Riverside Center for Innovation

RCI’s proposed a new REEF accelerator curriculum built off our BizFIT entrepreneurial program to provide robust hands-on support systems that continue to build trust of our BIPOC tech adjacent and lifestyle entrepreneurs that have been shut out for decades in the growth of Pittsburgh. REEF is recognized by stakeholders the initiative to build the BIPOC ecosystem for the Pittsburgh region.  

Over the next 3 years,  REEF will train a minimum of 72 BIPOC-owned companies in the built environment and mobility sectors that has over $10 billion allocated for local development projects(i.e. Bridges, roads, airport modernization, upgrade of storm and sanitation treatment system, etc.) to scale their businesses by providing back-office support systems, technology, access to new flexible capital, connection to procurement opportunities and mentorship.  RCI, 17 AM, Rutgers University and our community stakeholders strongly believe that our human centered design REEF program will be empowering to underrepresented and disadvantaged entrepreneurs by educating through sustainability knowledge that is shared and applied, so all people can succeed. 

Our team believes that cohort collaboration will potentially lead to scalable joint venturing opportunities or just create new techniques for BIPOC entrepreneurs to improve strategies that lead to new customers with anchor institutions, unions and government agencies.  Each year a new pipeline of BIPOC companies will be stronger and profitable with access to a new flexible capital pool and terms, that leads to an improved credit score then growth by traditional bank financing based upon strong balance sheets and other financial statements.  

The current climate around racial injustice and inequality across the country, and in the Pittsburgh region, has only enhanced the vision of RCI.  The pandemic for underrepresented / BIPOC companies identified that there is a need to drastically alter systemic barriers that remain from decades of redlining investment, lack of capital infusion, lack of top down contract procurement opportunities, etc.  These barriers lead to substantial inequality, racial, ethnic, and wealth gaps in Western Penna among entrepreneurs of color.  

Our recent 2021 report involving local community stakeholders and BIPOC entrepreneurs, The Case for Intentional Investment in Pittsburgh, validates that BIPOC businesses tend to have a difficult time acquiring their first customers due to their lack of business connections at anchor institution. BIPOC businesses lack “soft tissue” infrastructure to sustain themselves and operate efficiently; not enough knowledge, skills, and support to be effective business owners;  lack of qualified staffing; legal services for contract and agreement review; key administrative services;  reasonable office space costs; additional industry market research;  financial literacy to improved personal wealth, and deeper business training and support. Finally, BIPOC founders are denied access to finance compared to the less than 3% in VC equity to BIPOC owners.   BIPOC tech adjacent and lifestyle firms receive less than 1% percent when it comes to equity investments which limits their ability to launch or scale their businesses. They do not have wealthy friends or family that can help them launch, acquire another business or jump start a real estate development project.  

BIPOC businesses are the backbone of our communities but not enough strategic capital is invested in BIPOC-owned businesses in Pittsburgh. Lending Tree reports that Pittsburgh contains only 1% in Black-owned businesses, the lowest of 50 metros. Pittsburgh BIPOC firms receive only .25% of procurement spend of 17 corporations.

REEF’s mission and approach directly align MIT’s Challenge. REEF aims to revitalize Pittsburgh, diversify corporate supply chains, and put economic autonomy in the hands of BIPOC. While most investors target Pittsburgh’s advanced technology sector, REEF will invest and scale businesses within Pittsburgh’s lifestyle sector, which is critical to rebuilding and revitalizing low-income BIPOC neighborhoods. 

To start, REEF will invest in lifestyle businesses that contribute to the Intelligent Built Environment and Mobility Sectors, which will lead to more equitable access to safe housing, transit systems, walkable streets, environmentally sustainable environments, healthy food, and welcoming spaces. REEF will take a funnel-based approach to select companies for sector-based cohorts. From there, RCI will educate parallel cohorts on business fundamentals, open networking doors, and provide companies with funding. Research reveals that this semicustomized, cohort approach is highly scalable given other incubator and accelerator models focused on BIPOC companies or sustainability.

