Atlanta business league strategy blueprint presentation

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How to achieve economic growth in Black community

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Atlanta business league strategy blueprint presentation

  1. 1. The 2nd Congress on the State of BlackBusiness in Metro Atlanta to Develop a Strategy Blueprint for Black Business Economic Development in The City of Atlanta & Metro Area utilizing ―Operation Turnover‖
  2. 2. WHAT IS OPERATION TURNOVEROperation Turnover 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. 2
  3. 3. VISION/MISSION OF OPERATION TURNOVERAND EACH CONGRESS ET. ALVision: To help African Americans build intergenerational wealth To help the City of Atlanta 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 AmericansMission: 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 Atlanta and GA’s economic success. By doing so, they may be highly perceived as a community investment providing an attractive ROI. 3
  4. 4. OPERATION OVER 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 Atlanta 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 4
  5. 5. GOALS 2007-200101. Cause an Investment in Black businesses through an increase/shift in Black spending by consumers, Black businesses and Black organizations by 5% annually2. Develop ways to enlist local resources to assist Black businesses improve customer satisfaction3. Educate Black consumers, business owners and organizations on the economic value created throughout the entire community by the Black community and its’ businesses 5
  6. 6. ADAGE You Don’t Climb a Tree Looking for Fish!! 6
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  8. 8. BACKGROUND--STAKEHOLDER FATIGUE Back in the day—entitlement etc Perception Map Offer Loop CEO Language We talk about solutions with same language as we talk about the problems Things Have Changed Therefore So MUST WE!!  Investment groups  Better educated etc. 8
  9. 9. ADAGE If You are Still Talking about What You did Yesterday, You Haven’t Done Much Today!! 9
  10. 10. OPERATION TURNOVER IS… Economic/Market driven Community Economic Development Program developed and implemented by the Business Leadership of your Black Business Community. Built upon the fact that monies are currently being spent by Black consumers, businesses, and organizations within the Black community. It is intended to put the Black Business Leadership ―On Par‖ with the White Business Leadership 10
  11. 11. OPERATION TURNOVER IS SELF –RELIANCE AND COMMUNITY CONTROLOperation Turnover builds on local strengths, creativity and resource, and actively seeks to decrease dependency on, vulnerability to, economic interests outside the community and city.Operation Turnover supports decentralized, non-hierarchical decision- making processes that strengthen the autonomy of the individual, the business and the community. 11
  12. 12. OPERATION TURNOVER ENCOURAGESINTEGRATION Operation Turnover recognizes that the healthy development on communities requires a holistic approach that addresses the economic, social, a nd cultural dimensions of 12
  13. 13. OPERATION TURNOVER ENCOURAGES INTERDEPENDENCEOperation Turnover recognizes that the local community exists within the context of a larger web of relationships and that its decisions can have an impact far beyond its own boundaries.Therefore, Operation Turnover embraces strategies that aim to benefit the local and larger community. 13
  14. 14. OPERATION TURNOVER ENCOURAGES CAPACITY-BUILDINGOperation Turnover contributes to self- reliance by encouraging the acquisition of relevant skills, knowledge, and techniques plus the development or realignment of supportive structures and institutions 14
  15. 15. OPERATION TURNOVER ENCOURAGESDIVERSITYOperation Turnover contributes to self- reliance by encouraging economic activities that are diverse, citizens developed and appropriate to the expressed needs within the community and city.As a result, Operation Turnover looks different in each community/city. 15
