The Commons: Supporting Entrepreneurship

Women, people of color, and persons in low to moderate income populations face tremendous inequalities in regard to accessing federal relief programs, capital investments, and incubation and acceleration programs. The Commons has converted all of our business support programming to an online platform to ensure that these entrepreneurs are connected to the tools, resources, and support they need to meet their challenges and goals. This includes mentor sessions, CO.Starters 10-week Entrepreneurial Accelerator, and Advisory Hours—helping us offer our programming to those who may not otherwise be able to access The Commons in person. We also facilitate collaborations that benefit underserved entrepreneurs through over 110 mission-aligned organizations within our Resource Compass.  We anticipate that historically underserved entrepreneurs and small business owners will leverage our support and guidance in creating more jobs and revitalizing distressed communities locally and beyond.

Entrepreneurship is a powerful force for economic development, creating 44% of new jobs and 42% of new companies, yet business creation in the US decreased 30% in the past three decades. This trend is even worse when viewed along racial and gender lines. The Kauffman Foundation notes, "if minorities started and owned businesses at the same rate non-minorities do, the United States would have more than 1 million additional employer businesses and approximately 9.5 million more jobs in the economy.” Only 29% of Denver metro-businesses are women owned (Denver Business Journal, 2019), and of the nearly 28 million small businesses in the US, only 909 were certified LGBT Business Enterprises (National Center for Business Journalism, 2017). 

There are as many Caucasian business owners in Colorado as Latino and African American owned businesses combined (Colorado Trust, 2016). Worse, the average value of white owned-businesses is more than four times the average value of black-owned or Latino-owned businesses. 

Robust entrepreneurial programming and resources are imperative to all small business owners, especially those already facing existing systemic inequities. Many are just beginning the entrepreneurial journey and lack necessary resources to effectively launch, grow and navigate these turbulent times.

The Commons provides all of our programming virtually within Startup Space, an online platform for entrepreneurs and economic development organizations. Thus we have expanded our programming beyond the walls of The Commons and now reach and engage even more underserved entrepreneurs and small business owners, including those in underserved target neighborhoods. 

Our virtual programming includes:

• accelerator training including workshops, training and wrap-around programs for entrepreneurs at any stage of business creation, 

• small group mentorship sessions, 

• monthly trainings, workshops, and a Spotlight speaker series for female entrepreneurs

• informative webinars on topics like the CARES Act and small business funding

• daily entrepreneur support Zoom-based calls which connect small business owners with local and federal support, and

• weekly electronic newsletters for 10,000 small business owners

Our work revitalizes entrepreneurship in our communities by supporting entrepreneurs and innovators from all industries and backgrounds, helping new businesses drive economic opportunity for all. Given improved access, underserved entrepreneurs can have tremendous impact: minority businesses produce over $400 billion in annual revenue and actively employ, directly or indirectly, more than 2.2 million people per the National Supplier Minority Development Council.

The Commons structures programs, allocates resources and uses language to advance inclusion of underserved communities facing systemic barriers to entrepreneurship, especially people of color, women, military veterans and LMI individuals; 70% of people enrolled in our core programs represent underserved communities. We engage members of the entrepreneurial community in strategy and design sessions to inform programming investments and assess overall impact. We consult participant advisors to guide and evaluate programs, set goals, advance diversity and inclusion, and address any engagement problems among people of color and other underserved communities.

The Commons is helping change the lives of Denver’s most marginalized citizens like Buck. Buck had been incarcerated for two years, leaving him with minimal job opportunities upon his release. Through The Commons’ Journey programming, mentoring, training, events and connections to like-minded agencies, Buck launched Prison Art, an “etsy for inmates” allowing incarcerated artists to legally sell their art to pay child support, victim restitution and other societal debts. This is just one of thousands of success stories at The Commons. Last year, we assisted 1,764 small businesses through programming, served 3,000 LMI or people from vulnerable populations, recruited 400 underrepresented founders, and served 17,500 people through The Commons hub.

