MBDA Summit: Advocacy

On July 6th and 7th, MBDA hosted a meeting of leaders in the minority business community, including program directors and advocates, to review and benchmark progress regarding the state of minority businesses.  The goal of the meeting was to establish a blueprint for minority business development programs that can be implemented by the public and private sectors in the future.

From the meeting, common themes emerged from the conversations.  MBDA is opening the discussion to include a variety of stakeholders in minority business success- we welcome your comments and suggestions.

The question that was asked is this:

What advocay activities and actions do you recommend can be encouraged or taken to promote the economic development and growth of MBEs?

The common themes include the following:

• All of the minority chambers and like-minded groups need to advocate in one single voice.

• The minority chambers and like-minded groups should think about forming a coalition for better unity and strength in numbers.

• Either or both organizations need to be legally allowed to lobby.

• MBDA should play an active role in a new combined chamber organization or coalition.

• The minority business community needs to be trained and educated in advocacy at the federal, state and local level.

• The minority business community needs to be aware of how and when federal, state and local laws are enacted so that they can effectively impact legislation that affects their daily lives.

• Minority business leaders need to connect and meet with lawmakers so they know and understand their issues.

• Minority businesses need strong and frequent economic data to make the business case and back up the advocacy efforts

• MBDA needs to publicize each of their success stories so lawmakers understand the positive impact in their community.

• The private sector needs to be an equal partner in advocacy. They need to tell other companies the benefits of working with minority business.

• MBDA needs the power to enforce the current minority business goals.

• MBDA funded centers need more resources dedicated to outreach and advocacy.

We would appreciate your comments and suggestions on the topic, to see participants specific comments per topic, please click here.

**This post contains the comments provided by participants at the Minority Business Development Agency Summit held on July 6 – 7, 2009 at the Hyatt Regency Washington on Capitol Hill.  Participants provided input on strategy, enforcement mechanisms, and legislation that may assist minority entrepreneurs in the future.  Note-takers memorialized the comments made at each of the tables.  These materials are being provided in raw data format and are for informational purposes only.  The views expressed herein are those of the participants and do not necessarily reflect those of MBDA or of the U.S. Department of Commerce.

MBDA Summit: Emerging Entrepreneurial Opportunities

On July 6th and 7th, MBDA hosted a meeting of leaders in the minority business community, including program directors and advocates, to review and benchmark progress regarding the state of minority businesses.  The goal of the meeting was to establish a blueprint for minority business development programs that can be implemented by the public and private sectors in the future.

From the meeting, common themes emerged from the conversations.  MBDA is opening the discussion to include a variety of stakeholders in minority business success- we welcome your comments and suggestions.

The question that was asked is this:

Given the new market/emerging opportunities for MBEs in the national and global economy, what programs and strategies are needed for MBEs to enter and succeed in these emerging and new industries?

• Provide incentives for larger companies to partner with smaller companies.

• To strengthen competitive advantage, encourage MBE firms to partner with other firms that offer complementary technology.

• Develop a group of 10 business owners in each state capable of entering emerging markets and provide the training, access to capital and other resources needed.

• Federal government should identify new green technology to be used in the future for home and office construction where opportunities can be created for minorities

• Direct MBEs toward ARRA growth industries and encourage teaming.

• Identify top MBE leaders in emerging markets.  Use these leaders as mentors/resources to bring in new MBEs into these markets.

• Work with universities to deploy interns with skill sets that can enhance the growth of MBE firms in emerging technologies

• Identify national/state/local, private and public projects focused on helping MBEs.

• Focus on educating high school students on understanding and identifying on Green and emerging business opportunities

• Expand access to SBIR Program. Reserve a percentage of SBIR Grants for MBEs

• Work with local colleges and universities to create incubators/entrepreneurial centers for emerging technology companies.

We would appreciate your comments and suggestions on the topic, to see participants specific comments per topic, please click here.

**This post contains the comments provided by participants at the Minority Business Development Agency Summit held on July 6 – 7, 2009 at the Hyatt Regency Washington on Capitol Hill.  Participants provided input on strategy, enforcement mechanisms, and legislation that may assist minority entrepreneurs in the future.  Note-takers memorialized the comments made at each of the tables.  These materials are being provided in raw data format and are for informational purposes only.  The views expressed herein are those of the participants and do not necessarily reflect those of MBDA or of the U.S. Department of Commerce.

MBDA Summit: MBE Programs

On July 6th and 7th, MBDA hosted a meeting of leaders in the minority business community, including program directors and advocates, to review and benchmark progress regarding the state of minority businesses.  The goal of the meeting was to establish a blueprint for minority business development programs that can be implemented by the public and private sectors in the future.

