STRATEGY/DESIGN AND COMPLIANCE: An

EDITORIAL Three things we like ...

RICH WILLIAMS FOR CRAIN’S CLEVELAND BUSINESS

Periodically in this space in 2020, we’ll point out some developments that give us faith in the progress being made in the r egion 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 mis sion “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 r eport in 2018. When Fund president Brad Whitehead announced last November that he would step down from that r ole, 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 County Board of Elections said it won’t count any votes cast for two issues on the March 17 ballot in Cleveland — one to reduce the size of city council, the other to cut members’ pay — after the group that pushed for the measures 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 meet ings, perhaps, or a pay freeze — for reforms that could raise acco untability 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 WE’RE POINTING OUT THREE DEVELOPMENTS THAT GIVE US FAITH IN THE PROGRESS BEING MADE IN THE REGION AND STATEWIDE — AND TWO THAT DON’T.

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 Ven tures. EmployStream, a Cleveland software-as-a-service s tartup 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 devel opment 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 Depart ment of Energy says the program still has money available to lo an 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 e conomy 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 de velop recreational trails for public use are a solution in search of a pr oblem. 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 anoth er example of the state encroaching on local governments, and w e hope these bills take a hike.

FROM THE EDITOR Business founder brews up hope

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 ear lier that decade because his wife, who is fr om here, wanted to return home.

Less than eight years later, Jenkins com pleted his mission of creating those opportunities. On Feb. 3, he officially sold Rising Star to four employees. “This h as 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 eco nomic development nonprofit. Next month, Bethia Burke will tak e the helm of the Fund, where she’s worked since 2010. We need more business leaders like Whitehead and en trepreneurs like Jenkins, people who think creatively about tr ansition plans and creating openings for new leaders.

For Jenkins, Rising Star Coffee grew from a coffee-roast ing passion he developed in the early 2000s when he started r oasting beans in a hot-air popcorn popper at home. The business person in him knew, though, he needed to differ entiate his passion product from others in the marketplace. W hat 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 ings and other things,” he said. Th at meant the company used metrics and carefully monitored tips per hour that each barista received, as well as the tip percentage per pur chase. The business then runs the tips thr ough 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 ze ro-sum game business model. This is a business model where w e say everyone from the farmers who grow the coffee, to the mill that processes the coffee cherries, to the shippers, the bro kers, the roasters, the cafes, and even our customers who come in and or der 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 train ing and opportunities to one day take over the business. Th at’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 need ed. As new owners, they need room to run the business and J enkins 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. WHAT RESONATED FOR KIM JENKINS WAS PROVIDING OPPORTUNITIES FOR HIS STAFFERS. Elizabeth McINTYRE