  the  Regional  Economic  Development,  Inc,  is  rich  with  intellectual   resources,  has  strong  connections  with  the  wider  business  community,  and  has  all  of   the  tools  necessary  accelerate  the  business  growth  and  job  creation  in  the  Columbia   and  Boone  County  area.    We  feel  with  a  few  small  modifications,  the  SBTDC  can   capitalize  on  this  momentum  and  create  a  movement  that  will  propel  the  whole   organization  forward,  and  in  turn,  allow  young  adults,  who  are  experiencing  over   50%  unemployment,  a  chance  to  contribute  in  the  bigger  economy.     Solution:  Create  and  implement  a  comprehensive  branding  campaign  and   marketing  strategy  to  connect  with  the  African-­‐American  population  in  Columbia,   MO  and  Boone  County.    This  will  give  the  SBTDC  experience  in  gathering  advanced   levels  of  cultural  competency  and  social  awareness,  as  well  as  connect  with  African-­‐ American  businesses  and  other  minority  business  enterprises  (MBE’s),  and  is  one  of   the  fastest  growing  demographics  nationally,  growing  4  times  faster  than  non-­‐ minority  businesses,  and  one  that  locally  is  in  need  of  the  most  assistance,   statistically,  and  independence,  socially.     There  should  be  three  elements  considered  –  outreach,  networking  and  policy       Let’s  review  the  current  data  in  Columbia,  MO  and  Boone  County  when  it  comes  to   African-­‐American  participation  in  the  greater  economy.     Based  on  the  most  recent  US  census  data,  there  are  15,855  businesses  in  Boone   County,  of  which  only  125,  or  .08%  of  these  businesses  are  minority  owned;  yet   African-­‐Americans  are  roughly  16.1%  of  the  local  population  and  growing.     According  to  the  local  census  bureau,  this  population  has  grown  by  over  30%  in   population  between  2000  and  2010.       African-­‐Americans  are  roughly  12%  of  the  US  population,  12%  of  the  Missouri   population,  and  a  little  over  12%  of  the  Columbia,  Missouri  population.    Government   has  learned  that  the  goal  for  minority  businesses  should  match  the  demographic  of   the  area,  but  we  feel  that  it  should  be  an  organic  goal  and  developed.    If  no  one  in  a   region  is  focused  on  growing  minority  businesses,  our  research  has  shown  that  it   will  not  grow.    Growth  starts  by  being  apart  of  the  strategic  planning.       13  

Population  of  Boone  County   Total   African-­‐American         Businesses  in  Boone  County   Total   Black-­‐owned         There  should  be  three  elements  considered  –  outreach,  networking  and  policy       Outreach  –  create  a  synchronized  online  and  offline  branding  campaign  for  the   Small  Business  Technology  and  Development  Center  aimed  at  connecting  with   the  African-­‐American  business  leaders,  leaders  of  thought,  middle  tier  and  elite   management  and  educators,  students  and  up  and  coming  entrepreneurs.         Online  –  we  reviewed  all  of  your  digital  presence  and  found  that  there  are  some   areas  of  improvement.    The  website  www.missouribusiness.net  is  very   professional,  but  it  is  very  cluttered  and  it  inundates  the  person  seeking   information,  as  well  as  lacks  any  visual  stimulants  and  images.    There  are  great   success  stories  but  there  aren’t  any  local  African-­‐American  success  stories.    The   name  of  the  website  is  not  the  same  name  of  the  organization  and  it  is  a  .net  and   not  a  .com  which  also  makes  it  tough  to  recall.    The  name  of  the  organization  is   very  difficult  to  say  and  to  remember  for  most  people,  even  the  initials.  We   recommend  that  you  synchronize  all  of  the  social  media  sites,  and  each  person   chooses  one  or  two  areas  to  focus  on  developing,  while  staying  on  the  same  page.     Create  a  local  Facebook  page,  or  a  Facebook  group,  that  can  be  used  to  connect   with  the  community  and  allows  the  organization  to  be  approachable.    Facebook   is  the  best  tool  to  drive  people  to  your  website,  being  that  over  1.15  billion   people  are  active  members,  or  which  819  are  mobile  users,  and  they  average     14  

over  6.5  hours  a  day  on  the  social  media  site.    The  most  cutting  edge  websites   allow  people  to  chat  live,  so  without  that  function,  social  media  allows   organizations  to  connect  with  their  audience,  with  the  goal  of  making  the   website  to  being  saved  as  a  bookmark  and  on  the  person’s  main  toolbar,  shows   an  engaged  customer  or  participant.    Both  members  currently  have  Linked  In   accounts,  and  groups,  and  one  has  an  active  Twitter  account.    All  of  these  should   be  directed  back  to  the  website.    There  should  be  an  introductory  video  from  the   leadership,  inviting  the  community  to  the  location  and/or  the  website  to  show  a   personal  touch.    Having  a  YouTube  account  for  the  organization  is  key   component  to  sharing  your  message  and  is  still  considered  to  be  the  2nd  best   social  media  tool  available.    SBTDC  has  a  YouTube  account,  but  it  only  has  a  total   of  5  videos,  and  there  hasn’t  been  a  video  uploaded  in  over  a  full  year.    It  should   be  used,  or  abandoned  for  more  effective  methods.    At  the  minimum,  videos  from   the  SBA  and  industry  partners,  should  be  shared  and  listed  on  your  site  to   maximize  their  activity,  with  your  main  message  or  introductory  video  listed  and   pinned  at  the  top  of  your  site.         One  of  the  leaders  in  the  social  media  and  online  marketing  industry  is  Anita   Campbell,  CEO  of  Small  Business  Trends  website  and  is  an  invited  contributor  at   the  SBA.gov  community  site,  among  others,  who  publishes  successful  online   media  properties  reaching  more  than  6  million  small  business  owners  annually.     She  shares  that  the  website  is  and  should  be  always  be  the  main  focus  of   outreach  efforts.    An  effective  website  will  keep  people  coming  back  daily,   weekly,  or  at  least  monthly  and  give  the  customer  all  of  the  information  that  they   require,  but  shouldn’t  be  a  substitute  for  real  life  contact.    It  should  always  end  in   the  option  to  reach  out  to  you  for  the  last  step.    If  it  does  not  have  that  affect,   then  the  website  it  not  effective.    Here  is  a  great  article  that  shares  additional   details  on  how  to  prioritize  your  online  marketing  process.     http://smallbiztrends.com/2008/04/prioritize-­‐online-­‐marketing.html       http://www.sba.gov/community/blogs/6-­‐quick-­‐ways-­‐use-­‐social-­‐media-­‐branding     15  

Diversify  your  communication  strategy  for  each.  Mix  up  what  you  offer,  as  in  this   example:   • On  Twitter,  share  relevant  links  from  our  blog  and  other  industry  sites   • On  Facebook,  share  videos  our  audience  appreciates,  as  well  as  answer  questions   about  our  products   • On  LinkedIn,  actively  participate  in  industry  groups     Understanding  Current  African-­‐American  Online  Trends     According  to  the  most  recent  Nielsen’s  report  on  the  State  of  the  African-­‐American   community  released  in  September  of  2013,  it  states  the  following  facts  about  the   African-­‐American  online  experience  and  culture:       Blacks  have  taken  to  social  media  sites  like  Facebook  and  twitter  to  gain  desired   exposure  in  cyberspace  and  use  social  networking  to  mitigate  real  world  inequality.   For  Blacks  online  platforms  are  like  beauty/barbershops  where  people  come  to   voice  their  opinions,  share  funny  stories,  and  connect  with  others.  Blacks  are  44%   more  likely  than  total  market  consumers  to  create  a  social  media  profile.  Facebook   is  the  most  heavily  used  social  networking  site  based  on  both  the  number  of  unique   visits  and  time  spent  per  person.  There  are  interesting  variances  between  age   groups  for  the  most  time  spent  on  social  media  platforms:   • 45-­‐64  year-­‐olds  spend  the  most  time  on  Facebook.     • 35-­‐44  year-­‐olds  are  more  likely  to  spend  more  time  on  Tumblr  and  Instagram  (#1   social  media  site  for  African-­‐Americans  based  on  time  spent  online  at  7.12   hours).   • 18-­‐34  year-­‐olds  spend  11%  more  time  on  Twitter  than  those  35-­‐44  and  45-­‐64   combined.     Smartphones  have  become  a  way  of  life  for  most  Americans,  and  african-­‐american   has  continued  to  outpace  the  total  population  with  smartphone  ownership.  Seventy-­‐ one  percent  of  african-­‐american  own  smartphones,  compared  to  62%  of  the  total   population.  Most  african-­‐american  use  androids  (73%)  versus  iPhones  (27%).   If  consumption  patterns  dictated  a  company’s  advertising  budget,  then  advertisers   should  be  spending  proportionately  with  african-­‐american  media  as  follows:   44%  higher  spend  on  education  and  career  websites     Companies  mistakenly  believe  because  there  are  no  language  barriers,  that  a   general  market  “one-­‐size-­‐fits-­‐all”  strategy  is  an  effective  way  to  reach  african-­‐ american.    Just  the  opposite  is  true.  It  is  not  language  that  distinguishes  connectivity   with  african-­‐american,  but  a  brand’s  ability  to  understand  the  Black  experience  and     16  