  16. 16. ADAGE To Ignore the Facts Doesn’t Change the Facts!! 16
  17. 17. OPERATION TURNOVER IS EXPRESSED BYAPPROPRIATE INDICATORS Operation Turnover monitors and evaluates its progress through community derived and appropriate economic indicators and such recognized tools as Economic Impact and Return on Investment (ROI). 17
  18. 18. ALL OF THE MAJOR STAKEHOLDER GROUPS EXPECT A RETURN ON INVESTMENT (ROI)1. Community ROI = Economic Impact (Jobs, Taxes, Services) a) They Invest in Infrastructure, Education, Tax Breaks2. Investors ROI = $Return vs. $Invested a) They Invest Capitol (Debt or Equity)3. Employee ROI = Pay and Secure Environment a) They Invest Waking Hrs, Commitment (Emotional) 18
  19. 19. COMMUNITY ROI DEFINITIONS• Revenue=Dollar Turnover, Jobs, # of Businesses• Return= Business Income, Individual Salaries, Philanthropy• Assets= Black Marketplace, Quality Businesses, Business Leadership• Profit=Safe Community, Improved Schools,• Reduced Crime, Taxes Collected• Investments=5% Increase Black Spending, Increased Contracts, Tax Breaks, , New Sources of Funds 19
  20. 20. OPERATION TURNOVER IS A MARKET(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 20
  21. 21. OPERATION TURNOVER IS AN ECONOMIC DEVELOPMENT PROGRAMBuilt upon the facts that Black Businesses:1. Employ Community Residents2. Provide a Leadership Cadre previously not recognized3. Support Social Interests 21
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  23. 23. ADAGEIt’s Better to Understand a Little than Misunderstand A lot!! 23
  24. 24. THE OPERATION TURNOVER 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 24
  25. 25. OPERATION TURNOVER 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 Self-help Plan A Galvanized Business Leadership Creation of Resource Community Alliances A Blueprint that everyone has a copy of and can implement on a personal 25
  26. 26. ACCORDING TO DR. THOMAS BOSTON1. Increasing the capacity and competitiveness of Black- owned 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 marketplace4. Atlanta, GA outstrips ALL other major cities as the preferred location for Black businesses5. Over the last 5 years Black businesses out-grew those of all other ethnic groups 26
  27. 27. MORE DR. BOSTON 95% of Black Dollars Spend outside Community More than 50% of GA Black People live at the Poverty Level 75% of Business employees tend to reflect the ownership Black Buying Power in GA expected to reach $67B by 2010 27
  28. 28. ADAGE People Who Pay Their Own Way to College, Seldom Flunk Out!! 28
  29. 29. ATLANTA A CITY OF EXCELLENCEAtlanta 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!! 29
  30. 30. WHAT IS CITY OF EXCELLENCE? City of Excellence – Black Community Economics Black Consumers Spending with Black Businesses Ensuring Multiple Turnover of the Black Dollar within the Black Community 30
  31. 31. BLACK CONSUMER SPENDING GA Black Spending = $54 Billion in 2007 projected The State of Georgia ranks as the 4th Largest African-American Market The Metro Atlanta Buying Power is projected at $28B for 2007. 31
  32. 32. THE IMPACT OF THE LACK OF MINIMAL DOLLARTURNOVER Black Communities 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 32
  33. 33. HOW COULD HIGH DOLLAR TURNOVER HELPTHIS COMMUNITY? Every dollar spent creates $2.2 in activity Every million dollars spent typically creates 10 jobs Increasing by 5% black dollars spent in black communities would generate $2.2 Billion and 10,000 jobs 33
  34. 34. HOW ARE JOBS CREATED?a) Increased revenue allows Black Enterprises to scale up i. Additional employees can be hired to address increased demandb) Hiring Employees can affect the entire Metropolitan Area Job Market i. Increased Wagesc) Studies show that Minority-Owned Firms hire minorities i. Big companies/organizations are far less likely to hire minorities ii. An Increase of 5% Spending by Atlanta Blacks with Atlanta Black Businesses would create over 23,000 jobs within one year with over 18,000 34 being Black people
