Title
Sponsorship to Launch Employee-Owned Sustainable Food Business Incubation Program for Veterans (Ordinance S-47399)
Description
Request to authorize the City Manager, or his designee, to pay a sponsorship fee of $50,000 to Thrive Consultancy Inc., to support program development and delivery associated with a 10-week employee-owned sustainable food business incubation program that serves Phoenix residents, specifically veterans, women, and people of color. Further request authorization for the City Controller to disburse funds related to this item. Funding is available in the Community and Economic Development Department's budget.
Report
Summary
Thrive Consultancy Inc. (Thrive), is a Benefit Corporation established in 2020 that supports small- to medium-sized enterprises (SMEs) in becoming environmentally responsible, socially empowering, and economically successful. Thrive strives to empower groups and individuals who are often excluded from entrepreneurship and business opportunities, particularly women and people of color, and aims to accelerate the uptake of sustainable business models and practices by start-ups and established businesses. As a startup, Thrive was born out of the Arizona State University School of Sustainability Masters of Sustainability Solutions Program. Some of Thrive's work has included conducting an eight-week incubation program last spring within the City's Eastlake community for entrepreneurs aspiring to create a sustainable employee-owned beverage business. The initial program included eight women entrepreneurs that developed beverage products, program and operational budget, business plan, and pitch. Thrive has also participated in developing and delivering several, full-day training workshops on sustainable cooperative businesses for aspiring entrepreneurs.
The proposed 10-week pilot program will support up to 20 veterans, particularly women and people of color, and will lead to the creation of four to six employee-owned sustainable food businesses in Phoenix. The City's sponsorship will be to support program development and delivery associated with the pilot program. Participants will engage in experiential and online lessons six hours per week over the course of 10 weeks. City of Phoenix residents participating in the program can choose from one of two pathways, including a focus on creating a new, employee-owned sustainable food enterprise or working with existing businesses to grow and transition to employee-ownership.
Thrive is addressing a critical need: developing, supporting and promoting the growth of veteran entrepreneurs, particularly women and people of color, in building sustainable employee-owned food businesses. The Thrive program will lead to a greater number of quality jobs and business formation among veterans.
Upon completion of the 10-week program, Thrive will provide City staff with a written quarterly report up to one year on the progress of each program participant and status of the employee-owned business. City staff will follow up with Thrive on the status of participants every three months for up to one year. The quarterly report will contain at least the following:
- Number of veteran entrepreneurs starting a sustainable employee-owned food business in Phoenix;
- Number of new sustainable employee-owned food businesses formed in Phoenix;
- Number of quality jobs generated through these businesses; and
- Number of local businesses associated with program transitioning to employee-ownership and adopting practices to benefit employees, community and the environment.
This sponsorship, if approved, supports the City Council's policy direction to help veterans enter the workforce. It also increases the percentage of sustainable employee-owned businesses and increases the percentage of quality jobs in food businesses within the City of Phoenix. Additionally, the sponsorship supports the Community and Economic Development Department's objective to support and promote entrepreneurship across the food system and helps achieve the City of Phoenix Food Action Plan goals.
Financial Impact
The City's one-time sponsorship to Thrive Consultancy Inc. will not exceed $50,000. Funding is available in the Community and Economic Development Department's budget.
Concurrence/Previous Council Action
This item was recommended for approval by the Workforce and Economic Development Subcommittee at the Feb. 24, 2021 meeting by a vote of 4-0.
Department
Responsible Department
This item is submitted by Interim Deputy City Manager John Chan and the Community and Economic Development Department.