Northeast Ohio Economic Inclusion Forum Phase One White Paper

8/3/2019 Northeast Ohio Economic Inclusion Forum Phase One White Paper

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THE NORTHEAST OHIO

ECONOMIC INCLUSIONFORUM SERIESPhase I: Identiying ChallengesPERSPECTIVES FROM THE PUBLIC SECTOR

CLEVELAND STATE UNIVERSITY

NANCE COLLEGE OF BUSINESS

MARCH 31ST, 2011

SPONSORED BY:US SENATOR SHERROD BROWN

CITY OF CLEVELAND MAYOR FRANK JACKSON

THE OHIO DEPARTMENT OF TRANSPORTATION

FIRST IN A SERIES OF FIVE INSTALLMENTS THAT DETAIL PARTICIPANT DISCUSSIONS AND CONCLUSIONS.



THE NORTHEAST OHIOECONOMIC INCLUSIONFORUM SERIES

TABLE OF CONTENTSForum Series Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Introduction: Event Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Executive Summary: Key Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Session Breakout: Challenges

Challenge: Limited Access to Capital . . . . . . . . . . . . . . . . . . . . . . . 12

Challenge: Limited Access to Opportunities . . . . . . . . . . . . . . . . 13Challenge: Limited Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Conclusion: A Call to Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17



THE NORTHEAST OHIOECONOMIC INCLUSIONFORUM SERIES

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THE TIME IS NOW.“We are seeing historic investments, yet therecontinues to be institutional barriers to access,stiing upward mobility or minority [and women]owned businesses all over our State. So, the question

or us today as we build upon existing collaborativeeorts, is this: What does an economic inclusionagenda look like or our region?”

~ U.S. Senator Sherrod Brown

“Historically, the people that helped to buildthe city o Cleveland called it home. I want toreturn to that tradition and make sure thoseCleveland residents, emale and minority-owned

businesses, and local companies benet romthis most recent signicant investment inour inrastructure.”

~ City of Cleveland Mayor Frank Jackson



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THE NORTHEAST OHIOECONOMIC INCLUSION

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Collaborative action to move theneedle on economic inclusion in 2012.

With billions o dollars in new inrastructure and business investment in Northeast Ohio, opportunities abound or

sustained economic growth in our region. It has never been more important than now to ensure the success o small

businesses that create local jobs and uel our economy – particularly minority, women and historically disadvantaged

small businesses.

The Northeast Ohio Economic Inclusion Forum Series brings the region’s most inuential leaders together to

leverage our existing inclusion eorts while creating a new ramework or success that ensures entrepreneurs receive

air access to current procurement opportunities. In essence, the Forum Series seeks to collectively leverage the

great work o the Commission on Economic Inclusion, Jumpstart Inclusion Advisors, the Minority Business Center,

Northern Ohio Minority Supplier Development Council, National Association o Women Business Owners, Northeast

Ohio Hispanic Chamber o Commerce and several others.



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THE ULTIMATE OBJECTIVE?At the conclusion o the orum series, participants will develop a regional plan or inclusion

– and collectively act upon that plan. Ultimately, the goal is to change in the economic

landscape by substantially improving the survivorship and growth o diverse suppliers

across Northeast Ohio.

This challenge cannot be taken lightly. The Northeast Ohio Economic Inclusion Forum

Series takes a strategic, sequential approach that builds on the deliverables rom each

previous event toward collective action. Each event also leverages insight rom women

and minority entrepreneurs. At the concluding orum, representatives rom all stakeholder

groups will kick-o a year-long eort to eectively move the needle.



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PHASE ONE: Identiy challenges.NORTHEAST OHIO ECONOMIC INCLUSION FORUM

PHASE ONE: IDENTIFYING CHALLENGES

PERSPECTIVES FROM THE PUBLIC SECTOR

MARCH 31ST, 2011

Sixty-one elected and appointed ocials rom the public

sector, including ederal, state and local government oces,

take the essential frst step to improvement by identiying the

barriers to economic inclusion across our region and our state.