cultural  nuances  that  resonate  with  Blacks  who  are  more  receptive  to  messages   when  they  feel  valued.   There  are  many  tools  that  you  can  you  use  many  tools  to  measure  your  digital   presence,  and  decide  what  is  most  effective  and  then  make  adjustments  on  a  bi-­‐ weekly  basis.         We  have  tested  some  of  the  more  popular  tools  and  would  recommend   www.hootsuite.com  or  www.cyfe.com,  both  of  which  don’t  have  any  up  front  cost  to   join  or  use.      http://smallbiztrends.com/2013/09/social-­‐media-­‐analytics-­‐tools.html     All  of  these  options  that  we  offered  are  cost  effective  method.    We  also  recommend   that  there  is  some  effort  or  thoughts  put  to  having  an  actual  budget  for  advertising   and  marketing,  other  than  time  investment.     According  to  a  June  survey  from  Yodle  Inc,  which  polled  306  US  small  business   owners  across  a  large  array  of  service  industries  for  its  inaugural  Small  Business   Sentiment  Survey,  23%  of  small  business  owners  report  they  don't  spend  any   money  on  marketing,  while  just  more  than  56%  spend  less  than  $500  a  month.    It   also  shares  that  another  major  area  within  technology  and  marketing  in  which  small   business  owners  are  lack:  websites.  According  to  the  survey,  52  percent  of  small   business  owners  do  not  have  a  website,  and  90  percent  do  not  have  a  mobile-­‐ optimized  website.    The  SBTDC’s  website  also  falls  into  the  latter  category,  since  it  is   not  mobile-­‐optimized  currently.    These  numbers  were  consistent  with  the  African-­‐ American  businesses  in  the  Columbia,  Missouri.     The  Yodle  survey  also  asked  the  small  businesses  what  was  the  top  three  effective   marketing  channels  small  business  owners’  use  for  finding  new  customers?  Number   one  is  word  of  mouth  (78  percent),  followed  by  business  referrals  (54  percent)  and   business  websites  (31  percent).    This  will  lead  us  to  the  next  aspect  of  this  element,   offline  communications.       Offline  –  The  offline  or  “face  to  face”  and  “word  of  mouth”  connections  are  just  as   powerful  as  the  online  efforts  and  both  must  be  synchronized  with  solidifying  the   branding  of  the  organization.    There  are  thousands  of  definitions  of  “branding”  or   just  plain  old  “brand.”  One  of  the  best  definitions  of  brand  we’ve  seen  is  from  the   advertising  firm  the  Tronig  Group.  To  them,  a  brand  is  “what  sticks  in  your  mind   associated  with  a  product,  service,  or  organization  —  whether  or  not,  at  that   particular  moment,  you  bought  or  did  not  buy.”         They  also  mention  “Marketing  unearths  and  activates  buyers.      Branding  makes   loyal  customers,  advocates,  even  evangelists  out  of  those  who  buy.       This  works  the  same  way  for  all  types  of  businesses  and  organizations.  All   organizations  must  sell  (including  non-­‐profits).  How  they  sell  may  differ,  and   everyone  in  an  organization  is,  with  their  every  action,  either  constructing  or     17  

deconstructing  the  brand.  Every  thought,  every  action,  every  policy,  every  ad,  every   marketing  promotion  has  the  effect  of  either  inspiring  or  deterring  brand  loyalty  in   whoever  is  exposed  to  it.  All  of  this  affects  sales  or  customers.    If  the  following  is   true,  which  we  believe  it  to  be,  we  recommend  the  following  actions  for  the   members  of  the  organization,  and  we  will  be  glad  to  realize  that  some  of  these  things   are  already  happening.       1. Live  the  brand.    Always  be  willing  to  engage  someone  interested  in  your   message.    This  is  not  saying  that  you  should  not  have  your  times  to  unplug  from   social  networks  or  that  you  have  to  be  something  that  you  are  not,  but  it  is   having  a  focus  at  all  times.   2. Update  the  business  cards,  brochures,  media  kits  and  printed  items  with  all  of   the  updated  social  media  information  and  always  have  copies  with  you  at  all   times.   3. Take  advantage  of  publicity  and  movements.    For  example,  the  Heart  of  Missouri   United  Way  came  to  the  first  two  Mayor’s  Community  Violence  Task  Force   meetings  and  offered  to  partnership  with  the  task  force,  and  shared  that  they   support  over  55  organizations  and  had  solutions  to  violence.    Everyone  on  the   task  force  mentioned  that  job  creation  was  needed,  which  is  the  focus  of  your   organization.    Your  organization  should  seek  more  opportunities  like  this  to  offer   your  assistance,  expertise  and  spread  awareness.    Furthermore,  reporters  at  the   Columbia  Daily  Tribune  and  the  Missourian  allow  organization  and  citizens  to   pitch  story  ideas.    This  tool  should  be  utilized  to  share  success  stories  and   advertise  events  and  workshops  for  free.    Your  relationship  with  the  press  should   be  nurtured  and  consistent.       4. Share  your  expertise  –  engage  in  public  speaking  opportunities,  while  being   highly  stressful,  it  is  an  extremely  effective  way  at  showing  off  your  expertise,   building  credibility,  and  gaining  clients  and  customers.    Adult  education   programs,  industry  and  trade  associations  and  civic  groups.    It  can  even  become   a  source  of  income  for  some  organizations.    Just  because  an  organization  is  non-­‐ profit  or  grant  funded  doesn’t  mean  that  it  can’t  find  other  ways  to  bring  in   income,  and  it  actually  allows  that  scholarships  can  be  offered  on  some   programs  and  creates  an  internal  marketing  budget     Network  –  If  outreach  is  connecting  and  introducing  you  to  people,  then   networking  is  nurturing  those  relationships  and  keeping  those  hard  won  customers   and  clients  engaged  in  the  process  of  solidifying  your  brand,  message  and  purpose.     We  searched  for  current  and  existing  systems  in  place  for  networking  opportunities   for  African-­‐American  businesses  and  we  didn’t  find  any  that  existed.    We  did   discover  a  group  of  African-­‐American  professionals  called  the  Minority  Men’s   Network,  who  serve  as  a  support  group  for  individuals  to  provide  leadership  and  to   address  leadership  issues  that  are  vital  to  the  minority  community.    The  primary   participants  of  the  Minority  Men’s  Network  are  African  American  and  other  “at  risk”   minority  males.    Other  than  this  group,  there  weren’t  any  organizations  that  are     18  

focused  on  supporting  African-­‐American  businesses.    BSA  feels  that  this  is  an   excellent  opportunity  for  the  Small  Business  Technology  and  Development  Center  to   serve  as  a  hub  of  activity,  technology,  development  and  guidance  for  the  African-­‐ American  community  and  assist  them  to  become  more  independent  and  connected   to  the  local  economy.    We  feel  that  there  are  many  benefits  for  this  type  of   investment  and  direction.    It  positions  this  region,  to  be  in  position  to  receive   funding  from  the  State  and  Federal  level,  which  measures  and  tracks  any  successful   efforts  to  support  and  achieve  minority  acceleration  and  inclusion  in  the  local   economy.    For  some  places,  they  are  using  this  business  sector  to  invigorate  the   whole  local  economy,  such  as  in  New  York,  DC,  and  Baltimore,  MD.       In  her  doctoral  dissertation  named  “Successful  Black  Entrepreneurs  in  Columbia,   Missouri”  Dr.  Alisa  Warren-­‐Campbell,  who  is  currently  the  Executive  Director  of  the   Missouri  Commission  on  Human  Rights  shared  the  following  introduction  and   conclusion:       Introduction:     This  study  of  growing  sustainable  Black  business  in  Columbia,  Missouri  is  grounded   in  classical  Race  Theory  as  the  conceptual  basis  with  economic  uplift  as  the   framework.  This  study  suggests  that  a  separate  Black  economy  is  no  longer  a  viable   option.  The  important  question  to  ask  moving  forward  is:  how  does  the  majority   population  gain  awareness,  and  then  how  do  they  move  beyond  the  traditional   consumer  practices  to  a  more  consumer-­‐cultural-­‐consciousness  approach?  White   consumers  may  have  to  become  more  proactive  in  much  the  same  way  as  they  have   embraced  environmentalism.  Black  business  owners  may  have  to  assimilate  more   into  the  dominant  group  in  order  to  maximize  the  probability  of  economic  success.   Conclusion:     Efforts  to  restore  minority  participation  in  contracting  and  procurement  through   goal-­‐based  state  policies  and  a  new  and  more  expansive  disparity  study  are  critical   to  moving  forward.  To  make  minority  business  development  sustainable  requires  a   new  way  of  thinking  about  and  implementing  policies.  Columbia  should  engage   people  in  forming  viable  a  minority  business  organization  to  sustain  these  efforts  in   a  variety  of  ways  such  as;  establish  a  group  directory,  identify  Black  businesses,   collect  and  analyze  information,  create  a  purpose,  develop  a  vision  and  goals,   expand  the  organization,  develop  and  implement  an  action  plan,  provide  education   and  training,  and  celebrate  success.     We  have  considered  all  of  the  information  that  Dr.  Warren  presented,  and  think  that   she  is  very  accurate  with  her  assessment  in  her  dissertation  completed  in  2010,  but   since  that  time,  the  global  industry  and  some  important  legislature  have  adjusted   and  funding  priorities  have  changed,  so  we  will  be  offering  a  few  opportunities  for   REDI  and  the  SBTDC  to  consider  for  future  planning.         19  

We  have  identified  the  key  collaborators  to  the  process:     The  African-­‐American  Business  Owners:  reaching  out  to  them,  to  offer  resources,   information,  support  and  awareness  and  assist  them  to  grow  and  develop  their   businesses  and  brands.    If  this  seems  to  be  too  big  of  a  task,  your  organization  can   also  mentor  and  encourage  this  group  to  either  create  their  own  collective   organization,  such  as  Minority  Business  Council,  a  Minority  Think  Tank,  or  a   Minority  Development  Agency,  which  will  create  a  strong  foundational  relationship   with  this  community  and  negate  some  of  the  past  mistrust  and  feelings  of  disparity.     African-­‐American  Leadership:  reaching  out  to  the  African-­‐American  civic,   managerial,  collegiate  and  ecclesiastical  leaders  in  the  community  to  cultivate  that   connection,  explain  the  services,  offer  support  and  ask  for  referrals,  of  new,  budding,   or  existing  individuals  who  possess  the  entrepreneurial  spirit,  will  ensure  that  the   pipeline  stays  consistent  for  years  to  come.     The  Education  Leadership:  reaching  out  to  the  4  colleges  and  the  District,  and   letting  them  know  that  SBTDC  should  be  considered  one  of  the  top  options  for  their   students  seeking  to  start  a  business,  their  parents,  caregivers,  guardians,  domestic   engineer’s,  who  will  need  assistance  in  the  future  of  how  to  start  a  business.    The   latest  numbers  from  the  Columbia  Board  of  Education  statistics  show  that  72.2%  of   students  are  planning  on  going  to  college  with  over  17%  of  them  are  going  directly   into  the  workforce.    20.2%  of  the  students  are  African-­‐American  and  over  50%  of   those  going  into  the  workforce  are  African-­‐American  or  minority.    Based  on  the   National  Center  for  Education  Statistics,  the  high  school  drop  out  rate  for  African-­‐ Americans  in  Missouri  is  44%,  and  this  is  out  of  83,093  young  adults.    Locally  our   numbers  are  better  with  it  being  3.5%,  but  75%  of  the  190  young  adults,  are   African-­‐American.    Recent  studies  and  personal  interviews  that  we  conducted  with   local  youth,  illustrate  that  the  main  factors  in  these  individuals  dropping  out  of   school  was  to  start  a  business,  some  legal  (landscaping  and  laborers)  and  some  part   of  the  underground  economy  (drug  trafficking  and  gang  activity),  doing  illegal   business  activities.    Of  all  of  the  person’s  that  we  talked  to,  there  was  a  preference  to   work  legally  or  to  have  other  choices,  but  they  weren’t  aware  of  any  resources  or   support  (people  who  cared)  in  place  to  aid  them  to  acquire  this  knowledge,  and  they   had  little  hope  for  the  future  but  had  a  strong  drive  to  succeed,  against  all  of   negative  odds.    These  individuals  are  prime  candidates  to  consider   entrepreneurship  as  an  alternative  option  and  utilizing  minority  inclusion  as  a  tool   for  community  betterment,  allows  us  to  have  more  success  stories  and  give  them   more  local  options  that  match  their  demographic,  and  who  look  like  them.     Corporate  Leadership:    Most  global  corporate  businesses  are  well  versed  and   aware  of  the  benefits  of  having  a  corporate  culture  that  supports  minority  business   development,  and  have  already  committed  to  this  path.    Some  of  the  main  reasons   have  been  competition  against  businesses  leaving  the  United  States.    This  would   benefit  the  SBTDC,  SBA  and  their  partner  in  REDI  to  assist  and  recruit  businesses  to     20  