From the meeting, common themes emerged from the conversations.  MBDA is opening the discussion to include a variety of stakeholders in minority business success- we welcome your comments and suggestions.

The question that was asked is this:

Given the challenges MBEs have in growing their businesses and in competing in the global economy, what are your recommendations for future programs or strategies which should be implemented to support MBEs in the 21st century?

The common themes from the Summit include:

• Implementation of partnerships with colleges and universities to teach entrepreneurship programs.
• The Creation of a Reciprocal/Universal Certification Process.
• Cross collaboration with Minority Chambers of Commerce, Trade Associations and other business development organizations.
• The need for a unified voice within the MBE Community to advocate on issues impacting their growth strategies.
• Ongoing Training and Development of MBE’s to Build Capacity. (ie. Tuck School of Business, Kellogg, Darden named)
• Recommendation for MBDA to revisit its Executive Order and require OSDBU’s to be accountable, transparent and responsible for procurement purchasing from MBE suppliers.
• SBA size standards need to be increased.
• Providing incentives for public and private sector entities that meet and/or exceed procurement goals.
• Sharing of Best Practices within the MBDA Network and recognition of public/private organizations that demonstrate and lead by example.
• Educate Congress/Policymakers in a unified voice on issues, challenges impacting MBE’s.
• Increased funding for MBDA to offer more programs targeted at building MBE capacity and spurring the U.S. economy.
• Better educate the financial/lending community about the MBDA Programs and Services and establish a referral pool.
• The creation of an Emerging Minority Business Loan Pool.
• More frequent studies on SBO Data — Every 2 years — will require increased funding.
• Making the business case for doing business with MBE’S and the value proposition.

We would appreciate your comments and suggestions on the topic, to see participants specific comments per topic, please click here.

**This post contains the comments provided by participants at the Minority Business Development Agency Summit held on July 6 – 7, 2009 at the Hyatt Regency Washington on Capitol Hill.  Participants provided input on strategy, enforcement mechanisms, and legislation that may assist minority entrepreneurs in the future.  Note-takers memorialized the comments made at each of the tables.  These materials are being provided in raw data format and are for informational purposes only.  The views expressed herein are those of the participants and do not necessarily reflect those of MBDA or of the U.S. Department of Commerce.

MBDA Summit: Legal Landscape

On July 6th and 7th, MBDA hosted a meeting of leaders in the minority business community, including program directors and advocates, to review and benchmark progress regarding the state of minority businesses.  The goal of the meeting was to establish a blueprint for minority business development programs that can be implemented by the public and private sectors in the future.

From the meeting, common themes emerged from the conversations.  MBDA is opening the discussion to include a variety of stakeholders in minority business success- we welcome your comments and suggestions.

The question that was asked is this:

Given the current court challenges to programs targeted for minority-owned businesses, what actions can be put in place to support the growth and expansion of minority-owned businesses in the 21st century?

Below you will find the themes for the topic of “Legal Landscape:”

• Communicate the White House and Administration’s commitment to minority business growth and competitiveness.
• Develop criteria for minority business contracting goals on the federal, state and local levels, and establish and enforce these goals.
• Develop a streamlined and effective federal certification process for minority businesses (HUB Zone, 8(a), and SDB should not exist separately).
• Implement a national research study to discover current barriers to success for minority businesses.
• Develop a national disparity study which demonstrate barriers and gaps in access to government contracts.
• Build a record of evidence of discrimination and barriers into the congressional and legislative record.
• Establish formalized mentoring programs for entrepreneurship starting at the college level and lasting throughout the business lifecycle.
• Create educational programs that focus specifically on procurement within the government contracting arena.
• Consolidate the number of minority business advocacy organizations into one centralized organization which will then partner with MBDA.  Create an agenda for all minorities to speak with one voice.

We would appreciate your comments and suggestions on the topic, to see participants specific comments per topic, please click here.

**This post contains the comments provided by participants at the Minority Business Development Agency Summit held on July 6 – 7, 2009 at the Hyatt Regency Washington on Capitol Hill.  Participants provided input on strategy, enforcement mechanisms, and legislation that may assist minority entrepreneurs in the future.  Note-takers memorialized the comments made at each of the tables.  These materials are being provided in raw data format and are for informational purposes only.  The views expressed herein are those of the participants and do not necessarily reflect those of MBDA or of the U.S. Department of Commerce.

