5% solution presentation
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The document outlines The 5% Solution Strategy, an economic development model aimed at increasing spending within the Black community. The strategy seeks to (1) assist Black businesses in attracting a larger share of dollars currently spent, (2) recognize the economic contributions of Black businesses, and (3) redirect current and future resources towards supporting Black business growth. The goal is for the Black community to gain faster economic benefits by utilizing existing assets rather than outside influences. Key aspects of the strategy include increasing Black spending with Black businesses and organizations by 5% annually and improving customer satisfaction for Black businesses.
5% solution presentation
- 1. Developing a Strategy Blueprint for Black Business Economic Development in The City of Savannah & Metro Area Utilizing CITIWorks and “The 5% Solution Strategy”
- 2. The 5% Solution Strategy Is a Blueprint Model created and designed to utilize a competitive Black business community to drive inner city economic development and recovery
- 3. What is 5% Solution Strategy? 5% Solution Strategy is borne on the simple fact that monies are currently being spent by Black Consumers, businesses and organizations within the Black Community. The objective of the development planning efforts is to provide a foundation for growth and support by: (1) assisting the Black business attract a larger share of the dollar currently being spent, (2) recognizing the economic activity generated by these businesses with jobs, taxes, improved social conditions etc. as both a measure and barometer of success and (3) redirecting the current and future resources towards assisting with the proposed outcomes. The Black community can gain faster benefits by utilizing assets it currently has rather than attempting to influence and brings assets from outside the community.
- 4. Vision/Mission of 5% Solution Strategy? Vision: To help African Americans build intergenerational wealth To help the City of Savannah and State of Georgia recognize the asset value of African American businesses and their continuing contributions To help make African American businesses the #1 employer of African Americans Mission: To develop, articulate and cause methodologies and measures that assure public and accurate visibility of the valuable contributions that African American consumers and businesses alike make to Savannah and GA’s economic success. By doing so, they may be highly perceived as a community investment providing an attractive ROI.
- 5. 5% Solution Strategy Values we subscribe to? Support the provision of the highest quality services and products at all times Support, sustain and grow the economic value of African American businesses to the community Support ways of creating intergenerational wealth Support the employment of community residents and other contributions to the general health and welfare of the Savannah community Support the education of the African American consumer, business owners and resource organizations Support the utilization of community resources and organizations as partners in the process
- 6. Goals 1. Cause an Investment in Black businesses through an increase/shift in Black spending by consumers, Black businesses and Black organizations by 5% annually 2. Develop ways to enlist local resources to assist Black businesses improve customer satisfaction 3. Educate Black consumers, business owners and organizations on the economic value created throughout the entire community by the success of the Black community and its’ businesses 4. Support a stronger more viable local community
- 8. TWO FACTS to REMEMBER!!! • According to Dr. Danny Boston – 2/3 of the employees of a Black business will be Black – 44% of our business are located in high risk areas These facts create: – Favorable economic conditions in our communities – Better housing – Building business capacity – Networking – A pipeline to a market A move from ―economic inclusion‖ to a ―partnership for growth‖
- 9. 5% Solution Strategy is an Economic Development Program Built upon the facts that Black Businesses: 1. Employ Community Residents 2. Provide a Leadership Cadre largely not recognized 3. Support Social Interests
- 10. 5% Solution Strategy utilizes a Market Opportunity (The monies spent are in the billions) Consisting of three givens within any community: 1. Black Consumers are currently Spending XXX 2. Black Businesses are currently Spending XXX w/ other Black Businesses 3. Black Organizations are currently Spending XXX w/Black Businesses
- 11. The 5% Solution Strategy Objectives Assisting the Black business attract a larger share of the dollar currently being spent Recognition of the Economic Activity generated by these businesses with jobs, taxes, improved socials conditions etc. Redirecting the current and future resources towards assisting with the proposed outcomes The Black community can gain faster benefits by utilizing assets that are currently there.
- 12. 5% Solution Strategy Outcomes Change of Conversation about Black Community from being a resource drain to a resource asset A plan built and supported by the Community w/ measurements and other metrics A Marketing Plan that is within itself a Selfhelp Plan A Galvanized Business Leadership Creation of Resource Community Alliances A Blueprint that everyone has a copy of and can implement on a personal level
- 13. Why a 5% Solutions Strategy— Job Creation/ Business Investment through Spending? Something we can do ourselves through our own businesses as: • 66% of Business employees tend to reflect the ownership • Currently Black spend approximately $0.06 of every dollar with Black business • If spending investment increased to $.12 cents • Nationally Black Unemployment would drop from 13.4% to 10.6%
- 14. Why Black Business Economic Impact? Over the last five years Black businesses out grew those of all other ethnic groups For every $1 million spent with Black businesses 10 jobs are added to the business; 7 go to Blacks. Every $1 million of Black Business revenue adds $3.1 million in to total US output and 25 jobs to the economy. Black businesses un-recognized as meaningful contributor in economic activities—change Paradigm thinking
- 15. According to Dr. Thomas Boston 1. Increasing the capacity and competitiveness of Blackowned firms is the most important imperative for our community and country. 2. Black businesses account for a growing percentage of US final demand and jobs, and are located in underserved communities. 3. Our economic destiny is linked to the full integration of Black companies in the national and global marketplace 4. Over the last 5 years Black businesses out-grew those of all other ethnic groups
- 16. Savannah a City of Excellence! Savannah Can be a City of Excellence if it begins to consider the Black Community an ASSET and begins to invest in it. There is a return for the city! If the Black Community will begin to see itself as a Market worthy of being tapped and utilized for the development of Black Businesses as Employers. If the Black Business Community begins to improve its approach to Excellence!!