Our work at The Commons enables underserved entrepreneurs to create new businesses and to grow existing businesses through access to robust entrepreneurial programming, capital, and a broad and diverse supportive network of mentors and advisors.. Startup Space technology ensures our work reaches beyond our walls and into the communities that need us most, helping them prosper, create good jobs, and revitalize their local economies. Our efforts are well-aligned with the Good Jobs and Entrepreneurship Challenge.

The Commons is a public-private partnership founded by the Downtown Denver Partnership and the City and County of Denver with support from the Colorado Technology Association. The Commons engages over 150 network partners that are addressing gaps in entrepreneurship resources and support. The Commons works with these organizations by coordinating workshops and advisory hours for the general public at the center. Since 2015, the City & County of Denver has been a keystone partner providing a low-rate lease for The Commons’ facility. The City & County’s Denver Economic Development & Opportunity conducts 300 hours of business startup assistance and 120 educational events per year. The Small Business Administration, the US Patent and Trademark office, and other agencies essential for entrepreneurial growth share their time and talent. These partnerships and the time volunteered by community stakeholders allow The Commons extensive impact with limited staff and funds. 

The Commons also leverages the membership base of the Downtown Denver Partnership to bring corporate sector support and expertise to the startup community. All our partners continue to share their time and talent virtually.

Startup Space is an online platform for entrepreneurship centers and economic development organizations to support entrepreneurs and measure impact of their work. They provide this incredible service in 150 cities in 65 countries, and in over 75 community hubs. 

Within Startup Space, The Commons has created Resource Compass, wherein entrepreneurs and small business owners can build their networks and lean on our living database of hundreds of incredible business resources, including accelerators, lawyers, accountants, business setup support, funds, and more. Resource Compass is designed to help entrepreneurs make the right connections. The tool to filters organizations, services and resources to help identify the ones that are uniquely positioned to help each person or business start, scale and sustain his/her venture.

https://www.startupspace.us

Robust entrepreneurial programming and resources are imperative to small business owners, many of whom are just beginning the entrepreneurial journey and lack necessary resources to navigate these turbulent times if it weren’t for The Commons’ support. 

McKinsey & Company notes that “of all vulnerable small businesses, minority-owned ones may be most at risk. Many were in financially precarious positions even before COVID-19 lockdowns, and minority-owned small businesses often are in industries more susceptible to disruption” (McKinsey, COVID-19’s Effect on Minority-Owned Small Businesses in the United States, 5/27/2020). The Commons will work with underserved business owners to mitigate what otherwise would surely be a disproportionate impact on these businesses. 

Given our network and record of success, the small business community in the greater Denver area looks to The Commons for leadership as the economic implications of COVID-19 come into focus. We will continue to work to support these most vulnerable entrepreneurs and small businesses and others through our online platform while creating programs in direct response to the pandemic and other needs as they arise. In this way we support entrepreneurs from all industries and backgrounds, helping new businesses drive economic recovery and creating financial stability for those who need it most.

In 2019 we served 17,500 people through The Commons' hub. We also:

• Assisted 1764 small businesses through programming

• Helped create 375 quality jobs

• Increased revenue for small businesses by 42% ($2,823,200)

• Served 3,000 LMI or people from vulnerable populations

• Recruited 400 underrepresented founders

• Attracted $6,500,000 in investment/capital to entrepreneurs

• Created 12,300 connections between entrepreneurs and financial, technical and industry providers in the community.

  In our FY 2020-2021, we will serve an additional 1,000 entrepreneurs, for a total of 18,500. Within the next 5 years we anticipate serving over 23,000 annually. 

  During 2017-2019, underserved entrepreneurs comprised more than 60% of participants across all programs, including free public programming. During this same time period 60% of participants were female, 50% were people of color, and 70% were individuals from low-to-moderate income households. 3% of participants were younger than 18 years of age, 20% were 18-24 years of age, 70% were 25-64 years of age, and 7% were over 65 years old. Persons with disabilities comprised 15% of those served by The Common’s programs during 2017-2019.  
  

