RENACER has envisioned a framework that has labeled INCLUDE, for Inclusive Cluster Sustainable Development. The framework basically consists of highly customizable and practical training and technical assistance programs, coordinated by and funded under the administration of the lead convener, RENACER, and prepared and delivered by the specialized institutions and individual stakeholders collaborating with the implementation of its respective program,

1.
BLUEPRINT FOR INCLUDE: A SUSTAINABLE MANAGEMENT-BASED,
SOCIAL ENTERPRISE CLUSTER DEVELOPMENT FRAMEWORK AND
PILOT PROGRAM FOR LATINO/HISPANIC SMALL BUSINESS
OWNERS
ABOUT THE CONVENER AND LEAD STAKEHOLDER
RENACER is a 501 c (3) nonprofit Californian corporation. The co-founders are Executive
Director Douglas Lezameta, and Director of Research / CFO Hernan Vargas. Mr. Lezameta and
Mr. Vargas have over 45 years of combined successful working experience in business
management, strategy, corporate finance, accounting and business development, including
major global corporations and government work. Both earned certification as SBDC small
business advisors, and have extensive training in sustainability, social enterprise, green
business and social finance/impact investing. Their personal awards include the 2013 California
Governor’s Environmental and Economic Leadership award, the highest official honor for the
application of strategies based on sustainable economic development in the state of California.
RENACER received an award in 2011 from the United States Hispanic Chamber of Commerce
Foundation, for their innovative venture design as part of the Green Builds Business program.
BACKGROUND
Sustainability and Social Enterprise are now two of the most significant emerging social and
business trends, providing growth opportunities in almost all industries. For example, higher
growth is forecast for restaurants based on healthy, organic and local concepts as issued by the
National Restaurant Association for the foodservice industry, a very important economic sector
where disadvantaged entrepreneurs are prevalent.
RENACER believes that it is a national priority to make sure that the application of a sustainable
economic development strategy is inclusive, meaning that the applied work of practitioners,
experts and specialized institutions in this emerging field must embrace and have as key actors
the communities of disadvantaged populations or low and moderate income populations present
in many internal emerging markets in the US.
RENACER also believes that it is as equally important to create and foster new models of
collaboration to take advantage of the individual expertise of these several specialized
institutional efforts in the emerging field of social enterprise and sustainable economic
development. Collaboration and networking in a more integrated and coordinated fashion have
been identified as one of the critical infrastructure development priorities in many forums on the
issue of how best to accelerate and scale the positive outcomes of sustainable development
and impact investing.

2.
Finally, RENACER believes that a collaboration framework between these specialized
institutions, that is focused on specific vertical markets and the current and prospective local,
regional economic and social strengths of the respective LMI and disadvantaged population
area, can yield much better and faster outcomes, particularly when designed and delivered
jointly with the local and regional institutions that have traditionally served these populations.
THE MISSION
RENACER’S mission is to create Value for All, Forever, using an innovative industry cluster-
driven, outcome-oriented multi-stakeholder model based on sustainable, “green”, social
enterprise business practices to create significant economic and social development
opportunities for disadvantaged and minority entrepreneurs operating in underserved and
low/moderate income markets, by means of technical assistance, training and access to best
financial, environmental and socially responsible, community-oriented business practices,
access to capital and access to connections, leveraging on the existing infrastructure of
organizations oriented to minority enterprise, social enterprise, small businesses and
sustainability, which will also be strengthened.
INCLUDE: RENACER’S FRAMEWORK, AND THE OBJETIVES OF THE FRAMEWORK
OBJECTIVES
RENACER has envisioned a framework that has labeled INCLUDE, for Inclusive Cluster
Sustainable Development. The framework basically consists of highly customizable and
practical training and technical assistance programs, coordinated by and funded under the
administration of the lead convener, RENACER, and prepared and delivered by the specialized
institutions and individual stakeholders collaborating with the implementation of its respective
program, which will:
 Engage disadvantaged and minority business owners, workers and the community in
learning and implementing the methods and best practices to use sustainability and
social enterprise methods and practices to create new revenues and reduce costs,
achieving success and creating sustainable value, in a specific cluster of importance
for their geographical region (i.e., foodservice, sustainable agriculture, organic foods,
green construction, etc.) and thus regenerating and enhancing the resiliency of their
environment and community
 Introduce and facilitate access to disadvantaged and minority small business owners
into the emerging new financing and other alternative capital raising structures,
including impact investing, and