adopt  the  current  global  mentality,  assist  local  businesses  to  grow  to  size,  and  assist   start  up  businesses  to  start  in  high  growth  industries,  adjusting  to  the  global   expectations  from  their  inception.    Realizing  diversity  in  upper  and  middle   management  has  much  room  for  growth  and  this  understanding  gives  all  regional   economic  organization  a  tool  for  consideration.         For  the  last  14  years,  Diversity  Inc,  which  is  a  website  who  serves  fortune  500   companies,  conducts  an  annual  survey  of  the  top  businesses  in  the  world.                             A  total  of  893  companies,  with  at  least  1,000  employees’  filled  out  the  300-­‐page   survey  in  2013.  There  is  no  fee  involved  to  participate  and  every  company  receives  a   free  report  card  assessing  its  performance  against  all  competitors.   The  survey  leads  to  a  ranking  based  on  four  key  areas  of  diversity  management:   • CEO  Commitment:  accountability  for  results,  personal  communications,   visibility   • Human  Capital:  five  levels  of  management,  promotions  in  and  into   management   • Corporate  and  Organizational  Communications:  mentoring,  resource   groups,  philanthropy,  consistency/effectiveness  of  diversity-­‐management   initiatives   • Supplier  Diversity:  spend  with  M/WBE  companies,  as  well  as  companies   owned  by  LGBT  people,  people  with  disabilities,  veterans.   At  least  10  of  the  top  50  companies  in  the  world  have  offices  located  here  in  the   Columbia  region  and  could  be  tapped  to  create  stronger  strategic  partnerships  as   well  as  become  leaders  and  allies  in  supporting  the  start  of  this  process  locally.    A   few  of  them  are  Kraft  Foods,  IBM  and  Coca-­‐Cola.     http://www.diversityinc-­‐digital.com/diversityincmedia/june_2013#pg1         21  

Regional  and  National  Minority  Organizations:     It  should  be  a  goal  for  us  to  cultivate  relationships  with  these  organizations,  but  still   keep  our  local  identity  and  purpose,  while  benefiting  from  their  support.    Efforts  in   the  past  have  been  made  and  documented,  and  the  lesson  was  that  we  should  be  on   the  list,  as  one  of  the  prime  sources,  and  funnel  their  support  to  our  region.     Sources of Identification and Recruitment of M/WBEs • Minority Supplier Business Councils in Kansas City & St. Louis. • Kansas City Hispanic Association Contractors Enterprise (KCHACE). • Minority Contractors Association (MCA) of Kansas City. • St. Louis Minority Contractors Association (MOKAN). • General Services Administration's (GSA) monthly networking breakfasts in Kansas City. • National Minority Supplier Development Council's (NMSDC) annual conference and business opportunity fair. • Business Investment Expositions in Kansas City and St. Louis. • Minority Enterprise Development Week (MED). • Business journals, newspapers and M/WBE directories.   Strengthen  the  current  partnership  with  the  UM  Systems:   Under  the  current  Director  and  leader,  Dr.  Jacqueline  Kelly,  the  M/WBE   Development  Program  establish  and  implement  initiatives  that  will  increase   business  opportunities  at  the  University  of  Missouri  System  for  Minority  and   Women.    What  that  means  is  that  they  are  fully  and  highly  committed  to  reaching   their  own  goals  and  objectives  and  we  should  be  fully  aligned  with  those  resources.       Primary  Roles  and  Responsibilities   • To  identify  Minority  and  Women-­‐Owned  Business  Enterprises  -­‐   suppliers/distributors,  contractors  and  design  consultants  -­‐  that  are   interested  in  business  opportunities  at  the  University  of  Missouri  System,   and  whose  products  and  services  the  University  procures.   • To  apprise  minority  and  woman-­‐owned  businesses  of  the  requirements  for  doing   business  with  the  University,  and  assist  them  in  successful  business   transactions  with  the  University  of  Missouri  System.   • To  market  M/WBEs  to  internal  University  departments.   • To  promote  the  M/WBE  Program  internally  and  externally.       They  have  a  community  outreach  program  that  has  some  of  the  following  initiatives   that  are  seeking  to  be  exploited  and  utilized:       Business  Investment  Expositions  -­‐  The  University  of  Missouri  participates  in   specific  community  functions  and  activities  to  promote  its  Minority  Business   Development  Program.  This  includes  the  Kansas  City  Minority  Supplier  Council  and   St.  Louis  Minority  Business  Council's  business  fair  and  exposition,  the  Ike  Skelton's     22  

procurement  conference  and  exposition,  Minority  Enterprise  Development  Week   and  Networking  Breakfasts.   Advertising  -­‐  The  University  promotes  its  Minority  Business  Development  Program   in  various  publications  in  St.  Louis  and  Kansas  City.   Workshops  -­‐  The  University  of  Missouri  System  co-­‐sponsors  workshops  that  are   tailored  to  meet  specific  needs  of  M/WBEs,  including  financing,  certification,   business  plans  and  marketing.   On-­‐site  Visits  -­‐  On-­‐site  visits  are  made  to  M/WBEs.  During  these  visits,  the  potential   for  future  business  opportunities  and  guidelines  on  how  to  do  business  with  the   University  are  discussed.   One-­‐on-­‐One  Sessions  -­‐  One-­‐on-­‐one  sessions  are  conducted  with  M/WBEs.  Topics   include  information  on  upcoming  bid  opportunities,  bid-­‐pricing  history  and   feedback  on  (M/WBE)  bid  documents.   Facilitation  of  Meetings  -­‐  The  Director  of  the  Minority  Business  Development   Program  facilitates  meetings  between  M/WBEs  and  minority  business  leaders  and   University  personnel.  Such  meetings  address  specific  issues  relative  to  doing   business  with  the  University  and  improving  communications.   Mini  Business  Fairs  -­‐  Each  University  of  Missouri  campus  periodically  conducts   mini  minority  business  fairs.  Key  decision-­‐makers  from  various  campus   departments  are  invited  to  meet  M/WBEs.  The  goal  of  the  mini  fair  is  to  increase   business  opportunities  for  M/WBEs.     Future  Initiatives  Include  the  Following:   • Business  Surveys  -­‐  Surveys  designed  to  identify  barriers  to  M/WBE  participation   in  business  activity  at  the  University  will  be  administered.  The  findings  from   the  surveys  will  be  used  to  further  improve  the  Minority  Business   Development  Program  and  to  establish  goals  and  objectives  to  maximize   M/WBE  participation.   • Professional  Conferences/Publications  -­‐  The  success  stories  of  the  Minority   Business  Development  Program  will  be  shared  with  other  organizations  and   higher  education  institutions.   • Minority  Business  Development  Workshops/Symposiums  -­‐  Workshops  will   be  sponsored  to  help  meet  the  needs  of  M/WBEs.   • Supplier  Diversity  Conferences  -­‐  Missouri's  colleges  and  universities,   government  entities  and  others  will  be  invited  to  meet  and  build  business   relationships  with  Missouri's  M/WBEs.   Policy: We have discovered that the best way to view minority inclusion is from a top down approach. Looking at the Governmental priorities, the statewide strategies, the regional and local strengths, and the parent organizations commitment does this. Looking at the resources pipeline from this way focuses the organization on growth, efficiency and expansion and aligns it with the available pool of resource, and creates a focused economy, while organizations naturally focusing on ways to create a more diverse workforce. We have found that every aspect of society benefits from minorities being included in the   23  

economic landscape. This also is an excellent tool to generate enthusiasm and to energize all regional organizations, from large companies to start ups, and allows the economic department of the City in which it is implemented to create a city persona and reputation that can be used to attract new business, and resources that are tailored to aiding and assisting minorities, women and disadvantaged businesses. Recommendation for REDI and the City of Columbia, MO – Lead the process Our recommendation is that the Board of REDI, implement a goal of universal participation for the Columbia and Boone County region, and adopt a starting goal of 10% participation over the course of 10 years. The first year goal should be 1% and the focus should be on development, measurement, and accountability, by making sure that all minorities are considered as a specific aspect of their strategic plan. Currently we have over 15,000 businesses in Boone County. If only 10% of the businesses partnered with REDI, the annual income of REDI, would triple, allowing them to hire more staff, and have more influence in the region, be more self-sustainable, and allow them to give more support to the power of economic and minority inclusion. With a goal of 10% of the current minority businesses, with at least one member of the African- American/Minority community to serve on the Board of Directors as a full member, that will allow the minority perspective to be shared, and allow minorities to participate in the local and regional economic development. Recruitment Goals Recommendation for REDI’s consideration: 10% total participation goals: potential 15,855 businesses in Boone County, MO 1586 (10%) businesses x minimum $100 membership fee = $158,550 to $1,585,000 in additional annual funding. Make it fun and interactive. 10% minority participation goal: potential –125 businesses in Boone County, MO 125 x 10% of current businesses = 13 minority businesses – for revenue of $1,300 minimum to $13,000 maximum. Total additional membership goals annual fees could be up to $1 million. Membership of African-American members of REDI is not recorded but we are aware of at least 1-2 current members, with at least 10-15 potential members.         24  

