adidas Community LAB Announces Third Cohort, Includes Two Houston Founders Driving Access and Equity in Sport

adidas Community LAB Announces Third Cohort, Includes Two Houston Founders Driving Access and Equity in Sport

2024-2025 Inductees: Samad Hinton, Andrea Brown, Heather Alonzo, Jamal Burger & Rachel Hale, Moÿo Akinade, A.R. Cooper, Vidal Quesada Guzman & Javana Mundy Quesada, Rich Rodriguez, Jessa Williams, & Karina Martinez

Building upon its mission to uplift Black and Latino/a/e social entrepreneurs as they embark on their journeys to drive real change and advance equity in sports for their communities, adidas is proud to announce the induction of 12 new Black and Latino/a/e business owners into its 2024-2025 Community LAB cohort. Over the course of the eight-month social impact accelerator program, participants will receive the resources and support they need — including $75,000 in grant funding — to advance equity in sports within their communities while growing their businesses.

In partnership with a team comprising leaders at Impact Hub Houston, Impact Hub New York, and the global Impact Hub network, this year the adidas Community LAB expanded its reach, increasing its cohort size and welcoming founders from Toronto and Houston in addition to the original key cities of Los Angeles, Atlanta, and New York. Black Ambition joins the program as a new partner, alongside adidas and returning collaborators Impact Hub and i.e. (Industry Education). Together, these partners have curated a customized curriculum featuring mentorship opportunities, workshops, and more to help participants transform their bold visions into impactful futures upon program completion.

“Building strong partnerships with community leaders is key to transforming our collective vision into real-world progress,” said Ayesha Martin, Senior Director adidas Purpose. “Through these and our existing partners, we will sustain our shared commitment towards building a more equitable future.”

The selected Houston-based entrepreneurs bring a unique perspective to the program, highlighting the importance of investing in sports and wellness initiatives as essential tools for fostering equity and innovation in one of the nation’s most diverse cities.

“Houston is a proud sports city, but access to opportunities isn’t always equitable. Programs like adidas Community LAB are essential because they help dismantle systemic barriers for Black and Latino/a/e entrepreneurs, providing the tools needed to create meaningful change. In a city as diverse as ours, there’s so much untapped potential. By investing in entrepreneurs with the cultural capital and drive to make a difference, we can ensure that Houston continues to be a hub of innovation, inclusivity, and athletic excellence.” – Andrea Brown, Houston-based program participant and Founder of The Gifted Collective

“Programming and funding dedicated to sports equity initiatives, like those of the adidas Community LAB cohort, is critical in elevating the imagination and possibilities of community leaders who know that moving together can be healing–both for our physical and mental health but also for our community health. In cities like Houston and beyond, diversity is a strength, and investing in sports equity is a larger investment in the health, resilience, and unity of our communities.” shared Houston-based program participants BLK Beetles Co-Founders, Kelly and Samad.

Join us in congratulating the 2024-2025 adidas Community LAB cohort and help us amplify their impact by visiting their websites and learning more about their programs:

Houston

  • Samad Hinton (he/him)BLK Beetles: BLK Beetles’ mission is to make wellness joy achievable for all. By alleviating social isolation through meaningful connections within an equitable and restorative wellness ecosystem, BLK Beetles focuses on fostering a sense of belonging through community-centered outdoor experiences and a streaming platform.
  • Andrea Brown (she/her)The Gifted Collective: The Gifted Collective is a communications consultancy that empowers athletes from underrepresented communities by equipping them with essential skills to maximize their voice, manage NIL deals, and build a sustainable future on and off the field.

Atlanta

  • Moÿo Akinade (he/him)Atlanta Adaptive Soccer Foundation: The mission of Atlanta Adaptive Soccer Foundation is to provide individuals with physical disabilities access to the sport of soccer. Through clinics, speaking events, and practices, they strive to empower their participants to develop their physical and technical skills while creating lasting friendships and becoming active members of their communities.
  • A.R. Cooper (he/him)Art In The Paint: Art In The Paint is dedicated to enhancing community well-being and public health through the transformative power of art and athletics. Their mission centers on using art and athletics to mobilize communities, promoting a higher quality of life and inspiring equitable play.