David Hinson appointed new MBDA National Director

WASHINGTON – U.S. Commerce Secretary Gary Locke today announced the appointment of David Hinson, a St. Louis native with more than 20 years of business experience, as the new administrator of the Minority Business Development Agency (MBDA). This agency is the only federal agency created specifically to foster the establishment and growth of minority-owned businesses in the United States.

“The success of minority-owned businesses is essential to our economic recovery, and I’m counting on David to maximize their opportunities,” Locke said.

MBDA, through its network of 48 minority business centers throughout the country, provides one-on-one workshops and business consulting services for minority businesses to help educate them about federal opportunities, including those related to the American Recovery and Reinvestment Act.

“I’m honored to accept this position and am committed to carrying out Secretary Locke’s priority of working with minority entrepreneurs who wish to grow their businesses and increase their capacity,” Hinson said. “This work better positions these companies to create jobs, improve local economies and expand operations into national and global markets.”

In 2008, MBDA negotiated more than $2 billion in contracts and capital for minority businesses. Over the past 40 years, MBDA has served more than 625,000 minority businesses and assisted in securing more than $25 billion in loans and bonding.

Since MBDA’s creation in 1969, minority businesses have grown from 300,000 to nearly 4 million. Recent Census data indicates minority firms generate more than $661 billion in annual revenues and employ nearly 5 million workers.

More information about Hinson is available below.

David A. Hinson Bio

Since 2002, David was President and CEO of Wealth Management Network, Inc., a multi-million dollar independent, financial advisory boutique. Prior to launching Wealth Management Network, David managed a 10-state sales region as Director of Advisory Services for Envestnet Asset Management, a $70 billion financial advisory firm. In his capacity, David advised high-end advisors in asset allocation, portfolio construction, technology, and product implementation. He also served as Managing Director of Business Development for the company. In addition, David has held a variety of senior-level and mid-management positions at Bank of America, Morgan Stanley & Company, and First Chicago Bank (now JP Morgan Chase) and the Village Foundation.

David received an MBA in Finance from The University of Pennsylvania Wharton School, and a bachelor’s degree in Insurance and Finance with honors from Howard University in Washington, D.C. In addition, he completed a fellowship in International Finance with honors from the Stockholm School of Economics and completed graduate-level studies in French with honors at the University of Abidjan, in the Ivory Coast West Africa.

David is a member of a number of civic organizations including a member of the Board of Directors, Treasurer and Chair of the Audit Committee of the Council of Urban Professionals (CUP) in New York. In addition, David has provided on-air financial commentary for CNN, Fox News Channel, CBS News and The BE Report in addition to writing a financial column for The Network Journal and writing personal wealth analyses for Black Enterprise Magazine and Essence Magazine.

David is a native of St. Louis, Mo. and currently resides in Philadelphia, Pa.

New Department of Commerce Initiative to Aid American Businesses to Launch in Detroit

U.S. Commerce Secretary Gary Locke announced a new Obama Administration initiative designed to streamline government bureaucracy and bring services and solutions directly to businesses and entrepreneurs creating and sustaining jobs. Locke made his announcement at the Detroit Economic Club’s National Summit. The new initiative will be launched this summer in the Detroit area.

 Responding both to President Obama’s call to make government more responsive and a once-in-a-generation economic crisis, Locke initiated the effort after seeing how complicated it can be to navigate the alphabet soup of Commerce agencies and programs.

 In the coming weeks, the department will dispatch a team of Commerce experts to begin preparing the launch of the initiative.  The team will consist of representatives who have been cross trained on the wide breadth of programs and activities that the Commerce Department and its bureaus have to offer, programs that can assist a business at nearly every point of its life cycle, whether just getting off the ground or looking to expand into overseas markets.

 “The Department of Commerce is singularly equipped to help American businesses grow and create jobs.” Locke said. “This new initiative will provide a single point of contact for every Commerce program available to business owners and will work with state and local agencies, academia, labor and other key stakeholders to provide a unified, integrated resource to grow and sustain jobs.”

 Locke tapped the director of the Department’s successful Manufacturing Extension Partnership, Roger Kilmer, to lead the effort. Kilmer will be responsible for staffing the new initiative with an interdisciplinary team from across Commerce’s varied agencies. (In fiscal year 2007 alone, the Manufacturing Extension Partnership helped create over $5 billion in new sales for partner businesses.)

 Kilmer’s goal is to unveil by the end of the summer a brick and mortar “one-stop” office in the Detroit area, making more accessible services offered by Commerce’s Patent and Trademark Office, Minority Business Development Administration, National Institute of Standards and Technology and International Trade Administration, among others.

