Minority Business Accelerator2.5+ FAQs
How does the Minority Business Accelerator2.5+ work?
The Minority Business Accelerator 2.5+ is focused on growing the size, scale and infrastructure of African American and Hispanic minority-owned enterprises (MBEs) with annual revenues of at least $2.5 million in a 16-county area of Northeast Ohio. It also will work with the corporate community and the public sector to determine the demand for business-to-business opportunities. It will then use that demand to identify MBEs for participation. Economic indicators suggest these opportunities are likely to be in construction, manufacturing, IT, financial services, and healthcare.
Ultimately, the MBAccelerator 2.5+ will serve as a matchmaker by identifying business opportunities, preparing participating MBEs for business deals, and working to build win-win business relationships for those MBEs, the corporate community and the public sector.
Why is this program focusing on large African American and Hispanic MBEs?
Research indicates that larger MBEs will have a greater, faster and a more direct impact on the regional economy including the ability to create jobs in key industries. In addition, studies have shown that these MBEs are more likely to hire African Americans and Hispanics-the region's two largest minority groups-which will help stimulate economic activity in these communities. For these reasons, the program funder, the Fund for Our Economic Future, decided to focus its initial support on developing these types of companies.
What about assistance for smaller MBEs and other types of small business?
Additional initiatives will be developed to support the growth of smaller MBEs.
What are the benefits for corporations?
The MBAccelerator2.5+ will work with Northeast Ohio companies to increase their utilization of minority-owned businesses and boost their diversity spend in the region by helping identify and connect with minority suppliers who are capable of meeting their needs for products and/or services.
What makes this program different and more likely to succeed?
It is a demand-driven model with three key components that will be managed within the program: MBE identification and development, demand identification, and deal making. The MBAccelerator2.5+ is the first step in a broader regional inclusion model that will promote development of varying sizes of MBEs as additional funding is secured.
What is meant by "demand-driven"?
The MBAccelerator2.5+ will work with the corporate community and the public sector to identify specific business opportunities. It will then use those opportunities to identify MBEs for participation.
How will the MBAccelerator2.5+ stimulate regional economic development?
The entire Northeast Ohio economy should benefit through increased economic activity and business and job growth generated through: (1) the development of medium and large African American and Hispanic-owned businesses; and (2) enhanced supplier diversity efforts of corporations and employers that can help grow Northeast Ohio minority-owned companies through increased deal-making.