Driving Equitable Entrepreneurship through the Ascend Program in 2022

Ascend Impact in 2022

Written by Martha Flores Pérez, University of Washington, Foster School of Business

In 2021-22, Ascend supported businesses owned by people of color and other under-served groups to generate $2.3 billion in new contract revenue and secure $406 million in new loans and investments.

Ascend’s M3 Model (Management, Market, and Money) addresses systemic barriers simultaneously across the spectrum. Ascend continues its work to create sustainable ecosystems in 14 cities by aligning corporate and anchor supplier diversity with management skills development and access to money.

Ascend has continued adding more cities to reach and support businesses owned by entrepreneurs of color. Ascend was initiated by the University of Washington’s Foster School of Business Consulting Business Development Center. JPMorgan Chase provides both philanthropic and strategic support for Ascend ecosystems in 13 of the 14 Ascend cities, plus a regional network in the New York-New Jersey region, and through a 50-company national cohort. Ascend is in its third year of independent evaluation by Equitable Evaluation Practice (EEP) and 13 Ascend programs participated in EEP’s 2022 evaluation.

Ascend Programs Participating in the 2022 Evaluation

Surviving Through the Pandemic

These 13 Ascend programs have supported 973 businesses to date. In 2022, Ascend supported 305 businesses, an increase from the 264 documented in 2021. Ascend works to support businesses that may face more significant business challenges. Ascend has served 89 percent businesses owned by people of color (MBEs), 64 percent disadvantaged-owned (DBEs), 66 percent women-owned, six percent veteran-owned, and seven percent LGBTQ+ owned. 

Altogether, the evaluated Ascend programs raised $24 million in capital, a decrease from the previous year, which can be explained by the Covid pandemic support received by all businesses in 2021. Survey respondents are asked to input information from the end-of-year 2021, and the effects of the global Covid pandemic are present in EEP’s report.  

Businesses supported by Ascend generated $371 million in revenue in 2022, an increase from the previous year, even though the pandemic was still occurring. Businesses are at pace with increasing jobs, reporting 3,360 in the 2022 survey. However, wages paid decreased to $142 million, which again most likely reflects the drop in government-sponsored pandemic relief for businesses.

Driving Growth With The Ascend Program

Ascend’s North Star Progress

Ascend continues to make progress toward their “North Star” of growing 500 new multi-million dollar businesses owned by people of color:

·         Number of businesses reporting $1 million or more in annual revenue: 52

·         Number of businesses reporting $5 million or more in annual revenue: 13

·         Number of businesses reporting $10 million or more in annual revenue: 5

These gains are nearly double those from the previous year.

In terms of access to money, businesses that attempted tapping into debt capital had a 71 percent success rate and a 69 percent success rate when applying for grants.

With Ascend's focus on preparing companies to be successful in winning and performing on contracts with corporate, government, and anchor institution clients, Ascend businesses achieved a high rate of success in winning bids that they submitted with a success rate of 39 percent. The average value of all contracts received in 2021 was $1.8 million and the total value of all contracts comes to $353 million.

Since only some Ascend participants responded to the survey, the true impact of Ascend is likely more significant than what is captured in the survey. EEP estimates that if all Ascend businesses were considered, Ascend impact would be closer to the following:

 ·         Capital raised (2022): $86 million

·         Revenue generated (2022): $583 million

·         Total jobs (2022): 11,586 (FTE)

Ascend Testimonials

Of the business owners that responded to the EEP survey, 34 percent said that in 2021 they expanded into new markets, and 31 percent launched a new product or service. A large portion (82 percent) of the respondents said that the education and support received from their local Ascend program helped their business maintain or increase revenue in 2021.  

Ascending into 2023

The EEP evaluation is one tool that Ascend uses to collect insights to improve their M3 Model. Ascend continues to expand into other cities and recruit new partners into the ecosystem to reach its new North Star.

For inquiries on Ascend contact:

Martha Flores Pérez, mgfp@uw.edu