REEF will support portfolio growth-stage companies by providing access to business contacts, business training, and capital. Our stakeholder interviews and literature review revealed that these resources are the most critical to BIPOC founders in Pittsburgh. REEF will work with its partners to provide their cohort companies with these resources and increase BIPOC procurement and economic mobility

Pittsburgh’s current climate around racial injustice and inequality has motivated RCI to expanded its vision and reach. By enhancing our current services and support, we have identified valuable channels through which they can support BIPOC entrepreneurs and deconstruct systemic barriers that keep BIPOC impoverished. 17AM and RCI have identified 16 industry supply chains that support BIPOC people and a BIPOC middle class in Pittsburgh, through the Built Environment and Mobility sectors.

An Intelligent Built Environment is characterized by equitable access to safe housing, transit systems, walkable streets, environmentally sustainable environments, healthy food, and welcoming spaces. Intelligent Mobility harnesses the power of connectivity to transport both humans and goods/services around a city, which enables greater economic activity, productivity, and demand.

We took a problem mapping approach to Pittsburgh in order to isolate the most appropriate metrics by which REEF can measure its effectiveness and performance. REEF squarely aims to address BIPOC poverty, close the BIPOC wealth gap, create a BIPOC middle class, and enable BIPOC people to earn living wages with entrepreneurship as their modus operandus.

Our team has compiled a list of KPIs that help track outcomes related to “personal wealth” and “economic freedom” among BIPOC Pittsburghers, such as job creation, contract procurement, livable wages, and creation of commercial corridors in Black-majority neighborhoods. The City of Pittsburgh and RCI’s partners will be instrumental in measuring more upstream metrics related to neighborhood and human development. The goal would be to produce a set of standardized metrics that could be used by all of Pittsburgh’s stakeholders in a new ecosystem.

RCI will bridge the gap between Pittsburgh’s “innovation” and “non-innovation” economies. Advanced technologies like robotics and AI will continue to draw attention to Pittsburgh, but lifestyle businesses will be the lifeblood of the city, drawing residents and outside capital into its communities

There are other many initiatives that focus on technology base BIPOC companies such as Black Tech Nation, however there no programs like RCI's BizFIT and new REEF accelerator that focuses on BIPOC lifestyle and tech adjacent firms that allows our firms to participate in these growth industries by understanding the supply chains.  Our current BizFIT entrepreneurial education program and REEF will transform the impact and improve sustainability for BIPOC entrepreneurs and create the ecosystem with resources for All. Understanding the supply chains and being able to combine the ecosystem allows for BIPOC owners to participate in all growing and new economy sectors.  

RCI engages in activities that cultivate a healthy environment for the region’s diverse entrepreneurs and small businesses to prosper.

The overall goals of RCI’s entrepreneurial support programming should create a better Pittsburgh for All.  New partnerships with Pittsburgh Anchor Institutions will provide and increase better business resources for ongoing support of BIPOC businesses.  These resources shall create better knowledgeable owners, increase income for BIPOC residents that reduce poverty levels within our marginalized communities.   Sustainability of BIPOC businesses lead to the creation of a Pittsburgh BIPOC middle class that increases personal wealth and stabilizes neighborhoods through affordable homeownership, better education and public safety concerns now get addressed by concerned residents. 

This new regional entrepreneurial resilient interdependent ecosystem will lead to greater investments in communities of color and sustainability of BIPOC businesses with new follow-on capital that moves the old Pittsburgh from the thought of being a smart city to an intelligent city.  One that is necessary to include BIPOC lifestyle and tech adjacent companies.  A robust entrepreneurial infrastructure will make more BIPOC businesses and entrepreneurs feel more welcome and thrive economically.

Total RCI active clients (April 30, 2022) - 1,523

Clients RCI served BizFT - 383

Clients BizFIT/REEF to be served in five years - 400

RCI serves the Pittsburgh region's underserved and underrepresented BIPOC lifestyle and tech adjacent entrepreneurs along with community stakeholders that are committed for a new solution that make up the fabric of our historic minority neighborhoods. 

