Part of the University of Pittsburgh’s Innovation Institute, the Institute for Entrepreneurial Excellence (IEE) serves small businesses throughout western Pennsylvania with a dynamic mix of consulting, education and networking opportunities.
We welcome Robert Stein, IEE Executive Director, and Rhonda Carson Leach, Director, IEE Entrepreneurial Fellows Class and Urban & Community Entrepreneurship Program, to overview the institute's key services and programming to help more people build small businesses in underserved and moderate income communities.
Learn how the IEE is fostering economic empowerment by investing in one individual, one job and one business at a time.
Transcription:
So good afternoon, everyone. This is Andrew Russo. And I'm thrilled to be here. I'm president and CEO at the Pittsburgh Technology Council, as well as an organization called 40. By 80. That's the wholly owned subsidiary of the tech Council. And it's our nonprofit arm, where we focus on all things education, and entrepreneurial. So we're thrilled today to have our guests. I'll introduce them formally in a moment. But before we get started, I want to give a big shout out as I do each and every day to Huntington bank for all that they do for our region, for the belief that they've had in us as we've pivoted, like all of you have during COVID, and the experiments that they take chances on with us, and that's all about storytelling, shining the light on the region, while we're providing support and services to companies all shapes and sizes across the innovation ecosystem. So thank you to Huntington bank. And if you don't know them, you really do need to get to know them. So we have muted your microphones. And we do that on purpose. But that doesn't mean that we don't want to hear from you. This is definitely conversational in nature. And we just don't want to hear anything in the background, I want to hear our guest clearly. Additionally, Jonathan Kersting is with us as he is each and every day. And if you don't know about the work that he leads for us, it's all around storytelling, marketing media. We have a magazine, we do radio shows, we do podcasts, everything that we do, is focused on making sure Pittsburgh is not only an amazing place to be, but that people know all the amazing stories of the people who are leaving these companies and working inside of them. So we have a chat. As I've mentioned, we want this to be conversational, and you can definitely ask our guests questions, we'll try to make sure that we have enough time. And if we don't have enough time, to tell you the truth, we will make sure that we get information to Rhonda and Robert. So on that note, we are excited to be hosting the two guests from the Institute for entrepreneurial excellence. And that is Robert Stein, I call him Bob. But I guess that's his full name, right? I'm gonna call you, Bob today. And he's executive director and Rhonda Carson lead. She's director of entrepreneurial, the fellows class and the urban and community entrepreneurial program. And so we're excited to hear from both of them. So I'm pretty thrilled about that. Now, I haven't seen them in forever, as we talked before we went live and we're excited about the opportunities as we move ahead to think about when we all see each other in real life. So let's bring them to the forefront. And I want to say formally Good afternoon, Robert. And Rhonda. Now I'm going to call you, Robert. So it's probably going to go back and forth. Well, how are you both? How are you both doing?
We're doing we're doing great. And Adria as I was telling your team earlier, you know you it's amazing that you've been doing this for as long as you have. And, you know, also thanks again to our friends at Huntington bank for supporting it, what a great series that you've been promoting.
Yeah, they're pretty amazing. So thank you for that. And I know that they also support your program. So it's great to have that kind of partnership. So let's talk about this. Let's get to know each of you and learn a little bit more about your background. So can I start with Rhonda?
Sure, sure. Well, as you as you mentioned, I am Senior Program Director with the institute and I've actually been with the University of Pittsburgh 11, almost 12 years. And my background really in the IEEE was through the SBDC through the Small Business Development Center, of which I was a consultant at the time later became a contractor really joined forces on a full time basis. And then sort of came up the ranks a little bit in the director ship positions. And of course, I lead three of those centers right now. I love them all. But I have to say that a true passion of mine is really my my urban area honestly work with those businesses from the low and moderate income communities. Well, are you native pittsburgher I am I am born and raised. I went to went to school, while undergraduate to Western New England college, which is now Western New England University, Springfield, Massachusetts. Actually, my my siblings all went to New England schools. And here's the funny story. My mother was an administrator at the University of Pittsburgh, and I didn't go to Pitt undergrad, figure that one out. I could have saved some money. But yeah, I am a native pittsburgher
you could have saved some money, that's for sure. It's funny what we do when we're teenagers. Yes. And so great. All right. Well, thank you so much. So let's bring Bob up. Hi, Bob. Hey, are you I'm great. Thank you for joining us today. Give us a little bit about your background. You've been at the Institute for a while, but let's just real you know, let's just set the stage for your background.