Based on previous results, The Commons anticipates achieving the following outcomes this year:

1. Serve an additional 1,000 underserved entrepreneurs. 

2. Increase public awareness for resources, funding, and support available to entrepreneurs. Despite having to close our building due to COVID-19, our strong web presence is allowing even more small business owners to connect and be aware of resources such as the SBA loans, CARES act information, and how to access capital in these unknown times. Last year, we attracted $6.5M in capital to entrepreneurs.

3. Realize a 10% increase in the rate of new local businesses launched by underserved entrepreneurs in the urban core.

4. Demonstrate a 20% increase in the number of new businesses still active after one year.

5. Enhance commercial success of startup businesses, including a 20% increase in revenue, 10% increase in profitability (10%), and double the number of jobs created (from 2019 baseline of 300 new jobs).

6. Enhance navigation and delivery of services and programs to underserved entrepreneurs within the Denver ecosystem.

7. Reduce systemic barriers to entrepreneurship, including racial and gender biases and a lack of access to essential resources and geography.

   The majority of our constituents belong to underserved populations; existing inequalities among these groups in regard to accessing federal relief programs, capital investments, and incubation and acceleration programs. Our CO.mmunities efforts focus on targeted neighbors so we can work to reduce these disparities and provide economic opportunity for all. 
   

The Common's biggest hurdle at this time is financial. The COVID 19 pandemic has turned many philanthropic organizations' focus from investments in programs like ours to efforts addressing the immediate needs of those affected by the pandemic. 

Planned revenue from The Commons provision of low-cost office space for t conference rooms and a large event room that entrepreneurs, nonprofits and other community partners can rent below fair market rates has been reduced by 70%. Another 5% of budgeted income was expected to be generated through earned income as a result of the nominal fee for some of our programs. We continue to ask for a slight payment for these cohorts, but we are offering more scholarships and payment plans than ever before as people face the economic pressures brought on by this pandemic. We have been further negatively impacted by the loss of revenue from ticket costs for in-person events.

We expect that over the next five years many philanthropic dollars will remain focused on mitigating the impacts of the pandemic.

One other barrier we face is that In historically underserved populations, transportation or other barriers prevent them from utilizing services in person. 

We are working to address financial impacts by expanding our group of donor foundations. We will continue to seek out and apply for other potential philanthropic grants where our work and a foundation’s stated goals align. We will also continue to partner with the City and County of Denver as they work to build economic recovery in the area; we are well positioned as a leader to drive these efforts. 

In addition to our use of virtual programming through Startup Space, The Commons is expanding the Entrepreneurial Journey through the creation of CO.mmunity Neighborhood, which will take these programs into some of Denver’s most underserved/LMI communities beginning in mid-2020.

The Commons currently has one full time, one part time staff. Our efforts are strategically supported by Downtown Denver Partnership staff,We rely heavily on community buy-in and volunteer support.  

The Commons’ mission is to enable a diverse community of entrepreneurs to succeed in building new ventures in Denver that help to create a more inclusive, vibrant local economy. With the Denver Office of Economic Development and the Colorado Technology Association, DDP opened the campus to the public in 2015 and has since served over 57,500 community members. We've done this through the efforts of our small staff, and because of our vast network of partners and volunteers from such organizations as the Small Business Administration, Denver Public Libraries, and the Downtown Denver Partnership. In 2019, 360 mentor volunteers provided 4,070 entrepreneurs with 10,900 hours of inspiration, training, counsel, and advice. With this vast community, we are uniquely positioned to deliver our solution. 

over 155 organizations contributed education, training and inspiration at The Commons. Volunteers help in administrative capacities, help teach courses and workshops, speak at events, and facilitate peer groups. A few of our partner organizations not already mentioned include:

The Colorado Enterprise Fund

Denver Economic Development and Opportunity

Comcast

JP Morgan Chase & Company

Wells Fargo

The Commons offers the following programs:

• CO.Starters  10-week accelerator program for early-stage entrepreneurs, walking participants through critical topics such as knowing their customer; marketing; scaling their model; accounting for growth; and planning for the future. The 10-week program culminates in a Pitch Event.These pitches are shared virtually through StoryVine pitch videos!