PHASE THREE: Design tactics.NORTHEAST OHIO ECONOMIC INCLUSION FORUM

PHASE THREE: DESIGNING TACTICS

PERSPECTIVES FROM THE PRIVATE SECTOR

LATE FALL 2011

Top executives rom the region’s business community assess

all orum eedback to date, using previous orums as a guide todesign an overarching economic inclusion strategy, a concrete

and measurable tactical plan and associated success metrics.

PHASE TWO: Defne solutions.NORTHEAST OHIO ECONOMIC INCLUSION FORUM

PHASE TWO: DEFINING SOLUTIONS

PERSPECTIVES FROM THE NONPROFIT SECTOR

SEPTEMBER 1ST, 2011

Approximately 150 executives rom the nonproft sector,

including oundations, arts and research organizations,

universities, as well as CDCs and traditional economic

development organizations, discuss how current best

practices can be applied and existing resources utilized to

address challenges identifed in the public sector orum.

PHASE FOUR: Ensure accountability.NORTHEAST OHIO ECONOMIC INCLUSION FORUM

PHASE FOUR: ENSURING ACCOUNTABILITY

PERSPECTIVES FROM ALL SECTORS

WINTER 2012

Representatives rom all sectors gather at the culminating event to

individually and collectively embrace the results o their eorts – adefned, measurable course o action to be employed by all sectors,

providing benchmarks and guidelines or accountability in 2012.

The orum series leverages the strengths o leaders in o each sector o our community. Public

sector leaders will work to identiy the challenges to eective economic inclusion. Nonproft

organizations, unders and mission-driven organizations will build on the work o the public sector

by designing recommendations. Private sector executives will design metrics and create a tactical

plan. Throughout the orum series, insight rom minority and women entrepreneurs will inorm

the discussion. Finally, representatives rom all sectors will come together to ensure accountability

and evaluate progress as the region successully “moves the needle” on economic inclusion in 2012.

THE NORTHEAST OHIO ECONOMIC INCLUSION FORUM SERIES

EVENT STRUCTURE



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NORTHEAST OHIO ECONOMIC INCLUSION FORUM SERIES

EVENT STRUCTURE [ CONTINUED ]

PHASE FIVE: Move the needle.NORTHEAST OHIO ECONOMIC INCLUSION FORUMPHASE FIVE: MOVING THE NEEDLE

COLLABORATIVE ENGAGEMENT FROM LEADERS ACROSS NORTHEAST OHIO

WINTER THROUGHOUT FALL 2012

Although the orum series is a historic frst step to designing a regional

ramework or economic inclusion in Northeast Ohio, the most important element

o the initiative is collective action. Ater having ramed the issue, uncovered the

challenges, designed recommendations and a tactical plan, leaders rom across

the region will work toward defned success metrics to literally “move the needle”

– substantially driving growth among the region’s diverse suppliers.

Throughout , economic inclusion milestones will be

documented and evaluated. Public, private and nonprot sector

organizations will work individually and collectively to enact the

Northeast Ohio Regional Economic Inclusion Plan.

Most importantly, at the conclusion o this process, a substantial number o

diverse suppliers across our region will have improved survivorship rates,

achieved sustainable growth and proftability strategies, increased capacity,

expanded social capital, and attained better access to fnancial capital.

DID YOU KNOW?• According to the U.S. Census, minority andwomen entrepreneurs are the astest growingsegment o small business, collectively owningmore than 5% o all small businesses.

– Over 65% of the jobs in the U.S. were created by small businesses

– Small businesses created 31% of U.S. export value in 2007

– Roughly 37% of all minority businesses are owned by women

– Women-owned businesses have sales receipts of over $1.7 trillion



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PHASE I: IDENTIFYING CHALLENGES

Perspectives rom the Public SectorOn March 31, 2011, leaders rom across the state and beyond took the frst step in creating a regional ramework or inclusion in

Northeast Ohio. The frst consideration was that, although tens o millions o dollars have been invested in inclusion initiatives

in recent years, leaders agree that very ew diverse frms in the region have achieved revenues over $1 million, even ewer over $5

million. In act, only a small percentage o these small frms can boast rigorous strategic plans or sustained growth and increased

proftability, year-ater-year.