New York

  • Vidal Quesada Guzman (he/him) & Javana Mundy Quesada (she/they)La Familia Project: La Familia Project is community based year round Sports, Arts, & Wellness programming for youth, young adults, and seniors. LFP embodies the ethos of “Healthy Body, Healthy Mind,” aiming to offer free enrichment programming, wellness initiatives, and mental health resources to underserved communities throughout NYC through its citywide partnerships.
  • Rich Rodriguez (he/him)Harlem Free Fight Academy: Harlem Free Fight Academy is a nonprofit providing free boxing and Brazilian jiu jitsu training to teens in NYC and using combat sports as a tool to mentor their youth.

Los Angeles

  • Jessa Williams (she/her)INTRSXTN Surf: INTRSXTN Surf creates a safe space for Black women and WOC to experience the transformative power of surfing and offers instructional programming for beginners who have never surfed before and ongoing community programming to support women through their surf journey.
  • Karina Martinez (she/her)DRAFTED: DRAFTED, their mission is clear: to ensure Latinas are never invisible in sports again. They leverage the power of storytelling and community to bring their narratives to the forefront, paving the way for a new future in sports where Latinas are seen and valued.

Toronto

  • Heather Alonzo (she/her)Ball Her Way (BHW): Ball Her Way aims to break barriers, foster inclusivity, and promote gender equality in basketball by providing visibility, spaces, and support for women and girls, encouraging their participation and empowerment both on and off the court. They are dedicated to transcending limitations and fostering inclusivity in the basketball community.
  • Jamal Burger (he/him) & Rachel Hale (she/her)Kickback: Kickback’s vision is to establish a world where all youth have the confidence and skills to achieve their dreams. The mission is to break down barriers for underserved youth, using sports, arts, and education to help them reimagine their future and become change makers in their communities.

For more information on adidas Community initiatives, visit https://adidas.com/community.

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About adidas

adidas is a global leader in the sporting goods industry. Headquartered in Herzogenaurach/Germany, the company employs more than 59,000 people across the globe and generated sales of € 22.5 billion in 2022.

About Impact Hub & Impact Hub Houston

Impact Hub leads the charge in creating communities for impact-driven entrepreneurs. Its diverse network of over 120 Impact Hubs in 69 countries around the world help people build better businesses, design impactful solutions, and reimagine the future with resources and support from local and regional ecosystems. Part of this network and Regional Lead for North America, Impact Hub Houston inspires, connects, and empowers entrepreneurs to transform their ideas into impact, build strong innovation and startup foundations, leverage diverse professional networks, and access new capital strategies and resources.

About Industry Education

This year programming is further enhanced by a bespoke leadership module by i.e. (Industry Education) is a startup venture enabling diverse creatives an accessible pathway to turn their dreams into meaningful professional careers through an apprenticeship network and leadership development series offered in partnership with leading corporations. i.e. founder and CEO Jessica Smith is an expert in leadership education and co-founder of adidas S.E.E.D.

About Black Ambition

Black Ambition is a non-profit organization founded by Pharrell Williams working to close the opportunity and wealth gap through entrepreneurship. They invest capital and resources in high-growth startups founded by Black and Hispanic entrepreneurs. They believe entrepreneurs historically left out of traditional investment funnels are building the companies of tomorrow. To date, they have mentored more than 1,000 underrepresented founders and awarded more than $10m to 101 dynamic entrepreneurs. They will support adidas Community Lab with specific programming sessions and an immersive network cultivation experience.

Building Equity with Our New Membership Model: Pay What You Can & Pay It Forward!

Building Equity with Our New Membership Model: Pay What You Can & Pay It Forward!

Hello Community!

In celebration of our 6th Anniversary — and six years of inspiring, connecting, and empowering do-gooders to do greater! — we have some exciting news:

To increase accessibility to both our community and support resources for everyone striving for impact, starting November 1st, Impact Hub Houston will transition to a “Pay What You Can” model for Community Membership! We made this decision with the goal of fostering a more equitable and inclusive environment for all Changemakers coming from diverse socio-economic backgrounds. Our mission to support social entrepreneurs and impact ventures remains steadfast as we move toward 2025 and beyond!

So, What’s Changing?