  Look  at  the  Future  Trends:  Best  Example  is  the  Small  Business  Administration   Strategic  Plan  Fiscal  Years  2011  -­‐  2016   Improve  the  Customer  Experience  through  Online  Tools  and  Resources,  and   Ongoing  Simplification  of  SBA’s  Processes  Continue  to  improve  sba.gov  to  ensure   a  more  user-­‐centric,  streamlined  experience  for  SBA’s  customers.  Provide  a  small   business  gateway  that  enables  small  businesses  to  connect  with  needed  resources   and  answers  in  a  way  that  continues  to  save  them  time.  Implement  the   Administration’s  Open  Government  principles  of  transparency,  collaboration  and   participation  across  the  agency.  Release  high-­‐value  data  sets  that  are  relevant  to   small  businesses.  Invest  in  online  and  mobile  resources  to  support  our  mobile  and   remote  workforce.  Continue  to  identify  ways  to  simplify  SBA’s  processes  and   procedures  and  re-­‐engineer  them  as  appropriate.     Strategic Objective 1.5: Strengthen SBA’s relevance to high-growth entrepreneurs and small businesses to more effectively drive innovation and job creation through both the agency’s existing programs as well as new initiatives.   http://www.sba.gov/sites/default/files/serv_strategic_plan_2010-2016.pdf Attract  and  Develop  Minority  Venture  Capital  Industry:  REDI  and  it’s  partners   are  focused  on  Start  ups,  and  one  of  the  main  growth  factors,  attractions  and   resources  for  start  ups  has  always  been  access  to  capitol.    Many  communities  are   finding  that  utilizing  the  power  of  economic  and  minority  inclusion  creates   substantial  growth  in  the  GDP  for  the  area.    Columbia’s  GDP  raised  to  7  billion  just  in   September  of  2013,  for  the  first  time.    Implementing  these  strategies  will  give  us  an   opportunity  to  set  some  records  for  our  area,  even  with  a  fluctuating  economy.     It  was  only  natural  during  our  extensive  research  process,  to  find  certain  themes,   strategies,  and  commonalities,  nationally,  and  in  cities  the  size  of  Columbia,  MO  and   Boone  County.    For  this  purpose  we  added  a  benefits  of  minority  inclusion  section.     25  

  Challenges  to  Economic  and  Minority  Inclusion     For  Columbia,  the  state  and  the  nation  to  fully  participate  and  dominate  the  global   market  a  new  mindset  on  this  issue  of  minority  inclusion  must  be  adopted.  Our   research  has  discovered  the  following  challenges  facing  Columbia’s  Public  Sector  as   the  attempt  to  include  African-­‐American  businesses  into  the  bigger  economic   picture  of  Columbia:   • Since  the  60’s,  government  officials  and  staff  look  at  minority  and  women   inclusion  as  a  social  issue,  not  an  economic  issue.   • The  majority  of  the  MBE/WBE  programs  in  place  is  out  of  date  and  served  a   different  era.   •  Government  agencies  efforts  to  develop  minority  businesses  have  been   underfunded  and  fragmented.   • Current  policies  are  not  enforced.   • Economic  discrimination  is  still  prominent.   • MBE’s  are  not  participating  in  the  local  economy  in  any  measurable  way     In  her  doctoral  dissertation  named  “Successful  Black  Entrepreneurs  in  Columbia,   Missouri”  Dr.  Alisa  Warren-­‐Campbell,  who  is  currently  the  Executive  Director  of  the   Missouri  Commission  on  Human  Rights  shared  the  most  accurate  assessment  of  the   challenges  facing  the  Columbia  and  Boone  County  area,  as  it  was  completed  in  2010.     The  following  is  a  direct  excerpt  from  her  report  pages  96-­‐97.     “You  only  needs  to  look  as  far  as  the  State  of  Missouri  Disparity  study  to  fully   ascertain  the  magnitude  of  problem.  This  study,  commissioned  in  Executive  Order   94-­‐03  by  Governor  Mel  Carnahan,  compiles  the  appropriate  information  with  regard   to  state  contracting  practices  and  barriers  Missouri  minority  businesses  face  using   antidotal  interviews,  historical  perspectives,  statistical  analysis,  and  town  hall   meetings.  This  report  completely  corroborates  that  the  barriers  that  they  faced   were  aligned  directly  to  the  experience  most  minority  entrepreneurs.    The  study   even  goes  as  far  as  to  set  contracting  goals  for  minority  businesses.  However,  I   believe  that  goals  alone  will  not  resolve  the  systemic  barriers  endured  by  minority   economic  and  community  development.   According  to  the  Community  Development  Academy,  genuine  community   development  is  a  purposeful  effort  by  community  people  to  learn  and  work  together   to  guide  the  future  development  of  their  communities  and  making  full  use  of  their   own  resources  as  well  as  external  resources.  It  is  a  systematic  framework  for  all   development  efforts  is  necessary  for  long-­‐term  success.  The  deeply  entrenched   barriers  to  minority  business  development  make  it  critical  to  use  innovative   strategies  for  change.  For  sustainable  development,  the  law  is  an  effective     26  

organizing  principle  not  simple  because  it  is  “the  right  thing  to  do”.    If  there  is  a  set   of  basic  blocks  for  sustainable  development,  they  are  constructed  from  the  law:  the   rule  of  law,  the  effective  application  of  the  law  and  the  political  will  to  use  the  law.   Previous  State  of  Missouri  administrations  have  dismantled  minority  entrepreneur   policies  and  programs  that  were  intended  to  level  the  playing  field.   Discrimination  is  the  issue  as  it  relates  to  minority  entrepreneurship.    Dealing  with   it  is  a  multi-­‐faceted  process  that  can  be  approached  from  a  community  development   prospective.    However,  it  must  first  be  analyzed  for  each  of  its  numerous  nuances,   which  include  capacity,  financial  barriers,  lack  of  social  capitol,  generational  wealth,   and  policy.    The  fact  that  Black  businesses  continue  to  flounder  while  Asian-­‐owned   start-­‐ups  flourish  is  no  accident.           The  fact  that  blacks  don’t  own  property  at  the  same  rate  as  their  white  counterparts   is  no  fluke.  The  fact  that  people  of  color  do  not  earn  high  school  diplomas  and   college  degrees  at  an  equal  rate  as  whites  is  not  happenstance.  They  are  based  on  an   institutional,  historical,  systematic,  and  systemic  manifestation  of  discrimination.   Yet  Columbia  seems  to  have  risen  above  many  of  these  issues  the  outcome  has   remained  similar.  The  percentage  of  Black  owned  businesses  is  substantially  lower   than  the  national  average  leaving  an  opportunity  to  support  growth  and  sustainable   success.   Minority  entrepreneurs  experience  systematic  barriers  through  traditions  that  are   orderly,  predictable,  purposeful,  intentional  discrimination.  They  also  experience   systemic  discrimination,  which  operates  across  systems  to  maintain  power  and   privilege  for  those  in  positions  of  power.    This  culture  of  power  exhibits  one  group’s   accumulation  of  power  and  the  creation  of  “in  groups”  and  “out  groups”.    The  “in   groups”  determine  the  cultural  center  while  the”out  groups”  are  marginalized.    This   reinforces  the  prevailing  hierarchy  of  the  white  majority  and  ensures  the  perpetual   exclusion  of  minority  entrepreneurs.    While  some  progress  has  been  made  there   continues  to  be  much  work  to  do”.   2013  Annual  Report  for  the  City  of  Columbia:  Current  Assessment   The  Annual  Report  from  the  City  of  Columbia  was  very  positive  and  shared  many   different  things  to  celebrate,  but  when  it  came  time  to  shed  the  spotlight  on   economic  and  minority  inclusion,  or  what  some  call  “poverty”,  it  dimmed  the  luster   of  the  whole  report.    They  said  that  the  rate  of  poverty  and  level  of  income   inequality  in  Columbia  is  increasing.    If  further  shared  some  facts  such  as:     • Columbia’s  23%  poverty  rate  is  higher  than  the  Missouri  rate  of  14%,  and  the  national   rate  of  15%.       • Almost  6,900  kids  in  the  Columbia  Public  Schools  are  enrolled  in  the  National  School   Lunch  Program.    That’s  40%  of  our  local  17,000  public  school  students,  which  is  up  from   the  31%  in  2007,  before  the  recession.         27  

The  report  also  shares  that  Poverty  is  a  trifecta  of  bad  news  and  is  a  consistent   predicator  of  poor  economic,  social,  health  and  educational  outcomes.    It  spills  over   into  every  aspect  of  local  government  with  demands  on  social  services;  government   supplied  health  care,  public  safety  responses  and  code  enforcement.  This  portion  of   the  report  closed  with  saying  “Creating  jobs  in  something  that  the  City  can  and   should  do”  and  made  mentioned  that  it  has  a  strong  partner  in  the  United  Way.         Why  is  a  Disparity  Study  needed?   We  feel  that  one  of  the  greatest  opportunities  that  are  available  at  this  time,  to  really   get  Columbia,  Missouri  on  the  map,  is  to  assist  the  State  with  their  process  to   complete  a  new  Disparity  Study.    In  talking  with  their  leadership,  and  in  talking  with   various  support  organizations  in  the  State  of  Missouri,  this  is  the  need  of  our  time,   and  the  publicity  that  would  come  from  it,  would  most  likely  be  noticed  all  the  way   to  the  White  House,  and  position  the  Mid-­‐Missouri  region  as  an  up  and  coming   leader  in  this  arena.    Here  is  their  plea  for  assistance.   “Empirical  evidence  strongly  suggests  that  a  disparity  study  can  improve  the   economic  growth  and  create  contracting  opportunities,  increase  business   development,  increase  tax  revenue  and  add  to  the  jobs  market.  A  disparity  study   will  help  determine  whether  any  barriers  exist,  due  to  discriminatory  practices  that   impede  ready,  willing  and  able  M/WBEs  from  participating  in  state  contracting   opportunities.     The  last  State  of  Missouri  (State)  Disparity  Study  was  commissioned  in  1994  and   completed  in  1998.  The  State  has  not  completed  an  updated  Disparity  Study  since   then,  even  though  it  is  common  practice  for  states  to  update  their  disparity  studies   every  3  to  5  years.     An  updated  Disparity  Study  would  provide  the  basis  for  maintaining  an  M/WBE   program  to  benefit  minority-­‐,  and  women-­‐owned  businesses,  allowing  them  to   participate  in  the  economic  vibrancy  of  the  State’s  contracting  opportunities.  The   updated  Disparity  Study  and  promulgation  of  new  policies  would  establish  new   M/WBE  utilization  goals  and  may  allow  the  Office  of  Equal  Opportunity  (OEO)  to   advocate  for  more  M/WBE  inclusion  in  the  procurement  process  in  the  State  of   Missouri”.         http://oeo.mo.gov/disparity/why-­‐its-­‐needed/     The  Authors  of  this  study  feel  that  assisting  with  the  disparity  study,  or  at  least   strong  consideration  of  supporting  the  study,  will  resolve  some  of  the  past   conscious  and  unconscious  discrimination  in  our  city,  and  help  chart  a  path  to  the   future.    The  benefits  would  be  to  share  the  CoMo  brand  to  the  Region,  which  will   not  only  attract  businesses,  but  could  also  attract  minority  businesses  of  size,  and   attract  the  best  and  brightest  African-­‐American  start  up  entrepreneurs  from   Boone  County,  Kansas  City  and  St.  Louis,  MO,  especially  when  they  look  at  all  of   the  great  things  that  Columbia  has  to  offer  their  families,  such  as  cleanliness,  ,   colleges,  and  venture  capital  access  and  opportunities  for  cultural  expansion.     28  

