Rose M. Washington Tulsa Economic Development Corporation Tulsa, Oklahoma (918) 585-TEDC .
Rose Washington Rentie Tulsa Economic Development Corporation (918) 585-TEDC .
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Transcript of Rose Washington Rentie Tulsa Economic Development Corporation (918) 585-TEDC .
TEDC: Intro• not-for-profit, economic development
corporation• publicly and privately funded• progressive lending to promising
businesses—WE MAKE LOANS!!• serve small companies that create
sustainable economic impact
TEDC: Overview• Organized in 1979• 8 employees;15 board members• $4.2mm loans on Balance Sheet• Manage $26mm SBA portfolio• 5 years: 300 loan projects; $170mm; 3,500 jobs
TEDC: Qualifications
• Certified Community Development Financial Institution, U.S. Department of Treasury
• Micro Loan Intermediary, U.S. Small Business Administration
• Certified Development Company, U.S. Small Business Administration
• Loan Facilitator, Government Guaranteed Lending Programs
TEDC: Objectives• Economic stability for communities
• Create or retain jobs• Expand sales/payroll tax base• Grow output
• Economic self-sufficiency • Business owners (retain wealth)• Employees (earn living wage, gain skills)
TEDC: Clients• Represent most industries• Positively impact workforce OR• Fall outside of conventional credit
standards OR• Locate in target areas OR• Are considered disadvantaged
Value of Small Business U.S. Small Business Administration Office of Advocacy, September 2009
Employ just over half of the country’s private sector workforce
Hire 40 percent of high tech workers, such as scientists, engineers and computer workers
Represent 97.3 percent of exporters Represent 99.7 percent of employer firms Create most innovations that come from U. S.
companies
U.S. Business Population
All Firms 25,409,525Non-Employer Firms 19,523,741Employer Firms 5,885,784
Firms with 1-4 employees 2,777,680Firms with 5-9 employees 1,043,448Firms with 10-19 employees 632,682Firms with 20-99 employees 526,355Firms with 100-499 employees 86,538Firms with 500+ employees 17,047
Source: Census.gov (2004 data)
Oklahoma Business Population
All Firms 72,863
Firms with 1-4 employees 42,428Firms with 5-9 employees 12,953Firms with 10-19 employees 7,590Firms with 20-99 employees 6,443Firms with 100-499 employees 1,559Firms with 500+ employees 1,890
Source: Census.gov (2004 data)
Tulsa County Business Population
All Firms* 54,732Non-Employer Firms** 46,330Employer Firms** 8,402
Source: Census.gov (Quick Facts 2002*, 2007** data)
Small Business Survival Rates U.S. Small Business Administration Office of Advocacy, September 2009
In 2008: 627,200 new businesses; 595,600 business closures; 43,546 bankruptcies
Seven of 10 new employer firms survive at least two years; about half survive five years
Findings similar across industry sectors
Support Solutions• Extensive classroom-based training programs• Mentoring and coaching• Not-for-profit commercial lenders/CDFIs• Government guaranteed loan programs• Technical assistance programs• Minority vendor programs/Procurement set-asides• Incubators
Funding Options
• Grants (Let me know when you find one!)• Friends, Family, Savings• Investors• SBA/Banks
• TEDC
FORWARD©
FORWARD© is a comprehensive economic development system that uses franchising as an approach to creating business starts in targeted communities.
2005 Snapshot of Franchises in OK
12,600 franchise establishments 16% of all companies with employees 146,685 jobs (275,794 jobs)* $3 billion in payroll ($7 billion)* $9.5 billion in output ($25 billion)*
*direct and indirect impact
Why Franchising as a Strategy?
Economics: job creation, sales tax generation, business growth
Opportunity: minority ownership is greater among franchise businesses; single unit, multi-unit, area development, master franchisor
Variety: more than 75 industries operate within franchising format
Demand: many goods and services needed by public sold through franchises
Why Franchising as a Strategy?
Cost: more affordable means of accelerating business expansion – economies of scale
Access to capital: easier; because lenders perceive franchises as less risky with proven practices
Credentials: pre-established; symbol of quality, consistency, service, value
Support: extensive training; capacity building; in business for self, not by self
FORWARD©: Site I
• To be developed and owned by Greenwood Community Development Corporation
• Banfield site -- 3 acres at Peoria and Reading Streets just north of Gateway Plaza and Gateway Market funded by TEDC/CDBG
• Multi-level, 24,000 square feet of rentable space• 2 out-parcels for private development• $3mm construction costs
FORWARD©: The Participants
Satisfactory behavior/values assessment Complete business planning course Work part-time for 1 month in like business if no
industry experience Work full-time in new business Commit 7-10 years at retail site Comply with TEDC lending criteria Agree to monthly coaching, mentoring, technical
assistance and fiscal oversight Commit to hiring local student as intern
FORWARD©
: The Investment
$3mm in construction costs
+$250,000 average per businesses
(loan, equity, some combination thereof)
FORWARD©: The Return
10 business starts 50 direct jobs At least $5,000,000 in direct output annually
FORWARD©
FORWARD brings together the power of human and financial capital to help transform Tulsa’s north community into a vibrant, desirable place for people to live, work and raise families. In partnership, we can promote positive, sustainable impact through long term, geographic-specific economic development.
(Franchise examples: Instant Imprints, More Space Place, Tropical Smoothie Café, UPS Store, Play-n-Trade, Flicko, party supply store, wireless store, tax center, specialty candy & gifts, casual dining restaurant, dry cleaning, clothing & accessories, etc.)