CITIworks Program Creates Jobs Through Black Business Growth

CITIworks® through GSAABO Creating a
“City of Excellence”
CITIworks® is a registered marketing tool of the Hudson Strategic Group
and its use must be expressly provided in writing by the Hudson
Strategic Group

Presented by J. Hudson CEO &
Founder--Hudson Strategic Group

What is CITIworks® through
GSAABO

CITIworks® is borne on the simple fact that monies are currently being
spent by Black Consumers, businesses and organizations within
the Black Community. The objective of the development planning
efforts is to provide a foundation for growth and support by: (1)
assisting the Black business attract a larger share of the dollar
currently being spent, (2) recognizing the economic activity
generated by these businesses with jobs, taxes, improved social
conditions etc. as both a measure and barometer of success and
(3) redirecting the current and future resources towards assisting
with the proposed outcomes. The Black community can gain faster
benefits by utilizing assets it currently has rather than attempting to
influence and brings assets from outside the community.


CITIworks® through GSAABO is
an Economic Development
Program

Built upon the facts that Black Businesses:

• Employ Community Residents
• Pay local and state taxes
• Provide a Leadership Cadre previously not recognized
• Support Social Interests


CITIworks ®through GSAABO is
a Market
(The monies spent are in the Billions)
Consisting of three givens within any
community:
2.Black Consumers are currently Spending
XXX
3.Black Businesses are currently Spending
XXX w/ other Black Businesses
4.Black Organizations are currently
Spending XXX w/Black Businesses


Black Consumer Spending

• GA Black Spending = $54 Billion in 2007 projected

• The State of Georgia ranks as the 4th Largest African-
American Market


How are jobs created?

• Increased revenue allows Black Enterprises to scale up
– Additional employees can be hired to address increased
demand

• Hiring Employees can affect the entire City/County Job Market
– Increased Wages

• Studies show that Minority-Owned Firms hire minorities
– Big companies/organizations are far less likely to hire minorities

– An Increase of 5% Spending by Blacks with Black Businesses
would create over (X) jobs within one year with over75% of the
number being Black people


The GSAABO Objectives

• Assisting the Black business attract a larger
share of the dollar currently being spent
• Recognition of the Economic Activity
generated by these businesses with jobs, taxes,
improved socials conditions etc.
• Redirecting the current and future resources
towards assisting with the proposed outcomes
• The Black community can gain faster benefits
by utilizing assets that are currently there.
• Change from spending or purchasing to investing
through spending!


How do other
groups accomplish this?

• They ensure that the dollar is circulated multiple
times (e.g., banks, cleaners, retail shops,
automotive shops, grocery stores, barber
shops/salons, insurance agents, etc.)

• They create “synergy”
– Ensuring that institutions they support will also support
Black Enterprises

• They understand that dollar circulation is both a
short and long-term investment

It’s the Economics!!

• The Black Community and it’s Black businesses are
undervalued
– The economic considerations of jobs created and sustained,
taxes paid and institutions supported is underpinned by Black
businesses
• If it weren’t for Black businesses some people within our
communities would not have a job
• Black business leadership is almost invisible when it
comes to community leadership
• The Black community is a MARKET itself that others
pursue but we ignore (important to professionals)

CITIworks® through GSAABO is
Expressed by
Appropriate Indicators
• CITIworks® monitors and evaluates its progress
through community derived and appropriate
economic indicators and such recognized tools
as Economic Impact and Return on Investment
(ROI).


The Atlanta Example

• There are approx 115,000 Black business in metro Atl
• Economic Impact of Black business in metro Atlanta $24B
(according to Dr Ed Davis CAU Dean )
• Black Businesses employ more than 52,000 people and stimulate
the employment of an additional 166,000 in 2007
• Black consumers in metro Atlanta spend in excess of $28B
annually
• An increase of 5% spent with Black business would create over
23,000 jobs of which approximately 18,000 would be black
• Your City is similar!!