  35. 35. HOW DO OTHERGROUPS 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 35
  36. 36. REVIEW COMPLETED ABL STRATEGY TOOVERCOME A Blueprint Map/Plan:1. To increase the spending with and among Black Businesses.2. Increase the development of Jobs within the Black Community3. To increase the involvement of the whole community in addressing the plan 36
  37. 37. Atlanta Business League ―Operation Turnover‖ 2008 BLUEPRINT 1.Economic 2. 3. 4. 5. Increase timesImpact Increase marketing Develop a method Arrange financial dollar turns 5% per Black Businesses of Business to control our land resources for Black year form alliancesObjectives and real property Business ProvideCustomer Value for Provide Assure services and Help Increase competitive/Community investment quality goods market share and Fair products that reflect actual and services Pricing ROIExpectations needs Locate inBusiness Operate Provide top Know Have areas A willingness Professionally level customer adequateMust Perform accessible to to collaborate Expertise needs cash-flow customerWellResource Black Business to Black Business to’/Community Black Business to Consumer Black Business Black OrganizationAdjustments Co-sponsored by Georgia Summit of African American Business Organizations 37 (GSAABO)
  38. 38. ADAGEYou Can’t hide a Piece of Broccoli in a Glass of Milk 38
  39. 39. Economic Impact (benefits)Black Business affect the City of Atlanta and Metro area Presented by Public Policy Committee 04/08/2008
  40. 40. SELECTED DEMOGRAPHIC PROFILE GA Black pop 2.3 million GA has fifth largest Black population Black in GA median income of $31K 1.2M Black people in Metro Atl Black Population growing at faster rate than balance of US 40
  41. 41. BLACK BUYING POWER $58B in State of GA Blacks comprise 22% of metro buying power or $28B GA Black buying power ranked 4th in US 41
  42. 42. BLACK BUSINESS IMPACT Black businesses double in number between 1992 and 2002 Black businesses growing at a rate of nearly 3 x’s all other minority groups Most of growth in City of Atlanta, Fulton & Dekalb County’s Atl ranks 3rd in (yr 2002) for # of Black Bus. 42
  43. 43. 2002 ECONOMIC IMPACT (BENEFIT) Economic Impact on Region = $8B Overall Impact on Jobs= 26K Impact on Jobs = 82K(Jobs Spawned by) Impact on Earnings = $2.8B 43
  44. 44. ESTIMATED IMPACT 2007 Economic Impact = $23.5B Overall Impact on Jobs = 219k Direct Impact on Jobs -=52K Impact on Earnings = $7B Direct Sales = $10.7B $37.6 B in output in buying power 1% increase in buying power = $376M 44
  45. 45. OTHER ANALYSIS 5 – 10 jobs are produced per $1M in revenue For every $1 in new revenue spent with Black bus. COMMUNITY get $.68 It takes approx $205 in revenue to create one new job 45
  46. 46. OTHER ECONOMIC ACTIVITY CONTRIBUTORS(CURRENT & PAST) Corporate Supplier Diversity Programs Banks-CRA Special Emphasis programs— Women, Disabled etc Franchise Joint Venturing and Alliances Disparity Legislation 46
  47. 47. THE ABL CONGRESSIONAL MEETING OBJECTIVES1. Assisting the Black business attract a larger share of the dollar currently being spent2. Recognition of the Economic Activity generated by these businesses with jobs, taxes, improved socials conditions etc.3. Redirecting the current and future resources towards assisting with the proposed outcomes4. The Black community can gain faster benefits by utilizing assets that are 47
  48. 48. ADAGEOld Boomerangs are Hard to Throw Away 48
  49. 49. ALL OF THE MAJOR STAKEHOLDER GROUPS EXPECT A RETURN ON INVESTMENT (ROI) Community ROI = Economic Impact (Jobs, Taxes, Services)  They Invest in Infrastructure, Education, Tax Breaks Investors ROI = $Return vs. $Invested  They Invest Capitol (Debt or Equity) Employee ROI = Pay and Secure Environment  They Invest Waking Hrs, Commitment (Emotional) 49