Why the discrepancy between investment and results? How do we leverage existing programs and organizations ocused on

inclusion – and what are the strategic gaps that these organizations have not flled? Most importantly, where is the regional

strategy or economic inclusion in Northeast Ohio?

The Northeast Ohio Inclusion Forum Series Phase I: Identiying Challenges brought the region’s top public sector leaders

together to uncover the unique challenges aced by women and minority entrepreneurs and their companies. A brainchild o the

Ohio Department o Transportation, this irst o a our-part orum series was held at Cleveland State University’s Nance

College o Business.



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PERSPECTIVES FROM THE PUBLIC SECTOR:

EVENT OVERVIEW

Session HighlightsThe historic event opened with remarks rom Senator Brown, who welcomed participants by providing powerul comments around

the need or collaboration across levels o government, organizations and industry sectors in order to eectively move the

economic inclusion eort orward.

Following the welcoming remarks, speakers noted the signifcant regional investment in business and inrastructure and the positive

impact robust economic inclusion practices will have on economic development, education, and workorce development. Participants

learned about strategic best practices in ederal, state and local agencies and oces rom a range o public sector luminaries.

Participants were then divided into three breakout sessions that ocused on identiying historic barriers to success or diverse

entrepreneurs. Several themes emerged rom the breakout sessions; Cuyahoga County Executive Ed FitzGerald synthesized the

fndings and shared participant insights.

“Major corporations arebeginning to understand thatsupplier diversity is inextricablylinked to economic developmentand the consumer market.”~ Boston Consulting Group (2005)



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Collaborative EngagementThe orum was designed to engage key leaders rom all levels o government, who

control several billions o dollars in annual procurement across the State o Ohio.

Keynote Speakers• U.S.SenatorSherrodBrown

• CityofClevelandMayorFrankG.Jackson

– Kevin Schmotzer spoke on behal o Mayor Frank Jackson

• DeputyDirectorMyronPakush,OhioDepartmentofTransportationDistrict12

• CuyahogaCountyExecutiveEdFitzGerald

Session Facilitators & Speakers• AdministratorLauriLeeroftheFederalHighwayAdministration

• AllisonFrancisBarksdaleoftheU.S.DepartmentofTransportation

• OhioStateRepresentativeNickieJ.Antonio

• CuyahogaCouncilmemberDaveGreenspan

• ClevelandCityCouncilmanJeJohnson

• LisaDentoftheCityofClevelandOceofEqualOpportunity

Public Sector Stakeholders Represented• U.S.SenatorRobPortman

• U.S.HouseofRepresentatives

• U.S.DepartmentofTransportation

• U.S.SmallBusinessAdministration

• U.S.FederalHighwayAdministration

• GovernorJohnKasich• TreasurerJoshMandel

• OhioStateSenators

• OhioStateHouseofRepresentatives

• OhioDepartmentofAdministrativeServices

• OhioDepartmentofTransportation

• CountyExecutivesfromacrossNortheastOhio

• CountyCommissioners

• CuyahogaMetropolitanHousingAuthority

• NortheastOhioRegionalSewerDistrict

• GreaterClevelandRegionalTransitAuthority

• MayorsfromacrossNortheastOhio

• CityCouncilmembersfromacrossNortheastOhio

• SeveralofOhio’sPublicUniversities

PERSPECTIVES FROM THE PUBLIC SECTOR:

EVENT OVERVIEW [ CONTINUED ]



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SUMMARY OF KEY FINDINGS

Public sector leaders were tasked with documenting challenges to eectiveeconomic inclusion in Northeast Ohio. Through the intensive breakout sessions,common themes emerged rom several challenges identied. Specic issuesranged rom institutional challenges, such as limited access to capital, bondingand nancing, to more rm-specic concerns, such as limited capacity.

From the numerous issues identifed, the ollowing themes emerged rom thesession. Historically disadvantaged frms are challenged by:

Limited Access to CapitalMany diverse business owners are frst-generation entrepreneurs with short tenures in business. Participants noted that, or women

and minorities with historically lower net worth and creditworthiness challenges, access to capital can be a tremendous burden.

This, combined with increasingly tightened lending requirements, leaves minority and women-owned frms with ar less access to

bonding required to take advantage o contracting opportunities.