Opportunities  for  Economic  and  Minority  Inclusion     In America’s $14.5 trillion economy, minority businesses account for more than $1 trillion in gross receipts, with revenue growth rates more than double those of other companies. In the supplier diversity market, total purchasing activity topped $100 billion in 2010. If African-Americans were a nation, based on their economic spending power, they would be the 16 largest nations in the world. These are our fellows American’s here on US soul. A segment of society that hasn’t even scratched the surface of the potential boost to global economic parity and inclusion. A segment that has a rich and long history of entrepreneurship, partnerships, inventions and service rendered to their host nation. The national data will show the statistical benefits to consider this strategy. From 2002 to 2007, the number of black-owned businesses increased by 60.5 percent to 1.9 million, more than triple the national rate of 18.0 percent, according to the U.S. Census Bureau's Survey of Business Owners. Over the same period, receipts generated by black-owned businesses increased 55.1 percent to $137.5 billion. “Black-owned businesses continued to be one of the fastest growing segments of our economy, showing rapid growth in both the number of businesses and total sales during this time period,” said Census Bureau Deputy Director Thomas Mesenbourg. These new data come from the Survey of Business Owners: Black-Owned Businesses: 2007. The survey provides detailed information every five years for black-owned businesses, including the number of firms, sales and receipts, number of paid employees and annual payroll. Data are presented by geographic area (nation, state, county, city and metro area), industry and size of business. Preliminary national and state data were released in July 2010. In 2007, nearly four in 10 black-owned businesses operated in the health care and social assistance; and repair, maintenance, personal and laundry services sectors. The retail trade and health care and social assistance sectors accounted for 27.4 percent of black-owned business revenue. Among states, New York had 204,032 black-owned businesses and accounted for 10.6 percent of the nation's black-owned businesses, followed by Georgia, with 183,874 black-owned businesses (9.6 percent) and Florida, with 181,437 (9.4 percent). Among counties, Cook, Ill., had the most black-owned businesses, with 83,733, accounting for 4.4 percent of all the nation's black-owned businesses.   29  

Los Angeles followed with 59,680 (3.1 percent) and Kings, N.Y., with 52,705 businesses (2.7 percent). Among cities, New York had the most black-owned businesses, with 154,929 (8.1 percent of all the nation's black-owned businesses), followed by Chicago, with 58,631 (3.1 percent), Houston, with 33,062 (1.7 percent) and Detroit, with 32,490 (1.7 percent). Other highlights: • Of the 1.9 million black-owned businesses in 2007, 106,824 had paid employees, an increase of 13.0 percent from 2002. These businesses employed 921,032 people, an increase of 22.2 percent; their payrolls totaled $23.9 billion, an increase of 36.3 percent. Receipts from black- owned employer businesses totaled $98.9 billion, an increase of 50.2 percent from 2002. • In 2007, 1.8 million black-owned businesses had no paid employees, an increase of 64.5 percent from 2002. These nonemployer businesses' receipts totaled $38.6 billion, an increase of 69.0 percent. • The number of black-owned businesses with receipts of $1 million or more increased by 35.4 percent to 14,507 between 2002 and 2007. The Survey of Business Owners defines black-owned businesses as firms in which blacks or African-Americans own 51 percent or more of the equity, interest or stock of the business. Additional reports from the survey highlighting other minority- and veteran-owned businesses will be issued over the next year. Subsequently, separate publications will be issued highlighting additional characteristics of all businesses and their owners. August 2015 will be the release of the next report on Black owned businesses. http://www.census.gov/newsroom/releases/archives/business_ownership/cb11- 24.html So why aren’t there currently ANY organizations focusing on Minority Business Development in Columbia, MO? The reason that there aren’t currently any organizations that are focusing on economic inclusion for minorities is simply because, there isn’t any national, regional focus on cities smaller than 250,000 population. We found only two cities that had a focus and it was simply because of the grit, innovation, creativity and a collective group of African-American businesspersons. The normal occurrences are in major metropolises, which have figured out simply that there is much power in inclusion.   30  

The only cities that have a focus is because of this organization: The Minority Business Development Agency (MBDA - mbda.gov) is a bureau at the U.S. Department of Commerce who serve minority entrepreneurs across America who are building and growing enterprises. MBDA helps minority-owned firms become better equipped to create jobs, impact local economies and compete successfully in domestic and global marketplaces. With a nationwide network of business centers and strategic partners, MBDA assists minority entrepreneurs and business owners with consulting services, contract and financing opportunities, bonding and certification services, building business-to- business alliances and executive training. Very similar to the SBDTC, but they have a focus specifically on Minorities and not just Disadvantaged businesses. Best national examples of harnessing the Power of Inclusion: Mid-South Minority Council Continuum (MMBC), Memphis, TN   One of the greatest examples happened in 2009 when The Mid-South Minority Business Council Continuum (MMBC) set out to prove that the power of economic inclusion which involves institutionalizing diversity and inclusion throughout a corporation. Literally integrating it into the fabric of the organization. Nine corporations participated in the Model Diversity Corporation Initiative (MDCI) including: - AutoZone - FedEx Express - First Tennessee - Memphis- Shelby County Airport Authority - International Paper - Methodist Le Bonheur Healthcare - Pinnacle Airlines - ServiceMaster - St. Jude Children's Research Hospital. Senior purchasing executives from each organization participated in quarterly meetings during the year long pilot. The MMBC Continuum established industry best practices from researching what industry top performers produced in four key areas including: Supplier Diversity, Workforce Diversity, Community Giving and the importance of the Internal Diversity Committee. Industry  Best  Practices:     •  Establish  a  robust  supplier  diversity  program         •  Build  a  diverse  workforce  that  mirrors  the  demographics  of  the  community     31  

•  Establish  a  formal  internal  diversity  committee         •  Position  community  giving  towards  causes  that  have  the  greatest  economic   impact   The  MDCI  pilot  produced  positive  results  in  spite  of  trying  economic  times.   \"We  have  made  major  accomplishments  over  the  last  year…  We  would  like  to  thank   MMBC  for  helping  us  see  opportunities,  where  the  opportunities  were  and  for  helping   us  shape  what  that  vision  has  become  at  ServiceMaster.\"                             ServiceMaster  Representative     In a press release on April 2012 the U.S. Department of Commerce’s Minority Business Development Agency (MBDA) announced $3.4 million in funding to winners of a grant competition designed to boost job creation and the global competitiveness of minority-owned firms. MBDA National Director David A. Hinson said “One of my top priorities while at MBDA has been to expand the Agency’s reach so more minority-owned firms benefit from the expertise of our business centers,” “Establishing a presence in Memphis strengthens our ability to help the Delta region support minority-owned businesses and boost job creation, key priorities of the Obama Administration.”   Mid-South Minority Business Council ($1.0 million) to operate the MBDA Business Center in Memphis Memphis was chosen as a new location for a MBDA Business Center because it offers significant opportunity to create new jobs through the growth and global competitiveness of minority-owned firms. Memphis, and the surrounding Delta region, has a notable minority population with a long history of entrepreneurship and innovation. The city is also home to corporate giants Fed Ex, AutoZone, International Paper, and several other Fortune 500 companies. Mitsubishi is slated to open a production plant in 2013, confirming that Memphis is consistently ranked among the best places to conduct business. “Minority business development is critical to the success of the Memphis community and the future development of our country. As the first MBDA Business Center in the State of Tennessee, we are strategically located to provide greater impact and opportunities to serve minority businesses. The Mid- South Minority Business Council Continuum (The MMBC Continuum) has a proven track record for helping minority firms grow to scale and now we have the expertise and resources of the Minority Business Development Agency at our fingertips. This is a great opportunity for the City of Memphis, Shelby County, the State of Tennessee and the Delta region,” said Luke Yancy III, president & CEO of The MMBC Continuum.   32  

http://www.mbda.gov/pressroom/press-­‐releases/minority-­‐businessdevelopment-­‐ agency-­‐awards-­‐34-­‐million-­‐grants-­‐boost-­‐job-­‐creation   The U.S. Department of Commerce’s Minority Business Development Agency (MBDA) has just released its annual performance report for fiscal year 2012 reports Black America Web. According to the data, MBDA and its national Business Centers aided “several” minority owned businesses receive more $3.6 billion in contracts and capital. On top of this, some 17,000 jobs were created or retained, which is a new record in the agency’s 44 years. But while the MBDA is impressed with the results, the organization concedes more needs to be done. “While we have made significant progress, much work remains to ensure that opportunities to prosper are open to all entrepreneurs who are pursuing the American dream, especially our minority business owners,” said David A. Hinson, MBDA National Director, in a press statement. Apparently changes the MBDA made last year proved positive. The MBDA restructured for fiscal year 2012 and allowed for more nationwide Business Centers to run programs in Alaska, California, Tennessee, North Dakota and New Mexico. There are currently 40 such Business Centers operating, reports Black America Web. According to the MBDA, certain states have more minority-owned businesses. Minority-owned businesses in 2012 were mainly in California, Texas, Florida and New York, representing 55 percent of all minority owned businesses in the United States. And, among the top four states, Texas and Florida gained a larger concentration of minority owned businesses, increasing from 12 percent in 2002 to 13 percent in 2007, and from 10 percent in 2002 to 12 percent in 2007, respectively. We have the opportunity for similar partnerships in the Mid-America region.                           33  

