MBDA’s Strategic Focus Increase Size, Scale and Capacity of Minority Business Enterprises (MBEs)
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Transcript of MBDA’s Strategic Focus Increase Size, Scale and Capacity of Minority Business Enterprises (MBEs)
Proposed Redesign of MBDA’s Native American Business Enterprise Center (NABEC) Program
Dee Alexander, DOC Senior Advisor on Native American AffairsHolden Hoofnagle, MBDA Chief of the Office of Business DevelopmentCynthia Rios, MBDA Program Management Unit Supervisor
Tribal Consultation WebinarMarch 13, 2012
U.S. Department of Commerce Minority Business Development Agency
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MBDA Mission and OverviewMinority-Owned Firms Expand the Economy and Create Jobs for all Americans
MBDA’s mission is to foster the growth and global competitiveness of U.S businesses that are minority owned
According to the U.S. Census, in 2050, the minority community will represent 54% of total U.S. population
The U.S. needs strong minority-owned firms to support greater job growth and to create the maximum economic benefit to the nation
Minority firms have the potential to contribute significantly to the balance of trade as minority businesses are twice as likely to generate sales through exports compared to non-minority firms
MBDA is a catalyst to build minority-owned firms of size, scale and capacity
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Create a new generation of minority-owned firms generating $100 million in annual revenues
Maximize job creation and global competitiveness for MBEsGlobal Export InitiativeExpand Business to Business procurement eventsPromote trade and reverse trade missions
Provide Access to Contracts, Access to Capital and Access to New MarketsDevelop unique public-private partnerships to create funding vehicles for MBEs Expand the number of financing options Provide technical assistance and strategic business consulting
Foster innovation and entrepreneurship within minority communities in high-growth industries
Clean and renewable energyInformation technologyHealthcare
Create openness and transparency in minority business government contract reporting
MBDA’s Strategic FocusIncrease Size, Scale and Capacity of Minority Business Enterprises (MBEs)
Minority Business Statistics U.S. Census Bureau’s 2007 Survey of Business Owners Data
Key Minority Business Indicators:The minority population in the United States is 35%Minority-owned businesses represent 22% of classifiable firms* (U.S. firms excluding publicly held)Minority-owned businesses generated 9% of total gross receipts
Summary of Business Statistics by Group – 2007
Group
Percentage of Classifiable
Firms
Percentage of Total Gross
Receipts
Percentage of All Paid
Employees
African American 7 % (1,921,907) 1% ($137.4 billion) 2% (920,128)
American Indian & Alaska Native 0.9 % (237,386) 0.3% ($34.5 billion ) 0.3% (191,472)
Asian 6% (1,552,505) 5% ($513.9 billion) 5% (1,935,688)
Hispanic 9% (2,259,857) 3% ($345.2 billion) 3% (1,935,688)
Native Hawaiian & Other Pacific Islander 0.1% (38,881) 0.1% ($7 billion) 0.1% (43,187)
All Minorities 22% (5,762,940) 9% ($1 trillion) 10% (5,916,651)
Classifiable Firms (U.S. firms w/o publicly held)
100% (26,306,372)
100% ($11.0 trillion)
100% (57,323,008)
Source: MBDA’s analysis of U.S. Census Bureau’s 2007 Survey of Business Owners, July 2010. Classifiable Firms are all U.S. firms less publicly held, foreign-owned, non-profit and other firms whose ownership cannot be classified in terms of race, ethnicity, or gender. Classifiable Firms are
MBDA estimates.
