Truist Foundation Inspire Awards
Institute for Entrepreneurial Leadership (IFEL)
Is your organization registered as 501(c)(3) status with the IRS?
YesWhere our solution team is headquartered or located:
Newark, New Jersey, USAWhich dimension of the Challenge does your solution most closely address?
What is the name of your solution?
Women of Color Connecting (WOCCON)
Provide a one-line summary of your solution.
We engage business professionals as volunteers to help women of color entrepreneurs lengthen their runway, build traction, and get on a path to wealth creation through entrepreneurship.
What is your solution?
We are taking a new approach to address this problem of capital constraint for women of color entrepreneurs. We created the Success Circles program as model for leveraging the power of social capital to build the capacity of women of color entrepreneurs to grow, scale, and create wealth through entrepreneurial success. Women of Color entrepreneurs are identified through a competitive selection process. Once selected, we create a team for the entrepreneur, known as a Success Circle, comprised of business professionals, consultants, domain experts, and skilled workers who are willing to volunteer their expertise and help open doors. The volunteers forming each Success Circle are selected based on the individual needs of the entrepreneur.
Success Circles address four primary objectives:
Networks of Influence
Community of Support
Strengthen the Business Core
Capital Readiness
While our work with each entrepreneur follows our methodology with respect to the levers that we use to effect capacity-building, the prioritization of the objectives and intensity of focus on each objective will depend on the needs and goals set for each entrepreneur.
In addition to supporting entrepreneurs and addressing capacity-constraint issues, the Success Circles model:
- Offers a unique opportunity for skills-based volunteerism
- Inspires collective action in support of shared economic interests
- Promotes relationship building between resource-scarce and resource-rich communities
At a fundamental level, this model coalesces people around a common goal and facilitates greater connectivity between people who would have never been connected otherwise. Our country needs this now more than ever before.
What specific problem are you solving?
Our solution is addressing the unique and persistent challenges experienced by women of color who sit at the interaction of race and gender. Women of color are starting businesses at higher rates than anyone else, yet they receive less capital, have fewer successful exits, and produce less income for owners.
The specific problems that they face can be summarized as follows:
Undercapitalization at business launch - Due to the persistent wealth gap, women of color generally have less capital available through personal savings and friends and family. Unable to secure loans, they often fund business ventures through credit cards which can lead to a downward financial spiral.
Limited opportunities for “relationship” based funding - Women of color are not part of the networks that enable them to get funding resources based on their good character. White men often are funded on big vision and promise while women of color must demonstrate proof.
No access to growth capital - Despite traction and longevity in business, early undercapitalization leads to poor credit which disqualifies many women of color from being able to access capital through traditional sources.
Lack of runway for trial and error - Having limited financial resources, women of color don’t have the luxury to fail forward and iteration their way to success. One wrong turn can put them out of business because they don’t have the resources to recover.
Many resources directed toward women and BIPOC entrepreneurs focus on training or mentoring that results in a plan.
Explain how the problem you are addressing, the solution you have designed, and the population you are serving align with the Challenge.
Access to capital for women of color, especially Black women, is a legacy challenge with roots deep in our American history. While there have been innovative capital solutions in recent years, capital constraint remains a defining problem for the majority of women of color entrepreneurs. We address the access to capital challenge by looking through a different lens.
Our solutions create a pathway to an inclusive entrepreneurial ecosystem in which people from historically marginalized populations have equal opportunities for success. For women of color entrepreneurs, we create a rich ecosystem built on relationships and financial capital that exists for successful white male entrepreneurs organically.
Our Success Circles methodology — a highly differentiated approach to how we address the unique challenges faced by entrepreneurs who have been historically denied access to capital — is based on several core principles:
- While capital is important, access to expertise is the key to growth and long-term success.
- Entrepreneurs need tactical, direct assistance as they work to get above the “weeds”.
- Helping the entrepreneur feel hopeful is the foundation for a mindset shift.
- Mindset shift enables the entrepreneur to innovate and think differently.
- Relationship building now can lead to greater capital and market access long term.
Success Circles is not about just planning, it’s about doing. Success Circles teams help break the constraint cycle by filling knowledge and capacity gaps, and creating connections that open doors to opportunity.
Who does your solution serve, including demographics, and how does the solution impact their lives?
We target women of color entrepreneurs with fewer than 25 employees and we especially focus on meeting the needs of black and Latinx women for whom the access to capital problem is most severe. First and foremost, we start with welcoming them into a supportive community where they are not made to feel like they are deficient or incapable. We help them unpack the underlying issues that are impeding their growth and secure resources to help them address these issues at no cost to them. With this support, our entrepreneurs are able to feel empowered and hopeful. Instead of standing in judgment and telling them what they are not doing, we walk with them through their journey so they feel like they are not alone.