  1. “Pay What You Can” Option: We will still require applications to ensure impact alignment among our community, but you will now have the opportunity to “Pay What You Can” – yes, even $1, up to ANY amount for those who can Pay It Forward! – as a donation to Impact Hub Houston via our fundraising platform, BetterUnite. This change allows us to provide you with both flexibility and potential tax benefits, making your contributions mutually impactful.
  2. Updates to Membership: Community Membership will offer connections for those who want to be an active member of the Impact Hub Houston and Impact Hub Global communities and benefit from engaging with fellow changemakers. In lieu of the Growth Membership, which we are sunsetting, those who are ready to work on and actively grow their businesses will now be invited to apply for any of our Support Stack and acceleration programs as they are announced!
  3. Event Hosting: If you would like to host an event at Impact Hub Houston, you now have the ability to apply for venue sponsorship! If approved, we would serve as a co-host for the event and work with you to ensure it is empowering and impactful. To apply for this, please complete the Impact Hub Houston Event Co-Host Application.
  4. Mailing Address: We unfortunately can no longer accept mail on behalf of members or allow others to use our new mailing address as their own.

What’s Staying the Same?

  1. Our unwavering commitment to helping social entrepreneurs and Changemakers to be SEEN, HEARD & VALUED.
  2. Our focus on creating an intentional, inclusive, and international community where people who are working to solve Houston’s most pressing issues can flourish.
  3. Access to an Impact-Driven Community: Build meaningful relationships with individuals like you who care about growing their ventures and making a difference. Connect with other thought leaders, and develop and access speaking, presentation, and pitch opportunities.
  4. Drop in access to Impact Hub! Stop in and co-work or catch up during regular business hours Monday through Friday.
  5. “Welcome to the Community” Feature: Get spotlighted on our social media accounts and showcase your organizations, events, and milestones in our monthly newsletter.
  6. Global Opportunities: Engage with like-minded peers, partners, customers, and markets – and cultivate new opportunities – with Impact Hubs around the world.
  7. Global Coworking Passport: Connect with a welcoming community and co-work at any of the 120+ Impact Hubs around the world.
  8. Ecosystem Membership is Available: For mission-aligned organizations looking for a welcoming location to run programs and events, you are invited to join our ecosystem at $4,800/year for organizations with more than $1 million in annual revenue and $6,500/year for organizations with over $1 million annually..

We are excited about this new chapter at Impact Hub Houston and believe that these changes will allow us to serve our community better. We remain deeply committed to empowering each of you as you work toward your missions.

To learn more and apply for Community Membership, visit our Membership page at https://houston.impacthub.net/membership/

Thank you for being a vital part of our community!
Grace, Michelle, Akeel and the Impact Team
Impact Hub Houston

Impact Hub Houston Celebra su Sexto Aniversario con Resultados Excepcionales Durante el Primer Año del Innovador Programa MBDA Capital Readiness “Greater Houston Support Stack

Impact Hub Houston Celebra su Sexto Aniversario con Resultados Excepcionales Durante el Primer Año del Innovador Programa MBDA Capital Readiness “Greater Houston Support Stack

Impact Hub Houston Celebra su Sexto Aniversario con Resultados Excepcionales Durante el Primer Año del Innovador Programa MBDA Capital Readiness “Greater Houston Support Stack

PARA SU PUBLICACIÓN INMEDIATA

HOUSTON, TX – Impact Hub Houston, una organización líder dedicada a acelerar los ecosistemas de emprendimiento e innovación equitativos, se complace en invitar a todos los emprendedores y grupos de interés del ecosistema empresarial a la celebración de su sexto aniversario el viernes 11 de Octubre en su nueva sede ubicada en el Edificio Esperson, en el centro de Houston, para el lanzamiento público del Greater Houston Support Stack, una iniciativa fundada gracias al apoyo del Departamento del Tesoro de los EE.UU. y el premio del Programa de Preparación de Capital de MBDA (CRP, por sus siglas en inglés). Impact Hub Houston fue una de las dos únicas organizaciones en el estado de Texas, y 43 a nivel nacional, en recibir este premio, marcando un hito para MBDA tras la promulgación de la agencia como una agencia federal permanente a través de la Ley Bipartidista de Infraestructura. “El Programa de Preparación de Capital representa la mayor inversión en la historia del Departamento de Comercio para apoyar a empresarios y negocios desatendidos,” dijo la Secretaria de Comercio de EE.UU., Gina Raimondo.