3.
 Provide connections and access to sources of more information and potential venues
for disadvantaged and minority entrepreneurs, workers and community to continue
enhancing their respective business development, and
 Increase corporate, government and other sponsorship, funding and initiatives leading
to organic, sustainable membership growth of all the participating institutions and
individuals, and increased leverage
MAJOR SUSTAINABILITY, REGENERATION AND RESILIENCY OUTCOMES TARGETED
 Healthy Outcomes For All: Hispanics in general have lower quality of health
indicators compared to other ethnicities and social groups. Hispanics are exposed to
lower quality of life surroundings in general, which impacts their health outcomes.
Access to health delivery systems is still at unacceptable levels, especially for Hispanic
kids. Therefore, as part of the inclusive cluster development model RENACER
proposes, active health management is deemed a strategic business imperative.
Active health management seeks to take advantage of the emphasis on prevention
and wellness under the new healthcare law, to design business strategies that foster
and enhance healthy outcomes for all, clients, employees, and the local community
surrounding the business. Healthy outcomes strategies generate the following
business benefits (based on existing research):
 Reduction or elimination of workers’ presenteeism
 Reduction of workers’ absenteeism
 Increase in workers’ productivity
 Reduction in employee turnover
 Enhanced brand equity of the business
 Reduction in customer acquisition costs
 Increase in recurring sales
 Enhancement of the community quality of life (especially through
investments in green facilities)
 Strengthening of the local supply chain of sustainable producers /
manufacturers / contractors
 In the long run, reduction of the cost of healthcare for everyone
 Stregthening of the local sustainable supply chains: Hispanic businesses are still
not aware, least knowledgeable of the growing acceptance and use of “green”,
sustainable, social enterprise business practices that are becoming very disruptive in
many industries, sectors and regions. This is a problem since it can once again, put
Hispanics in a trajectory to lag behind in their enterprise stage development and general
social and economic development compared to other populations. Also, it has an impact
on the development and the speed of development of the general market for
sustainable, green, social enterprise products and services. Therefore, RENACER
believes it is an imperative component of its proposed framework and program to foster
the inclusion and participation of Hispanic small businesses as a way to procure the
faster, better growth of a local sustainable supply chain in as many sectors as possible,

4.
particularly emphasizing the clusters where Hispanic entrepreneurs are currently
present, like the foodservice, agriculture and construction industries. Similarly to the
healthy outcomes for all strategy, there are many business benefits out of intently
including supply chain participation as an outcome of this framework:
 Enhanced brand equity of the business
 Reduction in customer acquisition costs
 Increase in recurring sales
 Enhancement of the community quality of life (through local job
creation, investment in green facilities, and environmental quality
of life)
 Strengthening of the local supply chain of sustainable producers /
manufacturers / contractors
 In the long run, reduction of the cost of sustainable, “green”
products and services for everyone
For more information, please contact:
Mr. Douglas Lezameta, Executive Director, RENACER
Email: douglas.lezameta@renacerus.org
Phone: (925) 286-6198
Mr. Hernan Vargas, Director of Research, RENACER
Email: hernan.vargas@renacerus.org
Phone: (925) 594-0915
September 2014

5. RENACER
INCLUDE FRAMEWORK
TASKS AND LEAD ENTITIES
TASK # ACTIVITIES / TASKS / RESPONSIBILITIES RESPONSIBLE LEAD / PARTICIPANTS
1 selection of host of program RENACER
2 selection of cluster /sector focus for program Host organization(s) / RENACER
3 program and curriculum development RENACER / Stakeholders
4 selection of stakeholders and sponsors RENACER
5 preparation of coursework content RENACER / Stakeholders
6 coordination of stakeholders RENACER / Stakeholders
7 preparation and application to grant and funding RENACER
8 management of grant funds RENACER / Host organization(s)
9 selection of cohort entrepreneurs RENACER / Host organization(s)
10 delivery of coursework Stakeholders / RENACER
11 certification of entrepreneurs upon completion County Green Business Program / Local College
12 investor pitch coordination RENACER / Investors groups
13 follow up of short term long term outcomes / impact Host organization(s) / RENACER

