Minority Business Development Agency Works to Boost U.S. Job Creation

MBEConnect recently interviewed Minority Business Development Agency (MBDA) National Director David A. Hinson about his Agency and new developments for Minority Business Enterprises (MBEs).

As MBDA’s National Director, Mr. Hinson oversees a national operation of 39 centers with a presence in 50 locations. This operation expands the U.S. economy and creates new jobs by providing services to promote the growth and global competitiveness of minority businesses. Since the start of the Obama Administration, MBDA has assisted minority-owned firms in obtaining nearly $7 billion in contracts and capital, creating nearly 11,000 new jobs. The overall mission of MBDA is to achieve economic parity for the minority business community. In order to achieve this goal, MBDA is focused on building the foundation for the next generation of $100 million minority-owned companies.

Prior to joining MBDA, Mr. Hinson was President and CEO of Wealth Management Network, Inc., a multi-million dollar independent, financial advisory boutique. Before his own path into entrepreneurship, Mr. Hinson managed a 10-state sales region as Director of Advisory Services and Managing Director of Business Development for Envestnet Asset Management, a publicly traded, $70 billion financial advisory firm.

In addition, Mr. Hinson previously held a variety of senior-level and mid-management positions at Bank of America, Morgan Stanley & Company, First Chicago (now JP Morgan Chase) and the Village Foundation. Mr. Hinson received an MBA in finance from The University of Pennsylvania Wharton School, and a bachelor’s degree in insurance and finance with honors from Howard University in Washington, DC.

In addition, he completed a fellowship in international finance with honors from the Stockholm School of Economics and graduate-level studies in French with honors at the University of Abidjan, in Ivory Coast, West Africa. Mr. Hinson is a native of St. Louis, MO., and currently resides in Washington, DC.

MBEConnect: Where do MBEs stand economically and what impact do they make globally?

Hinson: “That’s a great question. Minority Business Enterprises are having a tremendous impact domestically and internationally. On the domestic side, MBEs are a significant source of job creation in the U.S. Internationally, MBEs are primed for opportunities for strategic partnerships, and acquisitions and mergers.”
“The minority business sector also has the greatest growth dynamics in the U.S. economy growing at 56 percent in terms of gross receipts according to the recent U.S. Census data. Minority-owned firms offer international investors above average return prospects. They are a powerful market entry vehicle both in the United States and into countries around the world.”

MBEConnect: Does strong MBE community presence make a difference? If so, how?

Hinson: “Community presence for MBEs is a critical part of the continued growth that the country needs. It benefits everyone – MBEs and the community in general. MBEs are creating jobs and opportunities, especially in underserved areas. The MBE presence represents a beacon of hope in many communities throughout the country.”

MBEConnect: Should MBEs expand into exporting and how can that help their business?

Hinson: “The opportunities are great for minority-owned firms in exporting. In fact, this is an area where minority-owned firms are already excelling. They are twice as likely to export as non-minority owned firms. Some are owned and operated by U.S. citizens who were born outside the U.S. and who still have families in their home country. This affords their companies clear competitive advantages in the global markets such as language skills, knowledge of local business practices and most importantly, relationships in the local market. These factors offer minorityowned firms a significant competitive advantage.”

MBEConnect: What is MBDA doing to assist MBEs with exporting?

Hinson: “MBDA is actively involved in supporting minority-owned businesses as they prepare to take their products and services abroad. Many of our clients are currently involved in exporting. The MBDA Business centers that are located throughout the country provide the resources and consultation needed to assist firms to expand into global markets.”

“Nearly 95 percent of the world’s consumers and fastest growing markets are outside of our borders. MBDA wants to help minority-owned firms capitalize on these opportunities. More information can be found about exporting at www.export.gov.”

MBEConnect: What is MBDA doing to increase MBE contracts and capital?

Hinson: “As a part of the Department of Commerce, MBDA engages MBEs by offering access to federal resources, as well as information about corporate opportunities. MBDA has taken a leadership role in the Administration’s efforts around small business contracting.”

“We want to help MBEs gain access to the capital needed to grow to size and scale that enables them to reach their full potential. Over the last two years, MBDA has helped minority-owned firms gain access to nearly $7 billion in contracts and capital. We also maintain a robust database of companies that we believe can participate in mergers and acquisitions.”

MBEConnect: Earlier this year, you announced a new MBDA Business Center program and issued awards to 27 entities to operate a center. What do you hope to accomplish with the new program?

Hinson: “Actually, MBDA has a footprint in 50 locations around the country including our regional offices. When we launched the new MBDA Business Center program in April, we eliminated geographic boundaries, expanded the repertoire of services to include exports, international financing, and mergers and acquisitions. This means MBEs can approach any MBDA Business Center for assistance and leverage the expertise and resources from a nationwide network. We would like to see more MBEs using the MBDA Business Centers, especially the new Federal Procurement Center, which has the sole mission of helping minority-owned businesses successfully bid on and win federal contracts. We want to see MBEs continue to be an engine of job creation for the U.S. and a continued attraction for international business opportunities.”

MBEConnect: What are some of the things MBDA would like to see happen next year with MBEs?

Hinson: “We of course want to see an increase in the number of minority-owned businesses that are gaining access to capital and to markets in order to maximize success. We want to see more minority-owned businesses going into high growth areas such healthcare IT, green technology and other emerging industries. We also want to see more minority-owned firms surpassing the $100 million mark.”

“Minority-owned firms are an undervalued asset within the American economic system. They represent the fastest growing job sector and the fastest growing economic sector in the nation. They also represent an opportunity for margin expansion and global access for international investors.”

“As the country continues to rebuild economically, minority-owned firms are expected to continue to be a significant part of continued job growth. Minority businesses hold the key to the jobs of the future. MBEs currently employ more than 5.9 million Americans. We want to see them employing more American workers.”

For more information about the Minority Business Development Agency (MBDA), visit: www.mbda.gov.