So I'm I'm born and raised from Western Pennsylvania from the Nanga hella down in the mon Valley, where Joe Montana, that's our claim to fame down there where he went to school. Rainbow and I am an entrepreneur at heart. I started a business when I was 13 years old, and come from a family business as well. So it's in my blood. And I've started working with the University in 2005. So I'm dating myself now a little bit.
Not really, it's okay. age is just a number. But you still have family here. So you were raised in in the monongahela. area? Yeah. And then raised went to Ringgold. Okay. Excellent. So how long have you been over at Pitt? Yeah, so
maybe 16 years now. And, you know, I have a special love for the tech Council, because my background is in it. So you know, I love seeing your programming and the content, because, you know, that's right up my alley, helping businesses with their IP issues.
So what does that mean? Does that mean that when we get a new computer, we can call you,
too? Like, yeah, new computer, a new CIO? your emails not working? Okay. Any new e rp? You know, I'll help I'll help any business in need. Okay, well,
you know, that's good to know. So everyone, Jonathan, put that in the chat. We can give them the bob cell phone number, just in case they need any kind of IP, I'll send an invoice right away as well. Ah, that hurt 13 this is recorded. All right. Okay, so Bob, I'm going to go back to you for a second, then I'm going to go jump to Rhonda but let's just talk about the history of the Institute. You know, what, what do you do? What's the, you know, what's the background, how you actually fit into the University of Pittsburgh?
Absolutely. So we're a part of Pitt that works with the business community, and our mission is economic development. We help businesses grow. So we want at the end of the day, we want to help businesses that jobs and add investment become more profitable. And we also want to help the number of startups in the region. So we really, we really want to help those economic metrics grow. Okay. We work with all sizes of businesses, from startups at startup, pizza shops, and maybe an underserved area all the way up to a very large family businesses. And we've debt, we generally provide education, consulting and networking services.
And so Can anyone join that meets any of that criteria and participate in your program we
want to be except for technology help, we want to be the one stop shop for businesses in Pittsburgh. And if they need, you know, alone will help lock people get loan or if they want to, they need professional development for their employees will help their or they need equipment. You know, most of the lot of the services are no cost because they're federal and state funded.
Yeah, I mean, I imagine and we'll get into this in a little bit. I know that you've been really busy over the last 16 months. And you've had your hands and a lot of areas there in terms of helping companies. Yeah, really, what's really interesting is about our region, we have like a real a pretty strong bench strength of family businesses that are mid size, I would say. And the question is, do you help them with succession plan?
Yeah, we'll do that. We'll help them with their family meetings, or succession planning or sometimes we just help them get along with each other and make sure that they don't kill each other. But Pittsburgh in western Pennsylvania has a surprisingly large amount of family businesses you know, including you know, the Steelers and Giant Eagle and all you know, all the big ones that we know up but many more they're working behind the scenes in our region.
Yeah, that's a that's a really good point. Totally. How could I forget the Steelers and giant eagles and that being such a, you know, legendary. So, you know, let's skip to Rhonda I mean, let's shift over to Rhonda really quick, I want to get back to you in a second. So Rhonda, you're doing some really important work, specifically in home when you've done work for a long time as we've just heard, but let's let's let's sort of focus on what you're doing right now in home. What and how That fits into the Institute.
Yes, most definitely. So, under our urban and community entrepreneurship program, we have a program that's dedicated for those entrepreneurs who are trying to grow their companies. Now, if you want to start a business, really, you can go to the small biz Development Center. And that's great. But we have just a sole focus of working with our, again, minority clientele who are in low to moderate incomes, really inner city, businesses, who are looking for an opportunity, right, as Bob says, our tagline to start grow and prosper. And so in the growth phase, in that growth phase, we help them to really look beyond working in their business, but helping them to really work on the business. And so we do that by again, providing you know, education, networking, and consulting specifically, though, with this program that we're doing in home with, and that's a core target area of ours, our program is called the community power to prosper, CP two p. acronyms. And so that community partner prosper. It is a six month certificate program that helps the business owner really take a deeper dive into all those tenets, right, that help them be successful, the leadership, the HR, the marketing, right, the finance, all of those areas, we help the business owner to really achieve some success. And so again, six months, right now we are recruiting for our 15th cohort. So you know, quote, cohorts, you know Audra with those are they start and end together, we've had 15, successful ones, 14, this will be our 15th. And so June 23, we hope to launch our 15th cohort, where community partner, prosper in Homewood at the Community Engagement Center. So So let's talk a little bit that's, that's
a lot of cohorts. And that's probably have some really good data there. Can you talk about the kinds of companies? Is there any kind of profile that we should know about in terms of eligibility and being considered into these cohorts?