MBDA Funded Center Programs National Network of MBDA Business Centers and NABECs
32 MBDA Business CentersAverage center funded at $290k and produces $80m in economic activity and 140 new jobsCenters located strategically to maximize MBE impact, performance and Agency Return on Investment (ROI)Leverage and maximize Agency’s national strategic partners and encourage centers to establish their own partnerships to best serve MBEsTarget MBE clients with $1 million or more in annual revenues, firms in rapid growth industries or firms with capacity or potential for exportingContinue to serve MBEs of all sizes through referrals to strategic partnershipsEliminate geographic boundaries for minority business centers allowing them to serve minority-owned firms nationwide
1 MBDA Federal Procurement CenterFunded new national procurement center in 2011 in Washington DC Assist MBEs across the nation in accessing and obtaining federal contracting opportunitiesEstablish a public-private partnership with a national reach that will provide services aimed at increasing the probability of success for minority-owned firms
6 Native American Business Enterprise Centers (NABEC)Based in Arizona, Alaska, California, Washington, New Mexico, Oklahoma and North DakotaCurrent NABEC program continues through 08/31/12Re-designing program for 09/01/12 funding
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MBDA Network of Funded Centers
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Business Development ServicesIncrease Size, Scale and Capacity of Minority Business Enterprises
Access to Contracts: Identification of procurement opportunities, Solicitation analysis, Bid and proposal preparation, Research contract award histories, Post-award contract administration, Central contractor registration, Certification assistance
Access to Capital: Commercial lending and banking, Alternative capital sourcing, Financial, credit and risk analysis, SBA and conventional loan qualification and evaluation, Loan and grant identification and packaging, General finance counseling
Access to Markets: Government procurement assistance, Private sector contract identification, Exporting assistance, Specialized certification assistance including 8(a), MBE, and Small Disadvantaged Business, Market research, Market plan development, Marketing communications – advertising, promotions, public relations, brochure design
Strategic Business Consulting: Strategic and business planning, staffing, organizational and structural, policies and procedures and general business consulting, Strategic advisory (M&A, joint ventures and teaming arrangements)
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MBDA is obtaining stakeholder input via tribal consultation on the redesign of MBDA’s Native American Business Enterprise Center (NABEC) program
MBDA is proposing to rebrand the Native American program under its existing MBDA Business Center banner
The redesigned program will establish national centers focused on the Native American and Alaska Native business community; however, the program will require the centers to serve all eligible minority firms
The program will eliminate geographic boundaries for the centers; centers can serve and claim production for clients outside of their physical location
Each MBDA Business Center will be strategically located in areas with significant concentrations of Native American and Alaska Native owned firms, and will serve minority firms nationally
The primary objective of the MBDA Business Centers is to provide strategic business consulting services that will result in increased financing, public and private sector contract opportunities and related awards to client businesses. Services offered will also create and retain jobs for Native American, Alaska Native and minority-owned firms
MBDA Business Centers must collaborate with other MBDA funded centers, staff and strategic partners to serve minority-owned businesses and achieve program goals
MBDA anticipates concluding tribal consultation March 16th 2012 and publishing the Federal Funding Opportunity in early April.
NABEC Redesign Overview
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Target clients for the program will be Native American Business Enterprises (NABEs) and Minority Business Enterprises (MBEs) with $1 million or more in annual revenues, firms in rapid growth industries or firms with capacity or potential for exporting
Average funding level per center will be increased
Goals for the job creation, procurement award and financial award performance measures will be adjusted to reflect increased federal funding
Certain center locations will change
Globalization of NABEs and MBEs through the promotion of export initiatives and international deal making will be encouraged in alignment with MBDA global initiatives
Generation of program income will be required through the collection of client service fees, membership fees and/or success fees
Minimum cost share requirement will be increased to a minimum of 30%
Administrative requirements for the program will be minimized
Awards will be made for a five-year period
Limit on Indirect Cost recovery of 30% of total direct costs
Significant Programmatic Changes
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NABEC MBDA Business Center Promote the maintenance and growth of
NABE and MBE firms, primarily by providing management and technical assistance services
Program focuses on securing client contract and financing transactions that range from low to high dollar value
