Bici hbcu entrepreneurship conf. presentation-3.07.11

Black Innovation & Competitiveness Initiative

BICI

Johnathan M. HolifieldCEO, Black Innovation and Competitiveness Initiative

[email protected] 8, 2011

www.BlackInnovation.org


Significance 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!

Innovation 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.

Where we are: New Narrative



The Black Innovation and Competitiveness Initiative (BICI), is a national startup not-for-profit corporation providing an online community platform and a wide range of intermediary advocacy and advisory services to governments, communities, organizations, education institutions and businesses, designed to aggressively address the innovation and competitiveness crisis in Black America.

BICI: What is it?

The 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.


BICI Mission Statement


BICI:The Crisis


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

Funding 2010

%

http://www.huffingtonpost.com/mike-green/innovation-crisis-in-blac_b_703936.html�


Black America produced LESS THAN ONE PERCENT

of the total U.S. GDP in 2010.

BLACK AMERICA GDP

%

Source: U.S. Census based on 2007 data

$137.4B $14T


%

TOTAL ACADEMIC R&D AT HBCUs

$52B$448M

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


%FEDERAL R&D SUPPORT AT HBCUs

$31B$336M

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


CARNEGIE FOUNDATION RANKINGS

205 INSTITUTIONS1 HBCU

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


Average Annual Sales 2010

White Business: $439,579

Black Business: $74,018

Firms with number of employees (thousands)

Women

Black

Hispanic

Asian

Total Firms None 1 - 4 5 - 9 10-19 20-49 50-99 100-499 500+95 19 47 14 7 4 1 1 <1

917 161 462 149 83 43 11 7 1

200 37 100 31 18 9 3 1 <319 54 161 55 30 15 3 2 <

< symbol means less than 500 firms

$439K

Source: U.S. Census Survey of Business Owners 2002

$74K


In 1970 (in the wake of the Civil Rights Movement) the median Black family's net worth was one-fourth (25 percent) that of the median White family. By 1980 the ratio had fallen to 15 percent. By 1990 it had fallen to twelve percent, by 2004 to nine percent, and the latest measure (2007) is at six percent.

Percentage of Black-to-White Wealth since 1970

U.S. Black/White Net Worth Gap

Black Wealth

1970

25%

As percentage of White wealth

2007

6%

http://knol.google.com/k/frank-w-sweet/the-u-s-black-white-net-worth-gap/k16kl3c2f2au/34#�

According 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 counterparts

U.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!

Income and Earnings

$300,000,000,000

$5


Overall Median WealthBlack $2,100

White $94,400

$42,600 $5White women in their prime working years of ages 36-49 have a median wealth of $42,600. (61% of their white male counterparts).

The median wealth for Black women is only $5.

Survey of Consumer Finances (2007; before the economic collapse)

Economic Policy Institute Report: State of Working America 2009

Median Wealth

http://www.nakedcapitalism.com/2010/03/median-net-worth-of-single-black-women-in-prime-working-years-5.html�

http://query.nytimes.com/gst/fullpage.html?res=9803E4DC143CF932A05756C0A9669D8B63&ref=the_new_poor�


47% overall college graduation rate for Black students36% Black males

47%U.S. High School graduation rate for Black Males

New York = 25% (In New York alone, more than 100,000 Black males do not graduate high school each year.)

Overall, more than 1.3 million studentsin the U.S. fail to earn high school diplomas each year.

(source: Schott Report 2008)(source: Editorial Projects in Education Research Center, June 2010)

http://www.blackboysreport.org/�

http://www.edweek.org/media/ew/dc/2010/DC10_PressKit_FINAL.pdf�


Youth: 45%

Adult: 16%


BICI:New

Opportunity


“All entrepreneurial activity is important, but high-growth entrepreneurial activity is

particularly so.” Global Entrepreneurship Monitor Report 2007

Entrepreneurial ActivityWorldwide: 12.3%

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

7% Less than 7 percent of startups will produce more than 70% of new jobs.

(GEM Report 2007)70%


Fueling Entrepreneurial GrowthSTEM fields employment expected to grow 70% faster than non-STEM fields. Federal investment in R&D: $373B in 2007; $398B in 2008 Currently 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.

70%FASTER

(source: Jerry Yang, co-founder of Yahoo! Speech to President's Entrepreneur Summit, April 2010)

http://ycorpblog.com/2010/04/26/jerryindc/�

Despite 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 Economy, March 2010


40%Of new job creation

1%Of firms

=High-Growth Entrepreneurship


BICI:How do we connect?


BICI:Easy –

Public/Private Relationships


BICI:More difficult –

Demands of theInnovation Economy

• New kind of leaders• New kind of leadership organizations• New kind of leadership movement


BICI: Innovation Economy Demands

Trim TabEffect


BICI: Innovation Economy Demands


BICI: 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.


BICI Can Help• HBCUs• Local/City/County Governments• Economic/Community

Development OrganizationsTo develop and implement

strategic plans to connect to the Innovation Economy


BICI Summit BICI ExpoWe will convene stakeholders in Black America to address important questions pertaining to three core community pillars.

We will invite demonstrations of best practices, innovations and competitive ideas for networking and funding opportunities.

OPPORTUNITYPartnerships:MediaCorporateGovernmentEducatorsIncubators / AcceleratorsCapital Investors

• 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


BICI Needs You . . .


Award-winning reporter, columnist, editor14 years media experienceNew York Times Leadership Academy FellowCNN.com trainingDow Jones: Led award-winning online community engagement projects for Dow Jones Local Media GroupHuffington Post bloggerCEO of Internet innovation startup, Vizitnow3D

Johnathan Holifield, CEO

Mike Green, CIO

Founder, Trim Tab System, LLCInnovation Economy Executive: Established CincyTechUSA, leading regional technology and innovation organization15+ years economic development, legal, governmental and nonprofit executive leadership experienceCreated 21st Century public high schools focused on technology Designed community benefits strategies for projects totaling $1.5 billionEconomic Development Institute LeaderAthlete, civil rights lawyer and civic entrepreneur

Chad Womack, Ph.D., COO

Founder, President, Chair TBED21.orgTechnology Based Economic Development for the 21st CenturyFounder, Philadelphia Biotechnology and Life Sciences InstituteCo-founder, Chief Scientific Officer, NanoVec, Inc. Co-Founder, President, Chair National Association for Blacks in Bio (NABB)Tenure-track Assistant Professor, Howard University College of MedicineResearch Fellow:National Institute of Health (NIH)National Institute for Allergy and Infectious Diseases (Senior Fellow)Harvard AIDS Institute (International Research)

Contact [email protected]

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