Grace Rodriguez, Cofundadora y Directora Ejecutiva de Impact Hub Houston, declaró: “Nosotros y nuestros socios del Support Stack — Houston Minority Supplier Development Council (HMSDC), Houston Area Urban League, Houston Business Development, Inc. (HBDI), United4Change Center, Goodspero, y The Pivot Partner — estamos encantados de haber recibido este premio de MBDA para lanzar el Greater Houston Support Stack, y estamos aún más emocionados de compartir públicamente su éxito y el impulso para brindar apoyo coordinado a los emprendedores de nuestra región. Esta iniciativa representa un cambio de paradigma en cómo colaboramos como un verdadero ecosistema para ayudar a los emprendedores desatendidos a navegar por los recursos y oportunidades de nuestra región. Gracias al financiamiento de MBDA y a la dedicación de nuestros socios, el Support Stack está ayudando a las empresas a desarrollar capacidades, contactos, contratos y capital para prosperar, teniendo un impacto significativo en las vidas, familias y comunidades de miles de personas en el área metropolitana de Houston.”

“Nuestro enfoque para el crecimiento y desarrollo de negocios minoritarios implica trabajar estrechamente con nuestras organizaciones asociadas estratégicas para aprovechar nuestros recursos colectivos y crear una ventanilla única para nuestras pequeñas empresas. Esto garantiza que las empresas de propiedad diversa tengan acceso a los abundantes recursos que ofrecemos y a los servicios de nuestros socios,” dijo Ingrid Robinson, Presidenta y CEO de HMSDC.

“Impact Hub Houston es una fuerza impulsora en el fomento de la innovación y el crecimiento emprendedor en nuestra vibrante ciudad. Su liderazgo visionario está creando nuevas oportunidades para todos, y en United4Change Center (U4C) nos enorgullece colaborar con una organización tan dinámica y con toda la red del Support Stack. Juntos, estamos empoderando a las empresarias hispanas y ampliando el acceso a oportunidades económicas para la creciente y diversa población de Houston. Nuestra alianza es esencial para avanzar en nuestra misión compartida de construir resiliencia y prosperidad en nuestra comunidad,” dijo Ximena Murillo, CEO de United4Change Center.

Inspirado por el concepto de un “stack tecnológico” sobre la cual las startups construyen sus soluciones, el Greater Houston Support Stack ofrece una base sólida para que los emprendedores hagan crecer sus negocios. Su red de organizaciones de apoyo a emprendedores y empresas, incubadoras, aceleradores, Instituciones Financieras de Desarrollo Comunitario (CDFI), instituciones al servicio de las minorías (MSI) y grupos de desarrollo económico aprovechan su experiencia única para proporcionar una estrategia coordinada, una estructura clara y un conjunto integral de programas, servicios y apoyo, que incluye:

  • Compartir conocimientos y “mejores prácticas” de forma proactiva
  • Evaluación de necesidades
  • Programas y servicios relevantes para cada etapa
  • Referencias oportunas
  • Monitoreo de progreso colectivo

Con este enfoque, el Support Stack ha demostrado un impacto significativo en su primer año:

  • Más de 3,000 personas se han conectado y construido sus redes profesionales
  • 406 emprendedores han completado programas de aceleración y capacitación
  • 159 emprendedores han presentado sus proyectos a proveedores de capital y clientes empresariales
  • 74 empresas han recibido más de $46,321,000 en capital no dilutivo y contratos

“Estos resultados subrayan el poder de la colaboración y el apoyo específico para emprendedores desatendidos,” agregó Rodriguez. “Estamos emocionados de construir sobre este impulso y continuar expandiendo nuestro alcance e impacto.”

Jessica Bolaños, CEO de Goodspero, el socio encargado de contar la historia del Support Stack, añadió: “Es inspirador capturar el trabajo transformador de Impact Hub Houston y del Support Stack, destacando las trayectorias de los diversos emprendedores en el área metropolitana de Houston. Con alrededor del 20% de las pequeñas empresas en EE.UU. fallando en su primer año y un 50% para el quinto, los emprendedores de Houston enfrentan desafíos similares, incluyendo el acceso al capital y la competencia. Nuestro objetivo es mostrar la resiliencia, el apoyo y los recursos que impulsan su éxito.”

