U.S. Leader Lays Out Plan to Grow Minority Businesses in Speech

David Hinson, National Director of the U.S. Department of Commerce Minority Business Development Agency (MBDA), was a keynote speaker at the PeopleFund Conference on Economic Opportunity on October 24 in Austin, Texas.  In his speech, Hinson provided an overview on the strategies MBDA is using to promote the growth and development of minority businesses.  Enclosed below is an excerpt from the transcript of his speech, and the link to the entire speech is at the end of this excerpt.

Good Afternoon! On behalf of President Barack Obama and Secretary of Commerce Gary Locke, it is my honor to be here today.

I’d like to take a moment to thank the Board of Directors for the People Fund for extending this wonderful invitation, specifically Mr. Hopeton Hay who has had a long career as a staunch advocate for minority business development.

I had the pleasure of being a guest on Mr. Hay’s radio show, “Economic Perspectives,” when I was first appointed to be the National Director of the Minority Business Development Agency only a few, short months ago.

I would also like to thank Kenia Davalos, Suzi Sosa and all of the other participants and panelists who have provided sound advice and counsel at this very important conference.

Hinson at PeopleFund Conference

But most of all, I want to thank the entrepreneurs and business owners here today, who are indeed the backbone of our nation, who continue to hang in during these very difficult times.

It is your unwillingness to flinch in the face of this economic downturn that is putting food on the tables of millions of workers nationwide and ensuring that these families remain hopeful as our economy adjusts to the impact of mistakes of the past. For this, you deserve our praise.

For those of you who may not know, the Minority Business Development Agency is the only agency in the federal government with the sole task of promoting the growth and global competitiveness of the minority business community. We manage over 46 centers nationwide, providing technical and business development assistance and access to capital to minority businesses of all sizes.

In our current business model, MBDA’s activities are centered on helping companies from these diverse communities obtain financing and contracts from both the public and private sectors. In 2008, MBDA generated more than $2 billion in contracts and financing for our clients and created more than 5,000 new jobs.  This gives MBDA a Return on Investment (ROI) of 74 times. In other words, for every tax payer dollar put into MBDA, we create $74 of economic output. Year-to-date, we have executed over $2.4 billion in contracts and financing and created nearly 3,000 new jobs in what has been an extremely challenging year for minority-owned businesses.

Over the last 40 years, MBDA has helped thousands of businesses grow.  And with a continued effort from MBDA, organizations like the People Fund and hundreds of strong entrepreneurs, like those of you here today, the minority business community now accounts for more than $660 billion in gross receipts and generates approximately 8 million jobs nationally.

In the great state of Texas alone, there are approximately 491,000 minority-owned firms generating more than $71 billion in gross receipts, and employing more than 543,000 workers. Between 1997 and 2002, minority firms in the state of Texas grew 34 percent (34%) and were significantly greater than the total growth percentage of all businesses in the entire state, which was only 13 percent (13%).

As you know, the state of Texas has the second largest minority population in the country!  And if the business activity matched the state’s minority population growth, there would be more than 830,000 minority businesses generating more than $305 billion and employing nearly 2 million workers.

To read the entire speech click here.

New Leader of U.S. Minority Business Development Agency Will Be September 14 Guest on Economic Perspectives

David Hinson

David Hinson, National Director of the U.S. Department of Commerce Minority Business Development Agency (MBDA), will be the September 14 guest on Economic Perpectives on KAZI 88.7 FM in Austin, Texas.  Hinson, who was appointed to the position by the Obama Administration on July 15, 2009, will be a keynote speaker at the PeopleFund Conference on Economic Opportunity on October 24 in Austin.

MBDA’s Mission is to foster the growth and global competitiveness of U.S. businesses that are minority-owned.  MBDA, through its network of 48 minority business centers throughout the country, provides one-on-one workshops and business consulting services for minority businesses to help educate them about federal opportunities, including those related to the American Recovery and Reinvestment Act.  It’s strategic goals are to:

1. Increase the number of businesses that are minority-owned at the $1billion level
2. Establish MBDA as the agency of choice for businesses that are minority-owned, policymakers, and the private sector
3. Implement operational efficiencies throughout MBDA

Before his appointment to lead MBDA, Hinson was President and CEO of Wealth Management Network, Inc., a multi-million dollar independent, financial advisory boutique for 7 years. Prior to launching Wealth Management Network, David managed a 10-state sales region as Director of Advisory Services for Envestnet Asset Management, a $70 billion financial advisory firm.

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, D.C. In addition, he completed a fellowship in International Finance with honors from the Stockholm School of Economics and completed graduate-level studies in French with honors at the University of Abidjan, in the Ivory Coast West Africa.

New Leader of U.S. Minority Business Development Agency

U.S. Commerce Secretary Gary Locke announced the appointment of David Hinson, a St. Louis native with more than 20 years of business experience, as the new administrator of the Minority Business Development Agency (MBDA). This agency is the only federal agency created specifically to foster the establishment and growth of minority-owned businesses in the United States.

David Hinson

“The success of minority-owned businesses is essential to our economic recovery, and I’m counting on David to maximize their opportunities,” Locke said.

MBDA, through its network of 48 minority business centers throughout the country, provides one-on-one workshops and business consulting services for minority businesses to help educate them about federal opportunities, including those related to the American Recovery and Reinvestment Act.

“I’m honored to accept this position and am committed to carrying out Secretary Locke’s priority of working with minority entrepreneurs who wish to grow their businesses and increase their capacity,” Hinson said. “This work better positions these companies to create jobs, improve local economies and expand operations into national and global markets.”

In 2008, MBDA negotiated more than $2 billion in contracts and capital for minority businesses. Over the past 40 years, MBDA has served more than 625,000 minority businesses and assisted in securing more than $25 billion in loans and bonding.

Since MBDA’s creation in 1969, minority businesses have grown from 300,000 to nearly 4 million. Recent Census data indicates minority firms generate more than $661 billion in annual revenues and employ more than 4 million workers.

David Hinson Profile

Since 2002, David was President and CEO of Wealth Management Network, Inc., a multi-million dollar independent, financial advisory boutique. Prior to launching Wealth Management Network, David managed a 10-state sales region as Director of Advisory Services for Envestnet Asset Management, a $70 billion financial advisory firm. In his capacity, David advised high-end advisors in asset allocation, portfolio construction, technology, and product implementation. He also served as Managing Director of Business Development for the company. In addition, David has held a variety of senior-level and mid-management positions at Bank of America, Morgan Stanley & Company, First Chicago Bank (now JP Morgan Chase) and the Village Foundation.

David 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, D.C. In addition, he completed a fellowship in international finance with honors from the Stockholm School of Economics and completed graduate-level studies in French with honors at the University of Abidjan, in the Ivory Coast West Africa.

David is a member of a number of civic organizations including a member of the Board of Directors, Treasurer and Chair of the Audit Committee of the Council of Urban Professionals (CUP) in New York. In addition, David has provided on-air financial commentary for CNN, Fox News Channel, CBS News and The BE Report in addition to writing a financial column for The Network Journal and writing personal wealth analyses for Black Enterprise Magazine and Essence Magazine.

David is a native of St. Louis, Mo., and currently resides in Philadelphia, Pa.