Well, so I'll say, let me tell you what the requirements are to be in the program. First of all, willingness to want to commit to six months, let's start with that first. to it as the business again, if we're looking at revenues, we can say yes, we'd love for them to come in two to $300,000. That's not always the case. Right? They didn't just start yesterday, but they may be doing 40,000 50,000 $100,000 in business. So we get them right there. Right. So it's the commitment is sir, willingness to really, as I say, Go hard, right, honestly, go in this now, if you're not serious about it, don't apply, because we're going to take you through six months and beyond. And we're going to be connector for you after that as well.
So any patterns over the years over the cohort? any kinds of businesses, sort of, you know, that maybe you know that you want to share anything or they service businesses? Are they tech businesses? Are they just
gonna say RJ, I have to be honest about this, I believe the majority is really been service based businesses. And if you just even from research, we know that a lot of the minority businesses starting off really kind of start more in a service based area right. Now we're seeing a few, a few kind of early one manufacturing type type, not full blown tech, not too many. But we've had a couple, right, who really want to make their mark in that industry. But I would say 85% service based businesses, and it runs the gamut. It runs it. Yeah. And that's really great. I'm
glad to hear that because that's an easy entry. And you really can build upon your own individual competencies. And people really tend to know the subject and the domain. And I bet you that they really gain a lot out of this program. And actually, as I'm thinking about this, I think of someone who I want to introduce into this cohort. So where is there any other requirements doesn't have to be if you have to live in homework? No, you don't have to
live in home with no, you don't have anywhere, you can live anywhere. You can live anywhere, you really can now long as you can travel to Homewood, to our Community Engagement Center, it's fine. Again, I think the focus is to try to get businesses around that area who really need that assistance. But again, we will take them anywhere, right?
city one route. One related thing that we're doing with the minority owned companies is we're we partnered with UPMC and UPMC health plan to get minority owned suppliers and contractors to their, their network, its supply chain. And so that's been very successful. as successful, we're doing that for the entire state of Pennsylvania. And so any, any minority owned company that wants to work with UPMC technology business or not, they should contact us to get in that training as well.
And to piggyback off of Bob, that becomes a feeder for us as well.
That's great. And we have had on our show, and good relationship with the UPMC, you know, procurement leadership there, so and minority suppliers. So that's great. I like to see when it all gets knit together.
That's when the magic happens.
Right. So we'll make sure that we get that in the chat. So people, you know the link so people can make sure they have access and share. So now I'm gonna flip over to Bob again. So during COVID, you stepped up, you really stepped up to help these small and family on businesses. I can only imagine what you know, is on your plate each and every day. Can you talk about save our stages, and then your work on the restaurant revitalization apps?
Absolutely. So, you know, last year was as crazy was for everyone, it was especially crazy for the small businesses. I I think in March of last year, we called a couple 100 businesses just to make sure of what kind of assistance that they needed. First, it was the PPP, you know, that came out, and there was a second PPP for their employees, for for their payrolls, payroll assistance, then there was emergency loans from the SBA, that that came out, round one and two, and a lot of businesses received all that assistance, and then they still needed help. And that's, especially with this restaurant revitalization fund that was recently released. Right. And then the save our stages, businesses have save our stages. As for the entertainment industry, and the restaurant revitalization was a tremendous success. However, they ran out of money in less than a month, I think almost that almost $30 billion they ran out. And industries thing right now they really need a, you know, 75 billion to give the money that they need it for the restaurants.
Wow. How much did did our region take advantage of that? Do you have any sense of that?
I don't we they didn't release data yet on how many from Pennsylvania or whatever, applied. But, you know, from from what we hear on the street, many of the restaurants applied. Now, they haven't heard yet if they got funded yet or not. I know a couple people got turned away because they ran out, ran out of money. So I hope I hope they refund that, you know, that group. And that was state money right? Now, that was federal money. That was federal money. There was a there was a little bit of state money for certain things, but it was much smaller amounts. And that's, that's basically all gone.
