Social Enterprise Accelerator Program

The study team suggests the following recommendations regarding the development and implementation of social enterprise and social impact accelerators in Miami-Dade County.

Program Description:

Develop three Social Impact Accelerators, each operating in a 10,000 square foot leased building. Each accelerator will admit 32 businesses each year, providing $20,000 seed capital investment per client company entering the program, focusing on servicing local entrepreneurs and companies.

Program Recommendations:

! Launching new social enterprise and social impact incubators and accelerators in an underdeveloped incubator and accelerator ecosystem is a high-risk proposition. However, the risks of launching new accelerators and incubators in Miami-Dade are significantly mitigated by two factors: 1) the region consistently has one of the highest rates of entrepreneurial activity in the U.S., and 2) the County’s accelerator ecosystem has matured to the point where the development of new facilities has become a more proven investment;

! Universities play a major role in the development and operation of incubators, and can be critical partners in the operation of successful accelerators. The University of Miami and Florida International University produce a wealth of talented graduates in business, engineering, the arts, medicine and law every year. They also have the size, resources and internal talent to provide a major boost to the growth of the innovation and entrepreneurial ecosystem;

! Don’t re-create the wheel: If immediate impact is desired, the smartest implementation strategy would not be to create incubators or accelerators from scratch, but partner with existing, high-performing accelerators to either expand their existing social impact operations, or develop a social impact program alongside their traditional programs. For the most immediate impact, lowering risk, and maximizing dollar return on investment, invest resources in high-performing accelerators already implementing the best practices outlined above in this report;

! Invest in sector and/or issue focused accelerators. Not only is this key to better performance rates, but can be developed to address pressing local issues including underemployment, racial wage disparities, and under representation in business ownership of women and minorities, to name a few. As part of a broader Prosperity Initiatives program aimed at expanding opportunity and upward economic mobility, focus on serving the needs of entrepreneurs who have been underserved in the past;

! Establishing social impact accelerators in Miami-Dade’s most distressed neighborhoods. The development of Miami-Dade’s innovation ecosystem has been geographically limited. Remember that accelerators not only create new companies, but are themselves significant job generators. A concerted effort to begin locating accelerators in the neighborhoods we have identified as being left behind could have multiple significant economic and community development benefits; and

! Focus on accelerators cultivating local talent. The traditional accelerator sector in Miami-Dade has been extremely successful attracting talent from around the nation to attend their programs. However, as a foundation of building new prosperity, a successful accelerator development program should remain mindful of the need to expand local employment and income expansion opportunities, especially to those in the County’s lower income ranges. This policy would have two benefits: 1) capturing the untapped talent and skills of those already living here, and 2) this policy would increase the likelihood that the investment in an entrepreneur would stay within the community. Local entrepreneurs are more tied to local business, professional and personal networks to make their business succeed, and are therefore more motivated to build and keep their business in the County.

Program Cost Estimate:

! Full pilot program cost to start and operate three Social Impact Accelerators, with two full years of operating costs, including two-year lease, staffing, expenses and seed capital is approximately $8.1 Million.

Recommended program seed funding:

! $4.26 Million, to cover operating costs, less seed capital paid to accelerator client companies, for two years.

Households directly impacted during pilot program:

! Up to 360 households, assuming a 75% company survival rate and average employment of five employees per participating client company.