History: Hennepin County’s Economic Development Framework focuses on four objectives: enhance livability, attract private investment, support entrepreneurs and grow businesses, and tell our story.  Entrepreneurs and small businesses are the backbone of our economy: Businesses with less than 100 employees represent nearly 98 percent of the total businesses in Hennepin County, provide 58 percent of the jobs, and 68 percent of the sales revenue.

Supported by the Hennepin County Housing and Redevelopment Authority (HCHRA) since 2011, the CEO Next Business Institute Program (prior years’ programming was known as Economic Gardening) and Open to Business programs have provided economic opportunities by cultivating and supporting entrepreneurs, promoting strategic and sustained growth of companies, and creating and retaining jobs. Research shows that startups with quality mentoring are more likely to attract financing, and generate substantially more growth.

CEO Next Business Institute

Through the Edward Lowe Foundation, a nationally recognized entrepreneurship development organization, the CEO Next Business Institute Program provides high-end technical assistance and resources to companies that have grown beyond the startup phase, but need access to additional tools to continue their growth. The program provides leadership forums, peer-to-peer executive roundtables, and focused research in areas of marketing, customer service, supply chain and management team development. Since 2011, 112 Hennepin County businesses have participated in the cohort-based learning program, and these businesses have retained over 1,700 jobs and created over 650 new jobs.

In 2019, the HCHRA released a competitive request for proposals (RFP) for the current program years 2019-2021, with the ability to continue the agreement through program years 2020-2022 and 2021-2023. Proposals were received from two firms. A selection committee consisting of Hennepin County; the City of Saint Paul; and Dakota, Ramsey and Scott counties reviewed and evaluated the proposals.  Edward Lowe Foundation was selected due to its expertise in delivering advanced support to second stage businesses.

The HCHRA will serve as the fiscal agent and program coordinator, contracting with the Edward Lowe Foundation for $720,000 for program years 2019-2021/2020-2022/2021-2023, contingent upon annually approved budget authority and partner resources. Dakota County ($30,000 per program year/$90,000 total), Ramsey County ($80,000 per program year/$240,000 total), and Scott County ($40,000 per program year/$120,000 total) will join the HCHRA ($90,000 per program year/$270,000 total) to form the regional program. The Edward Lowe Foundation will provide intensive services for up to 24 businesses per program year, and include employment reporting at six months, program completion, and one-year post-program completion.

Open to Business

Open to Business provides one-on-one direct technical assistance and support for emerging entrepreneurs and existing businesses in suburban communities. Services include: business plan development, business start-up and expansion feasibility studies, cash flow and financing projections, marketing, preparation of loan requests, and access to capital through a variety of small business loan funds unavailable through traditional lenders. HCHRA support provides one-to-one matching funds for suburban communities to sponsor Open to Business programming.

In 2019, the HCHRA conducted a procurement process, in collaboration with the Hennepin County Purchasing and Contract Services Department, and determined that the Metropolitan Consortium of Community Developers (MCCD), a local nonprofit community development organization, provided a unique service that includes six other counties in the metropolitan region as well as twenty-one cities in Hennepin County that match HCHRA funding over multiple years. The continuing multi-jurisdictional partnership is critical for the ongoing success of this service model. MCCD has provided this unique model of contracting with cities and counties and has a successful track record of direct lending and technical assistance to local entrepreneurs. Under Agreement PR00001277, MCCD will provide technical assistance and support in participating suburban communities for program years 2019-2021/2020-2022/2021-2023 for a total not-to-exceed amount of $405,000 (contingent upon annually approved budget authority and partner matching resources).  

Since 2012, Open to Business has assisted over 2,100 entrepreneurs in suburban Hennepin County, helping to create and/or retain 1,100 jobs. In 2018, 49 percent of its clients were low income, 41 percent minorities, and 47 percent were women. In 2019, county and MCCD staff will be working to connect more entrepreneurs with Open to Business by developing Business 101 workshops, reaching out to businesses directly, and working within other Hennepin County departments to raise awareness about resources for businesses.

Current Request:  Approve Agreements A199618 with Dakota County Community Development Agency with a receivable amount of $90,000, A199619 with Ramsey County Housing and Redevelopment Authority with a receivable amount of $240,000, and A199620 with Scott County with a receivable amount up to $120,000, to participate in the CEO Next Business Institute Program during the period July 23, 2019 through June 30, 2023; Agreement PR000011289 with the Edward Lowe Foundation to provide the CEO Next Business Institute Program in Hennepin, Dakota, Ramsey, Scott counties during the period July 23, 2019 through June 30, 2023, with a not to exceed amount of $720,000; Agreement PR00001277 with the MCCD to operate the Open to Business Program, during the period July 23, 2019 through December 31, 2022, with a not to exceed amount of $405,000.

Impact/Outcomes:  CEO Next Business Institute and Open to Business are anticipated to serve up to 300 entrepreneurs and growth companies, creating or retaining up to 300 jobs.