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HomeMy WebLinkAboutMemo - Mail Packet - 06/18/2024 - Memorandum from Shannon Hein re: 2023 Multicultural Business and Entrepreneur Center Annual Report Economic Health Office 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.2164 fcgov.com/business MEMORANDUM DATE: June 13, 2024 TO: Mayor Jeni Arndt and City Councilmembers THROUGH: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager SeonAh Kendall, Economic Health Director FROM: Shannon Hein, Economic Health Manager RE: 2023 Multicultural Business and Entrepreneur Center Annual Report PURPOSE: The purpose of this memorandum is to provide Mayor and City Council with a 2023 annual report from the Multicultural Business and Entrepreneur Center (MBEC) funded by the American Rescue Plan Act (ARPA). BACKGROUND: The MBEC is a free bilingual (English & Spanish) center that provides business owners and entrepreneurs access to resources such as consulting to support in navigating City processes. The goal of the MBEC is to help anyone in the community create, launch, or grow a business in Fort Collins. ARPA funds the MBEC via program dollars and three full-time contractual staff members. MBEC staff members have served hundreds of current and potential business owners, especially those whom English is not their first language or who do not know how to access entrepreneurial services. By meeting business owners where they are in the community, MBEC builds strong connections with its clients. 2023 HIGHLIGHTS AND SUCCESS FACTORS: • 248 total appointments • 744 estimated hours spent with clients • 117 of these were repeat engagements, showing the ability to build trust with customers • At least 40% of customers are known Spanish monolingual • 64 total businesses created since MBEC was formed in 2022 • Participating in nonprofit partner events has proven to be the most effective method for promoting MBEC's services and engaging with clients • Host partners (Fort Collins Area Chamber of Commerce, Larimer Small Business Development Center, and Poudre River Library District) are instrumental to the success of the program Attachments: • 2023 MBEC Annual Report CC: Jacob Castillo, Chief Sustainability Officer; Edgar Ramos, Senior Bilingual Business Connector; Tommy Meritt, Bilingual Business Connector; Leisha Talley, Business Connector; James Redmond, Sr Specialist Communications DocuSign Envelope ID: 6F9C18A7-6378-4857-9D32-D1F3BCB7B0D4 2023 MBEC Program Data The Multicultural Business & Entrepreneur Center (MBEC) is a free bilingual (English & Spanish) center that provides business owners and entrepreneurs access to resources and support in navigating City processes. Our goal is to help anyone in our community create, launch, or grow a business in Fort Collins. Analysis of the MBEC Program’s Impact and Value Data Points Defined • Total Appointments – An aggregate of all appointments, including unique appointments. • Unique Appointments – An aggregate of a client’s first appointment with the MBEC. • Businesses Created – We define this metric by assisting a client navigate the business registration process successfully. Criteria include registration with the Secretary of State of Colorado, IRS EIN requests, City and County licenses and permits. Data Source and Broader Trends The report is based on data from client surveys at the MBEC, highlighting feedback from entrepreneurs' post-service survey. Of the 131 individuals served, follow-up survey results are reflected from 40 customers. The MBEC's influence is seen in fostering a more diverse and empowered entrepreneurial ecosystem, representing improved progress towards removing barriers for underrepresented business owners. This aligns with the MBEC's mission to support community growth and inclusivity. DocuSign Envelope ID: 6F9C18A7-6378-4857-9D32-D1F3BCB7B0D4 Appointment Metrics The Multicultural Business and Entrepreneur Center (MBEC) has shown remarkable progress and impact in supporting underrepresented entrepreneurs. This analysis delves into the program's performance over the past year, emphasizing its growing influence and effectiveness in the community. Although the data covers 40 individuals, it reflects broader trends in Fort Collins' entrepreneurial environment, showing patterns of engagement, demographic diversity, and success stories that align with the city's growing inclusive business community. 248: Total Appointments 131: Unique Appointments 37: Businesses created with our services The 248 total appointments at the MBEC include 131 unique individuals, indicating that several clients are returning for additional support, accounting for 117 repeat engagements. This repeat engagement is not restricted by service limits, allowing clients to seek continual support as they navigate their business journey. The recurrence of appointments is a testament to clients' trust and satisfaction in our services. This distinct data point reflects the MBEC's commitment to fostering long-term relationships and providing ongoing, valuable assistance to the entrepreneurial community. DocuSign Envelope ID: 6F9C18A7-6378-4857-9D32-D1F3BCB7B0D4 Key Metrics and Growth 1. Year-over-Year Growth • Total Appointments: Increased by 40%, indicating heightened engagement and demand for MBEC services. • Unique Appointments: Rose by 28%, reflecting successful outreach to new participants. • Businesses Created: A 37% increase, underscoring the program's effectiveness in fostering entrepreneurship. 