Business Assistance

However, such training need not be part of the formal curriculum as it can also be provided in other settings, such as clubs, after-school events, summer camps, and the like. Community college programs offer another opportunity. Since 2019, the Community College of Rhode Island (CCRI) has offered an entrepreneurship certificate within its business programs. This is an important first step, but CCRI might also consider steps to “infuse entrepreneurship across the curriculum.” This term refers to programs that link entrepreneurship to other disciplines, including trades and the arts. Many community colleges now offer entrepreneurship certificates that help these students learn about their primary major (e.g., cosmetology, HVAC, plumbing), while also learning how to run a business along the way. Kansas’ Johnson County Community College offers a model for this approach.12

Third, Rhode Island should consider restarting its statewide self-employment assistance programs. This effort, which would be spearheaded by the Department of Labor and Training (DLT), authorizes the use of federal workforce funds to support self-employment training. DLT previously operated a program of this type, but it does not appear to do so any longer. In fact, proposed state legislation (H.6250) seeks to create this program at DLT. In addition, several localities, such as Providence, offer self-employment assistance services. All parts of Rhode Island should do so. The State’s workforce programs could also consider providing these types of services in their federally-backed youth programs that serve at-risk young people aged 14-24. Finally, the State should support and expand efforts that seek to provide career pathways and support diversity and inclusion in key fields, such as banking, accounting, management, and marketing, that support business development. Invest in ‘earn and learn’ training programs to create opportunities for individuals to develop and grow their talent while maintaining income. Similar efforts should focus on increasing youth interest in training and careers in other fields with high-growth potential and a strong history of supporting high-quality jobs and career options. These include computer and mathematical, architecture and engineering, and life, physical, and social sciences. Many trade associations, such as the Rhode Island Bankers Association, are initiating efforts to support diversity, equity, and inclusion. These efforts should be actively encouraged, as inclusive ecosystems include diverse types of entrepreneurs and diverse service providers as well.

Rhode Island has a strong base of business support organizations (BSOs) and the roster of such organizations is growing on a regular basis. For example, RI Hub, and 401 Tech Bridge have all opened for business in recent years. While there is a robust service provider base in Rhode Island, interviewed entrepreneurs report that they are often unaware of available programs or feel uncomfortable accessing such services. Meanwhile, BSOs report growing interest in entrepreneurship, which aligns with national trends showing business startup growth in 2021 at the highest levels in recent history. They also report that they have been actively seeking to better serve BIPOC entrepreneurs. For example, the statewide Small Business Development Center, SCORE, Social Enterprise Greenhouse (SEG), and Urban Ventures, networks have greatly expanded outreach

12 Hanover Research, Community College Entrepreneurship Center Models, 2014. Available at: https://www.hanoverresearch.com/wp-content/uploads/2017/08/Community-College-Entrepreneurship-CenterModels.pdf.

efforts to Latinx residents and the wider population as well. Additionally, the new Southern New England “E for All” program is committed to ‘accelerate economic and social impact through inclusive business growth’.

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Nonetheless, a “disconnect” still exists. BIPOC business owners want and need essential technical assistance, and BSOs want to provide such services. Yet, the current marketplace is not working. Several factors appear to be at work. First, BSO leaders acknowledge that their current messaging and marketing efforts may not be reaching BIPOC and immigrant communities. More resources for outreach and communication can help on this front, but money alone is not the solution. Second, the sheer number of BSOs creates a complicated marketplace, even for those with deep knowledge of the ecosystem. BIPOC business owners do not know how to get started or do not know how to access resources tailored for their company’s needs. Additional efforts to improve “wayfinding” though the ecosystem is needed. The “RIBizBuilder.com” resource center that was launched in 2018 by the Rhode Island Foundation and many other partners was a step in the right direction for a digital component of the needed wayfinding. However, this effort is not currently active, and no such digital ecosystem infrastructure exists.14 In October 2021, SEG and other key community partners were awarded with a major grant from the US Small Business Administration’s Community Navigator Pilot program. This effort is designed to address some of these existing service gaps. If successful, these initiatives will operate something like a “business concierge,” where BSO staff help business owners easily access a diverse array of services from multiple sources and act to break logjams and other barriers to accessing technical assistance and other support. Finally, many of the BSOs target high-growth or technology-focused entrepreneurs. Meanwhile, the vast majority of Rhode Island-based BIPOC entrepreneurs are early-stage and may need services targeted to earlier stages of business development. Examples include financial and digital literacy, initial business ideation, and technical assistance targeted to micro-enterprises. While many BSOs, especially the SBDC network, do provide such services, few RI-based BSOs primarily target the microentrepreneur or the BIPOC business owner.

