FROM THE EDITOR
RICH WILLIAMS FOR CRAIN’S CLEVELAND BUSINESS
Business founder brews up hope
EDITORIAL
Three things we like ... P
eriodically in this space in 2020, we’ll point out some developments that give us faith in the progress being made in the region and statewide — as well as some that don’t. Let’s start with three things we like. ``Promise kept: The Fund for Our Economic Future last week reorganized its board in a move “to better align” with its mission “to promote growth and opportunity throughout Northeast Ohio.” The funding alliance added eight civic members to its 35-person board, an expansion that it said “is in direct response to the call for greater attention to systemic racial inclusion” that the Fund advanced in its The Two Tomorrows report in 2018. When Fund president Brad Whitehead announced last November that he would step down from that role, he said, “I believe we are falling short of our potential as a region in part because we are not allowing sufficient space for generational leadership.” The Fund is doing that with its board changes and with its choice in December of Bethia Burke to replace Whitehead in March. These moves set a strong example for a region that’s not always open to change and fresh perspectives. ``Talk it out: The Cuyahoga WE’RE POINTING OUT County Board of Elections THREE DEVELOPMENTS said it won’t count any votes cast for two issues on THAT GIVE US FAITH IN the March 17 ballot in THE PROGRESS BEING Cleveland — one to reduce the size of city council, the MADE IN THE REGION other to cut members’ pay AND STATEWIDE — AND — after the group that pushed for the measures TWO THAT DON’T. withdrew its request, though ballots already have been printed. We considered the proposals rushed and ill-considered, so we’re glad they’re a no-go. This does, though, give space for council members to meet with critics who have ideas — on commenting at meetings, perhaps, or a pay freeze — for reforms that could raise accountability and help Cleveland function better. Let the good-faith talks begin. ``Entrepreneurial energy: MedPilot, a Cleveland software company that uses artificial intelligence and machine learn-
ing to transform patient billing, and has grown to 40 employees since moving here from New York in 2018, just raised $1.5 million from investors that included JumpStart Inc., attorney Jon Pinney, North Coast Angel Fund and Valley Growth Ventures. EmployStream, a Cleveland software-as-a-service startup that helps employers ease the onboarding process for new hires, closed a $7 million round led by Plymouth Growth Partners, with support from JumpStart and others, to expand its product development. Six early-stage startups were named to take part in the first gBETA business accelerator program in Cleveland. And that’s just in one week. Don’t buy the decline narrative of this region.
... and two we don’t ``Power play: The Trump administration’s budget proposal eliminates a loan program that could help Lordstown Motors, a new venture that’s trying to reopen the former Lordstown GM factory. At issue is the Advanced Technology Vehicle Manufacturing Loan Program, created in 2007 to foster development of fuel-efficient vehicles. Lordstown Motors has said it’s considering asking for $200 million from the loan fund, though it may have other financing options, and the Department of Energy says the program still has money available to loan in this budget cycle. Still, Ohio’s congressional delegation needs to stay on top of this. There has to be a way to leverage public-private partnerships to rebuild the manufacturing economy of places like Lordstown. The challenge is too large for the government not to play some role. ``Going nowhere: Two proposed bills in the Ohio statehouse that target how parks systems acquire private property to develop recreational trails for public use are a solution in search of a problem. House Bill 288, for instance, would prohibit the employment of eminent domain for any trail used for biking, hiking and skiing. It’s wise for government to be judicious in its use of eminent domain, but the practice is rarely used in this context and when it is, it’s for a public good. This is another example of the state encroaching on local governments, and we hope these bills take a hike.
Publisher and Editor: Elizabeth McIntyre (emcintyre@crain.com) Managing Editor: Scott Suttell (ssuttell@crain.com) Contact Crain’s: 216-522-1383 Read Crain’s online: crainscleveland.com
Entrepreneur Kim Jenkins believes in creating opportunities. That was his simple goal when he started Rising Star Coffee in 2012. The former Lockheed Martin engineer, who ran a research division for the global aerospace and advanced technologies company, moved to Northeast Ohio earlier that decade because his wife, who is Elizabeth from here, wanted to return home. McINTYRE Less than eight years later, Jenkins completed his mission of creating those opportunities. On Feb. 3, he officially sold Rising Star to four employees. “This has been a long time in the works,” he told me. Talking to Jenkins, I realized he shares a lot in common with Brad Whitehead, the president of the Fund for Our Economic Future, who announced in November he was stepping aside to make room for the next generation of leadership of the economic development nonprofit. Next month, Bethia Burke will take the helm of the Fund, where she’s worked since 2010. We need more business leaders like Whitehead and entrepreneurs like Jenkins, people who think creatively about transition plans and creating openings for new leaders. For Jenkins, Rising Star Coffee grew from a coffee-roasting passion he developed in the early 2000s when he started roasting beans in a hot-air popcorn popper at home. The business person in him knew, though, he needed to differentiate his passion product from others in the marketplace. What resonated for him was providing opportunities for his staffers. So he set out to pay a living wage of at least $15 an hour for his employees, most of whom are in their 20s. “I want these kids to have the highest history of income they can have when working for Rising Star for credit rat- WHAT RESONATED ings and other things,” he said. That meant the company FOR KIM JENKINS used metrics and carefully WAS PROVIDING monitored tips per hour that each barista received, as well OPPORTUNITIES FOR as the tip percentage per pur- HIS STAFFERS. chase. The business then runs the tips through payroll, even though it costs them more, to ensure higher wages for their workers. “The founding principle and value for Rising Star is there’s enough margin in coffee in all aspects that every stakeholder should share in the prosperity,” Jenkins said. “This is not a zero-sum game business model. This is a business model where we say everyone from the farmers who grow the coffee, to the mill that processes the coffee cherries, to the shippers, the brokers, the roasters, the cafes, and even our customers who come in and order a $3 cup of coffee, they all share in the prosperity.” Rising Star, which employs nearly 50 people, now has five cafes — in Lakewood, Ohio City, downtown Cleveland, Cleveland Heights and Shaker Heights — and its wholesale roasting facility in Cleveland. And earlier this year, Jenkins turned over the keys to his business to his one-time employees, and now new owners, Brandon Riggs, Dawn Fox, Bruno Green and Christos Kallas. It’s what he prepared them to do, by providing the training and opportunities to one day take over the business. That’s what smart business leadership is about: preparing the next generation. As for Jenkins, he’s taking the advice of the new Rising Star Coffee ownership. “They told me to get lost for a month,” he said, adding he’s always available for advice when needed. As new owners, they need room to run the business and Jenkins is happy to oblige. The 66-year-old isn’t walking away from his entrepreneurial spirit, though. “I think I still have one more startup in me,” he said. Whatever it is, it will, no doubt, create opportunities for many others.
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