Limited Access to OpportunitiesOten, historically disadvantaged frms do not bid or opportunities that they are qualifed to ulfll simply because they are unaware

the opportunity exists. In Northeast Ohio, organizations purchase billions in goods and services annually, yet many diverse

frms have limited access to these procurement opportunities due to: a) powerul incumbent business relationships; b) lack o

personal relationships with decision-makers; c) lack o required certifcation or special consideration.

Limited CapacitySeveral diverse businesses lack the required capacity or sustained topline growth and eective bottom-line proftability. Internal

challenges include limited resources to drive operational, technological, fnancial and human resource excellence. These challenges

are oten maniested in the perceived inability to consistently deliver excellence to the marketplace. External challenges include

limited marketing and marketing research capability. Additionally, relationships with key decision-makers, oten a pre-requisite or

consistent sales growth, are in short supply or these entrepreneurs.

Understanding these challenges is imperative to developing an eective inclusion plan to be adopted by the entire region.



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WHAT ARE THE CHALLENGESTO SUCCESSFUL ECONOMIC INCLUSION IN NORTHEAST OHIO?

CHALLENGE: LIMITED ACCESS TO CAPITALAccess to adequate nancing is a critical aspect o successul business ventures.Most orum participants identied nancing, credit and bonding issues as asignicant deciency or diverse suppliers.

Financing or GrowthParticipants overwhelmingly agreed that one o the barriers to a successul economic inclusion is access to adequate

fnancing or growth. Diverse frms oten have limited experience borrowing, poor capital resources and diculty demonstrating

creditworthiness, low income and home ownership. In act, wealth and income disparities are increasing dramatically, making it

dicult or historically disadvantaged frms to gain adequate fnancing to grow their frms or to improve survivor rates.

Forum participant’s comments are supported by research. According to the 2010 Pew Research Center analysis o U.S. Census

Bureau data, the typical Arican American household had just $5,677 in wealth (assets minus debts) in 2009; the typical Hispanic

household had $6,325 in wealth; and the typical Caucasian household had $113,149. Moreover, about a third o Arican American

(35%) and Hispanic (31%) households had zero or negative net worth in 2009, compared with 15% o Caucasian households.

Participants also noted that the need or fnancing and credit is more prevalent or women and minorities because these frms tend

to be smaller, have less signifcant sales pipelines and ewer fnancial resources. According to the U.S. Census Bureau Survey o

Small Business Owners (2007), only 3.7% o women-owned businesses have sales over $500K, whereas 11% o male-owned frm are

in this category. Even more strikingly, almost 70% o women-owned frms in the U.S. have sales o less than $25K per year.

Surety BondingBecause at least $2 billion o Northeast Ohio’s current inrastructure projects involve construction, participants cited the lack o

bonding capacity as a major concern or many frms. In order to bid projects, most frms are required to obtain perormance bonds,

which provide a guarantee that a contractor will ully perorm and oer protections against breach. Participants noted that these

frms have diculty obtaining bonding because they lack experience, tenure, credit or collateral.

The direct correlation between wealth and income, and an owner’s ability to acquire adequate fnancing and/or the required bonding

to participate in projects is undeniable, and so is the impact on corporate survivorship. Across industry sectors, frms that start with

higher amounts o capital tend to have higher levels o assets, revenues and employment throughout the lie o the business.



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Challenge: Access to Procurement OpportunitiesFair and equal access to contracting opportunities – or all qualied vendors– strengthens the vitality o the region’s economy. Forum participants agreed

that sufcient access to business networks, the existence o strong incumbentrelationships, lack o transparency and duplicative certication requirementscan prohibit diverse vendors rom having equal access to opportunities.

Corporate Relationships and IncumbencyForum participants stated that too oten, historically disadvantaged frms do not have access to opportunities simply because they

lack relationships with key decision-makers. One brutally honest participant stated, “The bottom line, is that people buy rom

people they know and like, and unortunately most o the people we know will tend to look like us.”

Forum participants noted that inclusion strategies should be measured as diligently as other important strategic objectives (i.e.cost containment, revenue goals, etc.). Participants agreed that supplier inclusion strategies, which promote proactively building

relationships with minority and women entrepreneurs, must be driven rom the top o the organization and measured as part o the

perormance review process, holding all employees accountable or meeting or exceeding inclusion goals.

