NAMC-UM Minority Construction Business Incubator
The Twin Cities Metro Area offers a tremendous opportunity for minority contractors. The area has one of the most diverse populations in the Nation and has readily available educational opportunities. There is a tremendous support base for minority businesses of all types.
However, statistics demonstrate that there is a huge gap between minority contracting goals and the actual construction contracts issued to minorities. This gap is large enough to allow newly established minority contractors to be utilized without any loss of volume for experienced minority contractors. It is clear that part of this issue is brought about by unfair contracting practices. However, it is also clear that the more serious problem is that too many minority contractors are not prepared to handle the contracts that they are seeking. We must help these contractors increase their capacity.
Capacity building for minority contractors holds the promise of numerous jobs for their communities, wealth creation for the contractors themselves, greater ability to meet minority goals for contracting sources and majority contractors, and a strengthening of the related tax basis accompanied with greater ease in tax collections.
NAMC-UM will begin to address this challenge by developing a Minority Construction Business Incubator to provide support, resources, and a professional environment that facilitates access to all of the training, information and procurement programs offered in the extensive economic and business development network that is available in the area. We realize there are many existing Minority Business Incubators. However, due to the uniqueness of the Construction Business, an Industry-specific Incubator will greatly increase the success rate of MBEs in the Construction Industry.
Goals
- Transform Minority, Micro Enterprise Contractors and Subcontractors into legitimate small businesses (gross receipts between $5 & 10 million, with 25 to 50 employees and/or subcontractors).
- Assist these contractors to organize themselves into solid, tax paying entities with substantial longevity in the industry.
Objectives
- To implement the incubator Q2 2008.
- To begin the construction management program with the first tenant accepted.
- To reach 24 tenants by the end of year one.
- To reach 48 tenants by the end of year two.
- To graduate 10 business at the end of year three.
- To graduate 10 businesses each succeeding year.
- To become self sustaining by the end of year three.
Expected Outcomes
- House and work with tenants and graduates to allow them to receive aggregate gross contract income of $25 – $50 million annually after year three.
- Provide 500 to 1,000 income earning opportunities annually.
- Utilize group purchasing from a dedicated supplier to cut costs, increase profits and efficiency for tenant companies.
- Establish better bidding practices, build better operating systems and enhance the reputations of tenant contractors.
- Make a substantial contribution to commercial, residential and infrastructure construction in the Twin Cities.
- Make a substantial contribution toward fulfilling minority contracting and employment goals for Federal, State and Local Governments.
E-mail hshaw@namc-um.org for more information regarding the Minority Construction Business Incubator.