6. RENACER
BLUEPRINT FOR THE STRUCTURE OF H5C CONTRA COSTA COUNTY PILOT PROGRAM
CLUSTER CHOSEN: FOODSERVICE
coursework
proposed stakeholder
delivery partner objective of coursework
estimated / proposed
duration (hours)
introduction to
sustainable management
and social enterprise
RENACER / Local College
(JFK, Presidio, Mills)
General background into
sustainable business and
social enterprise 3
sustainable foodservice
operations 1
PG&E food service
technology center / local
sustainable organic
restaurateur
Operations of a
sustainable foodservice
enterprise 9
sustainable foodservice
operations 2
local organic, sustainable
supply chain aggregator /
RENACER / local
sustainable marketing
expert
Supply chain
management for
sustainable foodservice
business, marketing
management 9
Active health
management of
t i bl f d i H lth i ti
wellness programs and
other business strategies
to actively manage
l th i f ilisustainable foodservice
enterprises
Health care organization
(i.e.: KAISER)
employees, their families
and communities health 6
financing of sustainable
foodservice enterprises
Sustainable food
financing /investors
group/community (i.e.:
Slow Money members,
local sustainable bank
like State Benefit Bank,
formerly OPCB, a CDFI or
New Resource Bank)
financing mechanisms
available for food
entrepreneurs 6
capstone business
planning
RENACER / Local College
(JFK, Presidio, Mills)
business planning
methodologies 4
investors / financiers
pitch graduation
Investors' groups
members (i.e.: Slow
Money), local sustainable
bank, CDFI
Potential round of
financing for graduated
and business plan ready
entrepreneurs 3
Total coursework hours (estimated) 40

7. BLUEPRINT FOR INCLUDE: A SUSTAINABLE
MANAGEMENT BASED SOCIAL ENTERPRISEMANAGEMENT‐BASED, SOCIAL ENTERPRISE
CLUSTER DEVELOPMENT
FRAMEWORK/PROGRAM FOR HISPANICFRAMEWORK/PROGRAM FOR HISPANIC‐
OWNED SMALL BUSINESSES
A BACKGROUND– A BACKGROUND
Presented by Douglas Lezameta, Executive Director, Presented by ouglas e ameta, xecutive irector,
and Hernan Vargas, Director of Research, RENACER
September 2014

8. The Presenters
• RENACER, nonprofit organization, receiver of 2011 USHCCF technical award
• Douglas Lezameta:
– 35 years in corporate, Small and medium Business financey p ,
– Advisor to startup and existing Small Businesses in using sustainability as a business
strategy
– Member, Access to Capital Committee, California Economic Forum
S i d i ifi i– SBDC Business Advisor Certification
– NEXTLevel Trainer Certification
– Economist, Cordoba University, Cordoba, Argentina
• Hernan Vargas:• Hernan Vargas:
– Budget Mgr., AC Transit, Responsible for $ 345 Million annual operating budget
– Member of the AC Transit Team that won 2013 California Governor Economic and
Environmental Leadership Award for investments in renewable energy technologies
and its financing
– Bay Area Impact Investing Initiative, research team, and lead technical expert for CA
Access to Capital Guidebook, Access to Capital Committee, CA Economic Forum
– Latinos in Finance (nonprofit) Member of the Board of Directors– Latinos in Finance (nonprofit), Member of the Board of Directors
– 25 years in corporate, government and nonprofit /social finance
– MBA Finance, University of Rochester, NY

