Gov. Ted Strickland will announce a program Thursday to help 100 minority and urban-based businesses. More than 200 entrepreneurs are expected at Corporate College East at 1 p.m. to hear about a pilot plan helping businesses that have the potential of $15 million or more in annual revenue in three to five years.
Gary Green wants to turn his garage-based motorcycle parts manufacturing business into a $100 million enterprise. So far, he has developed 28 products, including the fiberglass storage compartment in this image.
CLEVELAND, Ohio -- Gov. Ted Strickland will announce a program Thursday to help 100 minority and urban-based businesses.
More than 200 entrepreneurs are expected at Corporate College East at 1 p.m. to hear about a pilot plan helping businesses that have the potential of $15 million or more in annual revenue in three to five years.
Strickland said Wednesday that data indicate minority entrepreneurs have more difficulty accessing what they need to be successful, including financing and access to resources.
"We recognize that Ohio should be doing better than it is doing in this regard," he said in an interview. "So we're taking this step to encourage minority business growth and development."
Minority and urban-based businesses tend to hire more from their own underserved communities, according to the Initiative for a Competitive Inner City, a national nonprofit focused on creating prosperity.
"It helps job creation where it is most needed," Strickland said.
Darrin Redus, chief economic inclusion officer of JumpStart Inc., said a state initiative is critical for real change. Even though JumpStart, a Cleveland venture development organization, has created about 30 high-potential, minority-owned businesses in the last couple of years, more help is needed, Redus said.
The initiative will begin in 21 counties of Northeast Ohio. If the program is considered successful after about 18 months, it will expand throughout the state.
Officials from Jumpstart and the Ohio Department of Development Minority Business Enterprise Division are expected today to lay out the criteria for at least a dozen companies that will receive intensive support. That includes at least 15 hours a month in counseling from a pool of 15 state-funded organizations. Participants will have access to angel investors and venture capital firms and seasoned advisers experienced in growing large businesses.
Glen Johnson, president and chief executive officer of Melody Management in Columbus, said he will attend the launch to share his story with other hopeful entrepreneurs.
Johnson's new-media company secured $250,000 this month in early-stage development money from JumpStart. He and his business partner have spent four years developing a software business that helps artists sell digital downloads across social networking sites. The company was officially launched last week at a convention.
Johnson said his company plans to issue private-label MasterCards to pay independent music artists weekly.
"If an idea can get some care and feeding, it can get some wings and actually grow," he said.
Gary Green of Akron plans to come to Cleveland to hear the governor's announcement, because he believes he has a good shot at participating in the pilot program. For nearly two years, he has been bootstrapping an after-market parts business that targets motorcycle dealers.
So far, with help of family and friends, he has patented 28 products, ranging from trunks and fairings to saddlebags. His goal: $100 million in revenue and a payroll of 40 people.