While a defciency in the number and quality o business relationships between majority and historically disadvantaged

frms is a signifcant challenge, the strength o incumbent relationships poses an additional level o hardship or eective

supplier diversity. Incumbent frms, which are generally majority-owned, tend to have more resources, higher levels o capacity

and longstanding institutional knowledge o the culture, processes and desired outcomes o potential clients. Several orum

participants noted that successul mentor-protégé programs that build mutually benefcial personal and proessional relationships

can oset the power o incumbency.

Participants agreed that purchasers are oten unwilling to risk ailure o a project by providing an opportunity to a smaller, lesser-

known entity. Additionally, the opportunities can be more dicult to fnd or frms outside o that organization’s “inner circle.” To

bid or opportunities in the public sector, interested frms have to invest several hours just to read through the myriad o RFPs. In

the private and nonproft sectors, incumbent frms are made aware o opportunities; however, new entrants are oten not in the

communication loop.



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Third Party CertifcationThe certifcation o diverse businesses was established to veriy ownership,

qualifcation and expertise, and active involvement o management. Many

organizations accept third party certifcations rom ederal, state or localgovernment agencies, as well as certiying organizations such as the National

Minority Supplier Development Council (NMSDC). Although certifcation was

generally perceived as positive or verifcation purposes by some participants,

the complexities and time-consumption o becoming certifed and duplication o

certifcation eorts through several public and nonproft entities was deemed a

hindrance or many small frms.

For example, many historically disadvantaged enterprises must complete several

duplicative and burdensome certifcation documents (i.e. Federal 8a, State

DBE, County and City certifcations, etc.) in order to gain special consideration

or opportunities “set aside” or diverse suppliers. This process can dissuade

otherwise qualifed frms rom participating in procurement processes. Forum

participants identifed the need or a coordinated certifcation process that shares

common certifcation requisites and reciprocity.

TransparencyParticipants also discussed the need or improved communication. Some

specifcally reerenced the need or open dialogue among public sector partners

– across all levels o government. Some lamented “backdoor deals” that continue

to destroy trust. Increased transparency was the most commonly suggested

solution to this issue. Participants also suggested that consistent communication

regarding current and uture projects and inclusion goals and outcomes could

improve the propensity or success o diversity initiatives.

Unortunately, participants noted, some otherwise ineligible frms slip through

the cracks and take advantage o projects set aside or historically disadvantaged

groups. These are (sometimes certifed) majority-owned frms masquerading as

frms owned by minorities or women, called “ront” companies.

Finally, participants discerned that building genuine business networks requires

more than participation in “diversity outreach” or “matchmaking” events. Some

lamented there is little ollow-through ater these events – and purchases are

rarely made in these settings. Building sustainable, eective business networks

requires consistent eort. It also requires minority and women entrepreneurs

to be equally proactive in eectively communicating their unique value to the

marketplace so that they may build strong relationships with decision-makers and

potential clients.

CHALLENGE: ACCESS TO PROCUERMENT OPPORTUNITIES [ CONTINUED ]



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Challenge: Limited CapacityWhile the burden or providing equal access to capital and business opportunitieslies with the public, private and nonprot institutions, this burden should be

shared with the diverse suppliers they seek to assist. Improving survival rates,driving sustainable business growth, adding value to the marketplace and toemployees, and building capacity is also the responsibility o each businessenterprise, regardless of the race or gender of the owner .

Market-based CapacityFewer than 3% o minority-owned businesses and ewer than 2% o women-owned businesses in the U.S. achieve annual revenue

o more than $1 million. However, these million dollar frms make up over 60% o the total revenues or each designation. Growing

diverse businesses serve as a powerul engine or the new economy. They revitalize urban areas, increase the tax base and create

jobs. However, participants recognized that or these frms to truly drive economic returns or our communities, they have to

survive and grow.

Strong business networks, social capital, market intelligence and marketing expertise and access to strategic alliances are all

powerul tools to grow small enterprises. Participants stated that, though their organizations can help with some o these tools,

historically disadvantaged frms also need to be transparent about their shortcomings in order to overcome them.