Para agosto de 2027, se proyecta que el Greater Houston Support Stack habrá ayudado a más de 8,000 emprendedores en el área metropolitana de Houston, el condado de Harris, el condado de Fort Bend y las comunidades rurales circundantes a desarrollar capacidades, redes y capital para que puedan crecer y acceder a la Iniciativa Estatal de Crédito para Pequeñas Empresas (SSBCI, por sus siglas en inglés) y otros programas federales y oportunidades de financiamiento que faciliten la expansión.

Únete al Support Stack

Los emprendedores, innovadores y grupos de interés del ecosistema empresarial pueden registrarse en https://celebrateourimpact.eventbrite.com para asistir a la celebración y al lanzamiento.

Los innovadores, emprendedores y propietarios de negocios elegibles están invitados a aplicar para recibir asistencia y participar en los programas del Support Stack en https://bit.ly/supportstackintakeform.

Las organizaciones de apoyo a emprendedores interesadas en unirse al Support Stack y recibir referencias, o aquellas que deseen obtener más información sobre el programa o Impact Hub Houston, por favor contacten a Grace Rodriguez en [email protected].

Sobre Impact Hub Houston, MBDA y HMSDC

Impact Hub Houston es una organización sin fines de lucro dedicada a inspirar, conectar y empoderar a diversos emprendedores y empresas de impacto. Como parte de una red global de más de 120 Impact Hubs en 68 países y seis continentes, Impact Hub Houston cataliza soluciones innovadoras, emprendimientos equitativos y el desarrollo de ecosistemas transformadores para un mundo más justo y sostenible.

La Agencia de Desarrollo de Negocios para Minorías (MBDA) promueve el crecimiento y la competitividad global de las Empresas Propiedad de Minorías (MBE, por sus siglas en inglés) con el fin de desbloquear el potencial económico completo del país. La MBDA fue establecida el 5 de marzo de 1969 por el Presidente Richard M. Nixon bajo el nombre de Oficina de Negocios para Minorías. El Programa de Preparación de Capital (CRP) de la MBDA está financiado por la Iniciativa Estatal de Crédito para Pequeñas Empresas (SSBCI) del Departamento del Tesoro y fue reautorizado bajo la Ley del Plan de Rescate Estadounidense de 2021. El CRP es un programa de asistencia técnica de $125 millones destinado a ayudar a los empresarios de minorías y otros empresarios desatendidos a hacer crecer y escalar sus negocios. El lanzamiento del Programa de Preparación de Capital marca un hito monumental para la MBDA, tras la promulgación de la Agencia como una Agencia Federal permanente en noviembre de 2021 como parte de la Ley Bipartidista de Infraestructura del Presidente Biden.

El Consejo de Desarrollo de Proveedores Minoritarios de Houston (HMSDC) forma parte de una red nacional de 23 consejos regionales que representan a más de 17,000 empresas de propiedad minoritaria y más de 900 corporaciones importantes, incluidas la mayoría de las empresas de Fortune 500. HMSDC involucra activamente a sus miembros en esfuerzos para aumentar y expandir las oportunidades comerciales y el crecimiento de las Empresas Propiedad de Minorías (MBE, por sus siglas en inglés) y promover la excelencia en la diversidad y desarrollo de proveedores. HMSDC ofrece a los emprendedores de minorías la oportunidad de conectarse con muchas de las instituciones públicas y empresas privadas más grandes de América. Más información

Contactos:

Consultas en Español:
María Burgos, Coordinadora de Programa de Impact Hub Houston
[email protected]

Consultas en Inglés:
Grace Rodriguez, CEO/Directora Ejecutiva de Impact Hub Houston
[email protected]

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Impact Hub Houston Celebra su Sexto Aniversario con Resultados Excepcionales Durante el Primer Año del Innovador Programa MBDA Capital Readiness “Greater Houston Support Stack

Impact Hub Houston Celebrates 6th Anniversary with Outstanding Results for Year One of Groundbreaking MBDA Capital Readiness Program “Greater Houston Support Stack”

Impact Hub Houston Announces 6th Anniversary Celebration and Public Launch of the Groundbreaking MBDA Capital Readiness Program “Greater Houston Support Stack” Consortium