9. AgendaAgenda
• A sweeping business megatrend: whyA sweeping business megatrend: why
sustainability, social enterprise and green
business?
• New models of Business Partnering based on
sustainability and social enterprise ‐ Examples
• New Funding Opportunities for Social
Enterprises (SocEnts) and sustainable businesses
l‐ Examples
• Conclusions and Q&A

10. A sweeping business megatrend caused by major
megaforces – Why sustainability or green business?megaforces Why sustainability or green business?
“The Capitalist system is under siege… Companies are widely perceived to be p y g p y p
prospering at the expense of the broader community….Companies continue
to view value creation narrowly, optimizing short‐term financial
performance in a bubble…..Government and civil society have often
exacerbated the problem…at the expense of business…”
Dr. Michael Porter, most prominent strategy guru, HBR 2011

11. A sweeping business megatrend caused by major megaforces – Why
sustainability or green business?
 These are the 10 global megaforces WE have created that make
our world and way of living not viable in the not so long run
 From the 2012 study by KPMG, Expect the Unexpected

12. A sweeping business megatrend caused by major megaforces –
Why sustainability or green business?Why sustainability or green business?
 Global megaforces are changing the business landscape
 Sustainability IS becoming the model to run ANY business
 PWC Global CEO Survey 2014 (another of the Big 4 Audit PWC, Global CEO Survey, 2014 (another of the Big 4 Audit,
Accounting and Tax firms)

13. A sweeping business megatrend caused by major
megaforces – Why sustainability or green business?megaforces Why sustainability or green business?

14. A sweeping business megatrend caused by major
megaforces – Why sustainability or green business?megaforces Why sustainability or green business?

15. A sweeping business megatrend caused by major
megaforces – Why sustainability or green business?megaforces Why sustainability or green business?

16. A sweeping business megatrend caused by major
megaforces – Why sustainability or green business?megaforces Why sustainability or green business?
 The Hartman Group and its famous research from 2007The Hartman Group and its famous research from 2007
 Sustainability is an ever more important attribute in the purchase decisions of Sustainability is an ever more important attribute in the purchase decisions of
prospective clients in many industries and business sectorsprospective clients in many industries and business sectorsprospective clients in many industries and business sectorsprospective clients in many industries and business sectors
 Sustainability = the social aspect Sustainability = the social aspect ‐‐ employees’ welfare and wellemployees’ welfare and well‐‐beingbeing
 How has this dynamic continued evolving?How has this dynamic continued evolving?

17. A sweeping business megatrend caused by major
megaforces – Why sustainability or green business?megaforces Why sustainability or green business?

18. New Models of Business Partnering
 It’ all about Sustainable Economic Development!!!
 Hubs, Accelerators, Incubators, Co‐working spaces and
Peer based Training it’s all about leveragingPeer‐based Training: it’s all about leveraging
connections, multi‐stakeholder collaborations and
resources for focalized, local entrepreneurial networks
 Th H b i 2007 b i B A The Hub: none in 2007 zero members in Bay Area –
now 3 Hubs, over 1,100 members
 Over 40 locations in more than 10 countries in the world,
over 7 000 membersover 7,000 members

19. New Models of Business Partnering
 The Goldman Sachs’ 10,000 small business initiative – not driven
by sustainable management or Socent principles, but focused on
disadvantaged entrepreneurs notwithstandingdisadvantaged entrepreneurs notwithstanding
 In collaboration with community colleges, prestigious specialized
entrepreneurial graduate school, CDFIs, and local governments
 Similar to the structure of the Hub – financing available to
t i t hi i ifi t thtrainees, entrepreneurs achieve significant growth
 Program started in 2009, now in 15 major cities in US

20. New Models of Business Partnering
The SFunCube in Oakland: an incubator
and accelerator of solar‐related companies
in the East Bay area
 Same idea: connect the dots, align g
independent but related resources

