Business accelerators are growing in popularity nationally and internationally as a key contributor to the rate of urban entrepreneurial startup success. Based upon the widespread acceptance of this business development approach,...
moreBusiness accelerators are growing in popularity nationally and internationally as a key contributor to the rate of urban entrepreneurial startup success. Based upon the widespread acceptance of this business development approach, institutional organizations, universities, faith-based organizations, for profit and nonprofit enterprises are adding business accelerators to their strategic portfolio to stimulate economic development. Mainstream accelerator
programs have generally targeted technology-based companies in high growth industry sectors. As such they have attracted significant public and private investment and have spawned a number of high profile success stories.
Success in these accelerators is generally measured by the amount of equity and venture capital the business attracts, exponential growth in sales, and the wealth created when the company is sold to a larger firm or goes public.
Unfortunately there are very few minority-owned firms represented among the success stories. However, recognizing the need for accelerating the growth of minority-owned firms, the Akron Urban League, Cleveland Foundation, Cincinnati USA Regional Chamber and the Strategic Action Council of Northwest Louisiana created
Minority Business Accelerator Programs that target minority-owned businesses in urban inner-city communities. These accelerator programs have focused on building the capacity and scale of existing businesses in industries where
minority businesses are represented but under performing. Construction contracting and healthcare related businesses are two primary examples.
Bethel New Life, Inc. has undertaken this research paper to examine the state of businesses in five neighborhoods on the West Side of Chicago (Austin, East/West Garfield Park, Humboldt Park, and North Lawndale) and to identify an
accelerator service delivery model that will be effective in building capacity and sustainability of West Side businesses.
Bethel’s current business development efforts include an Illinois Small Business
Development Center (SBDC), an Entrepreneurship Training Program (ETP), the Neighborhood Business Development Center Specialty Advisor (NBDC) and a New Markets Tax Credit Program (NMTC). The NBDC program is a pilot
business accelerator that has given Bethel experience of working with 25 businesses in various stages of growth.
The research was conducted by interviewing community leaders and business owners, reviewing surveys of the business activity in the five neighborhoods, and reviewing literature and academic research on the topics of urban
entrepreneurs and minority business development programs.
The findings indicate that in communities similar to the West Side of Chicago, there is significant desire of business owners to grow and expand their businesses, a skills gap and unique obstacles exist for urban entrepreneurs,
there is a need to increase the quantity and quality of the businesses in these communities, and an effective accelerator program must be designed to account for the unique challenges and opportunities the businesses encounter.
This research paper and the business development programs of Bethel New Life have been supported by The Private Bank. The support of The Private Bank and other partners have been instrumental in the graduation of more
than 100 entrepreneurs from the Entrepreneurship Training Program as of December 2014.