How  to  Start  Your  Business  Workshop     We were asked what could be done to assist the SBTDC with facilitation of one or more “How To Start Your Business” Workshops at times and locations that will support the needs of African-American individuals. We assessed the current workshops that the SBTDC are doing now and the locations and time. We think that the current topics are excellent, fulfilling and professional. We did discover some adjustments that could be offered to enhance attendance at the current classes and offer suggestions for ones designated specifically for African-American businesses. Here is the current list of classes offered by the SBTDC. • Writing a Business Plan: The First Step to a successful business • Exploring Entrepreneurship • Customer Service: Taking Care of Customers • Understanding Financial Statements For Informed Executive Business Decisions • Rev Up Your Relationships, Referrals and Revenues with Email Marketing • Building Your Credit – A Personal And Business Asset • Internet and Digital Marketing • Pricing Your Products and Services Right There are some day, afternoon and evening classes to match all of the needs. The location is consistent, being at the SBTDC. The cost varies from $25 to $79 per class. We would like to share some of the pros and cons of the current system and how a positive for most, is actually seen as a negative for various cultures. Pros: Cons: Great central location Blacks aren’t aware of current location Prices are affordable Blacks aren’t aware of the skill level of the staff The times are various Consistent set times works best for Blacks Cover lots of topics Too technical for current & start up businesses We found that the title “Workshop”, “Classes”, “Instructor” and “Teacher” are major turn offs to African-American businesspersons and young adults seeking to start a new business venture. So BSA have done some research for the SBTDC can consider when creating learning environments for African-Americans, in order to support and initiative the Economic and Minority Inclusion plan. We don’t recommend any changes to your current programs. We do recommend adding some programs that cater specifically to minorities’ businesspersons.   34  

How  to  Start  Your  Business  Workshop   Urban  Learning  Labs:  Social  Incubator   One of the first things that has to happen is that each person has to be valued and supported, because in the age of social media, people that you come in contact with will be an ally or a critic, once they step out of the door. If they don’t feel safe, if the interaction doesn’t feel genuine, and if there is not consistent follow through and follow up, the relationship, with the whole community will erode. So there has to be a commitment to start, and then stay consistent with the efforts of the organization. We have found that the word – URBAN is highly receptive. We have also found that the word LEARNING – is also highly receptive for African-Americans and no matter the education level, people were quick to share that they love to learn, especially information that is pertinent to their success. The word LAB – is highly receptive for African-Americans and it shows that the environment is open to their ideas, that it is a consultative process, and that they can expect a transformation, by the time that they leave. It is also somewhere that they will come back to and frequent often, in order to check on progress, whether it is on their knowledge base, a business idea, or their own personal goal acquisition. We also think that we should create two separate tracks of thought. Urban Learning Labs should focus on connecting with African-Americans who are interested in starting a business and also focus on aiding those that are already in business to grow their businesses. This way, everyone who enters the process has a place, and aren’t directed away from starting a business, but they will learn how they “are” their businesses and how assisting them to be better individuals, will also assist their businesses to be aligned for growth and success. The current model shares that the very first step to a successful business is a business plan. That is true but we have found that there are a few other steps, that precede the creation of the business plan and we think that these steps, are the way to address the lack of minority inclusion in Columbia, MO. Some of these elements that will should be considered and covered in the Urban Learning Labs for beginning entrepreneurs are as follows: • Develop a Life Plan - what plans do you have for you - purpose - Big goals • Develop a Financial Plan – price your goals and assess your needs – Big vision • Who are your paying customers – earning an independent living – Big dreams. • Develop a Business Plan – Step by Step – from Idea to Reality – Big Plans • Launch Your Business – whether FT or Moonlighting – Big Actions • Track your progress – mentor the business – Minority and Corporate Sponsor   35  

New Pay Structure - $5 off for every person that you bring with you to the Lab – Team Building Exercise – helps them to create their team and spreads the brand. Some of these elements that will should be considered and covered in the Urban Learning Labs for veteran, serial or social entrepreneurs are as follows: Business Growth Portfolio – end using the phrase business plans with these individuals. It is not effective and doesn’t catch their attention at all. These are efforts to assist minority businesses how to grow and develop, and to navigate the barriers to growth. • High  Growth  Industries  –  how  to  find  the  money   • The  Art  of  Networking  with  Non-­‐Minority  Firms   • Crossing  the  Digital  Divide  –  using  computers  to  make  my  company  money   • How  Do  I  Manager  Employee’s  –  growing  from  a  Sole  Proprietor  to  a  Company   Innovative  Development  Approaches   There  are  a  number  of  innovative  development  approaches  that  the  SBTDC  can  use   their  relationship  with  REDI  sponsors  and  regional  businesses  to  strengthen  the   minority  business  community.    Following  is  a  brief  description  of  some:   Spin-­‐offs—a  corporate  operating  division  is  divested  to  a  minority  businessperson   and  the  corporation  assists  in  managing  the  business  for  a  short  period  of  time   before  transferring  ownership  to  the  minority  business.   Acquisition  for  Transfer  to  Minority  Ownership—a  corporation  purchases  a   business,  assists  a  minority  businessperson  in  managing  the  business  for  a  limited   period  of  time,  and  then  transfers  ownership  to  the  minority  businessperson  with   favorable  payment  terms.   Joint  Venture—a  corporation  and  minority  business  work  together.  The   corporation  may  use  its  financial  support  and  the  minority  business  provides  the   technical  expertise  or  human  resources  to  manage  the  new  venture.  The  two   continue  working  together  until  the  venture  can  be  transferred  to  the  minority   businessperson.   New  Ventures—minority  business  and  corporate  partners  identify  promising   business  opportunities  and  establish  an  in-­‐depth  business.  The  corporation  assists   the  minority  business  for  a  period  of  time  before  turning  the  venture  over  to  the   minority  business.   Non-­‐Traditional  Purchasing  or  Sourcing—a  corporation  seeks  areas  within  the   company  that  may  have  low  or  no  minority  participation  (i.e.,  accounting,  legal,   professional  consulting,  financial  management)  and  pursues  proactive  methods  of   inclusion.     36  

Second  Tier  Purchasing/Contracting—a  corporation  strongly  encourages  or   requires  its  primary  suppliers  to  develop  a  minority  business  development  program   and  award  a  percentage  of  its  subcontracting  opportunities  to  minority  businesses.   Technical  Assistance—a  corporation  provides  assistance  and/or  training  to  the   minority  business,  accelerating  in  a  particular  area(s)  to  increase  competitiveness   and  the  ability  to  bid  more  effectively  for  the  corporation’s  business.   Strategic  Alliances—a  corporation  and  a  minority  business  team  up  on  one  or   more  projects  to  enhance  the  capabilities  of  each  to  win  a  contract,  service/manage   a  contract  or  develop  a  product/service.  The  strategic  alliance  produces  a  stronger,   more  effective  temporary  or  part-­‐time  partnership  that  is  mutually  beneficial.   Outsourcing—a  corporation  identifies  a  function(s)  not  directly  related  to  their   core  business  and  contracts  the  responsibility  of  that  division  or  support  service  to  a   minority-­‐owned  company.  The  transaction  may  include  a  contract  with  the   corporation  to  assist  with  the  first  year(s)  of  operation.  Common  outsourcing   examples  are  human  resources  services,  temporary  employment  services,  cafeteria   management,  print  shop  and  mailroom.   We found that the following locations are receptive to the Urban Learning Labs or current Workshops.   Locations: Douglass High School The Health Department University of Missouri – Business Wing Douglass Park Shelter – spring and summer – youth focused SBTDC Training Center Local African-American Businesses We also found that the best place to advertise any events would be at all of the local barbershops and hair salons. This would reach roughly 65% of the local African-American population and would compliment the offline and online branding campaign. Times: We have found that the best time for attendance for young adults is during the day, and early evenings from 4-630pm. Tuesday, Thursday and Saturday were the best days. We have found that the best time for working adults is early evening from 530- 730, on Tuesday, Thursday, and Friday. If there is anything on the weekend, there was more openness 4-hour event or lab, than a 2-hour event.   37  

We attached the following articles for consideration in connecting with the current African-American businesses in Columbia, MO and Boone County. Why Do Some Minority Firms Grow Faster than Others A great deal of research has been conducted on the differences in performance between minority-owned and nonminority owned firms. However, almost no research explains why some minority-owned firms grow faster than others. This article looks specifically at Gazelle Index surveys results that examine differences between high-growth and low growth black-owned firms. High-growth firms are defined as those, which achieved a 20% or greater annual employment growth over a three-year period. Surprisingly, we found very few significant differences in the characteristics of African American entrepreneurs who operated high-growth and low growth firms. For example, both groups had higher than average levels of education and experience. Hence, these factors did not account for differences in rates of growth. We next explored whether there were significant differences among high-growth and low growth black entrepreneurs in other areas such as strategic management practices such as commitment to innovation, business planning and similar factors. The Gazelle Index findings were surprising because we are accustomed to believing that factors such innovation and education explain differences in growth outcomes. However, we did not find 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; • 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 In other words, the factors listed above were equally important for black entrepreneurs who operated high-growth and low-growth companies. More specifically, while product and service innovations were crucial to achieving   38  

business performance goals, innovation alone could not explain why some black- owned firms achieved high growth status while others did not. In contrast, we found that African American entrepreneurs who owned high- growth companies were more likely to differ from the owners of low growth companies in the following ways: • 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; ▪ They spent less time focusing on their competitors, and ▪ Younger entrepreneurs operated their companies. The lesson from this research is that if you wish to grow fast, you must plan for it and make your operations more efficient. http://www.ncimed.com/index.php/business-development/women-business- center/85-features/ncimed-featured/147-why-some-minority-business-grow- faster-than-others Utilizing  the  Technology:  Crossing  the  Digital  Divide   It  is  not  that  larger  minority-­‐owned  businesses  don’t  understand  the  importance  of   computer  technology.  In  fact,  a  recent  U.S.  Department  of  Commerce  report  found   that  more  than  90  percent  of  minority-­‐owned  firms  with  more  than  $500,000  in   revenue  used  computers  in  their  business  and  were  about  as  likely  as  majority-­‐ owned  businesses  to  offer  a  company  website.      Rather,  a  problem  arises  because   minority-­‐owned  businesses  don’t  yet  fully  utilize  technology  to  create  productivity   gains,  enhance  their  capabilities,  and  ultimately  generate  more  revenue.  For   example:   • A  study  of  small  businesses—the  majority  of  which  were  owned  by  minorities—   located  in  Southern  California  found  that  the  larger  the  employee  base  of  a   business,  the  greater  the  likelihood  that  the  company  utilizes  the  Internet.     • Analysis  conducted  by  the  Urban  Institute  indicated  that  the  “computer  intensity”   in  small  firms  increases  in  correlation  with  the  owner’s  familiarity  and   personal  involvement  with  technology—as  well  as  the  number  of  workers  at   the  firm.     • Moreover,  a  majority  of  small  businesses  indicated  that  affordability  was  not  the   major  issue  in  utilizing  technology  effectively.  Indeed,  the  study  found  that   many  firms  admit  they  are  not  effectively  utilizing  the  technology  they   already  own.       39  