2. Demographic Focus • The MBEC supports all individuals but have seen the highest need for support to our underrepresented, underserved community members. DocuSign Envelope ID: 6F9C18A7-6378-4857-9D32-D1F3BCB7B0D4 Gender and Race/Ethnicity Distribution 1. Gender Reach • The program engaged with more women (24) than men (16), showcasing its appeal and accessibility to female entrepreneurs. This is particularly important given that women often face more barriers in the business world. 2. Ethnicity Diversity: • The high number of Latinx/Hispanic participants (25) reflects the program's effectiveness in reaching this demographic. We also attribute this to word-of-mouth promotion from existing customers. The diversity in ethnicity, included participants identifying as Middle Eastern/North African, American Indian, African American/Black, Asian/Asian American, and White, highlighting MBEC's inclusive approach. *Data is based on 40 survey results. DocuSign Envelope ID: 6F9C18A7-6378-4857-9D32-D1F3BCB7B0D4 Service Utilization Insights 1. Entrepreneurship Exploration (30) • This being the most utilized service underscores the program's role in fostering early- stage entrepreneurship, which is critical in nurturing new business ideas. 2. Bilingual Services (20) and Connection to Resources (22) • The utilization of these services combined indicates a high demand for accessible language support and resource networking. This aligns with the program’s demographic makeup, particularly serving a significant Spanish-speaking clientele. 3. Guidance on General or City Processes (13) and Information on Programs (11) • These services reflect the need for efficient navigational support in understanding and accessing municipal and program-specific resources, permits/licenses, and requirements. As city employees, we possess a unique advantage in this area, enabling us to offer substantial value and bridge gaps in accessing city-related processes and program-specific information efficiently. 4. Entrepreneurship Launch (12) and Recovery Grants Support (3) • Engagement in these services suggests a focus not only on starting businesses but also on sustaining them through challenging phases like COVID-19 business recovery. *Data is based on 40 survey results. DocuSign Envelope ID: 6F9C18A7-6378-4857-9D32-D1F3BCB7B0D4 Program Highlights MBEC Networking Events In response to customer feedback, MBEC began planning social events. With the intention of community building, we gathered for our first networking event in November at The Taco Stop with over 50 attendees. This resource-rich collective network of MBEC customers were delighted to celebrate their progress and triumphs among other entrepreneurs as they connected for knowledge exchange, skills development, and information sharing about available resources. The visibility and exposure also meant people could seek general goods and services offered by other MBEC businesses. MBEC Community Events The Multicultural Business and Entrepreneur Center actively engages in community events hosted by organizations such as Alianza NORCO, Fuerza Latina, and ISAAC of Northern Colorado, where they provide essential support and resources related to immigration services. By participating in these events, MBEC fosters an environment of education and outreach, ensuring that aspiring business owners from diverse backgrounds feel supported and equipped to pursue their entrepreneurial endeavors. Attendees can meet the connectors and make appointments with them to receive business assistance. The team attended 16 events in 2023. At a community event in December, organized by Fuerza Latina, connectors made 12 appointments. Team Expansion The addition of Leisha Talley, a third business connector, played a pivotal role in enhancing the program’s capacity to serve more participants effectively, including the creative sector and women- owned businesses. Technological Advancements Implementing software automation akin to a Customer Relationship Management (CRM) system has improved operational efficiency, contributing to the increased number of appointments and enhanced customer service. Business Highlight The MBEC Business Connectors have built strong relationships with colleagues in other departments that support the work of setting up our business customers for success. This includes dedicated Teams chats with Sales Tax, Planning and Building, Plastics/Environmental, and a work-around with Larimer County Health (different platforms). This allows Business Connectors to get information from our trusted colleagues in real time or very quickly. This also prevents businesses from visiting multiple departments and websites to get their answers. Through these relationships with our colleagues, we've been able to support businesses going through City processes at a greater level. One example includes the owner of Enchante Salon and now Turkish Cafe. The owner started the development review process to divide his salon and add a coffee shop. After connecting him with some basic resources, a Business Connector began joining the customer at their Planning