Expand the growth and global competitiveness of NABE and MBE firms by providing contract sourcing, financial brokering and business development services
The program focuses on securing large public/private contracts and financing transactions, and facilitating entry to global markets through greater and stronger strategic partnerships
Focus on deal making
Program Objectives of Redesign
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NABEC MBDA Business Center Eligible NABE and MBE firms with
revenues over $500K or with high-growth potential
Special emphasis will be placed on NABE and MBE firms with one or more of the following characteristics:
Revenues over $1M Participant in high-growth industries Export capacity or potential
Centers will continue to serve NABEs and MBEs of all sizes; start-ups and smaller firms served electronically and/or by strategic partner (via referral)
Target Clients
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NABEC MBDA Business Center Separate program logo required Center maintains individual website
Separate program logo required Center to market itself to NABEs and MBEs as
“MBDA Business Centers” Center will not be required to maintain an
individual website; MBDA will host center webpage on agency portal
Trade Mark (“TM”) cited Publication guidance for signage, stationary and publications Communication guidance
Branding Initiatives
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NABEC MBDA Business Center Identification of bid and
financing opportunities Estimating and bid
preparation assistance Loan and bond preparation
and packaging assistance Market research and
development
Develop pool (“pipeline”) of contracting and financing opportunities
Direct matching of opportunities with qualified/vetted NABEs and MBEs and facilitation of negotiations in closing deals
Assist NABEs and MBEs in accessing global market opportunities; driven by MBDA partnerships/relationships with ITA, Ex-Im Bank, OPIC, USAID and others
Identify and secure alternative sources of capital for NABEs and MBEs
Promote the advantages of achieving size and scale, and educate on benefits of strategic alternatives (i.e., mergers, acquisitions, joint ventures, and/or divestitures)
Provide service referrals to NABES and MBEs of all sizes
Client assessment Strategic business consulting Leveraging of strategic partners
Major Program Services
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NABEC MBDA Business Center
Establish relationships with a minimum of 5 entities
Assist the center achieve non-federal cost share goals
Establish relationships that directly lead to transactions, jobs or assisting target NABEs and MBEs achieve size and scale and/or globalization with a minimum of 5 entities
Focus on direct programmatic impact of each partnership Partnerships should assist the center achieve performance
goals, including, but not limited to, serving as a referral source to assist start-up and early stage NABESs and MBEs
Strategic Partners should provide a service and/or opportunity to NABEs and MBEs served by the center
Synchronize outreach efforts Foster collaboration
Strategic Partners
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NABEC MBDA Business Center Number of Jobs Created Dollar Value of Awarded
Contracts/Procurements Dollar Value of Awarded Financial
Transactions Increase in Sales (Retail) Number of Jobs Created Number of New Clients Served Maintenance of SGI Portfolio Consulting Hours Partnerships Resource Entries
Number and Dollar Value of Awarded Contracts/Procurements
Number and Dollar Value of Awarded Financial Transactions
Number of Jobs Created Number of Jobs Retained Number of Export Transactions Facilitated Number of Strategic Transactions Facilitated (i.e.
mergers and acquisitions, joint ventures and teaming agreements)
Number of Clients Served Number of NABE and MBE Referrals
Primary Performance Elements
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Performance Measure
NABEC * MBDA Business Center *
Combined Dollar Value of Contracts and Financing:
$17M - $26M $65M - $80M
Jobs Created: 40 - 60 70 - 120
Clients Served: 78 - 92 60 - 75
* Goal amounts represent ranges across the program.
Quantitative Goals
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Current NABECLocations
Federal $
Future MBDA Business Center Locations
Federal $
Arizona
California
New Mexico
North/South Dakota
Oklahoma
Washington
6 Centers Total
$203,000
$298,000
$200,000
$203,000
$235,000
$213,000
Mesa, Arizona (or)Scottsdale, Arizona (or)Tucson, Arizona
Bakersfield, California (or)El Monte, California (or)Fresno, California (or)Sacramento, California (or)San Diego, California
Albuquerque, New Mexico (or)Farmington, New Mexico (or)Santa Fe, New Mexico
Bismarck, North Dakota (or)Rapid City, South Dakota
Oklahoma City, Oklahoma (or)Tulsa, Oklahoma
Anchorage, Alaska
6 Centers Total
$250,000- $300,000
$250,000- $300,000
$250,000- $300,000
$250,000- $300,000
$250,000- $300,000
$250,000- $300,000
Locations and Funding Levels
MBDA & DOC Contact Information
Minority Business Development Agency (MBDA)888-324-1551www.mbda.gov; www.mbda.gov/main/people
MBDA Network of Funded Centers www.mbda.gov/main/offices
Dee Alexander, DOC [email protected]
Holden Hoofnagle, Chief of the Office of Business [email protected]
Cynthia Rios, MBDA Program Management Unit [email protected] 20
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Questions and Answers
Open Discussion