Bici hbcu entrepreneurship conf. presentation-3.07.11
Black Innovation & Competitiveness InitiativeBICI Johnathan M. Holifield CEO, Black Innovation and Competitiveness Initiative Johnathan@BlackInnovation.org March 8, 2011 www.BlackInnovation.org
Black Innovation & Competitiveness InitiativeSignificance of this Moment and PlaceMontgomery, Alabama At the close of the Bridge Crossing Jubilee, the annual commemoration of the Selma to Montgomery March and a pilgrimage to walk across the Edmund Pettus Bridge . . . The Montgomery Bus Boycott officially started on December 1, 1955, was a seminal moment in Black America’s quest for Constitutional Citizenship . . . First Annual Alabama State University-HBCU Conference started on March 7, 2011, is a seminal moment in Black America’s quest for Equity Citizenship!
Black Innovation & Competitiveness InitiativeWhere we are: New NarrativeInnovation Economy: The economic period of the late 20th and early 21st centuries marked by radical socioeconomic changes brought about by the globalization of commerce, democratization of information, exponential growth of entrepreneurship and acceleration of new knowledge creation.Constitutional Citizenship: Citizens of the United States by birthright, as enshrined in the Constitution. Constitutional citizens are full and equal American citizens under law, but they do not have much, if any, underlying ownership interests in the nation and do not share in the best national opportunities.Equity Citizenship: Citizens of the United States who are partners and have meaningful ownership interests in the nation. Equity citizens are entitled and able to access an equitable proportion of America’s best opportunities to achieve economic prosperity.
Black Innovation & Competitiveness InitiativeBICI: What is it?The Black Innovation and Competitiveness Initiative (BICI), is anational startup not-for-profit corporation providing an onlinecommunity platform and a wide range of intermediary advocacyand advisory services to governments, communities,organizations, education institutions and businesses, designed toaggressively address the innovation and competitiveness crisis inBlack America.
Black Innovation & Competitiveness InitiativeBICI Mission StatementThe Black Innovation and Competitiveness Initiative is an open, collaborative and innovative platform that fosters solutions-based approaches to 21st century community economic development.Supported by three essential pillars of innovation — education, capital and entrepreneurship — the BICI strategy seeks to leverage existing assets within Black American communities to create new opportunities and ensure competitiveness in the global Innovation Economy.The BICI will facilitate a new narrative to inspire free exchange of innovative ideas among community, business, government and education leaders, students and entrepreneurs, with a goal of achieving exponentially greater economic growth and prosperity throughout Black America.
Black Innovation & Competitiveness Initiative BICI:The Crisis
Black Innovation & Competitiveness Initiative Funding 2010 %Black-owned tech businesses received just 1% of angel and venture capital funding compared to: 12% for Asians and 87% for Whites. source CB Insights Report 2010
Black Innovation & Competitiveness Initiative BLACK AMERICA GDP $137.4B % $14T Black America produced LESS THAN ONE PERCENT of the total U.S. GDP in 2010.Source: U.S. Census based on 2007 data
Black Innovation & Competitiveness Initiative TOTAL ACADEMIC R&D AT HBCUs $448M % $52B Total academic research and development expenditures in 2008 were $52 billion, of which $448 million, or 0.9%, were expended by HBCUs.Source: NSF WebCASPAR, Last accessed December 2009
Black Innovation & Competitiveness Initiative FEDERAL R&D SUPPORT AT HBCUs $336M % $31B Federal funding sources accounted for $31 billion of academic research and development expenditures. Of that amount, HBCUs expended $336 million, or 1.2%.Source: NSF WebCASPAR, Last accessed December 2009
Black Innovation & Competitiveness Initiative CARNEGIE FOUNDATION RANKINGS 1 HBCU 205 INSTITUTIONS In 2010, there were 205 institutions ranked by the Carnegie Foundation as “high research activity” and “very high research activity.” Of those 205 institutions, only one (1) HBCU is ranked.Source: Carnegie Foundation for the Advancement of Teaching