- 17. The Impact of the Lack of Minimal Dollar Turnover Black Communities have to rely on ―external‖ funds for support Black Enterprises experience little or no growth and development Black Enterprises struggle to address the needs of its loyal customer base
- 18. How Could High Dollar Turnover Help This Community? Increasing by 5% black dollars spent in black communities would generate $2.2 Billion and 10,000 jobs and reduce national unemployment from 13.4% to 10.6%
- 19. Why This Will Work for Community Development? Our proximity to the customer – Both consumer and business located within reasonable distances of each other Proximity of workforce Infrastructure benefits—transportation Support Networks (in community) Community Support & Community Leadership The Advantage of Knowing our Communities
- 20. The National Economic Picture WHY THIS WILL WORK? • Small business accounts for 75% of all new jobs. • When you spend $100 at an independent (Black) business, $68 returns to the local community. Spend that same amount at a national chain and it drops to $43. • For every square foot a local (Black) firm occupies, the local economy gains $179 vs. $105 for a chain store. • Locally-owned (Black) businesses reinvest in the local economy at a 60% higher rate than chains and Internet retailers. • Locally-owned and operated (Black) businesses create higher-paying jobs for you and your neighbors.
- 21. How do Other Groups Accomplish This? • They ensure that the dollar is circulated multiple times (e.g., banks, cleaners, retail shops, automotive shops, grocery stores, barber shops/salons, insurance agents, etc.) • They create ―synergy‖ – Ensuring that institutions they support will also support Black Enterprises • They understand that dollar circulation is both a short and long-term investment
- 22. Two Realities on Inner City Business Red Ocean (Everybody) Blue Ocean (Your City) Large Business Black & Local Business Affirmative Action 5% Solution Government the Lead Black Business & Community Self-Help Civil Rights Descriptions are the Way Economic Descriptions are the Way Exploitation is the Way Empowerment is the Way
- 23. New Reality Black businesses will be required to be community leaders, again!. That means: • Being concerned about something else besides your business • Leading community development efforts • Partnering with each other for capacity and enhanced capabilities • Partnering with majority community as representative not as primary beneficiary • Invest funds in the public debate (issues) to include: politics/candidates
- 24. What I am Seeking? • A Group to be the owner and the perpetuator • A Group to launch a 5% Solution Strategy Campaign • A Group to become the community educator • A Group to will in the recruitment of business • A Group to develop a funding strategy • To help Black businesses gain more sales transactions
- 25. Finally, Know THIS!! We are talking about OUR MONEY and A MARKET!! These are Our BUSINESSES, CONSUMERS INSTITUTIONS!! This is NOT A Set-Aside or Privileged Market!! This is NOT A SOCIAL PROGRAM or ENTITLEMENT!! and There We DON’T NEED PERMISSION!! Why Because We are Using our ASSETS to Help the Black, as well as, the Entire Community!! And We will be Stepping up to the Table to PAY OUR SHARE of the ECONOMIC RENT in Savannah in a NEW WAY!! However, if YOU take this on IT won’t be EASY nor INSTANT!
- 26. DISCUSSION
- 27. Thank You for This Opportunity!
- 28. Joseph R. Hudson www.josephrhudson.com 40 plus years in Minority Business experience as • MBE Organization Executive • MBE Business Developer • Supplier Diversity Trainer • Economic Development Planner Founded Atlanta Office Interracial Council for Business Opportunity—a small business development organization Co-founded Georgia Minority Supplier Development Council (GMSDC) • Former President GMSDC • Council of Year • BCF Council of Year National Minority Supplier Development Council (NMSDC) • Former Trainer • Chair Exec Director & Member Nat’l Exec Committees Small Business Owner • Construction Manufacturer and Supplier • Consultant MBE Advocate • Self Study MBE Affairs and policies • Testified before US House Small Business Committee • Former Columnist on Small Business • Developed Local Strategies
- 29. The Hudson Strategic Group Business & Organizational Design Architects "Helping You Design and Build a Business Organizational Structure to Achieve Your Marketplace Mark of Distinction" 770-994-4466 404-281-9545 (c) 6856 Tara Oaks Dr Riverdale, GA 30274 www.hudgroup.com "Our Mission is to help our clients Design their Marketplace for Distinction and become a Nimble, Indispensable, Compelling, and Essential Source of Value" •