meetings as they worked to find a land use code that would support his business model and add a level of comfort and support. The two teams worked together to connect the owner with the DocuSign Envelope ID: 6F9C18A7-6378-4857-9D32-D1F3BCB7B0D4 Development Review Technical Assistance grant and get him to where he could expand and open in compliance. While the owner was going through this process, we were able to connect him with financial resources and a facilitated collaboration with CSU graphic design students. This was beneficial in helping him advance in other ways of his business at the same time. Impact Filling a Community Need The MBEC's initiatives are critically aligned with the needs of Fort Collins' business ecosystem, especially in the aftermath of COVID-19. With 40% of our customer base being Spanish monolingual, and an additional 5.2% being bilingual, our services are crucial in bridging the language gap for a significant portion of the community. This approach not only aids in recovery but also ensures equitable access to vital resources. Our data highlights a concentrated effort towards sectors like Accommodation and Food Services and Arts, Entertainment, and Recreation, which were among the hardest hit during the pandemic. By focusing on these industries, we're committed to bolstering business survivability and providing a solid foundation for growth. Empowering a Diverse Clientele While the MBEC is dedicated to supporting a broad range of entrepreneurs, a significant portion of our clientele comprises of women and Spanish bilingual/monolingual entrepreneurs. This demographic trend primarily results from the program's targeted marketing efforts through the events we attend and the tailored nature of its services. By effectively reaching and assisting these groups, who often encounter unique challenges in the entrepreneurial landscape, the MBEC demonstrates its commitment to fostering an inclusive and diverse business community. Room for Growth in for 2024 The MBEC is poised for significant expansion and refinement of its services in 2024, aiming to meet the evolving needs of our diverse entrepreneurial community more effectively. Our focus is on enhancing accessibility, inclusivity, and the depth of our support offerings, as outlined in our key goals for the coming year: • Extended Service Hours Recognizing the varied schedules of our entrepreneurs, we are aiming to offer services beyond traditional working hours. • Multilingual Support Services To address the linguistic diversity of our community, we plan to onboard service providers fluent in languages such as Spanish and Arabic. This expansion will include professionals like lawyers and accountants, enabling us to offer specialized guidance in multiple languages, thus removing language barriers to accessing critical business services. • Enhanced Support for the Creative Sector DocuSign Envelope ID: 6F9C18A7-6378-4857-9D32-D1F3BCB7B0D4 Acknowledging the unique challenges and opportunities within the creative industries, we will develop targeted programs and resources for this sector. Our goal is to nurture the growth and sustainability of creative businesses, recognizing their vital contribution to the cultural and economic fabric of Fort Collins. • Industry-Specific Partnerships Partnering with a local Spanish-speaking restaurant owner is a strategic move to provide industry- specific support, particularly to the food and accommodation sector. This collaboration aims to deliver hands-on guidance and insights from someone with direct experience and success in the industry, offering invaluable support to emerging food service entrepreneurs. • Business-Specific Language Education To empower entrepreneurs with the necessary linguistic tools for success, we would plan to partner with an educator to offer classes focused on English business terminology. These sessions are designed to enhance communication skills, making it easier for non-native English speakers to navigate the business landscape, secure deals, and expand their networks. • Securing Sustainable Funding Future-proofing the MBEC is a critical objective. Our strategy includes submitting an offer through the Budgeting for Outcomes (BFO) process, spearheaded by the Economic Health Office. Conclusion The MBEC has proven to be a vital asset to the Fort Collins community, especially in empowering underrepresented entrepreneurs. Its substantial growth in key metrics, coupled with strategic enhancements in team and technology, demonstrate its effectiveness and value. As the program enters a new year, its track record of success and community impact stands as a testament to its necessity and potential for future growth. A special thank you to our partners and hosts who provide and create spaces for our Business Connectors to meet customers throughout the community. Poudre River Library District, Downtown location • Appointments available on Mondays from 9 a.m. – 5 p.m. Fort Collins Area Chamber of Commerce • Appointments available on Tuesdays from 9 a.m. – 5 p.m. Small Business Development Center at Front Range Community College campus. • Appointments available on Wednesdays from 9 a.m. – 5 p.m. Appointments are also available outside of these hours by request. DocuSign Envelope ID: 6F9C18A7-6378-4857-9D32-D1F3BCB7B0D4