Black Innovation & Competitiveness Initiative Average Annual Sales 2010$439K White Business: $439,579$74K Black Business: $74,018 Firms with number of employees (thousands) Total Firms None 1 - 4 5-9 10-19 20-49 50-99 100-499 500+Black 95 19 47 14 7 4 1 1 <Women 917 161 462 149 83 43 11 7 1Hispanic 200 37 100 31 18 9 3 1 <Asian 319 54 161 55 30 15 3 2 < < symbol means less than 500 firmsSource: U.S. Census Survey of Business Owners 2002
Black Innovation & Competitiveness Initiative Black Percentage of Black-to-White Wealth since 1970 Wealth As percentage of White wealth 1970 25% 2007 6%In 1970 (in the wake of the Civil Rights Movement) the median Blackfamilys net worth was one-fourth (25 percent) that of the medianWhite family. By 1980 the ratio had fallen to 15 percent. By 1990 it hadfallen to twelve percent, by 2004 to nine percent, and the latestmeasure (2007) is at six percent. U.S. Black/White Net Worth Gap
Black Innovation & Competitiveness InitiativeIncome and EarningsAccording to the U.S. Bureau of the Census, in 2006, the average Black American household annually earned $18,700 less than the average White American household. That means that Black American households earned 268,477,216,000 billion dollars – that’s billion with a “B” – less than our White American counterpartsU.S. Bureau of the Census, Income, Poverty, and Health Insurance Coverage in the United States: 2006 In other words, today, if Black American households were keeping pace with White American households – not exceeding, but simply keeping pace – then our households would be nearly $300 billion wealthier! $300,000,000,000
Black Innovation & Competitiveness Initiative Median Wealth White women in their prime working years of$42,600 $5 ages 36-49 have a median wealth of $42,600. (61% of their white male counterparts). 5 The median wealth for Black women is only $5. $ Survey of Consumer Finances (2007; before the economic collapse) Overall Median Wealth Black $2,100 White $94,400 Economic Policy Institute Report: State of Working America 2009
47% Black Innovation & Competitiveness Initiative U.S. High School graduation rate for Black MalesNew York = 25% (In New York alone, more than 100,000Black males do not graduate high school each year.)Overall, more than 1.3 million studentsin the U.S. fail to earn high school diplomas eachyear. (source: Schott Report 2008) (source: Editorial Projects in Education Research Center, June 2010)47% overall college graduation rate for Black students36% Black males
Black Innovation & Competitiveness Initiative Adult: 16% Youth: 45%
Black Innovation & Competitiveness Initiative BICI: NewOpportunity
Black Innovation & Competitiveness Initiative 7%“All entrepreneurial activity is important, but high-growth entrepreneurial activity is Less than 7 percent 70% particularly so.” of startups will Global Entrepreneurship Monitor Report 2007 produce more than 70% of new jobs. (GEM Report 2007) United States: STARTUPS Between 1980 and 2005, virtually all new jobs were created by firms 5 years or younger. Roughly 40 million jobs. Kauffman Foundation Entrepreneurial Activity Worldwide: 12.3%
Black Innovation & Competitiveness Initiative70% FASTER Fueling Entrepreneurial GrowthSTEM fields employment expected to grow 70% faster than non-STEM fields.Federal investment in R&D: $373B in 2007; $398B in 2008Currently 2.7% of GDP with a goal of 3%.Small businesses perform 19% of the nation’s R&D ($55B)Universities received $51B in R&D funding in 2010. (source: Jerry Yang, co-founder of Yahoo! Speech to Presidents Entrepreneur Summit, April 2010)
Black Innovation & Competitiveness Initiative High-Growth EntrepreneurshipDespite their relatively small numbers, these entrepreneurs nonetheless account for a disproportionate share of job and wealth creation. For example: In any given year, the top-performing 1 percent of firms generates roughly 40 percent of new job creation. Fast-growing young firms, comprising less than 1 percent of all companies, generate roughly 10 percent of new jobs in any given year.To succeed, HGEs require access to leadership/management talent, risk and growth capital, clusters of peer networks and a robust infrastructure of service providers and institutional/governmental support.Source: Kauffman Foundation Research Series: Firm Formation and Economic Growth, High-Growth Firms and the Future of the American 1% 40% Economy, March 2010 = Of firms Of new job creation
Black Innovation & Competitiveness Initiative BICI:How do we connect?
