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HomeMy WebLinkAboutBack-Up Documents"?:)ROSP-RATm 461._ ADVANCING HISPANIC BUSINESS Proposal to the City of Miami PRESENTED BY Prospera OVERVIEW With a staff of 25 and a budget of $3 3 million, Prospera is the leading Hispanic not -for -profit economic development organization in the State of Florida. For the last 6 years in South Florida, Prospera has specialized in providing bilingual business development consulting to Hispanic entrepreneurs trying to establish or expand their business. Prospera is a community -based 501(c)(3) not -for -profit organization. PROSP�R/� EXECUTIVE SUMMARY Prospera (formerly the Hispanic Business Initiative Fund of Florida, Inc.) is the leading not -for -profit economic development organization in the State of Florida with more than 25 years of specialization in providing bilingual business development services to underserved Hispanic micro business owners. The organization's mission is to strengthen the economy of Florida through quality, free of cost bilingual business development training and consulting to Hispanic entrepreneurs. According to a study by the Kauffman Foundation, the rate of new entrepreneurs in the United States increased about 10 percent. The rate of new entrepreneurs translates into approximately 530,000 new business owners each month. Also, the 2010 U.S. census reflects a 17.36 percent increase in the Hispanic population since 2000 in Miami area. Hispanics are entrepreneurial by nature and immigrants even more so. More recent numbers show that immigrants started 28 percent of all new U.S. businesses in 2011. In 2012, more than 16 percent of first generation immigrants started or ran startups, higher than the 13 percent participation rate for non-immigrant Americans. The Hispanic demographic not only has the entrepreneurial spirit but they also have a tremendous buying power. The following data shows the urgency and need within the community. According to the SBA, more than 50 percent of small business will fail within the first year of operations and 20 percent will fail by the fifth year. Prospera programs and services are the solution to reducing the risk of failure among Hispanic -owned firms by creating early -stage intervention and best practices for small businesses since their inception. Prospera leverages its resources with partner municipalities and organizations to bring the most innovative and holistic consulting experience for the entrepreneur. To support Miami's poverty reduction strategy through its Anti -Poverty Initiative, Prospera is submitting this proposal for two specific programs: • Helping to Close the Gap Through Technology Solutions: The Technology Academy Prospera Page 2 of 7 PF.119§P.ENY PROVEN IMPACT The data below shows how Prospera has impacted the economy in South of Florida. These numbers lay the groundwork for the exponential growth of our services and an even greater impact on South Florida's economy. In the past five fiscal years, Prospera has been able to: ❖ Create and retain 3,292 jobs ❖ Market $2.5 million in loans ❖ Serve over 2,300 clients on a one-on-one basis ❖ Awarded entrepreneurial grants totaling $413,500 ❖ Train over 5,000 participants in orientations, workshops and advanced training programs ❖ Create partnerships with municipalities such as Hialeah, Doral, North Bay Village and Hollywood to bring the program to the hearts of these cities Prospera's Board of Directors includes volunteer leaders from the public and private sectors, as well as microbusiness owners who are each strongly committed to the mission and success of Prospera and its clients. The organization has an annual budget of $3.3 million with over 25 years of strong relationships with private and public agencies. Prospera clients have demonstrated significant growth in business volume and employment. THE PROSPERA MODEL One of the key factors of success in the Prospera model is that it is innovative, comprehensive and progressive. Prospera's model consists of four main pillars: education, business consulting, entrepreneurial grants, and access to capital. These allow us to take early -stage entrepreneurs and progressively provide them with the knowledge and tools that will allow them to reach the next level of success in their business. dr 1 Entrepreneurial Education vic Orientations & Workshops 2 Business Consultin One -on -One Consulting ito 3 Entrepreneurial Grants 1 Client is considered for grants 4 Access t Capital 4 Help client apply for loans if needed Prospera Page 3of7 PROSPERN ADVANCING MICROENTREPRENEURS Prospera's programs and services are the solution to the language and cultural barriers that Hispanic entrepreneurs face when trying to learn successful entrepreneurial techniques. Prospera identifies early -stage microbusinesses with growth potential and provides them with educational opportunities and individualized consulting, two of the most critical areas for young companies hoping to expand and grow. Entrepreneurs receive specialized professional assistance that responds to their immediate financial, operational, and marketing needs, immediately followed by vigorous support to access necessary business capital. Prospera's innovative model generates returns to the local community while building services, community partnerships and outreach strategies for the individual business, creating a sustainable entrepreneurial ecosystem while building strategic alliances with the private and public sectors to ensure that clients can access additional resources. Entrepreneurs& MiaoenterprisesNeeds: -Education -BusinessConsulting -Grants& Access to Capital ngual Services l Prospera: -Business Seminars and Workshops - Business Consulting - Entrepreneurial Grants - Access to Capital ti Partners: - Economic Development offices, Non - Profits, Chamber of Commerce, etc. -Private Entities; Banks, Microlenders, etc. - State, County, & Municipal Governments Prospera Page 4 of 7 PROSPER/ PROPOSAL Helping to Close the Gap Through Technology: The Technology Academy Technology in business is a growing necessity. Over the course of the last two decades it has shown to be critical to a businesses' ability to communicate with clients effectively. Small business growth capability is determined if its employees can effectively interact and sell its agenda to clients. Technology has also enhanced faster shipment of products allowing businesses to cover larger geographic areas. According to a study done by Constant Contact in 2013, 66% of small businesses are using mobile devices as part of their day to day operations. The reason being is because 4 out of 5 consumers use smartphones to shop. New technology provides an excellent platform to combine core marketing, sales and customer service. These functions are a key determinant of a company's operation efficiency. It enables businesses to manage operations efficiently and update them regularly. Also, there are a number of businesses that are subject to threats and vandalism. New data from the 2016 Internet Security Threat Report shows that that 1 in 40 small businesses are at risk of being the victim of a cybercrime. The best way to prevent cyber-attacks is to consult with their IT team or an IT expert to develop a comprehensive plan for mitigating that risk. The problem is 27% of small businesses have no IT support, according to an article published by SMB Group. Prospera has developed a program that will educate microbusiness owners in the City of Miami about the importance of technology and how to protect themselves from any threats that may arise. The Technology Academy's goal is to help businesses become more efficient which, in turn, will boost their performance and profitability. Below are some of the details of how the program works: • Prospera facilitates educational modules about topics designed to help microbusinesses improve their technological skills and capabilities. Topics include the following: o Understanding the Value of Technology in a Micro Business and Its Advantages in Business Communication. o Cyber Security: How It Works and Dealing with Potential Issues. o What to Know and What You Need for Your Micro Business: Hardware and Software. o Marketing and Technology. • During the program, Prospera provides ongoing consulting to review each participant's development. Prospera Page 5 of 7 PROSPERfi PROPOSED METRICS AND DELIVERABLES At all times Prospera will be responsible for maintaining a detailed database of all clients served. Using the information collected, Prospera will provide the following deliverables to measure the programs' success level: - Quarterly Activity Report: Prospera provides a detailed report describing the types of services provided, including training, consulting, and business entrepreneurial grants approved. Metrics and details are included in the report. - Annual Report: Prospera provides a comprehensive report indicating the yearly statistical activity and the most successful cases of the microbusinesses served. SERVICES TO BE PROVIDED UNDER THIS PROPOSAL Prospera is committed to providing the solution for the City of Miami to support Miami's microentrepreneurial ecosystem. Educational Assistance: Four 2-hour trainings sessions in Spanish about the topics designed to help microbusiness owners improve their technological skills and capabilities. Business Consulting One-on-one consulting which will help the microentrepreneur identify the short and long term needs of the existing business. These services include assistance with operations, marketing, business plan development, human resources, cash flow and projections, access to capital, among others. Entrepreneurial Grants For those participating early learning center owners who might need further in-depth assistance, this program will allow them to be considered to receive advanced business development services at no cost to them. These services are provided by an expert, pre -selected network of professional providers, most of them microbusinesses, who are contracted by Prospera to provide the following services: ❖ Legal Structure Assessment ❖ Accounting Assessment ••• Corporate Branding ❖ QuickBooks Training ❖ Business Planning Development ❖ Marketing Plan Development ❖ Online Marketing ❖ Web Site Development Prospera Page 6 of 7 PROSPERA PROPOSED BUDGET: The $100,000 annual investment budget will be distributed to as follows: Professional Services — Annually Proposed Investment from Prospera Proposed Funding from the City of Miami Consulting Services - Salaries & Related Expenses $40,000 $10,000 Educational Services — Workshops $50,000 $12,000 Administrative & Supplies Expenses $3,000 $1,500 Marketing & Advertising Expenses $7,000 $1,500 Total Proposed Investment $ 100,000 $25,000 With the requested funds, Prospera will be able to provide an increase in targeted, service programs to microbusiness owners within the City of Miami. This funding will allow the City of Miami and Prospera to achieve a measurable increase in the number of strong, well -structured microbusinesses that create new jobs, an impactful and necessary piece in in the strategy to close the poverty gap within City limits. The proposed investment and services to be offered will be tailored according to the City of Miami level of sponsorship. FOR ADDITIONAL INFORMATION, CONTACT: Myrna Sonora South Florida Vice President (786) 329-5830 msonora@prosperausa.org www.prosperausa.org Elizabeth Nunez Business Development Consultant (786) 329-5830 jalvarez@prosperausa.org www.prosperausa.org Prospera Page 7 of 7