Helping them solve problems, remove barriers, and feel supported enables them to gain momentum toward their vision for success.
Is the solution already being implemented in at least one of the Truist Foundation’s target geographies: North Carolina, South Carolina, Virginia, Maryland, West Virginia, Kentucky, Tennessee, Georgia, Florida, Alabama, Indiana, Texas, New Jersey, Ohio, Pennsylvania, Washington, D.C., Delaware?
Yes
If your solution is already being implemented, list which of the above US state(s) you currently operate and include those states not listed
New Jersey
Is your organization’s mission to help launch small businesses and/or to sustain small businesses?
Sustain and grow small businesses.
The mission of Women of Color Connecting is to bridge the relationship divide between Women of Color entrepreneurs (e.g.: Black, Latina, Asian, Native American, Middle Eastern) and those in positions to open doors to business opportunities, access to capital, and other vital resources.
WOCCON is more than an educational or motivational event, it’s the foundation for a movement to shake up the way that we find and engage diverse entrepreneurs. WOCCON represents an opportunity for allies, champions, and investors who value diversity and inclusion to expand their networks.
What is your theory of change?
Our programs are designed to create connections, change mindsets, and inspire action in order to cultivate an entrepreneurial ecosystem, including women of color business owners, allies, and investors, in which the systemic barriers that prevent people of color from being able to access the knowledge, networks, and capital required for entrepreneurial success and wealth creation do not exist because businesses are evaluated based on the quality of their business plan and financial projections.
Logical framework:
Activity 1: Success Circles
Objectives: Create connections, Inspire action
Activity 2 : Annual Summit and Monthly Mixers
Objectives: Create connections, Changing mindsets, Inspire action
Input:
Small businesses believe that access to experts will improve their performance and are willing to invest the time.
Corporations/ Community Partners/ Government agencies/ Foundations are interested in promoting the success of small businesses and are therefore considered Allies. Members of these organizations as well as individual Allies are willing to offer their expertise and time to businesses.
IFEL is uniquely positioned through its history, reputation, and network to bring together stakeholders (business owners, allies, and investors).
Output:
Programs are effective in meeting the needs/expectations of businesses and volunteers due to IFEL’s methodology and processes.
IFEL will recruit enough volunteers to meet business interest in programs and vice versa. IFEL’s vetting process for volunteers and businesses will ensure the quality of programs and experience
High quality business plans and financial projections, and improved business performance can be attributed to IFEL programs.
Ecosystem population will grow
50 businesses in Year 1, 130 by Year 5.
300 volunteers
800 members including champions, allies and investors
Outcome:
The improved performance of participating businesses will encourage other businesses as well as corporate/community partners to participate.
Successful minority business owners will invest in their communities.
These outcomes expand and strengthen the entrepreneurial ecosystem which increases the access the knowledge, networks, and capital.
Our solution's stage of development:
Growth: an established product, service, or business model that is sustainable through proven effectiveness and is poised for further growth into additional communities.What is your organization’s stage of development?
Growth: A registered 501(c)(3) with an established product, service, or business model in one or several communities, which is poised for further growth. Organizations should have a proven track record with an annual operating budget.How many small businesses does your solution currently serve? How many will it serve in one year? In five years?
WOCCON has a community of over 500 members and has assisted 30 entrepreneurs with Success Circles. We currently have 175 volunteers actively engaged.
We plan on serving 20 more entrepreneurs in one year getting us to a grand total of 50 WOCCON entrepreneurs served. In 5 years we plan to add 80 entrepreneurs receiving Success Circles totaling 130 entrepreneurs served.
IFEL is committed to expanding our volunteer capacity to 300 active participants and growing our Women of Color community to 800 members including champions, allies, and investors.
How do you define the community you serve, and who are its stakeholders?
We serve women of color entrepreneurs and the people who want to support them. We define our stakeholders as:
1. Women of Color Entrepreneurs - Women of Color entrepreneurs with demonstrated traction and a scalable trajectory
2. Allies/Champions - Advocates for women of color who are ready to make a difference and want to become change agents.
3. Investors - Angel and VC investors seeking investment opportunities.
How do you work with the community and your stakeholders to create community-based and place-based solutions?
We provide a safe space for authentic conversations and honest dialogue and we facilitate organic relationship development that can lead to mutual benefit. Through virtual and in-person events, we connect women of color entrepreneurs with allies, champions, and investors who help to open doors, enable them to penetrate networks of influence, and connect with those who offer assistance in building their business foundation.