Several steps are needed to enhance the quality and availability of business support services for Rhode Island’s BIPOC entrepreneurs. As a first step, BSOs and RI Commerce should consider developing a new suite of program offerings targeted to microentrepreneurs and the self-employed. Potential offerings should include expanded programs focused on financial literacy, digital literacy, and basic business building blocks. These new programs could build on existing and new programs being offered and developed by key partners such as SEG, RIBBA, the RI Hispanic Chamber, and the statewide SBDC network. In addition to these new technical assistance resources, RI Commerce should also consider development of new funding streams to support early-stage microenterprise development. Some of these funds could be deployed via new capital pools discussed earlier. RI Commerce might also consider development of a business voucher program---the Business Builder Voucher—modeled on Rhode Island’s current innovation voucher program. The innovation voucher program provides small innovation grants (of up to $50,000) to support companies and their internal research and development projects. The Business Builder voucher would operate in a similar manner, but would support a wider range of business development services. These might include new marketing or business development strategies, hiring of outside consultants, technical assistance, or other means. Grants could be smaller in size (ranging from $2,500 to $25,000), and require company matching funds as well.

13 EforALL and BANKFIVE Announce $300,000 Inaugural Southern New England Regional Sponsorship, Sep 2021. Available at: https://www.bankfive.com/Resources/Learning/Blog/September-2021/EforAll-and-BankFiveannounce-$300,000-Inaugural-S 14 Brave River Solutions Officially Releases “RIBizBuilder.com”, https://www.braveriver.com/blog/brave-riversolutions-officially-releases-ribizbuildercom/.

New service offerings will help improve BSO responsiveness to BIPOC business needs, but BSOs also need to enhance their own capabilities to support RI businesses and to advocate for them. This work would benefit from creation of a statewide network, the Rhode Island Minority Business Coalition, composed of BSOs and other advocates for BIPOC business development. This effort could build on existing networks or be structured as a new stand-alone network. It should be modeled on similar coalitions such as the Massachusetts Coalition for an Equitable Economy or Cincinnati’s Minority Business Collaborative. These network organizations serve several functions:

1) They coordinate service delivery to local businesses and share best practices. 2) They aggregate services and programs to ensure effective support of the marketplace. 3) They share data and results on their customers and refer customers to BSOs across the network. 4) They host events and activities to strengthen the area’s ecosystems. 5) They advocate for BIPOC businesses via research, events, and other activities.

First established in March 2020 as a response to the Pandemic and in order to ensure access by people of color to the federal business assistance programs, the Coalition for an Equitable Economy has a goal of achieving racial and ethnic parity in business ownership by the end of 2030. From the Coalition’s website: The Coalition for an Equitable Economy is a broad cross-sector coalition of stakeholders from across the state aligned around a shared commitment to building an equitable small business ecosystem and to the values of racial equity, collaboration, and shared leadership. Using the collective voice of the key partners, the Coalition advocates for greater access to funding, access to business support, and key legislative and budget decisions that will make progress towards their mission of supporting under-resourced small businesses. Their most recent effort is advocating for the use of $1.1 billion in American Rescue Plan (ARP) funds to be directed towards small businesses.

The coalition should be independent and include any and all ecosystem partners with a focus on supporting BIPOC business development. It should also be led by Rhode Island entrepreneurs who have direct experience in accessing (or being unable to access) needed support and technical assistance. At present, a number of Rhode Island-based BIPOC-serving BSOs are collaborating in response the US Small Business Administration’s (SBA) Community Business Navigator Pilot Program funding opportunity. This new effort could be a first step in the Coalition’s development, but the Coalition must have a broader mission beyond attracting grants and delivering specific programs. It must become the go-to place for ensuring that all parts of Rhode Island’s ecosystems are effectively serving and supporting BIPOC entrepreneurs. Becoming the “go-to place” for Rhode Island’s entrepreneur ecosystems will require that the networks grow and evolve over time. As noted in the case studies highlighted in Appendix A, successful programs operate like entrepreneurs, assessing the market and developing new services in response to new demands. For example, in Miami, the Center for Black Innovation can trace its origins to a local coding program (Code Fever), but it has quickly transformed into a local and national advocate for inclusive ecosystem building. Among other things, it now manages coworking spaces, runs a business accelerator, provides training programs for BIPOC business investors, and supports the national Black Tech Week event series. In its initial phases, the Coalition should develop a business concierge service that connects BIPOC entrepreneurs with services, resources, proven professionals, and industry sector experts. Entrepreneurs would meet one-on-one with the concierge and obtain an assessment of their business or idea, recommended next steps, and connections to appropriate high-quality resources. The concierge must be