 “Main Street businesses shouldn’t have to hire their own consultant to navigate the federal bureaucracy to get them the very assistance their tax dollars help support,” Locke said. “The Commerce Department has tools to help companies. It’s long past time we made it easier for them to access those resources.”

The on-the-ground experts will be responsible for assessing a business’ full spectrum of needs, whether it’s access to capital, intellectual property protection, export promotion or guidance on how to make operations more efficient.  They will be a partner for Detroit area business owners, allowing them to leverage several different federal programs at once to help companies grow and create jobs.

 Locke also said he would look to partner with additional federal agencies as the initiative progresses and look for new opportunities to cut red tape.

 “If the Detroit pilot program is successful – and we are confident it will be – then Commerce will begin opening other “one-stop” offices throughout the Midwest and across the country,” Locke said.

MBDA currently has a Minority Business Center operating in detroit which can be reached by calling 313.262.7342 or visiting www.mmbec.com

For a Minority Business Center near you, please visit www.mbda.gov

National MED Week Conference and Nominations for Awards Being Accepted

The National Minority Enterprise Development (MED) Week Conference will be held August 26-28 at the Omni Shoreham Hotel in Washington, DC.  The Conference will focus on fostering innovation, competitiveness and opportunities for minority businesses to retool and rebuild America’s Infrastructure under the American Recovery and Reinvestment Act.

The Conference theme is “Energizing the American Economy with Minority Business Enterprises.” In addition to the State of Commerce Luncheon  and the Annual MED Week Awards Gala, the conference will feature a Business EXPO where entrepreneurs can network and share information.  Participants will also attend educational workshops and business networking events with representatives of MBDA, the Small Business Administration (SBA) and other public and private partners. 

Nominations are currently being accepted for MBDA’s 2009 Excellence in Minority Business Awards.  The award winners will be recognized at MBDA regional MED Week conferences and national award winners will be recognized at the MED Week Awards Gala on August 28, 2009 at the Omni Shoreham Hotel as part of the MED Week Conference activities.

Providing crucial financial protections for many Americans, including minority businesses

Last week the U.S. House of Representatives passed the Credit Cardholders’ Bill of Rights - a common sense financial system reform and consumer protection.  This bill provides  tough new protections for consumers facing excessive credit card fees, sky high interest rates and unfair agreements that credit card companies revise at will.

This bill is important to the establishment and growth of minority businesses because a greater proportion of minority-owned firms are started or acquired by using credit cards (10 percent of firms) among other sources of capital, compared to non-minority firms (9 percent of firms), according to MBDA’s “Characteristics of Minority Businesses and Entrepreneurs.” (March 2008)

This finding suggests minority entrepreneurs are more likely to finance long-term liabilities with short-term debt that often carries higher interest rates.

Of all the minority-owned respondent businesses, Native Hawaiian and Other Pacific Islanders and American Indian and Alaska Natives had the largest proportion (13 percent and 12 percent respectively) that used credit cards for the same purpose compared to non-minority firms.

MBDA’s Access to Capital Initiative is focused on increasing the availability of credit and investments in minority businesses.  The current tightened credit market threatens to halt the growth and expansion of minority-owned firms in neighborhoods and communities throughout the United States – impacting both job and wealth creation.

What does the American Recovery and Reinvestment Act mean for minority businesses?

The American Recovery and Reinvestment Act (ARRA) makes a long-overdue and historic investment in our national infrastructure – including roads, bridges, public transit, housing and broadband – to save or create nearly 400,000  jobs for American workers today and power enhanced economic growth for decades to come.

The Act includes $150 billion in new federal infrastructure funding that reflects President Obama’s belief that we can only strengthen our economy by investing in local economies.  For more information related to the Act, please visit www.recovery.gov.

Some of these projects include:

• Investing more than $17 billion in public transit and high speed rail to reduce our dependence on foreign oil.
• Safeguarding the roads, bridges, dams, ports, rail and water systems our families use everyday with an historic $40 billion, two-year investment.
• Expanding broadband throughout America.
• Making an historic$25 billion investment in school construction, sufficient to renovate and modernize 10,000 schools.

What should minority businesses do to ready themselves for opportunities?

