- Minority Business Accelerator exceeds deal value expectations
Minority Business Accelerator 2.5+ exceeds deal-value expectations
Friday, January 08, 2010
In first two years, 29 deals closed with value of $70 million
Cleveland, Ohio—The Minority Business Accelerator 2.5+, an initiative of the Commission on Economic Inclusion, has exceeded expectations for the amount of deals closed since the first deal was announced in April 2008. Launched 23 months ago, the MBAccelerator 2.5+, which is funded by the Fund for Our Economic Future, has closed 29 deals valued at $70 million with 16 minority-owned businesses (15 African American MBEs and one Hispanic MBE) in Cuyahoga, Stark and Summit counties. Contracts included printing, HVAC, data cabling, flooring and general contracting with these additional results:
- 180+ jobs created
- $1 million in lines of credit and bonding secured
- Over $125 million in business opportunities identified over the past 23 months
The MBAccelerator 2.5+ works to advance the growth of African American and Hispanic-owned businesses (MBEs) with annual revenues of at least $2.5 million in 16 Northeast Ohio counties. By providing assistance to larger MBEs, the MBAccelerator 2.5+ also helps its portfolio companies create jobs for minority residents and boost revenues of smaller MBEs by connecting them to projects as subcontractors.
“With strong progress in our second year, the Minority Business Accelerator 2.5+ is demonstrating that this model is an effective business development tool that is contributing to a stronger, sustainable Northeast Ohio economy,” said Andrew Jackson, executive director of the Commission on Economic Inclusion and senior vice president of the Greater Cleveland Partnership.
Of the deals closed in 2008-2009, 27 were with African American-owned businesses and two were with an Hispanic-owned company. “In 2009, we identified new business opportunities for several Hispanic-owned companies,” Jackson said, noting that of the MBAccelerator2.5+’s 80 MBE registrants, 65 are African American and 15 are Hispanic. These deals were for:
- A multimillion-dollar general trades project
- A public housing authority renovation contract opportunity as a prime contractor
- Two major janitorial services contract opportunities
- Multiple smaller public-service contract opportunities
“Although these deals were not awarded to our candidates, efforts continue to secure contracts,” said Jackson. “We are currently working on two IT opportunities and one large healthcare construction opportunity for two Hispanic registrants.”
The MBAccelerator 2.5+ has delivered results by:
- Using a regional outreach focus to engage the players and spread the word
- Engaging receptive partners including:
-- 51 corporate registrants that have committed to provide opportunities;
-- 80 MBEs with capability and capacity;
-- 10 community organizations that have been engaged to facilitate connections and introductions within their county or city.
Collaborating with other economic development organizations and consultants, the MBAccelerator 2.5+ supported MBEs through the bidding, deal-making and service delivery aspects of each contract.
- To date, 80 MBEs have been recruited from Cuyahoga, Lorain, Portage, Stark and Summit counties.
- Ten regional partnerships have been established: Canton Regional Chamber of Commerce; Hispanic Business Association; Main Street Orrville; Minority Contractors and Business Assistance Program (MCBAP), Cleveland Office; North Canton Chamber of Commerce; Orrville Chamber of Commerce; Team NEO; Walsh University; Wayne Economic Development Council; and City of Youngstown.
- To date, 51 corporate entities (for-profit, nonprofit and government employers) from five counties have joined the MBAccelerator 2.5+.
In 2010, its third year, MBAccelerator 2.5+ activities will include:
- Expanding and formalizing its role on a select number of large construction projects in Northeast Ohio. This will require active, ongoing working relationships with the project owners.
- Working closely with a subset of corporate registrants that have successfully improved their procurement processes to increase access for diverse suppliers.
- Creating a fund to be used as collateral to secure lines of credit for working capital.
The Minority Business Accelerator2.5+ is an initiative of the Commission on Economic Inclusion , a program of the Greater Cleveland Partnership. Funded by the Fund for Our Economic Future, the MBAccelerator2.5+ focuses on growing the size, scale and infrastructure of African American and Hispanic MBEs with annual revenues of at least $2.5 million in a 16-county area of Northeast Ohio. www.mbaccelerator2-5.com.
The Commission on Economic Inclusion, a program of the Greater Cleveland Partnership (GCP), works to significantly improve the meaningful involvement of minority businesses and individuals in the economic engines that drive Northeast Ohio. The GCP mobilizes private-sector leadership, expertise and resources to create jobs and wealth and improve the economic vitality of the region. www.gcpartnership.com.
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