Foster Economic Competitiveness, Innovation & Transformation

Current Condition

• County experiencing steady and slow industry growth at 8.3% (including manufacturing, and finance and insurance industries), with much growth driven by smaller firms.
• There is a growing cluster of niche innovation industries regionally, that Ramsey County is well positioned to grow within its county limits.
• Low business starts and lending compared to region and nation.
• Strength in women-owned firms.
• Black, Latinx, Asian, and Indigenous owned businesses are growing: Black, Latinx, Asian, and Indigenous owned businesses grew at 3.5 times the rate of all Minnesota companies in 2014-2015. However, growth in Ramsey County lags other geographies.

Estimated Need

• If Ramsey County had the same rate of new businesses as the U.S. and seeded each with $5,000, it would cost about $6.2M per year, or $18.5M at $15,000 each.
• Expand Open to Business Program to accelerate entrepreneurship for immigrant populations.
• Ramsey County needs 500 more Minority-owned Business Enterprises (MBE) to match the U.S. ownership rate. If Ramsey County seeded each of those businesses with $5,000 it would cost about $2.5M per year, or $7.5M at $15,000 each.
• There were 12,815 continued unemployment insurance claims in October 2020 (including COVID-19 related job losses), which is 3x the number for January 2020.

Target

• If Ramsey County had the same level of loans per capita as Hennepin County, it would have +$179M more in business financing than currently estimated for 2020. 

Current Condition

• County experiencing steady and slow industry growth at 8.3% (including manufacturing, and finance and insurance industries), with much growth driven by smaller firms – compared with 16.1% growth rate for the U.S. overall.
• There is a growing cluster of niche innovation industries regionally, that Ramsey County is well positioned to grow within its county limits.
• Low business starts and lending compared to region and nation. 

Estimated Need

• Ramsey County has a lower percentage of Black and Asian residents with a Bachelor’s degree compared to Minnesota and the United States. 20% of Black and 30% of Asian residents in the county have a Bachelor’s degree or higher. Nearly 50% of white, non-Hispanic Ramsey County residents have a Bachelor’s degree or higher.
• 36% of workers in Ramsey County are being paid less than a living wage.
• A majority of Black residents are in jobs that pay less than a living wage (62%); nearly one in four Black workers in Ramsey County are in jobs that pay below living wage and are in an industry that is declining.

Target

• Closing the wage gap would add $2.3B annual earnings for Ramsey County residents, specifically Black, Latinx, Asian, and Indigenous residents.
• Closing the education gap between white and Black, Latinx, Asian, and Indigenous county residents would mean an additional 21,518 workers with a BA+, earning an additional $124,475,884 per year.

Live-Work Analysis

Most people who work in Ramsey County live somewhere else, and most employees who live in Ramsey County work somewhere else. The “live-work” population represents only 17.6% of the total resident and employee workforce.

Black, Latinx, Asian, and Indigenous Owned Firms

Black, Latinx, Asian, and Indigenous business ownership is significantly lagging in Ramsey County.

Education Attainment

Despite a strong education sector, Ramsey County has a lower percentage of Black and Asian residents with Bachelor’s degrees versus the U.S.

Ramsey County Employment

Since 2010, industry growth in Ramsey County lags the U.S. The U.S. had an overall employment growth rate of 16.1% across all industries from 2010 to 2018. In that same time period, Ramsey County had an 8.3% employment growth rate. In every industry except for Transportation and Warehousing, the growth rate in Ramsey County lagged the U.S. growth rate​.

To meet the defined needs and advance opportunities for Ramsey County businesses and residents, these four strategies are prioritized.

Strategy 6: Develop pathways to entrepreneurship and Black, Latinx, Asian, and Indigenous business ownership

Recommended Actions

2022

Accelerate Black, Latinx, Asian, and Indigenous income generation through Black, Latinx, Asian, and Indigenous owned business growth and investment.

Create new opportunities for post-crisis business planning for existing Black, Latinx, Asian, and Indigenous owners.

Support the ecosystem of diverse suppliers, disaggregating data of ownership by race, and encouraging new partnerships with these suppliers and anchor institutions within the county. 

Proactively foster racial inclusion, equity, and belonging in the procurement policies and practices of every department of Ramsey County. Assertively contract with and invest in Black, Latinx, Asian, and Indigenous owned businesses with a goal of contracting and investing at scale for growth in family-sustaining jobs at those businesses.

Partner with community leaders to influence and leverage private sector investments, lending practices, and spending with Black, Latinx, Asian, and Indigenous owned businesses; Engage in efforts to scale effective equitable supply chain strategies specifically aimed at increasing both spending and the net impact on increased family-sustaining jobs at Black, Latinx, Asian, and Indigenous owned businesses.