Wow. And so yeah, I worry about the restaurant, you know, community and all that they've been through. I even saw this morning that the Carlton is closing down after 37 years. And, you know, I really worried because I think that's been just such an important piece of the rebirth of Pittsburgh. And to see the top I'll see how,
you know, may 31, restaurants in Pennsylvania, good 100% capacity. And you know, that's the time for all of us to go and visit those restaurants and support them because it's going to be a difficult it's going to be make it or break it. Time for these. Yeah,
they've been creative. They've been creative. And the other thing that we're hearing is really trying to help in terms of service staff of getting getting their teams back.
Yeah, that's across the board. in restaurants and manufacturers and service based businesses, the like, they can't find people who want to go to work and help them. And that's a problem. But even how they're allowed to be 100% capacity, they not may not be able to be at 100% capacity.
Yeah, I think Yeah, we'll see. So you're right after, after the 31st of this month, we'll probably be able to get a better sense. So thank you for your work in that arena, because that really matters to our ecosystem, or innovation. But that really matters. So if they if people want help right now, in terms of any of those areas, should they reach out
to Yeah, they can, they can still reach out entrepreneur.pit.edu or phone numbers listed on the website, and we'll put it in the chat, as well. Most of those services for the grants are no cost. And so we can help them and we can if they've already received a grant, we can help make sure that they've they're spending the money according to how it was supposed to be released. And with the reporting requirements, we can help them figure that out, as well. So I wouldn't I encourage any, any business owner that needs any kind of help like that they should reach out to us?
And do you see anything coming around the bend in terms of Washington to replenish any of these efforts, whether it's PPP or even the IPL, but
yeah, you know, Washington flow, and things take time. So I think they're just starting now to talk about what other assistants can, is out there. You know, there's another industry, I was just talking to a couple business owners in the nursing home industry. And yesterday, and then, you know, they're especially hard hit, and, you know, they can't close, you know, our loved ones are in those in those facilities. So, you know, there's it's just not the obvious industries that need assistance there. There's other ones as well.
We've been involved as well, early on with the nursing home community, and everything that occurred, but let's face it, there have been some that actually have closed and haven't been able to, to address the needs of the community. So appreciate that. Appreciate your calling attention to that as well. So Rhonda, Rhonda, what can you talk about some of the biggest challenges? And you know, then we'll go back to Bob on this as well, what are the biggest challenges that are impacting small businesses in the community and the work that you're doing? You mentioned a few things that, and one is you got to really be ready to dive in, right? Yes, you're gonna be in your cohort, you got to be ready to dive in. And it is a lot of work. Entrepreneurship is not for the faint hearted. Well, what are you seeing in terms of the biggest challenges? And what can we do to help you might there be a call to help? Well, Audrey, so
I'm always known for acronyms and just different, different adages. And I always say that my core group in these in the urban space, need to be called compelled, and committed, the three C's very important, be committed to what they're doing, and the love, which compels them to continue going forward. So being called compelled and committed, and I think they truly have to understand that you have to work on the business, you have to work on it, I know you're so busy working in that business, right? Like the little squirrel, just going, going going. But you have to work on this infrastructure, you have to work on everything else around it. And so I think some of the challenges that I see, funding still becomes a challenge, right? access, right to getting money. And we can drill down on that, that just even from again, you know, credit, some credit issues, right? Maybe the capacity, they, they, they think they can get the money, but know that that they really don't have the staff to really execute that kind of work. So I see challenges like that, really, the financing, and even. So we help them with a business plan, but you have to be focused and willing to want to do the work to put the information in, we're not going to write it for you. It's your business plan, we want you to own it. And so again, those those areas, sometimes I see some challenges that, that it's not a focus, really, but we can help them we can help overcome, for most part, all of those challenges, non funding, and we know we're we cannot we can't fund them per se, but we can help to help them with their financial analysis, right to get ready to get to the bank. Right? So I tell them, they just need to really, they need to be their own ROI, they need to really have their own return on investment, which is themselves.
Okay, so Bob, are you seeing any other challenges?
I mean, access to capital is, you know, really important, and especially with minority owned businesses, and I just give a give you an example. We have, you know, at the end of June last year as the first PPP loan, you know, was coming to its end, you know, it was like a big sigh of relief. It was like Finally, everybody in Pittsburgh that needed a PPP loan has got one. And then I met this African American gentleman who owned a commercial company. And he said, What PPP learned. And, you know, I was really surprised that, you know, there's still, you know, especially for minority owned companies, there's still we assume that that is trickled down to everybody, but it really hasn't. I mean, there's still disparities out there, especially with these these programs, that these minority business owners in these underserved areas, they need additional assistance to access and so that's, that's part of our goal is to help level the playing field and get those people what they need to succeed.
