Building socially responsible business communities of Minnesota Building socially responsible business communities Abundant Community Regional Conference– May 15, 2015

LEDC is a non profit organization that was founded by Latino leaders from all fields of community development who were the pioneers of the Economic development movement in Minneapolis, and who shared the same: MISSION; “To transform our community by creating economic opportunity for Latinos ” And the same, VISION;“A thriving multicultural community enriched by Latino economic influence, culture, and leadership"

Community organizing, and Latino Economic Development Center (LEDC) is the first ethnic, State wide, membership based, community development organization of the state of MN, Certified as a Community development financial institution (CDFI) and as an Opportunities Industrialization Center (OIC) LEDC has helped create more than 600 business (more than 400 in Minneapolis alone) and more than 5,000 jobs thru: Training and technical assistance for business, and employment success, Community organizing, and Building on cultural strength to increase community assets. Since its inception. Economic development Workforce development

Economic opportunities In the early 1990’s the leaders in the expanding Latino community formed teams to address and proactively seek the solutions to the social and economic issues they faced as newcomers: Immigration Health and Education Economic opportunities This group also realized that Latinos needed to take the responsibility of building its own capacity in order to address and overcome all of the social and economic problems associated with its own growth and in a socially responsible manner.

Financial institutions Scholarships The vision of the founders included the formation of institutions that provided services to Latinos in their effort to integrate them into the American economic system, society and culture, such as : Business incubators Financial institutions Scholarships Housing and real estate development Health Agricultural businesses

The first planned project this group (even before the formal inception of LEDC) achieved was: Mercado Central: A business Incubator and Community Leadership development experience. Even before the formal inception of LEDC. The group had a vision and a plan They sought the partners, according to what they thought they needed

MERCADO CENTRAL With assistance from Catholic Charities, Interfaith Action, Whittier Community Development Corporation, Neighborhood Development Center and Project for Pride in Living, this small group was able to complete a project called Cooperative Mercado Central, a thriving marketplace of 45 businesses at the corner off Lake Street and Bloomington Avenue in Minneapolis, which sparkled the revitalization of the largest commercial corridor in the state. Based on asset based model of fostering business development, the same group decide to formalize LEDC. LEDC and its partners held the first economic forum that led to the creation of Plaza Latina in 2002, the first Latino business incubator on Payne Avenue in St. Paul. In 2002, LEDC also started what became Midtown Global Market in Minneapolis And several other projects in Greater MN LEDC’s founders held the first economic forum in E St Paul in March 2000, which led to the creation of Plaza Latina and the creation of more than 50 Latino businesses in East St. Paul LEDC assisted WAMM in Willmar, and Latinos business community ion Worthington, Owatonna, St. Cloud etc. (imaginary triangle)

LEDC's CORE FUCTIONS: To establish, stabilize, and grow businesses through orientations, classes, business development consulting, technical assistance, and access to capital for new and existing entrepreneurs. To revitalize or develop community "public markets" and commercial corridors in the Twin Cities and rural Minnesota that appropriately allow for Latino community business participation. To create an LEDC membership, a process and structure through which the Latino business community may access other institutions (such as banks, foundations, and elected officials) and actively shape the agenda of LEDC. To provide employment training and placement assistance to individuals seeking to improve their skills in order to retain their current, or to acquire a new job Basically business development. Business and job creation when and where needed The difference is that we do it for social justice reason specifically economic justice

LEDC’s VALUES ARE: Promote just, sustainable and ethical business practices, healthy, respectful work environments, social responsibility and economic justice. Develop Latino talent, leadership, civic engagement and political influence. Affirm and reflect the strengths of Latino culture and language. Nurture free enterprise and the entrepreneurial spirit of our community. Listen to and act in the best interests of our membership; contribute our wisdom and experience for the betterment of all members. Which are embraced by the membership thru a member’s agreement, rights and responsibilities.

Midtown Global Market: Multicultural Strategy of integration of minorities into the American economic system, society and culture... A market not only for a specific ethnic community but for all

Midtown Global Market It was in December 2002 when a group of Latino business owners requested a meeting with Minneapolis city officials to learn more about a rumor that was making them nervous; The rumor they were concerned about was a potential 40 thousand square feet “Big Box” Latino grocery store planned for the main floor of the former Sears tower building . The local Latino business community had cause for concern. They had created and sustained, over the last 10 years and against all odds, a newly established but thriving small business community in this area of South Minneapolis. This project had the potential to wreck havoc by forcing them to try and compete with this market giant. The residents and business owners in this community had fought back against crime and urban decay and had brought back a sense of community to the area, which included the Lake Street businesses. Between 1994 and 1999, more than 300 Latino businesses were created. Such businesses had struggled with criminal activities, etc. and had revitalized the largest commercial corridor of the state by occupying empty store fronts, and purchasing boarded up houses.

