ECONOMIC IMPACT OF ENTRPRENEURS OF COLOR
In 2010, MEDA focused more time on assisting clients to survive and thrive than on starting or growing businesses. Despite the dynamic marketplace and the tightening of credit, MEDA did assist seven resilient entrepreneurs in launching new businesses. Through creative financing and skilled intervention, we also prevented the loss of a number of businesses; thus saving hundreds of jobs. We continue to provide much needed one-on-one business consulting to inspired and inspiring entrepreneurs of color.
It is when we build businesses of scale that systemic change happens.
MEDA’s 2010 activities and outcomes are:
- 526 clients served; 297 were new to MEDA in 2010 (56%);
- 12,158 hours of client service have been provided
- 83 training sessions in a variety of capacity building topics with over 2,900 attendees
- 10 MEDA-assisted start-ups created 28 new jobs and project $3.2 million in first year revenues
- 12 active high potential Pacesetter clients, a program to accelerate growth and promote sustainability
- 6 companies participate in the Leadership Program designed to create influential business leaders of color
- 16 partnerships working on private/public projects through the MEDA Construction Partnering Program (CPP), facilitating over $40 million in contracts
- Two new partnerships in Architectural and Engineering, modeled after CPP
- $5.8 million in financing approved, creating/retaining 245 jobs, with an average of $20 per hour
- Leveraged MEDA lending capital by 3 to 1
- 838 counseling sessions to 229 MBEs by PTAC specialists
- 767 government contracts totaling $127.5 million in awards to 25 entrepreneurs of color
- Over 4,000 volunteer hours augmented our capacity to serve our clients
- Secured contract to administer a MnDOT Working Capital Loan Fund, launching early 2011.
Economic Impact of Entrepreneurs of Color
Each year, MEDA collects economic impact data from our community of entrepreneurs of color. The 2010 impact data reflected the vital statistics of 191 responding companies.
The impact of minority business ownership is phenomenal and powerful, especially in increasing employment for people of color.
Survey Results:
- Total Sales: $1.2 billion
- Total Employment: 7,497
- Total Minority Employment: 3,222
- 62% said they provide health care benefits to their full-time employees
- 89% of their workforce are paid $14.00 or more per hour plus benefits
- 80% of clients report volunteering in the community
Return on Investment
MEDA returns a minimum of $11 of economic impact for every $1 invested, year in and year out.