The Call to action

• Develop local strategies to assist Black businesses grow
in each community through an INVESTMENT through
spending more with them
• The Educate the community as to the benefits
• The increase the turnover of the Black dollar by
supporting Black businesses and they, in turn, provide
more support to local community
• Change the conversation about the way we speak and
describe Black businesses to ECONOMIC terminology
• Promote our business leaders as community/city
leaders

Let’s Examine the Potential


All of the Major Stakeholder
Groups Expect a Return On
Investment (ROI)
• Community ROI = Economic Impact (Jobs, Taxes,
Services)
• They Invest in Infrastructure, Education, Tax Breaks
• Investors ROI = $Return vs. $Invested
• They Invest Capitol (Debt or Equity)
• Employee ROI = Pay and Secure Environment
• They Invest Waking Hrs, Commitment (Emotional)


Community ROI = Economic Impact
(Jobs, Taxes, Services)
The Community Invests:
• Infrastructure $
• Education $
It Expects:
• Tax Breaks $ • Long Term Jobs for all Citizens
• To Collect Tax Revenue
• To Enjoy Products and Services
Provided

Meanwhile, It Must Deal With:
• Welfare Expenses
• Crime/Drug Expenses
• Under Served Citizens

Community ROI Definitions
• Revenue=Dollar Turnover, Jobs, # of Businesses
• Return= Business Income, Individual Salaries,
Philanthropy
• Assets= Black Marketplace, Quality Businesses,
Business Leadership
• Profit=Safe Community, Improved Schools,
Reduced Crime, Taxes Collected
• Investments=5% Increase Black Spending, Increased
Contracts, Tax Breaks, , New Sources of Funds


CITIworks ® through GSABO—
STATEWIDE Outcomes
• Change of Conversation about Black
Community from being a resource drain to a
resource asset
• A Plan built and supported by the Community
w/ measurements and other metrics
• A Marketing Plan that is within itself a Self-
help Plan
• A Galvanized Business Leadership
• Creation of Resource Community Alliances
• A Blueprint that everyone has a copy of and
can implement on a personal level

Facts According to Dr. Thomas
Boston

1. Increasing the capacity and competitiveness of Black-
owned firms is the most important imperative for our
community and country.
2. Black businesses account for a growing percentage of
US final demand and jobs, and are located in
underserved communities.
3. Atlanta, GA outstrips ALL other major cities as the
preferred location for Black businesses
4. Over the last 5 years Black businesses out-grew those
of all other ethnic groups


More Dr. Boston

• 95% of Black Dollars Spend outside Community
• More than 50% of GA Black People live at the Poverty
Level
• 75% of Business employees tend to reflect the
ownership
• Black Buying Power in GA expected to reach $67B by
2010


What GSAABO Does

– Facilitates the development of a local strategy based upon the
businesses and black community in your town
– Gives each person a copy of the plan
– Assists each city develop a local Congress on how to expand
the communities thinking and understanding of the economics
and developing your economic impact (when possible)
– GSAABO
Has template to follow
Guarantees certain expenses
Provides key speaker
Coaches local participants
Supports a local organization, through membership, to
implement local strategies

What do you Gain?


What is City of Excellence?

• City of Excellence – Black Community Economics

• Black Consumers Spending with Black Businesses

• Ensuring Multiple Turnover of the Black Dollar within the
Black Community


A City of Excellence

Any City can be a City of Excellence if it begins to consider
the Black Community an ASSET and begins to invest in
it. There is a return for the city!
If the Black Community will begin to see itself as a Market
worthy of being tapped and utilized for the development
of Black Businesses as Employers.
If the Black Business Community begins to improve its
approach to Excellence!!


How could high dollar turnover
help this community?

• Every dollar spent creates $2.2 in activity
• Every million dollars spent typically creates 10 jobs
• Increasing by 5% black dollars spent in black
communities would generate $2.2 Billion and 10,000
jobs


The Impact of the Lack of
Minimal Dollar Turnover

• Black Communities rely on “external” funds for support

• Black Enterprises experience little or no growth and
development

• Black Enterprises struggle to address the needs of its
loyal customer base


What Does it All Mean?

You Can’t Build a Reputation on
What You Intend To Do!!
We want to bring what is called “Economic Value Add”
(EVA) and be widely recognized as the paying our
economic rent. Therefore,

If you Really Want Something You
Will Find A Way, If You Don’t You
Will Find an Excuse!!

Finally, Know THIS!!

• We are talking about OUR MONEY and A
MARKET!!
– These are Our BUSINESSES, CONSUMERS and
INSTITUTIONS!!
– This is NOT A Set-Aside or Privileged Market!!
– This is NOT A SOCIAL PROGRAM or
ENTITLEMENT!!
• There We DON’T NEED PERMISSION!!
– Why Because We are Using our ASSETS to Help
the Black, as well as, the Entire Community!!
• And We will be Stepping up to the Table to

CITIworks Program Creates Jobs Through Black Business Growth

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