Organizational Overview
1
U.S. Department of Commerce Minority Business Development Agency
Juan Pickett, Business Development Specialist
MBDA
The Agency
The Minority Business Development Agency (MBDA) is tasked with promoting the growth and competitiveness of minority-owned businesses nationwide.
By Executive Order 11625, MBDA conducts the following:
– Coordinate the plans, programs and operations of Federal agencies to strengthen minority business enterprises (MBEs).
– Promote the mobilization of activities and resources of State and local governments, businesses and trade associations, universities, foundations, professional organizations towards the growth of MBEs.
– Establish a center for the development, collection, summarization and dissemination of information for and about minority businesses.
– Provide financial assistance to public and private organizations so they may render business consulting services to MBEs.
The Agency
MBDA’s vision is economic prosperity for all American business enterprises.
To foster the growth and global competitiveness of U.S. businesses that are minority-owned.
Our Vision
Our Mission
Why is MBDA important
• The U.S. needs strong minority-owned firms to achieve maximum economic growth.
• The nation is failing to reap the benefits of economic parity – the creation of 16 million jobs, generation of $2.5 trillion in gross receipts and unrealized tax base exceeding $100 billion per year.
• Minority firms have the potential to contribute significantly to the balance of trade. Minority businesses are twice as likely to generate sales through exports compared to non-minority firms.
• Minority-owned firms create job opportunities for all Americans; MBEs tend to be generally more balanced in hiring minority and non-minority persons.
• In 2050, the minority community will represent 54% of total U.S. population.
• MBDA is a catalyst to build minority-owned firms of size, scale and capacity.
Why is MBDA important
Source: U.S. Census Bureau, 2002 Survey of Business Owners, August 2006, and 2007 Special Tabulation on total minority firms for 2002.
Summary of Business Statistics by Group - 2002
GroupNumber of
FirmsTotal Gross
ReceiptsAverage Gross
ReceiptsPaid
Employees
African American 1,198,000 $88.8 billion $74,000 757,000
American Indian & Alaska Native 201,000 $26.9 billion $133,000 191,000
Asian 1,104,000 $326.4 billion $296,000 2,213,000
Hispanic 1,574,000 $222.0 billion $141,000 1,538,000
Native Hawaiian and Other Pacific Islander
29,000 $4.3 billion $148,000 29,000
All Minority 3,958,000 $661.1billion $167,000 4,675,000
All U.S. Firms (excludes publicly-held and other non-classifiable firms)
22,480,000 $8.8 trillion $391,000 55,368,000
Our Clients
• Native Americans
• Hasidic Jewish Americans
• Native Hawaiians
• Asian Americans
• Alaska Natives
• Pacific Islanders
• Hispanic Americans
• African Americans
U.S. businesses owned and operated by the following ethnic groups:
Our Clients
* Source: U.S. Census Bureau, 2007 Special Tabulation for Minority Firms in 2002, “2002 Survey of Business Owners.”
• Represent only 5% of all minority firms • Generate 75% of all minority-owned firms gross receipts• Provide 73% of all paid employees
The core MBDA client is a firm that generates $500,000 in annual revenue.
These firms have the following characteristics:
5%
75% 73%
95%
25% 27%
0%
20%
40%
60%
80%
100%
120%
Number of Firms Gross Receipts Paid employees
Minorityf irms($500,000and above)
Minorityf irms(Under$500,000)
Service Delivery
MBDA network is comprised of 46 centers which are organized as public/private partnerships.
Service Delivery
MBDA service delivery program was developed in conjunction with the Tuck School of Business at Dartmouth College. Through this collaboration a systems-integrated approach was designed into the Agency’s service delivery model.
MBDA evaluates clients based on their business functions as outlined below:
• Strategy – plans for achieving sustainable competitive advantage and creating customer value.
• Processes – efficiencies and effective ways of manufacturing products or delivery of services.
• Architecture - organizational and value chain (outsourcing) structure to implement the strategy and key processes.
• Resources - the acquisition and management of financial, human, and technical assets.
• Systems - mechanisms for control and communication, including but not limited to management information systems (MIS).
• Employee Empowerment – delegation in a way that encourages staff to pursue strategic initiatives and continuous improvement.
Service Delivery
• Business Consulting
• Procurement Matching
• Private Equity and Venture Capital Sourcing
• Bonding Assistance and Loan Packaging
• Strategic Partnering (e.g, Business-to Business, Teaming, Joint Ventures, etc.)
• Market Promotion of Clients to Prime Contractors and Other Buyers
Based upon result of systems-integrated review, MBDA provides the following services:
Performance
• New Jobs Created• Dollar Value of Contracts Awarded• Dollar Value of Financing Transactions
Awarded
• 2,001 New Jobs • $1.7 Billion in Contracts • $278 Million in Financing
Fiscal Year
Agency Funding
Total Contracts &
Financial Opportunities
Awarded
New Jobs Created
Return on Agency
Investment(ROI)
FY 08 $28.5 M $2.1 B 5,316 74x
FY 07 $29.9 M $1.8 B 3,506 59x
FY 06 $29.8 M $1.6 B 4,254 53x
FY 05 $29.8 M $1.6 B 2,270 54x
FY 04 $29.7 M $1.6 B n/a* 54x
FY 03 $29.0 M $1.1 B n/a 38x
FY 02 $28.3 M $1.7 B n/a 60x
FY 01 $27.9 M $2.2 B n/a 79x
MBDA’s performance criteria is based on:
January 1 through August 25, 2009, MBDA has created:
* The Job Creation measure was established in fiscal year 2005.
