Access to Markets These activities, aimed at increasing MBE revenue growth, include, but are not limited to:
- Identifying procurement opportunities based on client needs, and sourcing deals;
- Developing and maintaining strategic alliances with purchasing executives and government
- Engaging in deal-making between purchasing organizations and minority firms, and
assisting in bringing transactions to closure;
- Conducting B2B forums, procurement/contract matchmaking events, opportunity fairs and networking events between MBEs and potential contract sources;
- Educating and assisting in the development of joint ventures, teaming arrangements,
strategic alliances, and mergers and acquisitions;
- Solicitation analysis and bid/proposal preparation assistance;
- Identifying potential export markets, facilitating global transactions and providing referrals to international trade programs and services; and,
- Conducting market analysis and market promotion assistance.
The goal of the access to capital activities is to help entrepreneurs obtain appropriate financing for business growth. Activities in this area include, but are not limited to:
- Identifying financing opportunities based on client needs, and sourcing deals;
- Developing and maintaining strategic alliances with banking officials and other financial resources;
- Brokering of financial transactions by establishing relationships between prequalified clients and sources of financing;
- Financial Assistance, e.g., identification, preparation and packaging of standard commercial and alternative debt, bonding, leases (property and equipment), equity, mezzanine financing, factoring and trade credits;
- Identification and closure of opportunities for mergers and acquisitions;
- Conducting financing forums and networking events between MBEs and potential financing sources; and,
- Conducting cost analysis.
This activity involves providing tailored business consulting services directed towards assisting MBC-LA clients achieve higher levels of growth and competitiveness. Strategic business consulting services include, but are not limited to the following:
- Marketing, e.g., market research, promotion, advertising and sales, sales forecasting,
market feasibility studies, pricing, product and customer service, brochure design;
- Financial Management, e.g., capital budgeting, general accounting, break-even analysis, cost accounting, financial planning and analysis budgeting, tax planning, business consulting (excluding bookkeeping, tax preparation, and audits);
- Operations & Quality Management, e.g.:
- Manufacturing - facility lease;
- Construction - estimating, bid preparation, and bonding;
- International Trade Assistance - exporting, importing, letters of credit, bank draft, distributorship, exporting trading companies, and joint ventures;
- General Management, e.g., organization and structure, formulating corporate policy, feasibility studies, legal services (excluding litigation), business planning, and organizational development.
MBDA Minority Business Development Centers can guide your business into the right arrangement based on your company’s direction, core competencies, and opportunities based on industry.
The types of strategic alliances include:
- Simple Contract – This is a basic transaction occurring when a business offer is accepted, and something of value is exchanged. The contract is specific about what is expected by each party and does not obligate the businesses to any future deals.
- Open-ended Contract – This arrangement is specific about the terms on which the companies will do business, but perhaps not specific about how much business will be done or when.
- Joint Contract – A company can contract with two or more entities to supply goods or services. Typically, two suppliers work very closely together and the contract's primary purpose is to communicate what the client expects of them.
- Mentor-Protégé Relationship – Just as in personal mentoring, business mentors provide information and advice to other companies in their early years. The best relationships provide meaningful guidance and result in a successful business relationship.
- Supplier Development Relationship – Today, competition is between rival value chains struggling for a share of rapidly-evolving global markets. Competitive advantage, therefore, rises from various points in the value chain and makes it important for minority-owned firms to develop into strong value chain partners.
- Strategic Partnership – Two or more suppliers coordinate their strategies so they either become dependent on each other or else have a binding agreement to seek business together.
- Joint Venture – this is a legally independent business entity that is owned by the strategic allies. It operates entrepreneurially, drawing on resources as needed from the parent organization. It is distinct from a strategic partnership in that a new organization is created to achieve competitive advantage that neither parent organization could accomplish alone.
- Acquisition - This type of relationship occurs when one company legally acquires the other. The term “merger” is sometimes used to describe the relationship in order to portray the two former companies as being equals.
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