And so what can we did, that's really the sort of the rhetorical Question is, what can we do a refer people to you? Number one? Yeah, I
mean, of course, but I mean, you're a great community partner. And I think, you know, we just need to, you know, on both sides, we need to build awareness of all of our services, because at the end of the day, you know, tech company, non tech company, neither your organization or my organization will ever let a business fail. And, you know, I just think that they people need to have awareness that they are not only our two groups, but great places like innovation works, and, you know, countless connection and the Women's Center for Business and all those great organizations here in Pittsburgh, that are here and willing and able to help these businesses.
And I think I'm sorry, go ahead. Go on. Yes, I think, yes, being a connector, right, being able to refer and help us in that area. But I also believe that the biggest one is, identifying companies in which you can purchase from them in what you can provide, right? The dollar. So again, you're looking for a cater, you're looking for a plumber, electrician, right, the dollars green, they can do the work, you have to give them an opportunity. And so that's good
or needed most. Yeah, instead of going to a big box store, try to purchase it from a small business. You know, it's interesting, Audrey, a couple years ago, we were ranked like 40 out of 44. metropolitan areas for small businesses, you know, and I mean, dead last. And so here, you know, I, you know, that was a real eye opening moment for us that here, you know, we think we're doing great here in Pittsburgh, right. And we're really last in terms of support for small businesses. So I think that that awareness and connecting in and hopefully, the foundation community in the state and federal government also see that and they invest more in the small businesses in our region.
If I could add one more thing, I think mentorship is so important. Being mentors, right? Because the mentor can lead the mentee into some places and areas that the mentee would not have access to, you see, so again, right, we know that the, the happenings and the knowledge is in the room, and many of those individuals are not in the room, they're not at the table to be there. And so you you, you take the mentor connects with with a business, right, and we know the wealth that that mentors have on on a mentee on someone. So I think that's also another big piece where, where it can be most helpful.
And I agree with you buy local support local, mentor people, and let's let's let people know that there really are services that can help them and that they don't need to do it on on their own, at least not in the beginning.
So in RJ when I mean, one thing worth mentioning, is example the connection between our two organizations, Huntington bank, I mean, they work with both of our organizations, Huntington has been great in supporting small businesses, once we get them all buttoned up with their business plan and their financials, we send them over to Huntington and you know, usually they can get the funding they need from great. And so, you know, Mike Huntington is also have they have a new initiative on and specifically helping minority owned businesses with smaller loans, micro loans, you know, maybe $5,000, you know, but that's just another great example of how, you know, we have a great partner between the two of us that also serves both of our missions.
Great. That's great. Thank you for pointing that out. So as we wrap up, you have you offer for, you know, quite a few programs. And hopefully there's a link out there, people can access anything major coming up that you want to highlight.
Well, for me, as I said, are, we are in the process now of recruiting for our 15th cohort for the community partner prosper. It will begin on June 23, at the Community Engagement Center that's in Homewood and it's from 8am until 10am. We think it's best to have it early in the morning, you can get in right get do the business at hand and go on to do with the priority of work in the business.
That's great. That's great. Anything else Bob that you want to add in terms of some highlights coming out?
I just want to mention, you know, we're here for your for the business owners and just visit us on the web and reach out to us and we'll be we'll be glad to help. Well, however business owner needs so.
All right, well, great. I want to thank you both for being with us. Thank you. Thank you, Audrey Rhonda for your long work and entrepreneur ism. And mentoring and you know, urban focus, really appreciate your leadership and hard work there as well. Hopefully we put links out for everyone. If you have questions to reach them, you can reach out to any one of us and we'll, we'll make the connection. So again, thanks to Huntington bank, for the partnership and for believing in this organization as well as ours. So Jonathan, is there anything else as we talk about tomorrow,
anything week is not done until 1230. On a Friday when business as usual has it's it's it's a broadcast so tomorrow we have Jane Warner from the Children's Museum stopping by they are reopening their doors on June the 12th. We're all very pumped about that. So we're gonna get all the details about what that means, and how kids can finally go back and start learning stuff outside of their homes should be cool.
The Children's Museum of Pittsburgh is one of the top children's museums in the world. salutely. So we're really excited to wrap up the week so everyone stay safe. Enjoy the day. Want to thank all of you. Thank you, Bob. And thank you, Rhonda, and we'll see you tomorrow. Have a great day, everybody.
Transcribed by https://otter.ai