We’ve been fortunate enough to work with clients in a range of industries, delivering growth strategy consulting, helping them to define their community investment strategies and build organizations that are the obvious choice in the hearts and minds of their customers, employees and the community. Below is an example of one of our successful projects.
W.K. KELLOGG FOUNDATION STUDIES BARRIERS TO ENTREPRENEURS OF COLOR
Minority entrepreneurs need access to credit and equity to create and grow their businesses. They need access to business relationships that invite new opportunities. They need access to financial, technical, and managerial talent that enable businesses to thrive. In these areas, entrepreneurs of color in Detroit face significant barriers.
Beginning in 2013, Regionerate led a research team hired by W.K. Kellogg Foundation (WKKF) to study barriers to Entrepreneurs of Color in Detroit and offer recommendations to catalyze the Detroit Entrepreneurs of Color Initiative (Detroit EOC). Detroit EOC is a holistic approach designed by WKKF to address market barriers and limited capital access that disproportionately affect entrepreneurs and communities of color.
Desired WKKF Impact:
- Increase in capacity of services and businesses that support Detroit neighborhoods and ongoing community development efforts
- Increase in household wealth of entrepreneurs with children
- Increase in number of economically vulnerable families attaining and retaining quality jobs
The Regionerate team embarked on a two -and –a- half year collaboration with WKKF, in order to co-design a unique, flexible investment structure tailored towards providing capital in underfinanced neighborhoods. Regionerate interviewed business service providers, entrepreneurs, and other stakeholders in Detroit to inform their research. In addition to those interviews, we performed a literature review and consulted with individuals with particular expertise in the development of support services for entrepreneurs of color. Regionerate also collected and analyzed data that was used to inform the establishment of a Program Related Investment (PRI).
The PRI’s charitable purpose includes providing affordably priced small business loans to entrepreneurs of color that are located in low- to moderate- income areas. The charitable purpose also includes financial inclusion by providing capital to borrowers of color that are unable to access capital from traditional financial institutions which aligns well with WKKF’s racial equity work. Detroit Development Fund, a nonprofit, community development financial institution located in Detroit, Michigan, serves as the Fund Administrator and provides small business loans ranging from $50,000-150,000 at for but not limited to general contractors, small retailers, and other neighborhood service businesses.