• IT  solutions  have  in  fact  been  utilized  for  administrative  and  accounting  functions   at  some  minority  businesses,  creating  modest  gains  in  productivity.     The  primary  barrier  limiting  computer  usage  at  minority-­‐owned  firms  was  a  lack  of   the  skills  necessary  to  utilize  the  technology  efficiently.    The  Urban  Institute’s   analysis  indicates  that  if  larger  firms  owned  by  women  and  minorities  invested  not   just  in  purchasing  technology  but  in  fully  exploiting  its  advantages  and  translating   them  into  productivity  gains,  the  firms  as  a  whole  could  realize  as  much  as  $100   billion  to  $200  billion  in  additional  revenue—without  expanding  the  workforce.    U.S.  Department  of  Commerce,  MBDA,  Minority  Businesses’  Use  of  Internet  Technology:  A   IPnrsetliitmutine,a  Wrya  Csahsine g  Sttound,y  D  oCf.   L     arge  Firms,  July  2001.  Prepared  by  The  Tomas  Rivera  Policy   Robert  I.  Lerman,  Caroline  Ratcliffe,  Harold  Salzman,  Douglas  Wisocker,  and  Jennifer  Gaudet,   Can  Expanding  the  Use  of  Computers  Improve  the  Performance  of  Small  Minority  and  Women-­‐ Owned    Enterprise  ,  (The  Urban  Institute,  March  2004).     According  to  the  Yodle  Inc  survey  it  shared  the  following  concerns  of  African-­‐ American  businesses  owners:       Their  top  professional  worries  include:     • Finding  new  customers  (42  percent)   • Affording  health  care  and  other  employee  benefits  (39  percent)   • Keeping  current  customers  (33  percent)   • Paying  bills  for  the  business  (33  percent)     More  than  six  in  ten  respondents  (61  percent)  also  stated  they  think  the  Affordable   Care  Act  will  have  a  negative  impact  on  small  businesses.         The  top  personal  concerns  for  small  business  owners  are:     • Affording  health  care  (48  percent)   • Saving  for  retirement  (46  percent)   • Providing  an  adequate  lifestyle  for  their  family  (33  percent)       How  to  Prepare  for  Growth:  the  latest  trends   The  industries  where  hiring  will  be  strongest  are  as  follows:  Information  Technology,   52.9%  of  businesses  will  hire;  Construction,  50%;  Management  and  Administrative   Services,  42.2%;  Health  Care  and  Education,  38.5%;  Retail  Trades,  33.3%.  Industries   where  businesses  will  cut  the  most  include  Transportation  and  Warehousing,  and   Professional  and  Technical  Services.     40  

Methodology  –  creating  the  Black  Business  Database   Byndom, Stanton and Associates (BSA) were commissioned by the Regional Economic Development, Inc to create a realistic database of African-American businesses in Columbia, Missouri and Boone County. We created a data collection outreach process program that consisted of the following efforts: Direct contact: we personally visited the well-known streets (such as Vandiver Drive, Rangeline Rd, Big Bear Blvd and Fay Streets) in Columbia, Missouri that are known to frequent minority businesses – see map. Our conversation consisted of gathering their data, business cards, and asking them general questions about the local economy and found out their awareness of the SBA and SBTDC, and assess their general needs, and their thoughts and feelings on their place in the local economy. Traditional Sources: we reviewed all of the available phone books and directories to discover businesses. One of the challenges was that if we weren’t already aware of the business name, and that a minority owned the business, it was almost impossible to determine that without talking to every single business. The phone books were very useful in verifying phone numbers. Social Media: we started casual but very focused conversations on various social media hubs like Facebook, Twitter, LinkedIn, about minority businesses in the area. Once this conversation was started, we were able to follow leads and connect with many friendly people, who were aware of minority businesses in Columbia. This was made easier by the wide social media presence we have, consisting of over 10,000+ contacts. Online: we looked on the world wide web to see if we could finding more information on the present businesses, and to see if there was any portal available for minority businesses in Columbia or Boone County. It seems that there is a huge divide, with more than 60% of the businesses in the database, lacking any type of online presence and over 30% of them lacking a business email address. Attended Local Business Events: we frequented the First Friday events for local Business networks, connected to Black Fraternities and Networks, like the Minority Men’s Network. First Friday events are an important, and consistent tool use by the minority business and community leaders to socialize, conduct casual alliances and to connect and possibly mentor new members. It’s a chance to see success and to be approachable. Attendance is normally mostly minority men, but there has been a resurgence of women to participate as well, since 2012. There is an even mix of entrepreneurs, business professionals and the mid to upper socioeconomic classes. We attended all special events, such as the Black and White Ball where all local high school graduates of the African-American   41  

community celebrate their accomplishments and come together to connect as a whole community. This event happens bi-annually. We also attended all activities that expected to have vendors and any type of a business feel. Federal Government: we started by talking individuals whose job and duty it is to collect this type of data. Most of them directed us to their website and online archives for more information. This was the trend for most organizations and surprisingly a few of them shared the need for a solution to the data collection processes in general, especially on the local level, in most cities. Two mentioned the need for support of a State Disparity Study, that could give a better viewpoint but it’s seeking support for funding. (One person said that this was completed, but we couldn’t find any data or evidence of this) We were informed that there was data collected online for DBE’s (Disadvantaged Business Enterprises) and SBD’s (Small Disadvantaged Businesses) and MBE (Minority Business Enterprises) and WBE’s, which were (Woman=Owned Business Enterprises. Recommendations for the database usage We found at least 50 different ways that public and private sector organizations presented and utilized their minority databases, mostly which were Minority Business Enterprises (MBE), and Women Owned Business Enterprises (WBE). We recommend to the SBDTC and REDI to create a place on their current websites, which can become a portal for all present and future minority businesses. One of the best examples, which is from the State of Colorado website, is located below as a possible template. It can also be used to direct the businesses to the SBTDC, which can in turn nurture and advance the relationships with the support organizations and the minority businesses. FINDING MINORITY & WOMEN-OWNED BUSINESSES List your minority-owned business in our extensive searchable database of minority and women-owned businesses that we promote. You can add or modify a listing using the links below or buttons on this page. Our database makes it easy for people to find your company. You can also do a search for minority and women-owned businesses. • Search Minority Business Database • Add Company to Minority Business Database • Modify your listing in the Minority Business Database If you would like to receive information about upcoming events and other helpful information for minority-owned businesses, sign up for our eNews. *Please note: Adding your business to our database does not register your business with the State of Colorado. You must contact the Colorado Secretary of State’s office   42  

for official state registration at www.sos.state.co.us. http://www.advancecolorado.com/business-colorado/minority-women-owned- businesses/finding-minority-women-owned-businesses Starting a minority support campaign – support local minority businesses, and create a share various newsletter from organizations with seeking connections with this demographic. Benefits  to  Economic  Empowerment   Throughout  its  evolution,  minority  business  development  has  grown  significantly  in   importance.  Yet  the  primary  rationale  for  continuing  to  grow  and  develop  minority-­‐   owned  firms  has  remained  the  same,  grounded  in  three  fundamental  tenets.     Minority  business  development  fosters  economic  development—particularly  in  the   inner  city,  where  minority  populations  are  predominant.    Typically,  minority   businesses  employ  minorities;  hence  the  growth  and  development  of  these   businesses  is  linked  inextricably  to  the  economic  growth  and  development  of   minority  communities.  Strong  minority-­‐owned  businesses  operating  in  growth   industries  therefore  could  serve  as  a  powerful  new  infrastructure  for  inner-­‐city   economies,  which  themselves  contribute  critically  to  the  overall  economic  growth  of   the  United  States.     Minority  groups  have  long  been  growing  as  a  percentage  of  Americans—and  are  on   the  verge  of  becoming  the  majority  of  the  population.  Major  ethnic  minority   groups—African  Americans,  Asian  Americans,  Hispanics,  and  Native  Americans— will  account  for  40  percent  of  the  U.S.  population  by  2050,  according  to  projections   by  the  U.S.  Census  Bureau.  This  shifting  demographic  warns  the  business  sector  that   both  its  future  employee  base  as  well  as  its  future  customer  base  will  increasingly  be   drawn  from  ethnic  minority  groups.    The  implication,  therefore,  is  that  continued   economic  progress  hinges  on  the  ability  to  effectively  integrate  minority  consumers   into  the  mainstream  of  American  business—both  as  employees  as  well  as   entrepreneurial  partners.     As  minority  businesses  expand,  their  founders  and  CEOs  will  emerge  as  an  insightful   and  powerful  cadre  of  new  business  and  civic  leaders.  Today,  minority  business   leaders  don’t  always  get  to  contribute  to  and  shape  policy,  public  dialogue,  and   private  development—leaving  our  nation’s  assets  underutilized.  Minority  business   leaders  hold  the  key  to  enhanced  economic  success  because  they  serve  as  a  bridge   between  the  corporate  world  and  minority  groups.  As  their  experience  and  power   expand,  they  will  be  poised  to  aid  corporations  in  tapping  the  value  of  both  a   minority  workforce  and  minority  suppliers.    Moreover,  they  will  also  inject  a  fresh   perspective  and  new  approaches  into  the  overall  business  sector.  At  the  same  time,   they  can  link  fellow  minorities  and  minority  entrepreneurs  to  much-­‐needed   corporate  resources:  capital,  markets,  jobs,  and  know-­‐how.     43  