For example, some participants lamented the quantity and quality o strategic alliances and joint ventures including or among

diverse frms. These partnerships are generally ormed to allow small enterprises to enhance their capacity to enter new markets or

undertake larger projects; however, lack o trust within the minority business community oten derails these alliances beore they

can start, while lack o resources or adequate due diligence can derail the alliances soon ater they start.

Isolated successes are not enough.To change the trajectory o economicinclusion in our region, we need across-sector, collaborative approachto economic inclusion.



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CHALLENGE: LIMITED CAPACITY [ CONTINUED ]

Operational CapacityAlthough many small business owners possess tremendous experience and acumen in their proessional area o expertise, many

lack expertise in administration, operations, inormation technology, human resource management and fnance. Management

strength in these areas can make the dierence between survival and lack thereo, and between annual revenues o $100,000 and$100,000,000.

Forum participants noted throughout the orum that although they may possess a terrifc new innovation, an incredible creative

talent or a tremendous product, many women and minority entrepreneurs’ businesses were less than stellar in terms o their

ability to deliver a quality product or service, on time and within budget. Even though majority-owned frms may experience very

similar limitations o capacity, the perception that diverse frms deliver less than the highest quality on time and within budget is a

challenge throughout the community o historically disadvantaged frms.

Opportunity: Leverage Existing ResourcesNortheast Ohio has a number o organizations in the public, private and nonproft sectors that provide access to capital, assist with

matchmaking and business networking, and provide capacity-building tools, such as executives-in-residence and management

support to qualifed women- and minority-owned frms; however, a very small percentage o frms take advantage o these

programs. Even ewer have utilized these resources to grow to scale.

The Northeast Ohio Economic Inclusion Forum Series seeks to leverage these existing programs and fll the gaps using the best

and brightest executives and ocials rom every sector to change that trajectory.

“Past and current eorts – whilesuccessul in making broad gains –will prove inadequate in resolvingthe remaining disparity and inachieving uture progress. Eortsmust be consolidated…hone in onthe most promising and powerulopportunity: Building [Diverse]Businesses o Size”

~ Boston Consulting Group (2005)



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NEXT STEPS:A CALL TO ACTION

In just under three hours, public sector decision-makers made a signifcant step

orward to advance the regional economic inclusion agenda. While many gaps

exist in our current economic inclusion ramework, these challenges are not

insurmountable. By building a collaborative regional ramework, our region can

become a national model o success or economic inclusion.

The next orum in the series, The Northeast Ohio Economic Inclusion Forum

Phase II: Defning Solutions will be held on September 1st, 2011. The highly-

anticipated event is supported by the Cleveland Foundation, Commission on

Economic Inclusion and the Fund or Our Economic Future, in addition to Senator

Sherrod Brown and sponsored by the Ohio Department o Transportation.

While the frst historic economic inclusion orum uncovered and documented

challenges to successul implementation o an economic inclusion agenda in

our region, the upcoming event will design recommended strategies to address

those challenges.

The aternoon will kick o with the panel discussion moderated by Senator Brown,

inormed by insights rom small business owners, and eaturing some o the most

celebrated best practices in inclusion in the region. Participants will then break into

working sessions; each breakout will rigorously design strategic recommendations

specifc to its assigned challenge. Activities will close with a comprehensive

presentation o recommendations designed in each breakout session.

Look or the results rom these discussions

to be detailed in the next white paper,The Northeast Ohio Economic Inclusion

Forum Phase II: Defning Solutions.



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SUPPORTERS

FORUM SERIES SPONSOR

Senator Sherrod Brown

City o Cleveland Mayor Frank Jackson

Civic Commons

Cleveland Foundation

Cleveland State University Nance College o Business

Commission or Economic Inclusion

Cuyahoga County Executive Ed FitzGerald

Fund or our Economic FutureIdea Center®

WVIZ/PBS and 90.3 WCPN ideastream®

Last Updated August 2011. Additions Ongoing.



