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Narrowing the Gap: Invest in Diverse Entrepreneurs Presented by Yvonne Cheung Ho, MEDA
Diverse communities in the Twin Cities face stark economic disparities
Entrepreneurship is One Solution ,[object Object],[object Object]
Status of Diverse Businesses ,[object Object],[object Object],[object Object],[object Object]
Access Challenges ,[object Object],[object Object],[object Object],[object Object]
MEDA’s Portfolio of Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Economic Return on Investment Brooklyn Park  8 jobs Eagan 75 jobs New Hope 45 jobs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
2010 Annual Survey 190 Responding Companies ,[object Object],[object Object],[object Object],[object Object]
Example Cowles Center for Dance & Performing Arts (Construction) Typical City Goal Project Goal Results MBE Participation 10% 10% 10.6% Skilled Minority Workers 11% 15% 17.3% Unskilled Minority Workers 11% 15% 16.4%
Example: Shelleye and Tony Williamson AJASA TECHNOLOGIES (IT Consulting & Staffing) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Help us narrow the disparity gap: Invest in Diverse Entrepreneurs

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Yvonne Cheung Ho - Metropolitan Economic Development Association

  • 1. Narrowing the Gap: Invest in Diverse Entrepreneurs Presented by Yvonne Cheung Ho, MEDA
  • 2. Diverse communities in the Twin Cities face stark economic disparities
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  • 9. Example Cowles Center for Dance & Performing Arts (Construction) Typical City Goal Project Goal Results MBE Participation 10% 10% 10.6% Skilled Minority Workers 11% 15% 17.3% Unskilled Minority Workers 11% 15% 16.4%
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  • 11. Help us narrow the disparity gap: Invest in Diverse Entrepreneurs

Hinweis der Redaktion

  1. This is not the first time we’ve seen this problem of disparity; in the early 1970s, the corporate community came together to form MEDA in order to address these same issues Since then, both Milestone Growth Fund and MMSDC were spun off from MEDA to focus on specific issues facing the minority business community As demographics change, these issues are intensified and these pronounced and stark disparities threaten our future Growth in the number of diverse businesses and communities of color increase the need for the organizations’ services Since the recession refocused philanthropy towards immediate needs, we’ve seen backsliding in support for economic development efforts that were closing the gap; the gap is now widening again To address other issues in communities of color, diverse businesses must be encouraged to grow and prosper In the U.S., diverse firms employ nearly 4.7 million workers, a disproportionate number of whom are persons of color Many of these jobs are in lower income areas, disproportionately communities of color, which can help with job access for those populations where transportation access is a major issue Business owners in the U.S. represent roughly 10% of the workforce, but hold nearly 40% of the total U.S. wealth. Strong diverse business growth directly impacts the reduction of inequality in earnings and wealth. Business ownership creates intergenerational wealth.
  2. While there are many strengths in our region and much financial support for many good causes, it is embarrassing that Forbes recently ranked Mpls-St Paul as 49 th out of 52 metro areas in its “Best Cities for Minority Entrepreneurs” article. Other smaller cities with comparable percentages of populations of color and minority businesses were much higher on the list – Nashville #3, Oklahoma City #6, and Indianapolis #17 A recent study commissioned by the City of Minneapolis on the Twin Cities area found: persons of color are significantly less likely to own businesses (as a result of marketplace discrimination) when taking into account age, education, location, and industry significantly lower rates of business formation than expected substantially lower share of revenues for diverse businesses diverse businesses are rarely sought out as subcontractors when contract does not include goals to encourage the practice
  3. Survey of Small Business Finances found credit market discrimination, including: higher denial rates, even accounting for size and credit history higher interest rates when credit granted Loans received are for half the amount of non-MBEs All credit markets have shrunk since 2008 and there’s no evidence that credit market disparities have improved for MBEs *MEDA – please input technical asst access challenge **Should be getting some facts from Deveny @ MMSDC to use in this space later this week
  4. Actual Twin Cities diverse businesses responding to MEDA, MMSDC and Milestone surveys demonstrate the economic benefits to the community that diverse businesses provide In this time of large disparities in employment for persons of color, over 50% of the workers at these survey respondents companies are persons of color These workers are likely to earn a living wage and receive health benefits
  5. Tony Williamson Need Tony’s bullet points and input on changes to this slide.
  6. Tony Williamson Need Tony’s bullet points and input on changes to this slide.