21. New Models of Business Partnering

22. New Models of Business Partnering
• Marketplace ‐ Annual:
– The first bilingual conference in the Midwest educating Latino and ESL entrepreneurs in Green
opportunities. We instituted an Annual Marketplace event addressing the need of
microenterprises, and small business owners, in 2008. The event brought 18 governmental
agencies interested in the success and grow of minority enterprises. The event also provided
structured bilingual networking for microenterprise owners to connect with corporate supplier
diversity professionals lenders insurance agents and other business owners seeking suppliersdiversity professionals, lenders, insurance agents and other business owners seeking suppliers.
• 1st Microenterprise Bilingual Green Business Opportunity Conference
– This was our third conference aimed at business development among Latino and ESL
participants. This year we conducted the first bilingual conference aimed at educating Latinos,
and other Minorities in the opportunities in the Green Economy Participants were connected toand other Minorities, in the opportunities in the Green Economy. Participants were connected to
a national expert in the Green Economy opportunities as well as over 18 state and federal
agencies interested in furthering the development of businesses in the Greater Milwaukee Area.
The conference featured nine concurrent seminars, along with an entrepreneurial fair.

23. New Funding Opportunities
 New funding opportunities from the following sources:
 Foundations – new grants for new sustainability‐related business
investments and programsinvestments and programs
 Large Financial Institutions – grants or loans for sustainable efforts
 New emerging social financing intermediaries – CDFIs, banks,
nonprofits
 I t lik SOCAP Sl M t (I t i l Investor groups, like SOCAP, Slow Money, etc., (Impact or social
investors) – equity, debt or hybrid direct financing for 3BL or
sustainable businesses
 New crowdfunding laws (JOBS Act) – community financing
 G f d l d l l l i l i Governments: federal, state and local – grants, loans, special permits
and concessions, rebates, tax credits, RFP and Bids with extra points
for sustainable businesses
 Large Corporations – greening of value chain partnerships, affinity
programs RFPs awarding points to “green” cash awards andprograms, RFPs awarding points to green , cash awards and
incentives
 Public / Private Partnerships – i.e.: East Bay EDA, California Economic
Forum, alliances stressing 3BL strategies
o Note: 3BL: Triple Bottom Line – Social, Environmental and Financial Outcomes

24. New Funding Opportunities
 Wells Fargo for example has launched two very large financing and
credit lines, a financing commitment of no less than $ 20 Billion by
2020 exclusively for the businesses that operate using sustainable2020 exclusively for the businesses that operate using sustainable
business models and a $ 100 Million annual grant fund for
nonprofits investing in sustainability related programs.
 The SDG&E award gave away $ 3.5 Million in cash incentives

25. New Funding Opportunities

26. A Framework for consideration
 On the basis of the above and other examples, RENACER has
conceptualized and designed a framework focused on Latino
entrepreneursentrepreneurs
 Inclusive Cluster SustainableSustainable Development, or INCLUDEINCLUDE
 A program developed by RENACER. Example is the first pilot
program:program:
 HC5, Contra Costa Hispanic Chamber agrees to host pilot program
 Local chamber chooses Cluster(s) of most relevance for its current
and potential members in the region
 Foodservice Foodservice
 Construction
 Small business entrepreneurs apply and 20‐25 are chosen to take 4‐5
course curricula, 30‐40 hour program over 2‐3 months
 Partnership organizations (final negotiations ongoing) develop andPartnership organizations (final negotiations ongoing) develop and
deliver the actual curriculum – i.e.: PG&E Food Technology Center in
San Ramon, a prominent health management organization (i.e.:
Kaiser?) for active health management business strategies, Slow
Money NorCal members for financing, and local certified green
restaurateurs and sustainable local food supply chain aggregators forrestaurateurs and sustainable local food supply chain aggregators for
operations and marketing, and the County Green Business Program as
well as a local college for certification

27. Conclusions and Q&A
 Once again, the business world is changing
 Technical assistance methods for entrepreneurs are alsoTechnical assistance methods for entrepreneurs are also
changing
 Institutions that support entrepreneurs are also
changingchanging
 Funding from new multiple sources is available for those
willing to invest in this change…
 …and there is enormous, avid interest from these
specialized, social enterprise focused, non‐Hispanic
groups, in Us, Hispanicsg p p
 We, Hispanic trade organizations, can also do this – and
we can do it right
 Q&A please Thanks Q&A please ‐ Thanks