We provide additional opportunities for engagement through community discussion boards, social media groups, and networking events utilizing innovative virtual platforms. We initially hosted our WOCCON Summit as a live event in Newark, NJ attracting a mostly regional audience.
Due to the Covid-19 pandemic, we moved the event to a virtual format over the past two years. This expanded our reach to 32 states and six countries. While we will continue our virtual Summit, we are incorporating in-person events through a new WOCCON Roadshow event series this summer and fall to introduce women of color founders to a curated audience comprised of executives, investors, and other individuals who have the potential to make introductions, provide resources and/or mentor the founders.
We are hosting these events in resource-rich communities with a strong investor base and collaborating with partners such as Golden Seeds and Angel Pipeline to expand our entrepreneur and investor networks.
How do you build trust within the community your organization serves and among small business owners?
IFEL has a nearly 20-year record of serving businesses in Essex County. Our CEO, Jill Johnson, is recognized as a champion of inclusion and a leading voice for the removal of structural barriers to black wealth-building. Jill's 30-year career continues the legacy of her parents who were entrepreneurs and staunch advocates for black businesses. Through our extensive experience in working with small businesses and entrepreneurs, we have a deep understanding of the barriers that they encounter and the day-to-day challenges they face.
The IFEL team believes that although we are of different races, we have a shared vision of helping under-resourced entrepreneurs grow and overcome challenges they face due to the systemic inequities within the entrepreneurial ecosystem. Instead of just telling our entrepreneurs what they should do, we walk with them on their journey, sharing their excitement about the small wins and at times pulling them through the disappointments.
What are your impact goals for the next year and the next five years, and -- importantly -- how will you achieve them?
First year:
Of the 50 WOCCON entrepreneurs we will serve in the first year:
50 (100%) will make new connections to help support them and their business
40 (80%) WOCCON entrepreneurs will feel hopeful about the long term prospects of their business.
35 (75%) will be in a position to grow their business
25 (50%) will receive capital
Next five years:
Of the 130 WOCCON entrepreneurs we will serve over the next 5 years:
91 (70%) will stay in business and be in a position to grow
340 number of jobs created
130 WOCCON entrepreneurs served
Our 10 year vision is for many of our entrepreneurs to achieve a successful exit leading to the creation of $1 billion in wealth. 68 entrepreneurs will receive growth capital.
Why are you and your team well-positioned to deliver this solution?
Through the IFEL team's extensive experience in working with small businesses and entrepreneurs, we have a deep understanding of the barriers that they encounter and the day-to-day challenges they face. The majority of our staff has personal small business experience as well.
The IFEL team believes that although we are of different races (Black, White, Asian) we have a shared vision of helping under-resourced entrepreneurs grow and overcome challenges they face due to the systemic inequities within the entrepreneurial ecosystem. Instead of just telling our entrepreneurs what they should do, we walk with them on their journey, sharing their excitement about the small wins and at times pulling them through the disappointments.
We reflect the community that we serve physically, mentally, and emotionally. This is how we build trust and part of what makes IFEL special.
Why are you applying to Truist Foundation Inspire Awards?
Through this partnership with Truist Foundation, we will be able to realize our goal of sustaining support for a worthwhile project - WOCCON. We will utilize the funds from this grant to hire two financial analysts to work with our WOCCON entrepreneurs to produce detailed financial models that support their respective funding efforts for both debt and equity capital requirements. The analysts will also work with our deal structuring advisory committee, comprised of five (5) members (to be selected) to determine the appropriate capital stack for each entrepreneur.
The remaining funds from the grant will be used to secure part-time and/or contract service providers to work with the WOCCON entrepreneurs on their pitch presentation skills including presentation delivery and the pitch deck itself.
We believe that providing these direct resources will help us increase the number of our WOCCON entrepreneurs that are able to secure funding. We also believe that this will serve as a model for how to expedite the pathway to funding for historically excluded entrepreneurs more broadly.
In which of the following areas do you most need partners or support?
Please explain in more detail here.
Business Model - We are in the process of developing a 3-Year Strategic Plan for IFEL. This will be an important tool to guide the organization as we grow to ensure that we are staying on track toward our desired impact.
Monitoring & Evaluation - Part of our challenge is to reframe impact from the "standard" metrics used to evaluate organizations like ours (such as number of jobs created) to others (such as connections, mindset, action) which align better with our vision.
What organizations (or types of organizations) would you like to partner with, and how would you like to partner with them?
We partner with angel and VC investors looking for opportunities as well as DEI allies who want to become change agents and advocates for women of color ready to make a difference. We collaborate with other organizations sharing our commitment to increasing capital access for women of color entrepreneurs such as Golden Seeds.
Solution Team
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What is the name of your organization?
Institute for Entrepreneurial Leadership (IFEL)