These stakeholders include:

• Local government agencies bring change to racists policies and regulations that are conducive to the growth of minority-owned small businesses; 

• National and regional philanthropic organizations, who are critical partners and funders that embody the importance of an equitable entrepreneurial ecosystem in the region;

• Lending Institutions who are instrumental in unlocking redlining practices for access to capital and growth potential of BIPOC entrepreneurs; 

• Anchor institutions who possess significant purchasing power and share a commitment to diversifying their supply chain;

• Community member/ residents who are directly affected, and stand to benefit from the growth of BIPOC businesses, creation of jobs, and revitalization of the local economy. 

RCI is the current backbone organization of the Equitable, Entrepreneurship, Ecosystem (E3 Network) Alliance along with working the region’s BIPOC and disadvantaged businesses, third-party consultants, anchor institutions, government agencies and other entrepreneurial support organizations in the various 5 Stages of Entrepreneurship. The E3 Network  identified community stakeholders that convene in-person and now virtual meetings to gather data and feedback to develop the appropriate referral process and curriculum, so that BIPOC businesses can become scalable with investments.  The E3 Network through the Director of the E3 Alliance housed at RCI identified resources to achieve regional metrics so that BIPOC businesses can become scalable businesses through innovative solutions to address barriers and challenges.  

BizFIT Entrepreneurial Training Program and Preparation Series is a series of multi-year entrepreneurial business plan training that teaches start-up and existing (under 2 years) construction DBE companies the following; Mechanics of Starting a Successful Business; Market Research and Analysis; Market Penetration Techniques; How to Access Capital; Financial Statements Basics; Understanding Operations and Managing Growth.    Participants will be enrolled in a series of classes that will help the potential company 1) Develop and test the business concept; 2) Test the participant’s qualifications to see they could turn the concept into a viable business; 3) Conduct research on the industry, target market and competition; 4) Select the form ownership; 5) Identify the start-up and ongoing operating costs; 6) Research suppliers and credit terms; 7) Organizational/management plan and job descriptions; 8) Investigate the regulations; 9) Budgeting and financial projections; balance sheet, income statement; 10) Credit repair/counseling; 11) Review with experts; 12) Finalize business plans; and 13)Identify potential funding sources. 

RCI is working to launch and implement the RCI Equitable Entrepreneurship Facility.  Our partner 17AM is an impact asset management and advisory firm that takes a place-based investment approach in designing intentional, bottom-up financial products and advisory services, and has to-date serviced various emerging fund managers across the US. Through one-on-one interviews and roundtable convenings, RCI and 17AM engaged over 50 key local stakeholders in Pittsburgh  ranging from institutional investors, non-profits, industry associations, large corporations, government, and small businesses, to identify both the gaps and growth opportunities within the Pittsburgh Entrepreneurial Ecosystem. The insights derived from these engagements are published in a report entitled “The Case for Intentional Investment in Pittsburgh.” RCI and 17AM will continue facilitating these ongoing discussions to ensure that they have the opportunity to co-design REEF with as much feedback and insights as possible coming from stakeholders who have the lived experience and understanding of the underserved businesses and communities that REEF is aiming to elevate.

Report link: https://www.riversidecenterforinnovation.com/post/the-case-for-intentional-investment-in-pittsburgh-bipoc-entrepreneurship-2021 

We establish trust by leaning on the team's lived experience, allowing for both advocacy and accountability to our stakeholders.  For 20+ years, RCI has garnered trust and a track record through our communication efforts; tenacity and perseverance in removing barriers of that face BIPOC entrepreneurs.  Each year, we set up 12 outreach sessions in the actual neighborhoods / communities of the markets we served to receive feedback and sometimes criticism of our program.

