Message to economic developers: Listen to your community
“What we’re measuring was identified by the communities themselves.”
— Local First Arizona CEO Kimber Lanning
Many economic development organizations are working on equity and inclusion, but how can an organization measure if they’re really moving the needle effectively?
To Local First Arizona CEO Kimber Lanning, the answer lies in asking communities themselves.
Advisory committees, plus focus groups, of Hispanic and African-American Arizonans designed the key performance indicators for Local First’s Spanish-language business accelerator, Fuerza Local, and Black-centered business accelerator, We Rise.
Typical measurements are tracked, such as how many entrepreneurs increased revenue, hired employees and opened their first bank accounts after graduating.
Hispanic community chose generosity and lending rates as key metrics for business accelerator Fuerza Local
But to the community advising the Fuerza Local program, valuing the generosity of graduates was important too.
Surveys show the 900+ entrepreneurs who have graduated from Fuerza Local since 2013 have donated thousands of dollars and hundreds of volunteer hours to local charities.
Predatory lending was also a concern for the Hispanic community.
Metrics show Fuerza Local entrepreneurs were borrowing capital at interest rates averaging 48% before joining. Afterward, graduates were able to secure loans averaging 12% interest, a massive financial difference for the startup business owners.
Collaboration and confidence grew for Black entrepreneurs in We Rise business accelerator
For Black entrepreneurs in the We Rise program, collaboration was highly valued.
So Local First measures how often We Rise graduates hire, support and partner with other graduates.
Confidence in business was also key.
Local First’s surveys show that before starting We Rise, 73% of Black entrepreneurs felt they had a poor or fair understanding of how to develop a business plan. After graduating, 93% reported a good or excellent understanding.
Taking Local First’s message of listening to community international
Lanning believes measurements of success like these are vital to inspiring lasting economic change and prosperity for all.
She spoke to the International Economic Development Council Leadership Summit about “Designing Impactful Metrics for Equitable Economic Development” on Jan. 30 in Tucson.