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APPENDIX A:

Disadvantage Business Enterprise (DBE)

The Ohio Department o Transportation identifes a Disadvantaged

Business Enterprise (DBE) as a or-proft small business concern

that is:

At least 51% owned by one or more individuals who are

both socially and economically disadvantaged; and

Whose management and daily business operationsare controlled by one or more o the socially and

economically disadvantaged individuals who own it

Furthermore, a frm is not considered “small business concern”

i it has annual gross receipts in excess o $20.4 million or

general construction or in excess o $4.5 million or engineering,

architectural and surveying frms averaged over the previous

three fscal years. An economically disadvantaged individual is

one whose personal net worth does not exceed $750,000. Personal

net worth excludes the individual’s ownership interest in the

applicant DBE frm, and the individual’s equity in his or her

primary place o residence (Ohio.gov).

Minority Owned Business (MBE)

According to the Ohio Department o Administrative Services-

Equal Opportunity Division, a Minority-Owned Business

Enterprise (MBE) is designed to assist minority businesses

in obtaining State government contracts through a set-aside

procurement program or goods and services. In order to be

certifed as a MBE, the business owner(s) must be member(s) o

one or more o the ollowing groups: Blacks, American Indians,

Hispanics and Asians. Furthermore, a MBE in Ohio:

Must be a or-proft entity

Must have been in business at least one year prior to

applying or certifcation

Must be at least 51% owned and ultimately controlled

by one or more o the person(s) belonging to the target

groups one year prior to applying or certifcation

Must be owned by an Ohio resident

Must be owned by a U.S. citizen

Women Owned Business (WBE)

A women-owned small business is SB which is at least 51 percent

owned by one or more women or, in the case o publicly owned

business, at least 51 percent o the stock owned by one or more

women; and whose management and daily operations are

controlled by one or more women.




APPENDIX B:WORKS CITED

Boston Consulting Group (2005) THE NEW AGENDA FOR

MINORITY BUSINESS DEVELOPMENT

Cleveland, C. o. (n.d.). City o Cleveland Ohio. Retrieved May 14,

2011, rom Mayor’s Oce o Equal Opportunity:

http://www.city.cleveland.oh.us/CityoCleveland/Home/

Government/CityAgencies/OfceoEqualOpportunity

Commission on Economic Inclusion, a program o the Greater

Cleveland Partnership.

Available at http://www.gcpartnership.com/Media-Center/~/

media/Files/Inclusion/Access%20to%20capital_web.ashx

Institute or Entrepreneurial Thinking, Ltd., (2005) Greater

Cleveland Supplier Diversity Initiative Final Report.

Available at http://srhgrax.com/pc/suppliers.pd

Kim, W. Chan and Mauborgne, Renee, Blue Ocean Strategy:

From Theory to Practice (2005). Caliornia Management Re-

view, Vol. 47, Issue 3, p. 105-121 2005.

Available at SSRN: http://ssrn.com/abstract=1506787

MBDA (2000), The Emerging Minority Marketplace,US Depart-

ment o Commerce, MBDA, Washington, DC, September

Available at: www.mbda.gov/documents/purchasing_power.pd

Min, H. (2009). The best-practice supplier diversity program

at Caterpillar. Supply Chain Management: An International

Journal. 14(3), 167-170.

Ohio.gov. (n.d.). Frequently Asked Question. Retrieved May 14,

2011, rom Ohio.gov-Department o Transporation:

http://www.dot.state.oh.us/Divisions/EqualOpportunity/Pages/

DBE.aspx

Talton, Rachel (2010) Collaborative Engagement: The Critical

Link in the Supply Chain MBE Magazine May/June 2010 Issue

Transporation, O. D. (2009, March). Mentor/Protege Program.

Columbus, OH.

U. S. Department o Commerce (2010) “Women-Owned Busi-

nesses in the 21st Century” Available at: http://www.commerce.

gov/blog/2010/10/04/commerce-department-releases-report-

women-owned-businesses-21st-century

“Utilizing Supplier Diversity to Achieve Business Goals” 90th

Annual International Supply Management Conerence, May

2005 (Richards and Ballenger)

Northeast Ohio Economic Inclusion Forum Phase One White Paper

Documents

Transcript of Northeast Ohio Economic Inclusion Forum Phase One White Paper