The  following  is  just  a  list  of  benefits  for  implementing  this  Economic  and  Minority   Inclusion  Plan  in  Columbia,  MO.       • Driving  significant  economic  development  for  the  community     • Creating  meaningful,  lasting,  and  higher-­‐paying  jobs     • Providing  a  cost-­‐competitive  and  highly  capable  supply  base  for  major  corporations  and   government     • Providing  procurement  opportunities  for  smaller  minority-­‐owned  businesses     • Developing  opportunities  for  younger  entrepreneurs  to  identify  growth  prospects  and   develop  businesses  of  size     • Creating  wealth  for  minorities     • Fostering  a  new  cadre  of  leaders  to  further  support  the  historic  community/civic   leadership.   • New  minority  and  non-­‐minority  elected  officials  who  are  highly  supportive  of  growth   among  larger  minority  businesses     • A  critical  mass  of  minorities  in  line-­‐management  positions  within  large  corporations  that   are  willing  and  able  to  manage  and  grow  businesses  of  size     • The  growing  number  of  well-­‐educated  and  trained  minorities  who  are  able  to   participate  in  the  deal  flow  through  the  financial  community.     • A  myriad  of  minority  entrepreneurs  who  can  grow  and  diversify  their  businesses  if   afforded  the  right  opportunities  and  resources     • A  small  but  effective  cadre  of  minority  entrepreneurs  who  are  willing  and  able  to   conduct  large  deals  with  other  minorities,  non-­‐minorities,  and  offshore  partners.   • Accelerating  job  growth     • Rebuilding  inner  cities     • Enhancing  local,  state  and  federal  tax  bases     • Building  a  larger  and  more  viable  customer  base     • Creating  a  new  model  of  leadership  for  youth.       African-­‐Americans’  buying  power  is  expected  to  reach  $1.1  trillion  by  2015,   according  to  The  State  of  the  African-­‐American  Consumer  from  Nielsen  and  the   National  Newspaper  Publishers  Association  (NNPA),  a  federation  of  more  than  200   Black  community  newspapers  across  the  U.S.  This  growing  economic  potential   presents  an  opportunity  for  Fortune  500  companies  to  examine  and  further   understand  this  important,  flourishing  market  segment.  Likewise,  when  consumers   are  more  aware  of  their  buying  power,  it  can  help  them  make  informed  decisions   about  the  companies  they  choose  to  support.     GROWING  ~5%  ANNUALLY,  MINORITIES  WILL  ACCOUNT  FOR  40%  OF   POPULATION  BY  2050!     44  

The  Path  to  the  Future     Diversify  or  expand  into  growth  industries.  Minority-­‐owned  businesses  account  for   a  larger  percentage  of  low-­‐growth  businesses,  such  as  personal  services,  food  stores   and  restaurants,  than  the  general  business  community.  These  low-­‐growth  business   sectors  represent  nearly  30  percent  of  all  employment  in  minority-­‐owned  firms  vs.   17  percent  in  non-­‐minority  firms.  Current  estimates  show  that  there  are  only  20-­‐25   minority-­‐owned  businesses  with  revenues  exceeding  $500  million.  Minority   entrepreneurs  need  to  focus  on  opportunities  in  high-­‐growth  industries  such  as   information  technology  and  pharmaceuticals.   Grow  beyond  the  \"sole  proprietor\"  business  ownership  model.  A  disproportionate   number  of  minority  firms  operate  as  sole  proprietorships.  For  example,  82  percent   of  minority-­‐owned  firms  are  sole  proprietorships  versus  71  percent  for  non-­‐ minority  firms.  To  move  to  the  next  level,  these  firms  must  shift  from  a  \"100  percent   CEO\"  model  to  a  model  incorporating  strong  managers  who  will  provide  the   capabilities  necessary  for  sufficient  growth.   Focus  on  better  utilizing  value-­‐added  products  and  services.  Revenues  per   employee  in  many  minority-­‐owned  firms  are  substantially  lower  than  comparable   majority-­‐owned  firms.  In  the  manufacturing  sector,  majority-­‐owned  firms  generate   1.5  times  more  revenue  per  employee  than  do  minority-­‐owned  firms,  whose   products  also  tend  to  have  a  lower  value  added  component  -­‐  and  therefore  lower   margins.  This  gap  exists,  in  part,  due  to  majority-­‐owned  businesses  more  effective   use  of  technology,  computer-­‐aided  design  (CAD)  and  other  automation  to  enhance   employee  productivity.   Expand  the  use  of  mergers,  acquisitions  and  strategic  partnerships.  Because  many   minority  businesses  are  smaller  with  fewer  resources,  they  often  have  made  limited   use  of  alliances  and  partnerships  with  majority  companies  and  among  themselves.   Minority-­‐owned  firms  that  have  formed  these  alliances  frequently  have  improved   performance  and  experienced  growth.   Utilize  the  capabilities  of  the  financial  markets.  Historically,  minority-­‐owned   businesses  have  avoided  pursuing  private  and  equity  financing,  often  because  of   limited  options.  Financiers  now  understand  that  funding  minority-­‐owned   businesses  can  offer  lucrative  investment  opportunities,  allowing  minority-­‐owned   firms  to  take  advantage  of  new  opportunities  to  access  the  financing  necessary  to   grow  their  businesses.   Respond  to  major  trends  in  supply  chain  management.  There  are  clear   opportunities  for  minority-­‐owned  firms  to  take  advantage  of  alliances  and  other   relationships  with  major  corporations  to  leverage  the  power  of  more  sophisticated   supply  chain  management  strategies  needed  to  compete  in  today's  global   marketplace.     45  

A  new  agenda  for  growing  minority  businesses  requires  support  from  multiple   players  including  major  corporations,  government  at  all  levels,  foundations,   academic  institutions  and  most  importantly,  the  minority  businesses  themselves.   The  report  concludes  that  these  combined  efforts  are  now  needed  to  capture  the  full   potential  of  America's  fastest  growing  population  demographic.  The  creation  of  a   new  cadre  of  business  and  civic  leaders  and  entrepreneurial  partners  will  foster   increased  economic  development  (particularly  in  inner  cities)  and  enable  minority-­‐ businesses  to  fully  compete  in  the  global  marketplace.   The  following  Closing  Summary  is  adapted  from  the  THE  NEW  AGENDA  FOR   MINORITY  BUSINESS  DEVELOPMENT  -­‐  Prepared  by  The  Boston  Consulting  Group  June   2005.    We  submit  this  report  for  further  study  as  one  of  the  first  steps.    This  should  be   used  in  conjunction  with  the  findings  of  our  full  report.                                                                         46  

      The  Bottom  Line     The  Authors  have  breathed  minority  and  economic  inclusion  from  our  inception.     Both  social  entrepreneurs,  Tyree  Paladon  Byndom,  and  Anthony  E.  Stanton,  have   spent  many  a  knee  learning,  learning  the  history  of  CoMo  from  the  Elders,  White  and   Black,  through  oral  tradition  and  lore.    Gleaning  the  past  legacies  with  the  use  of   technology,  and  a  resurgence  of  citizen  journalism  and  scholarly  pursuits.    But  they   didn’t  realize  it,  that  until  being  directly  challenged  by  Mayor  Bob  McDavid,  to   “provide  a  solution  to  job  creation”  at  the  City  Council  meeting,  of  the  nullification  of   the  EEZ  Board  Resolution,  what  was  really  at  stake.    The  process  that  we  went   through,  even  though  filled  with  rancor  and  dissension,  brought  all  of  us  to  the  table,   and  forced  us  to  dialogue,  research,  collect  data,  and  seek  solutions  to  our  many   issues.    It  unexpectently,  and  surprisingly,  made  us  shine  a  spotlight  on  our  reality,   seek  our  opportunities,  discover  our  challenges  and  create  respect,  and  in  certain   instances,  forge  friendships.    It  matured  all  of  us.    We  were  united  to  a  specific  focus   as  a  community,  and  we  found  that  everyone,  no  matter  on  what  side  you  found   yourself  on,  whether  issue-­‐based,  job,  race,  socially,  economically  or  politically   based,  cared  about  safety,  cultural  competency  and  job  creation,  as  well  as   community  pride  and  that  “Tiger”  spirit.    The  Authors  researched  and  read  over   3,000  articles,  read  at  least  50  books  and  publications,  talked  to  over  300  members   of  the  community,  discussed  the  current  methods  of  enhancing  the  economy,  from   the  local,  regional,  national  and  global  perspectives,  and  then  tailored  some  possible   considerations  for  the  City  of  Columbia  and  Boone  County  Missouri,  the  Institutions   and  Organizations  in  the  region,  mild  but  specific  strategies  for  REDI,  the  SBTDC,   SBA,  and  the  Chamber  of  Commerce,  and  offered  some  of  the  latest  guidance  to   support  the  process  of  developing  of  minority  businesses  of  size,  to  the  Major   Corporations,    educated,  prepared  and  gained  the  attention  of  all  of  the  African-­‐ American  businesses  in  the  region.      The  Authors  share  this  because  we  get  the   feeling  that  the  majority  of  the  citizens  in  CoMo,  are  aware  that  something   happened,  but  was  unsure  that  we  learned  anything  from  it,  or  that  any  effort  was   being  made  to  address  all  of  the  concerns.    This  contract,  between  BSA  and  REDI,   was  an  effort  make  amends  with  the  past,  to  gain  trust,  see  the  humanity,  past  all   division,  and  to  step  forward  as  a  true  community.    United  in  our  thoughts  and   views,  trusting  in  each  other,  focused  on  community  betterment  and  the  pursuit  of   happiness.        We  have  the  potential  to  use  Economic  and  Minority  Inclusion,  as  a  tool   to  fulfill  the  American  Dream,  for  all  citizens  to  achieve  a  life  greater  than  poverty,  of   whatever  race,  class  or  ethnicity.    And  in  turn,  become  a  City  Leader  in  our  great   Nation.    This  is  nobility  of  purpose.    Maybe  we  are  just  dreamers.           Dedicated  to  Muriel  and  Eliot  Battle,  Annie  Fisher,  Beulah  Ralph,  Dred  Scott,  Lloyd   Gaines,  James  T.  Scott,  John  Lang,  Gill  Akers,  John  W.  Blind  Boone  and  Frederick   Douglass.         BSA Byndom, Stanton and Associates   501 N. Providence Rd (The Heart of CoMo) Columbia, MO | phone (573) 864-6145   www.byndomstanton.com | [email protected] 47