Business Incubator 2

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					NCDA        43 rd
        Annual Conference
    Palm Springs, CA
        Using CDBG for Job Creation
         Wednesday, June 20, 2012
                9:00 a.m.


City of Shreveport Department of Community Development
                 Bonnie Moore - Director
Southern University Shreveport, LA
Center of Business and Community
           Development
What Are Business Incubators
1. Typically facilities where business share expertise and cost.

2. Facilities which offer access to expertise and services through:


SHARED OFFICES                COMMON EQUIPMENT

RESEARCH                      MENTORING

MANUFACTURING SPACE           JOINT MARKETING

BUSINESS SUPPORT              OTHER TECHNICAL AND
                               SUPPORTIVE SERVICES
Center of Business & Community
          Development
   Why We Chose to Do a Business
            Incubator
• In our 2004-2008 Consolidated Plan Economic
  Development was our #1 priority. Tremendous
  emphasis was placed on economic development
  activities.
• Under Strategy 3:3: Create opportunities to provide a
  full range of business assistance services for new and
  expanding businesses and entrepreneurs.
• The performance goal was to establish an incubator by
  December 31, 2004
          Why We Chose MLK
•   Disinvestment in this neighborhood
•   Poor business climate
•   Unemployment rate 16.7 percent
•   Median household income $21,681
•   Per capita income $13,336
•   Graduation rate 40.3 percent
•   Struggling Businesses
•   Few new start in the last decade
•   Southern University Shreveport began a small business technical
    program with emphasis on MLK, which enabled a partnership to
    be formed.
How it Meets CDBG Requirements
• May do other types of business assistance under
  special ED (24 CFR 570.203)
• Public Benefit test (24 CFR 570.209 (b))
  –   Job creation and retention
  –   Area benefit
  –   Low-to-moderate income limited clientele
  –   Elimination of Slum or Blight
  –   Micro-Business Enterprises
          Incubator Development
• Prepare a feasibility
  analysis
• Locate site
• Do financials and
  marketing plan
• Identify resources
• Develop
Evaluating Incubator Applications
•   Evidence of need and support
•   Qualified management
•   Cluster concentration within the community
•   Ability to leverage
•   Plan for self-sufficiency
             Historical Perspective
SUSLA Business and Community Development Center

  • $2.4 Million Building funded by HUD HBCU
    Grant, State of Louisiana, City of Shreveport, and
    Southern University System
  • Construction was completed in June 2009
  • Open for business July 2009
  • Eight suites are available for business
  • At present facility is at capacity
  • Rental Cost-
  • Leasing Term-
    Business Incubator Funding
•   SUSLA-HUD HBCU                      $162,000
•   City of Shreveport- CDBG            $650,000
•   City of Shreveport- General Funds   $100,000
•   State of Louisiana                  $900,000
•   Southern University                 $137,000
•   Southern University Foundation      $300,000
•   DOA- Facility Planning              $180,000
    Total                               $2,429,000
                 Partners
•   U.S. Department of HUD
•   City of Shreveport Community Development
•   Louisiana Economic Development (LED)
•   Southern University System
•   Louisiana Business Incubator Association
•    African American Chamber
•   Inner City Entrepreneur Institute
              Incubator Clients
Business                      Type of Business
Speech Therapy Unlimited      Speech Therapy for Children
MLD and Associates            Tax Service
Sangbahn Scere Law Office     Legal Services
Chloe’ Duplessis Consulting   Consultant
ACCION Texas-Louisiana        Micro-lending
Westaff Employment Service    Temporary Employee Agency
           Capital One Bank
       Southern University Branch
• Opened August 2010

• Located in a LMI
  community


                       Branch Manager Presents System
                       Board Chair with key to the Branch




                       Capital One Executives, State and
                       Local Officials
    Capital One Bank
Southern University Branch
ACCION Texas-Louisiana

           • Established Local
             Office in June 2010

           • Funded 25 businesses

           • Total Loan Amount:
             $477,000
Small Business Development Activities
 • Business Incubation Program
 • Entrepreneurship Training
 • Small Business Development, Technical
   Assistance, and Incubator without Walls
 • Intense Technical Assistance Program
 • Business Opportunity Grants
 • Small and Emerging Business Development
   Program
 • Youth Entrepreneurship
Business Incubation Services
• Below market office rental

• Individual business counseling
  and coaching

• Technical Assistance                Training Academy for Dental
                                     Assistants (Felicia Posey-Owner)

• Access to office equipment
  and clerical support

• Certified incubation manager
  by NBIA

                                   Xpress Testing (Alysia Jones Owner)
    Intense Technical Assistance
•   Each Business Gives a One Year Commitment
•   Companies are assigned to a management, marketing, and
    accounting consultant
•   Consultants assess the businesses and provide TA and
    recommendations monthly
•   Goal is to Increase Profit, Market Share and Create Jobs
•   Spent $ 80,000 over two years providing technical assistance
•   Worked with 12 business owners
•   Five African American Business Owners were contracted as
    consultants (Chronicles of Numbers, Bledsoe, Dotson, &
    Associates, Cawthorne Financial Services, Tiya Scroggins
    Consulting, and BMK Marketing)
    Entrepreneurship Training
• Twelve individual classes

• Enrollment of 20 students
  per year

• Presenters are experts in
  each subject area           Entrepreneurship Training


• Networking opportunities

• Assistance with business
  plan development

                                     Graduation
Business Opportunity Grants
• Started in 2005 with
  funds from City of
  Shreveport

• Provide up $2500 to
  businesses

• Utilized for equipment
  purchases

• Awarded over $117,000
  to 60 business owners
      Youth Entrepreneurship



         Biz Camp visit to Incubator        Biz Camp Graduation

• Partners with the ICE Institute and Caddo Schools for 11 years
  in delivery of BizCamp
• Provide $90,000 in funds plus in-kind donations
• Director and Business Studies Professors assist in instruction
 LED Small and Emerging Business
         Development
• Provide program for five years
• Received $155,000 in funds
• Awarded $125,000 in contracts to African
  American businesses
• Provided services and training to 152 business
  owners
                   Challenges
• Staffing to meet the need of the number of clients
  needing assistance
• Level of support clients need
• Client commitment and follow-up
• Administrative support required
• Resources
• Resources to engage consultants and provide intense
  TA, financial assistance to a larger number of clients
• More space for new clients
          Incubator Outcomes
• Initial and subsequent funding
  from HUD HBCU grants
• Admitted twelve businesses into
  the program
• Two businesses graduated
• Created 16 new jobs
  (microenterprise owners not
  included)
• Provide technical assistance to
  an average of 125 per year
• Enhanced employment &
  earnings
• Expanded networking
• New business formations
The End

				
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