New RED-I organization aims to fill a void

Daniel Webb of Cedar Rapids didn't intend to be a Lone Ranger in the business world, but it seemed it was turning out that way.

After working with the state's targeted minority business program to start his dog breeding kennel, Webb has steered clear of groups such as the chamber of commerce and the National Federation of Independent Business. He didn't feel any connection.

But then the owner of Creator's Kids Kennel recently heard about the Regional Economic Development Institute, or RED-I. It was a new economic development group that was being formed by blacks for other blacks, as well as members of other minority groups.

The idea was to have a group in which the needs of blacks in areas such as starting a business, developing leadership skills and even achieving homeownership were central.

“It's very needed in the community, and I'm here to support it,” said Webb, attending a Feb. 24 event held by the National Society of Black Engineers's Rockwell Collins chapter at the Cedar Rapids Marriott to introduce the group.

Webb, who breeds prized blue-coated Rottweilers, says that majority businesses “have their support network, and we have none.”

That is not a feeling unique to Webb among blacks.

James Weatherford opened the Chop Shop Barber Shop in 2006, after moving to Cedar Rapids from Chicago. He recently moved the business from Third Avenue SE to a newly refurbished and larger space in Czech Village, at 96 16th Ave. SW. The business now has nine barbers and stylists.

Weatherford was thrilled to hear about RED-I.

“I don't see a diverse range of black businesses going up in the time I've been here,” Weatherford said.

Blacks tend to come to the business arena with fewer resources than majority business owners in Iowa, including less capital, less access to financing and, in some cases, less advanced education, observers said.

Those observations aren't unique to Iowa and have been supported by national studies. A 2008 National Poverty Center report, for example, noted “roughly one-third of white business owners are college educated, whereas only one-quarter of black business owners have the same level of education.”

As a consequence of those factors, black business leaders in the Corridor often feel less connected than whites to the business-support system, and even to each other.

RED-I President James Whitfield of Cedar Rapids said blacks often feel part of the black community during their school years, but less so as they enter their adult work lives.

“We want to create that connectivity,” Whitfield said.

There are more than a few reasons that minority members don't relate to mainstream business support organizations, according to Karl Cassell, executive director of both RED-I and the Cedar Rapids Civil Rights Commission.

Few blacks in the region serve in top executive roles that tend to be the basis for selection for leadership posts in business-support organizations. Not only that, Cassell said, most are tied down to essential daily duties that don't allow them to take time off to attend outside committee meetings and functions, he added.

Dues can be a larger obstacle to membership because black-owned businesses are often smaller in scale.

Cassell said RED-I will help by developing leadership skills.

Another function the group will help serve is in creating a network of minority-owned businesses, so that they can learn about and support each other.

“We need to encourage each other in business and encourage each other in our personal lives,” Cassell told nearly 50 attendees at the February event.

Two Corridor business organizations turned out at the February meeting to show support for RED-I.

Cedar Rapids Metro Economic Alliance President Dee Baird said she sees many areas in which the groups can be partners. Ray Ziese of East Central Iowa SCORE offered the free services of the business mentoring group, and also encouraged volunteers to work with the group as mentors.

RED-I plans to apply for grants to support many of its projects after it receives not-for-profit status, Cassell said. He said the group eventually would like to create a for-profit arm to undertake projects, and have its own offices in the city's New Bohemia district.

Leaders of the group said that its success could benefit the entire region because more minority professionals and entrepreneurs will leave the area unless they have a feeling of connectedness and support.

In that respect, the group's goals somewhat resemble those of Diversity Focus, the employer-sponsored support organization that began more than five years ago to foster inclusiveness and diversity awareness in the Corridor.

The Cedar Rapids Metro Economic Alliance has 3 African Americans among its leadership of 4 innovation councils, with up to 25 members each. Cassell is one of them, and so is Chad Simmons, interim executive director of Diversity Focus.

Iowa City Area Chamber of Commerce Vice President of Communications Kelly McCann could offer no specifics on black representation within the chamber's memberships, although she said inclusiveness and diversity are high priorities for the chamber.

She said the group views inclusiveness broadly to include factors such as the type and size of businesses in its membership rather than focusing on specific racial groups.

RED-I on the Web: http://red-i.org/default.html