Minority Business Enterprises are vital to local and national economies. In the Houston region, certified minority businesses support more than 70,000 jobs and generated $14 billion in economic activity in 2020.  In May during the Partnership’s One Houston Together Supplier Diversity Roundtable, Darrin Redus, CEO of Cincinnati Minority Business Accelerator, highlighted the accelerator’s success and innovative practices that are delivering significant results for minority business enterprises (MBEs). Increasing spending with MBEs is one of two priorities of One Houston Together alongside talent advancement and increasing racial diversity on boards.   The Cincinnati business accelerator was founded in 2003 to address the racial disparities in business ownership in the Cincinnati region, drive economic activity and increase employment in underemployed segments. The accelerator works primarily with mid-cap and large-cap corporations to create jobs in the region through their collective commitment to minority spend and to help the companies meet their supplier diversity and inclusion goals by connecting to minority-owned companies. To date, the accelerator has supported 70 companies with average annual revenues of $30 million. The program centers around four strategic pillars: Grow, Build, Attract and Create. Grow existing portfolio firms to the next level. Build emerging minority businesses under the $1 million threshold with high growth potential. Attract large-scale MBEs to the region. The focus is more on expansion and identifying sizeable MBEs in specific industries that corporate partners can incentivize to expand to the Cincinnati region. Create MBEs via the acquisition of existing, mainstream non-minority firms. For example, aging businesses with no succession plan. The program isn’t a one-size-fits-all approach, instead, it provides customized analysis, resources and funding to grow the MBE over time, never graduating them from the program, unlike other accelerator programs. “Ultimately, everything that we do with these companies is rooted in the financial assessment because, without that, you’re somewhat flying blind,” Redus said. Within three to five years, the MBEs are able to double their revenue due to how the program is structured, according to Redus.  Another innovative practice the Cincinnati Minority Business Accelerator has launched is the MBA Fund 1, which provides access to equity and growth capital for Black and Hispanic entrepreneurs for scalable business ventures. Mainstream businesses lacking succession plans are the primary investment target followed by existing minority firms that require growth equity and emerging minority firms. The Cincinnati model provides a proven roadmap to scale high-growth minority businesses and is instructive for companies and economic development organizations.  To learn more about the Partnership’s supplier diversity efforts, members should join our roundtable and participate in the upcoming Supplier Diversity Innovation Lab on August 24, 2023. Contact Damean Townsend, Senior Director, Supplier Diversity, for more information.

As companies look to diversify their talent pipeline and create mobility, many are utilizing apprenticeship programs and skills-based hiring as tools to create diverse teams and foster inclusive environments.  On June 21, the Partnership’s One Houston Together Talent Roundtable convened Partnership members Accenture and Aon and workforce leader Opportunity@Work to highlight successful tools they are using to advance talent diversity in deliberate and measurable ways.   Sarah Hilchie, Management Consulting Principal of Leadership and Culture at Accenture, discussed the importance of building an inclusive culture within a company. Hilchie said building culture often becomes a low priority because a company may find it challenging to quantify the impact of culture, and a perception gap often exists between C-suite leaders and employees.    “True leaders, bold leaders understand that it is not only their responsibility but that they have the power to change the climate in their organization every day by what they say, what they do, and how they reward behavior,” she said. Hilchie added companies should assess who their leaders are by asking the following questions:  Are leaders taking action to create greater equity?  Do their words mirror their actions?  What kinds of things are they saying about the organization outside of the office whether that be social media, press, or word of mouth?  Accenture research shows “when there is an inclusive culture and a high rate of trust, there is a 27% reduction in attrition, 50% higher productivity and 40% less burnout,” Hilchie said. Hilchie went on to share that "accountability and metrics such as talent equity or culture assessments that leverage company's employee feedback and data, are critical to building an inclusive culture and ensuring that culture remains a priority for leadership and employees. Leaders will continue to replicate the past if they aren't committed to rebuilding an equitable workplace and that begins with taking action from a place of understanding." Opportunity@Work, a nonprofit organization that aims to rewire the labor market by helping companies see the benefits of skills-based hiring instead of solely focusing on four-year college degrees, has seen great success with its Skilled Through Alternative Routes or STARs model. Bridgette Gray, the nonprofit organization’s Chief Customer Officer, spoke about the need for employers to diversify talent acquisition by identifying the actual skills people need for roles.  "There is no lack of talent, employers just need to change the sourcing of their talent,” Gray said. According to Opportunity@Work, workers Skilled Through Alternative Routes have been displaced from 7.4 million jobs as employers have shifted to relying on degrees over skills, creating an opportunity gap. Meghan Parrilla, Vice President of Global Early Careers Apprenticeships at Aon, discussed the company’s two-year, full-time apprenticeship program. Through the program, which welcomes about 100 apprentices each year, the participants pursue an associate degree.  Aon’s program is a national model and is unique due to its partnerships with local community colleges, local nonprofit organizations that provide wraparound services or serve as career navigators for participants, and the support and time commitment Aon’s staff in leadership or management roles provides participants.  Parrilla hopes more companies will see the benefits of apprenticeships and consider people who have participated in similar programs as “equal to those who have completed a four-year college degree.” In 2021, Accenture and Aon, with support from the Greater Houston Partnership, launched the Greater Houston Apprenticeship Network to promote and support apprentice programs across companies in Houston. Get connected and learn about opportunities by visiting this page. To learn more about skills-based hiring and other member best practices to accelerate your company’s talent strategy and diversity your pipeline, join the Partnership's Talent Roundtable.