Midtown Global Market The Latino business community requested an opportunity to be part of any plans to re-develop this important parcel of land in the middle of their community. As a result they instructed their organization, the Latino Economic Development Center (LEDC), to help them organize and seek the support of all the other organizations and entities that were involved with the project. A development team was formed by Latino Economic Development Center (LEDC), the Neighborhood Development center (NDC), the African Development Center (ADC), and the Phillips Cultural Wellness Center (PCWC) to work on the Midtown Global Market project.   Businesses and community go together, that is the Philosophy of LEDC and its members. You need to provide more than a service/good to a client, you need to treat your employees and customers well, you need to support your local community, otherwise business development becomes meaningless ***remind the organizing n convincing to key role players to demand to be listened

Midtown Global Market After more than 3 years of hard work, the development team is proud to be part of this 18 million dollars community oriented project called the Midtown Global Market. A true celebration of what the city of Minneapolis is about: diversity, respect for culture, perseverance, and energy; all of these forces combined on Lake Street in our quest of the American dream… MGM opened in 2006. 4 non profit partners/owners. 40 businesses. 12 ethnicities represented.

LEDC’s services 1. ORIENTATIONS: Orientations are informational sessions where the participants will have the opportunity to learn and discuss the basic steps of starting a business. Also they will learn about LEDC; how we work, what it means to become a member of the organization, and what are the benefits of being a member. 2. MICRO-ENTREPRENEUR TRAINING COURSE: This training course consist of 16 training sessions, 8 of which are in a classroom setting, and 8 are individual sessions. During this course the student is guided though the process of writing a business plan according to their business idea.  3. TECHNICAL ASSISTANCE: We work one on one with each of our customers so we can understand and provide answers to the various needs for each specific business. In 2000 LEDC had 1 program. In 2012 we have the TC BD and loan program, Greater MN, TTOIC, LSF, Coop Dev. Public markets, 1 international and 35 different trainings…

LEDC’s services: 4. WORSHOPS AND MODULES: These are courses and workshops given every month in the LEDC office. Some topics include: Administrative Systems, Basic Accounting, Cash flow projections, What you should know about taxes. Some requirements to get your business licensed, technology for business, Marketing and Human Resources. 5. GREATER MN PROGRAMS   The goal of this program is to respond to the community and economic development needs of Latinos who live and work in the outlying communities and towns in rural Minnesota in the imaginary triangle from Alexandria to Worthington to Austin, including adjacent areas.

LEDC’s programs LATINO SCHOLARSHIP PROGRAM: The LEDC membership, board, community leaders and members, allies, and staff, working all together, created a new model of philanthropy and civic engagement among the Latino community This program scholarships for higher education opportunities to low income Latino students who can not access conventional financial aid in order to continue their studies and professional degree. Since 2006, this program has awarded approximately 80 scholarships for more than $200,000 to low income Latino students We are determined, more than ever, to ensure the economic success of future Latino generations of Minnesota for a better, wealthier, and healthier community as a whole. It is about human capital Economics Being able to produce enough to sustain current internal expenditure levels Being competitive on a global economy

LEDC of Minnesota is located at the “Plaza Los Lagos” building on Lake Street, Minneapolis, Minnesota. LEDC is owner of the “Plaza Los Lagos” building.

External challenges affecting business success: High index of criminal activity Reconstruction High real estate taxes Anti immigrant sentiment/ICE raids Predatory landlords Economic downturn Other challenges: Capacity High demand for services and TA Not only to entrepreneurs and businesses but also to organizations/groups across the nation who wish to replicate this model

Staff of LEDC: In 2003 LEDC had one full time person working as staff and 1 person working by contract. In 2015 LEDC has 15 full time employees working as staff and 15 subcontracted individuals Services are provided from 2 physical locations of (one in Minneapolis, one in St Paul) and on several “on site” locations in greater Minnesota Original budget: $10,000 to 12.3 M (2014) From .5 paid staff to 15 FTE 1 Micro Entrepreneur training program to 5 geographically based programs, 5 activity related programs, and 35 different trainings Coming soon; Owatonna

Latino Economic Development Center 1501 E Lake St Building socially responsible communities Latino Economic Development Center 1501 E Lake St Minneapolis, MN 55407 Phone: (612) 724- 5332 Fax: (612) 724- 5342 Web: www.ledc-mn.org E-mail: info@ledc-mn.org