Contracting opportunities made possible through the ARRA will be done no differently than any other government contracting opportunities.  MBDA recommends that minority businesses:

• Register in the Central Contracting Registry (CCR) www.ccr.gov.  Or, if you are already registered, please make sure your profile is up to date with correct contact information, capabilities, bonding and most importantly, past performance.
• Register with MBDA’s Phoenix Opportunity Matching System and visit your local MBDA Minority Business Center.  For a listing of the nearest MBDA center, please go to www.mbda.gov.
• Be on the lookout for “Sources Sought” and “Request for Information (RFIs).  If you are contacted regarding an opportunity, please respond as soon as possible.
• Make contacts and build relationships.  Some contracts may be large and/or bundled, but by building strategic partnerships with other companies, your minority business can still be part part of the work.  Firms which are 8(a)s, in the GSA Schedule, women-owned businesses, Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), Service Disabled Veteren Owned businesses, Native tribes, businesses in HUB zones: are state certified and have a strong past performance haev a competitive advantage for shovel ready projects.
• Keep informed by visiting www.recovery.gov, www.fedbizopps.gov, and www.grants.gov to make sure you are aware of every opportunity your minority business could qualify for.

At MBDA,we are working to ensure that qualified minority businesses are considered for contracts and opportunities the ARRA provides.  We have been working with the Department of Transoprtation, the Army Corps of Engineers, the Small Business Administration, and the National Telecommunications and Information Administration.  In addition, the MBDA Regional Offices and minority business centers across the country are meeting with state and local officials to discuss potential projects and matches with qualified and skilled minority businesses on the local level.

Together, we can rebuild America’s infrastructure to ensure jobs and economic growth for future generations of Americans.

Don’t STOP, follow this minority business all the way to success

In 1972, Phil Archuleta started P&M Signs in the rural community of Mountainaire, New Mexico. Back then, Mr. Archuleta probably didn’t know his company would be one of MBDA’s first and longest-standing clients but now nearly 40 years later he’s seen his company grow substantially, more than doubling gross sales and hiring 30 new employees along the way. 

 

Its minority entrepreneurs like Mr. Archuleta who inspired Representatives Mike Honda (D-CA), Nydia Velázquez (D-NY), Barbara Lee (D-CA) and Dale Kildee (D-MI) to sponsor a resolution (H. Res. 215) to recognize MBDA and its network of business centers’ accomplishments, highlighting the importance of minority businesses on our economy.

 

“The future of the economy depends on the success of minority businesses,” Rep. Mike Honda (D-CA) said.  “Minority enterprises account for $668 billion in total annual receipts, employing close to 5 million in our country.  I applaud MBDA for assisting these entrepreneurs in creating American jobs for the past 40 years.”

 

Minority entrepreneurs continue to be innovative, creating the jobs of tomorrow and fueling our economy.  Mr. Archuleta and P&M Signs is just one example of success.  Minority firms are growing at a faster rate than non-minority firms and are being established at every level, from small and micro operations to rapidly growing technology firms, for example.

 

No one knows this better than the Chair of both the House Small Business Committee and the Congressional Hispanic Caucus, as well as co-sponsor of the resolution, Congresswoman Nydia M. Velázquez (D-NY).

 

“I have a deep appreciation for the importance of minority businesses.  Minority entrepreneurs open new businesses at a rate three times the national average, and their success is vital to the future of our economy,” Congresswoman Nydia M. Velázquez (D-NY) said.  “I congratulate the MBDA on its 40th Anniversary and look forward to continuing to work with them to ensure the success of minority-owned businesses.”

 

What really fueled Mr. Archuleta’s success was his connection to MBDA’s New Mexico Business Enterprise Center  and Executive Director Anna Muller where he’s been a client since his company started.  During that time, the business center has helped P&M Signs to grow their business including securing an $850,000 SBA Guaranteed loan to build an 11,700 square-foot building. 

 

In collaboration with the U.S. Forest Service and the Department of Energy’s Sandia National Laboratories, Mr. Archuleta developed and patented an environmentally friendly composite sign material trade named Altee.  If you’ve ever been in New Mexico, more than likely you’ve seen one of Mr. Archuleta’s signs.

 

I think Congressman Dale E. Kildee (D-MI) sums it up best:

“I commend the Minority Business Development Agency (MBDA) for providing funding for a network of minority business centers located throughout the Nation. These centers provide an invaluable service to minority entrepreneurs with one-on-one assistance in writing business plans, marketing, management, and technical assistance and financial planning to assure adequate financing for business ventures. It is my hope that MBDA will build upon its strong record of business generation and job creation in communities suffering the highest poverty and unemployment rates in the Nation,” said Congressman Dale E. Kildee (D-MI), Democratic Chairman of the Congressional Native American Caucus.

For more information or to find a minority business center near you, please visit www.mbda.gov.