However, we provide a safe place for honest discussions.  Example in building REEF’s financing facility and curriculum, we organized multiple Stakeholder Roundtable Design Thinking Sessions, that engaged 50+ key stakeholders from institutional investors, non-profits, industry associations, corporations, government, and entrepreneurs to identify the gaps and growth opportunities within the local entrepreneurial ecosystem. These design sessions ensured community stakeholders had the opportunity to co-design REEF, insights by individuals who have their own lived experience with  understanding underserved business.

RCI’s visionary and human centered design programming requires measurable goals that will grow and scale BIPOC businesses that participate in our entrepreneurial training programs.  RCI has a proven model and track record that is effective for creating and maintaining sustainable ventures, promoting community and local economic development, creating and retaining dignified jobs, decreasing business failures and improving the quality of life.

• RCI key staff continued training around a human centered design approach

• Improve business infrastructure and acumen for  growth / sustainability of the region’s BIPOC entrepreneurs

• Greater cohort collaboration and joint venturing opportunities of BIPOC companies

• Improve marketing techniques for better go-to- market strategies for new customers

• Stronger and profitable financial plans and statements of BIPOC owner

• Improved credit scores of BIPOC owners by an average of 40-60 points to reduce higher expenses and interest rates

• Access to $50 million of flexible capital with flexible terms

• Improve pipeline of procurement with local anchor institutions contracts for BIPOC businesses 

• 65 New Job Creation / Retention of BIPOC residents

• Enroll annually a minimum of 500 BIPOC entrepreneur with attrition rate of 20%

RCI established trust by our team's lived experience all being from LMI communities allowing for both advocacy and accountability by stakeholders. RCI’s track and longevity is best positioned to articulate and assess the needs of BIPOC entrepreneurs in building this interdependent ecosystem.  RCI has built upon our vision, leadership, and expertise when reflecting on the gaps that currently exist in the current system.  RCI leadership and current programming has designed support systems that create alignment, fosters collaboration and builds trust by breaking down past silos. 

Our partners had the opportunity to attend MIT Solve 2022 and hear from Lynette Bell and Ceasar McDowell as they shared their insights on community engagement, resiliency, and social dialogue.  Before considering the value derived from a potential partnership, we considered the alignment of our processes with Truist Foundation and MIT Solve. 

1)     “Listening Sessions,” or what we call design thinking sessions, are central to RCI’s mission.  These convenings engage local constituents to understand the problems that they face, understand their needs, and to collaborate on potential solutions.

2)     “Strengthening small businesses and creating economic pathways” are the ultimate goals for RCI’s work.  Understanding the obstacles that BIPOC entrepreneurs face and providing the support they themselves have stated they need is the work.

3)     “Diversifying the portfolio” translates to diversifying the community and local business owners in Pittsburgh.  The city has surged in recent years as the tech sector has grown, but it has not accommodated the smaller business that define the identity of a city. 

In many ways, RCI is a microcosm of the Inspire Awards with a true place-based focus.  Partnership with Truist and MIT can support us in our goal to build an ecosystem, not a product.  BIPOC innovative ecosystem building presents a first of its kind, knowledge, education, leadership, procurement and capital solution designed to support entrepreneurs at each stage of development. We believe Truist/MIT can provide additional resources to scout market appetite, source funding, and scale to new communities.  

Not Applicable

Our team is looking forward to the Truist Foundation and MIT to assist in strengthening our support with opening your networks and connecting RCI.  RCI goal of establishing tools that focus on the Built Environment and Mobility we seek national stakeholders that are not afraid to take the risk in working with BIPOC businesses to share their successes of what worked and what did not work.  Pittsburgh’s business culture is risk- averse and only looks for the low hanging fruit to storytell that success.   We are looking for national partners that want to walk this journey together to end systemic racism.  

I believe that the leadership at Truist would be able to make a difference and provide an introduction for the RCI team to learn from past successful organizations that were awarded for programs that were transformative in their respective regions.    Organizations like Grameen America, Purpose Built Communities, Black Business Investment Fund, etc. to share those best practices that would help our team embrace unforeseen challenges.