Black Innovation & Competitiveness Initiative BICI: Easy –Public/PrivateRelationships
Black Innovation & Competitiveness Initiative BICI: More difficult – Demands of theInnovation Economy
Black Innovation & Competitiveness InitiativeBICI: Innovation Economy Demands• New kind of leaders• New kind of leadership organizations• New kind of leadership movement
Black Innovation & Competitiveness InitiativeBICI: Innovation Economy Demands Trim Tab Effect
Black Innovation & Competitiveness InitiativeBICI: Meeting Innovation Economy DemandsTrim Tabbers: Persons whose capabilities provide the exponentially higher leverage leadership needed to turn a matter of importance in the desired direction. Their actions significantly increase the achievement potential of the group, considerably enhancing the probability of mission success.Trim Tab Organizations: Entities that have an operational approach to mission impact based on aggregating key resources, organizing those resources into actionable, collaborative forms and highly leveraging them to achieve exponential impact, rather than incremental outcomes.Trim Tab Movement: A series of high-leverage, organized actions and events that are of national or global scale, yet local in implementation and impact, which take place over an extended period of time, working toward the single objective of exponential progress and advancement.
Black Innovation & Competitiveness InitiativeBICI Can Help• HBCUs• Local/City/County Governments• Economic/Community Development OrganizationsTo develop and implement strategic plans to connect to the Innovation Economy
Black Innovation & Competitiveness Initiative BICI Summit BICI ExpoWe will convene stakeholders in Black We will invite demonstrations of bestAmerica to address important questions practices, innovations and competitive ideaspertaining to three core community pillars. for networking and funding opportunities.OPPORTUNITYPartnerships:MediaCorporateGovernmentEducatorsIncubators / AcceleratorsCapital Investors
Black Innovation & Competitiveness Initiative BICI Needs You . . .• Go to www.BlackInnovation.org and join the Innovation Nation• Make sure I have your business card• Join the effort to advance a coalition of HBCUs in the Innovation Economy• Join our growing network of sponsors (Summit and Expo)• Help us proliferate awareness and engagement• Become a Trim Tab institution or individual resource• Help catalyze Trim Tab Movement for 21st century, Equity Citizenship
Black Innovation & Competitiveness InitiativeJohnathan Holifield, CEO Founder, Trim Tab System, LLC Innovation Economy Executive: Established CincyTechUSA, leading regional technology and innovation organization 15+ years economic development, legal, governmental and nonprofit executive leadership experience Created 21st Century public high schools focused on technology Designed community benefits strategies for projects totaling $1.5 billion Economic Development Institute Leader Athlete, civil rights lawyer and civic entrepreneurChad Womack, Ph.D., COO Mike Green, CIOFounder, President, Chair TBED21.org Award-winning reporter, columnist, editorTechnology Based Economic Development for the 14 years media experience21st Century New York Times Leadership Academy FellowFounder, Philadelphia Biotechnology and Life CNN.com trainingSciences Institute Dow Jones: Led award-winning online communityCo-founder, Chief Scientific Officer, NanoVec, Inc. engagement projects for Dow Jones Local Media GroupCo-Founder, President, Chair National Association Huffington Post bloggerfor Blacks in Bio (NABB) CEO of Internet innovation startup, Vizitnow3DTenure-track Assistant Professor, HowardUniversity College of MedicineResearch Fellow:National Institute of Health (NIH) Contact BICINational Institute for Allergy and InfectiousDiseases (Senior Fellow) info@BlackInnovation.orgHarvard AIDS Institute (International Research)