• Startup Space, a free, online platform and mobile community supporting the launch and growth of small businesses by providing 24/7 Q&A, live chats, web-based mentorship, and the Denver Resource Compass, an online database of free resources to help entrepreneurs scale their businesses. 

• Mentorship Programs: 

Power Hours provide small group mentorship sessions on topics such as legal matters, SEO, and accessing capital from subject matter and industry experts, investors and professionals. Four free, unique sessions are offered weekly and are open to the public.

Champions pairs expert mentors with up to 8 peers at similar stages of business. Groups meet monthly for 4 mentor-led sessions focused on meeting specific business challenges. Most participants report the biggest benefit of these groups is having access to and feedback from expert mentors whose insights helped them take their businesses to the next level. 

• DEDO Advisory Hours arefree, one-on-one sessions and workshops with government and nonprofit partners in collaboration with Denver Economic Development and Opportunity provide many specialty services to new and small businesses.

• Women on the Rise is dedicated to supporting emerging female entrepreneurs and business owners, this year-round opportunity provides entrepreneurial women with programming, resources and networking. 

The Commons is a nonprofit organization. We rely on earned revenue from our rental and short-term lease spaces, events, and programs. We combine this income with philanthropic contributions from private and public foundations, and financial support from the City and County of Denver. 

Solve can help The Commons find even more ways we can expand beyond our walls and get out programming and resources to the entrepreneurs and small businesses that need it most. Programs and technologies that may help create local hubs were participants can access computers, WiFi, and other technological needs to access our virtual programming exist, but we have yet to identify them. With Solve's help, we can partner with these service providers in identify pathways to establishing local access for undeserved communities. 

We would love to identify and partner with entities whose technology compliments and expands the offerings of Startup Space. 

We seek connections to organizations whose work complements ours for sharing ideas and approaches. Finally, we are always interested in learning about groups whose philanthropic interests seek to support our work.

Our program, Women on the Rise, empowers and guides female entrepreneurs through programming, resources and connections.The program hosts monthly workshops, speaker spotlights and connections for female entrepreneurs. 

https://www.thecommons.co/wome...

While only 29% of Denver metro-businesses are women owned (Denver Business Journal, October 31, 2019), 60% of The Commons' participants are female. Our team will use the Innovation for Women Prize to expand the Women on the Rise programming, perform outreach to even more female entrepreneurs, and provide full scholarships for all female entrepreneurs and small business owners for The Commons' programming for three years.

Last year, we:

• Assisted 1764 small businesses through programming

• Helped create 375 quality jobs

• Increased revenue for small businesses by 42% ($2,823,200)

• Served 3,000 LMI or people from vulnerable populations

• Recruited 400 underrepresented founders

• Attracted $6,500,000 in investment/capital to entrepreneurs

• Created 12,300 connections between entrepreneurs and financial, technical and industry providers in the community. 

• Served 17,500 people through The Commons hub

Based on previous results, The Commons anticipates achieving the following outcomes this year:

1. Serve an additional 1,000 underserved entrepreneurs. 

2. Increase public awareness for resources, funding, and support available to entrepreneurs. Despite having to close our building due to COVID-19, our strong web presence is allowing even more small business owners to connect and be aware of resources such as the SBA loans, CARES act information, and how to access capital in these unknown times. Last year, we attracted $6.5M in capital to entrepreneurs.

3. Realize a 10% increase in the rate of new local businesses launched by underserved entrepreneurs in the urban core.

4. Demonstrate a 20% increase in the number of new businesses still active after one year.

5. Enhance commercial success of startup businesses, including a 20% increase in revenue, 10% increase in profitability (10%), and double the number of jobs created (from 2019 baseline of 300 new jobs).

6. Enhance navigation and delivery of services and programs to underserved entrepreneurs within the Denver ecosystem.

7. Reduce systemic barriers to entrepreneurship, including racial and gender biases and a lack of access to essential resources and geography.