Influence and coordinate strategies with commercial lenders to respond to historic underinvestment in Black owned businesses. Develop joint investment pools to accelerate regional economic growth. 

2023

Partner to develop tools for business owners to proactively acquire ownership of their real estate assets to grow wealth. Work alongside community based organizations and development funds to inventory and drive equitable building ownership.

2024

Explore a pilot program to create entrepreneurial startup spaces in suburban Ramsey County. Work alongside communities to identify spaces and feasibility.

Measures of Success

The ECI plan seeks to transform Ramsey County and the following metrics will demonstrate the impacts that the plan is having as a result of supporting Black, Latinx, Asian, and Indigenous business ownership:

• Reduction in the Black, Latinx, Asian, and Indigenous business ownership gap.
• Increase in investment to Black, Latinx, Asian, and Indigenous businesses.
• Increase in family-sustaining jobs at Ramsey County businesses owned by Black, Latinx, Asian, and Indigenous people.

To meet the defined needs and advance opportunities for Ramsey County businesses and residents, these four strategies are prioritized.

Strategy 7: Attract and grow high-wage industry and innovation: technology, advanced manufacturing, and life sciences

Recommended Actions

2022

Expand business support network to advance entrepreneurial activity and offerings for growing immigrant communities.

Use the Ramsey County Means Business website to encourage and attract niche manufacturing industries that are reliant on county rail and river infrastructure assets.

2022

Use the Ramsey County Means Business website to focus attraction efforts on small-scale medical device companies. 

2022

Map the ecosystem of business technical assistance, space, and capital in the county for startups in biotech and advanced manufacturing industries. 

Measures of Success

The ECI plan seeks to transform Ramsey County and the following metrics will demonstrate the impacts that the plan is having as a result of efforts to support business attraction and growth:

• Increase in share of entrepreneurial businesses and specifically those in targeted sectors
• Increased number of advanced manufacturing companies operating in the county
• Increased number of employment opportunities in high-wage industries

To meet the defined needs and advance opportunities for Ramsey County businesses and residents, these four strategies are prioritized.

Strategy 8: Strengthen business retention and expansion infrastructure to support communities

Recommended Actions

2022

Expand network of business advisors to serve targeted geographies and populations, providing businesses with culturally-specific technical assistance and potential access to BR&E financial resources.

Enhance the Ramsey County Means Business website’s central clearinghouse to identify and market shovel/development-ready sites, and to share resources for redevelopment.

Encourage community participation in MN DEED’s Shovel Ready Site Certification program. Explore piloting a pre-development fund to help communities meet eligibility criteria.

2023

Invest in and advocate for small business organizations and ethnic and place-based CDFIs to ensure ample capital lending, infrastructure, and resource availability. 

Leverage Chamber of Commerce organizations throughout the county and provide resources to support tenant retention, Black, Latinx, Asian, and Indigenous owner issues, deal structuring. and inclusive workforce strategies.

Establish a county-wide strategic investment fund in support of business growth and expansion. This fund can be targeted to smaller businesses operating in priority corridors, Black, Latinx, Asian, and Indigenous business ownership, and businesses that are creating above-living-wage employment opportunities. 

Measures of Success

The ECI plan seeks to transform Ramsey County and the following metrics will demonstrate the impacts that the plan is having on business retention and expansion:

• Increased number of business advisors and an increase in number of companies served.
• Increased number of shovel-ready sites being marketed in the county.
• Increased investment in businesses, especially Black, Latinx, Asian, and Indigenous owned businesses, operating in key transit and commercial corridors.  

These eight strategies and corresponding actions outline how Ramsey County can seize the opportunity to create a more inclusive and equitable community. The results can pay dividends in the short term and for generations to come. If successful, Ramsey County can become a community recognized for its commitment to tackling economic disparities, with actions and not just with words. Moving forward, Ramsey County can leverage its core strengths and embrace a new social landscape to effectively enhance the quality of life for those who live, learn and earn in the community.

This Economic Competitiveness and Inclusion plan was born of the contributions of residents, leaders, and advisors in the community. The collaboration exhibited bodes well for the future, as an even greater demonstration of collaborative problem solving will be required to successfully pursue new opportunities. The past year has brought much uncertainty, but it has also given people the resolve that returning to the status quo of early 2020 is not acceptable. As this plan is being released to the community, we recognize much is still unknown about the full impacts the pandemic has had on Ramsey County’s most vulnerable businesses and residents. Ramsey County is committed to continuing to identify issues and deliver a coordinated response to eliminate them.

“I would like us to become a model county for new enterprises, and we have the infrastructure needed to scale these enterprises to make lasting, regional impact.” - Resident Participant