Performance
37%
2%19%
11%
7%
7%
8%4% 2% 3% 1%
32%
2%
37%
5%
4%3%
9%4% 2%1%1%
MBE Firms Receiving Services by Industry Classification
in FY 2008
MBE Firms AwardedContracts by Industry Classification
in FY 2008
Case Study 1
Annual Sales: $6 million $7.2 million $1.2 million
Number of Employees: 10 18 8 Non-Minority 50% -
Client Stats
Recorded Client Impact:
Service Provided by MBDA:
Dollar Value of Awarded Contracts: $1.2 million 10/1/2008 – 12/5/2008Percent Increase in Sales: 20%Number of New Contracts: 7Number of Contract Sources: 7New Jobs Created: 8Percent Increase of Employee Resources/Capacity: 80% in employee capacity
Before After
Description: Client needs assessment, contract acquisition matching
and bid assistance.
Number of Client Service Hours: 97
Firm: AISLocation: Chicago, ILEthnicity: Hispanic AmericanIndustry: IT Consulting/Security, Data Warehousing
Increase
Date Awarded
Case Study 2
Annual Sales: $37 million $50 million $13 million
Number of Employees: 35 65 30 Non-Minority - -
Client Stats
Recorded Client Impact:
Service Provided by MBDA:
Dollar Value of Finance Assistance: $6.5 million 9/30/2008Dollar Value of Awarded Contracts: $13.3 million 2/27/2008-5/22/2008Percent Increase in Sales: 35%Number of New Contracts: 3Number of Contract Sources: 1New Jobs Created: 30Percent Increase of Employee Resources/Capacity: 86% in employee capacity
Before After
Description: Client needs assessment, contract acquisition matching,
bid assistance, and construction related consulting.
Number of Client Service Hours: 31
Firm: NECCILocation: New York, NYEthnicity: African AmericanIndustry: Interior Finish Construction
Increase
Date Awarded
Case Study 3
Annual Sales: $15 million $410 million $395 million
Number of Employees: 21 TBD - Non-Minority 57% -
Client Stats
Recorded Client Impact:
Service Provided by MBDA:
Dollar Value of Awarded Contracts: $395 million 4/3/2009Percent Increase in Sales: 270%Number of New Contracts: 1Number of Contract Sources: 1New Jobs Created: TBDPercent Increase of Employee Resources/Capacity: TBD
Before After
Description: Client needs assessment, contract acquisition matching,
bid assistance, and administrative management consulting.
Number of Client Service Hours: 4
Firm: CIILocation: Albuquerque, NMEthnicity: Hispanic AmericanIndustry: Environmental Engineering and Technology Services
Increase
Date Awarded
Case Study 4
Annual Sales: Start-Up $3.027 million $3.027 million
Number of Employees: 0 2
Non-Minority 0% -
Client Stats
Recorded Client Impact:
Service Provided by MBDA:
Dollar Value of Finance Assistance: $30 million 12/2/2008Dollar Value of Awarded Contracts: $3.027 million 1/15/2009Percent Increase in Sales: 100%Number of New Contracts: 2Number of Contract Sources: 1New Jobs Created: 2Percent Increase of Employee Resources/Capacity: 100% in employee capacity
Before After
Description: Creation of the Joint venture, secured SBA approval of the joint venture and assisted with proposal to the Army Corps of Engineers.
Number of Client Service Hours: 34
Firm: GS&A CJVLocation: Alto, NMEthnicity: Hispanic AmericanIndustry: Commercial Construction
Increase
Date Awarded
Case Study 5
Annual Sales: $3.0 million $7.9 million $4.9million
Number of Employees: 20 25 5 Non-Minority 43% -
Client Stats
Recorded Client Impact:
Service Provided by MBDA:
Dollar Value of Awarded Contracts: $ 4,998,196 7/10/2008Percent Increase in Sales: 20%Number of New Contracts: 1Number of Contract Sources: 1New Jobs Created: 5Percent Increase of Employee Resources/Capacity: 25% in employee capacity
Before After
Description: Procurement Services/Procurement LeadNumber of Client Service Hours: 33
Firm: RSCLocation: Fargo, NDEthnicity: Native AmericanIndustry: Construction
Increase
Date Awarded
New Strategic Focus
• Increase focus to minority-owned firms with $1 million or more in revenue.
• Create a new generation of $100 million in annual revenue businesses.
• Continue to expand minority businesses globally.
• Foster growth of minority businesses into key innovative industries:
– Clean Energy
– Green Technology
– Healthcare
– Information Technology