Wilder Report on Economic Impact of ADC, 2018

As a comprehensive community developer the most important aspect of ADC is not how many programs and activities we offer, nor is it the raw number of individual clients we serve, it’s not even the number or volume of loans that we put out into some of the most under-served neighborhoods throughout the state of Minnesota. The most import aspect of ADC is our impact. Without a clear picture of how all of these services and factors are positively affecting our state, we would just be blindly going through the motions.

Since very early on, the African Development Center has understood the importance of measuring its impact, and periodically invited outside agencies to help do just that. The most recent example of this was a partnership with the very well-known and respected Amherst H. Wilder Foundation. After months of work – creating a strategy, conducting interviews, gathering data, and analyzing an unbelievable amount of information on the work of all ADC programming – Amherst H. Wilder Foundation has put together a wonderful reflection of the many ways in which ADC is not only changing the lives of its clients, but bringing about change to entire regions and communities in the state.

Increase in revenues (2014-2016)

Year

N
(loans)

Average revenues before loan

Average revenues after loan

Average additional revenues created

%
increase in revenues

2014

28

$72,872

$140,242

$67,370

92%

2015

29

$126,517

$183,036

$56,519

45%

2016

44

$30,358

$47,806

$17,448

57%

3-year average

-

$76,582

$123,695

$47,112

62%

When we compare the additional revenues with the value of loans, on average, every dollar borrowed from ADC generates $2.70 dollars in additional revenues.[1] This implies about $42,257 in additional revenues per loan.

Every dollar lent by ADC generates $2.70 in additional revenues

This return reaches $5 for new businesses

 

[1]      Return on loans (ROL) = Average increase in revenues / Average value of loans. From Figures 5 and 6, ROL = $47,112/$17,384 = $2.70.

2012 Cedar Riverside Community Space Study

The Cedar Riverside neighborhood is home to over 7,000 residents and numerous organizations that need space for meeting, gathering, performing, educational, social service, and other types of activities. Often times, the demand for space is greater than the supply in this densely populated neighborhood. In order to determine the community spaces available and types of community spaces most needed in the neighborhood, the African Development Center (ADC) conducted a community space study, with financial support from the Cedar Riverside Neighborhood Revitalization Program.

2012 Commercial Real Estate Scan Report

The idea for the Cedar‐Riverside Commercial Real Estate SCAN Report came from the Cedar‐Riverside NRP Program, and the work to generate the report was carried out by the African Development Center. The purpose of the report is to get a sense of the commercial real estate market along Cedar Avenue, which is the neighborhood’s main commercial area. The SCAN consisted of the following activities: documenting the amount and types of retail and service space; calculating how much of that space is vacant versus occupied; determining whether each space was rental or owner‐occupied; and asking property owners and tenants to comment on
their perception of the neighborhood and the issues they see for the neighborhood and their businesses.

Wilmar-Area African-Owned Business Survey

Here you can access the full Findings Report of a recent survey of African immigrant business owners in the Willmar area of Minnesota. This was a joint effort with the Willmar Area Chamber of Commerce (WLA), this survey was conducted by ADC during the winter of 2012, as an attempt to reach all area businesses owned and operated by members of the African immigrant community.

Similar to the report done in Rochester (below), the purpose of this regional survey was to serve as a mechanism to begin to compare the status of this new and growing business community of African-owned establishments with the larger business community of the region, as well as increase awareness in the larger community to the presence and potential of this new business group. This was done by attempting to determine: the overall health of these businesses, areas of success and challenges, opportunities for growth, current network utilization and capacity, and assistance needs from groups like ADC and the WLA.

This survey of African-owned businesses in the Willmar area, and the findings reported here, is meant to be a catalyst for organizations and businesses of this area to realize the potential of this business community, and work towards efforts that: expand and integrate business networks and supply chains, develop appropriate tools and services to enhance growth, and offer effective resources to a community with the demand and skills to utilize them for the betterment and vitality of the entire region.

Meant as the first discussion in a much larger and on-going conversation, we look forward to the energy and dialogue that this report sparks throughout the Willmar area.

Rochester-Area African-Owned Business Survey

Here you will find a Findings Report of a recent survey of African immigrant business owners in the Rochester area of Minnesota. As a joint effort with the Rochester Area Chamber of Commerce (RACC), this survey was conducted by ADC during the summer and fall months of 2011, as an attempt to reach all businesses owned and operated by members of the African immigrant community.

The purpose of this regional survey was to serve as a mechanism to begin to compare the status of this new and growing business community of African-owned establishments with the larger business community of the region, as well as increase awareness in the larger community to the presence and potential of this new business group. This was done by attempting to determine: the overall health of these businesses, areas of success and challenges, opportunities for growth, current network utilization and capacity, and assistance needs from groups like ADC and the RACC.

This survey of African-owned businesses in the Rochester area, and the findings reported here, is meant to be a catalyst for organizations and businesses of this area to realize the potential of this business community, and work towards efforts that: expand and integrate business networks and supply chains, develop appropriate tools and services to enhance growth, and offer effective resources to a community with the demand and skills to utilize them for the betterment and vitality of the entire region.

Meant as the first discussion in a much larger and on-going conversation, we look forward to the energy and dialogue that this report sparks throughout the Rochester area.

Wilder Report on Economic Impact of ADC, 2012

As a comprehensive community developer the most important aspect of ADC is not how many programs and activities we offer, nor is it the raw number of individual clients we serve, it’s not even the number or volume of loans that we put out into some of the most under-served neighborhoods throughout the state of Minnesota. The most import aspect of ADC is our impact. Without a clear picture of how all of these services and factors are positively affecting our state, we would just be blindly going through the motions.

Since very early on, the African Development Center has understood the importance of measuring its impact, and periodically invited outside agencies to help do just that. The most recent example of this was a partnership with the very well known and respected Amherst H. Wilder Foundation – the results of which can be viewed here.

After months of work – creating a strategy, conducting interviews, gathering data, and analyzing an unbelievable amount of information on the work of all ADC programming – Wilder researcher, Omar Da’ar has put together a wonderful reflection of the many ways in which ADC is not only changing the lives of its clients, but bringing about change to entire regions and communities in the state.

We invite you to review this report or scan the summary of its most impressive findings – such as:

  • For every $1 invested in ADC – ADC Business Clients realize $6 in return
  • A 1% increase in an ADC Loan increases gross receipts by 12%
  • In 2010, ADC Businesses generated nearly $78,000 in MN tax dollars
  • In 2010, the estimated market value of homes purchased by ADC clients was $24.5 Million
    • These purchases bring about an estimated property tax value of over $250,000

The African Development Center is truly proud of the work it is doing and, more importantly, the impact it is having on the community and entire state of Minnesota. Keeping a keen focus on our goals and a drive toward our mission, has made us the most prominent African-immigrant-led economic developer in not only the state, but the entire nation. We intend to build on these successes of change, and welcome your support in these efforts.

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