  50. 50. COMMUNITY ROI DEFINITIONS Revenue=Dollar Turnover, Jobs, # of Businesses Return= Business Income, Individual Salaries, Philanthropy Assets= Black Marketplace, Quality Businesses, Business Leadership Profit=Safe Community, Improved Schools, Reduced Crime, Taxes Collected Investments=5% Increase Black Spending, Increased Contracts, Tax Breaks, , New Sources of Funds 50
  51. 51. METRO ATLANTA CALCULATION OF COMMUNITYROI 7.3B Earnings $52B/219K jobs 52k Dir Jobs ROI = $52B/219K jobs 52k Dir Jobs $10.7B Rev Community Economic Job Leverage Leverage Leverage Community ROI = 68% per year •5 – 10 jobs are produced per $1M in revenue •For every $1 in new revenue spent with Black bus. COMMUNITY get $.68 •It takes approx $205 in revenue to create one new job 51
  52. 52. HOW SUPPORTING BLACK BUSINESS CANIMPACT ROI Return Revenue Assets ROI = Revenue Assets Investment Community Economic Jobs Leverage Leverage1. Tax Incentives/Job Credits2. Creating / Indentifying Lower Cost Business/Supplier3. Recruiting / Identify Higher Quality Business/Supplier4. Developing More Responsive Business/Supplier5. Community Bases Outsourcing Opportunities6. CRA Funding New Product Capability7. Identify New Customers 52
  53. 53. 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 $3.1 million in to total US output and 25 jobs to the economy. Nationally, Black businesses operate in neighborhoods that are 44% Black; 35% operate in high poverty areas. But in Georgia only 6$ out of every $100 is spent with Black businesses Black businesses un-recognized as meaningful contributor in Atl economic activities—change Paradigm thinking 53
  54. 54. HOW OTHERS ATTAIN SUCCESS Tax incentives and other subsidies Partnering and Alliances Business Leadership in community Influencing political process Recruiting other businesses to area and state Strong organizational influence 54
  55. 55. WHAT DOES IT ALL MEAN? You Can’t Build a Reputation on What You Intend To Do!!We want to bring what is called ―Economic Value Add‖ (EVA) and be widely recognized as the paying our economic rent. Therefore, If you Really Want Something You Will Find A Way, If You Don’t You Will Find an Excuse!! 55
  56. 56. FINALLY, KNOW THIS!! We are talking about OUR MONEY and A MARKET!!  These are Our BUSINESSES, CONSUMERS and INSTITUTIONS!!  This is NOT A Set-Aside or Privileged Market!!  This is NOT A SOCIAL PROGRAM or ENTITLEMENT!!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 Atlanta in a NEW WAY!! 56
  57. 57. ADAGE Most People are in Favor of Progress, its Just the Changes They Don’t Like 57
  58. 58. 4 OBJECTIVES OF 2ND CONGRESS (TODAY)Discuss and identify methods to: 1. Increase doing business within specific market segments by 5% 2. How to identify others 3. How to measure and monitor 4. Adopt the 2 ABL resolutions on subject to show concurrence 58
  59. 59. THUS FAR, OVER 450 PERSONS PARTICIPATED IN THE DEVELOPMENT OFOPERATION TURNOVER AND ITS SUPPORTING CONGRESS ON THE STATE OF BLACK BUSINESS IN METRO ATLANTA OVER A PERIOD OF 24 MONTHS!! THIS IS JUST THE BEGINNING 59
  60. 60. THANK EACH OF YOU! ABL PUBLIC POLICYCOMMITTEE 2008• Joseph R. Hudson- • Jamila DaCosta Chair • Daniel Kinch• Mike Martin-V Chair • Ed Menifee• Leona B-Davenport- • Yvonne Bryant Johnson Pres, • JL Wilson• Carol Johnson-ABL • Vivian Frazier Staff • Mary Yancey• Alice Bussey • Milton J. Burns• Keith Scott • Barbara Mahone• Al Anderson • Simon Robinson• Ross Dixon• E.J Jackson 60
  61. 61. PUBLIC POLICY COMMITTEE CON’T• Len Rothman• Angela Harmon• Dr. Georgianne Thomas• Glen Crews• Erskine Hawkins 61
  62. 62. ADAGE Those Who Aspire to Excellence spend Life in One Pursuit, for Excellence is not Often Gained Easily 62

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