FOR IMMEDIATE RELEASE

HOUSTON, TX – Impact Hub Houston, a leading organization dedicated to accelerating equitable entrepreneurship and innovation ecosystems, is thrilled to invite all entrepreneurs and business ecosystem stakeholders to its 6th Anniversary Celebration on Friday, October 11, at its new home in the Esperson Building in Downtown Houston, for the public launch of the Greater Houston Support Stack, an initiative founded thanks to the support of the U.S. Department of Treasury and MBDA Capital Readiness Program (CRP) award. Impact Hub Houston was one of only two organizations in the state of Texas and 43 nationwide to win the award, which marked a milestone for MBDA following the agency’s enactment as a permanent Federal Agency through the Bipartisan Infrastructure Law. “The Capital Readiness Program marks the largest investment to support underserved entrepreneurs and businesses in Commerce Department history,” said U.S. Secretary of Commerce Gina Raimondo.

Grace Rodriguez, Co-Founder and Executive Director of Impact Hub Houston, stated, “We and our Support Stack partners — Houston Minority Supplier Development Council (HMSDC), Houston Area Urban League, Houston Business Development, Inc. (HBDI), United4Change Center, Goodspero, and The Pivot Partner — were thrilled to receive this award from the MBDA to launch the Greater Houston Support Stack, and we’re even more excited to publicly share its success and momentum for coordinated support for our region’s entrepreneurs. This initiative represents a paradigm shift in how we collaborate as a true ecosystem to help underserved entrepreneurs navigate our region’s resources and opportunities. Thanks to the MBDA grant and the dedication of our partners, the Support Stack is helping businesses build the capacity, contacts, contracts, and capital to thrive, making a significant impact on the lives, families, and communities of thousands of people in the Greater Houston area.”

“Our approach to minority business growth and development means working closely with our strategic partner organizations to leverage our collective resources to create a one-stop-shop for our small businesses. This ensures that diverse-owned companies have access to the abundant resources we provide and the services offered by our partners.”, said Ingrid Robinson, HMSDC President & CEO.

“Impact Hub Houston is a driving force in fostering innovation and entrepreneurial growth throughout our vibrant city. Its visionary leadership is creating new opportunities for all, and United4Change Center (U4C) is proud to collaborate with such a dynamic organization and the entire Support Stack network. Together, we are empowering Hispanic women entrepreneurs and expanding access to economic opportunities for Houston’s growing and diverse population. Our partnership is essential to advancing our shared mission of building resilience and prosperity in our community” said Ximena Murillo, CEO of United4Change Center.

Inspired by the concept of a “tech stack” upon which startups build their solutions, the Greater Houston Support Stack provides a strong foundation for entrepreneurs to grow their businesses. Its network of entrepreneur and business support organizations, incubators, accelerators, Community Development Financial Institutions (CDFIs), minority-serving institutions (MSIs), and economic development groups leverage their unique expertise to provide a coordinated strategy, clear structure, and comprehensive suite of programs, services, and support, featuring:

  • Proactive knowledge and “best practice” sharing
  • Needs assessment
  • Stage-relevant programs and services
  • Timely referrals
  • Collective progress monitoring

With this approach, the Greater Houston Support Stack has demonstrated a significant impact in Year 1 of the MBDA Capital Readiness Program:

  • Over 3,000 individuals have connected and built their professional networks
  • 406 entrepreneurs have graduated from acceleration and training programs
  • 159 entrepreneurs have pitched to capital providers and enterprise customers
  • 74 businesses have received over $46,321,000 in non-dilutive capital and contracts

“These results underscore the power of collaboration and targeted support for underserved entrepreneurs,” Rodriguez added. “We’re excited to build on this momentum and continue expanding our reach and impact.” 

Jessica Bolaños, CEO at Goodspero, the Support Stack Storytelling Partner, adds: “It’s inspiring to capture the transformational work of Impact Hub Houston and the Support Stack, while highlighting the journeys of diverse entrepreneurs in Greater Houston. With around 20% of U.S. small businesses failing in the first year and 50% by the fifth, Houston entrepreneurs face similar challenges, including access to capital and competition. Our goal is to showcase the resilience, support, and resources driving their success.”

By August 2027, the Greater Houston Support Stack is projected to help over 8,000 entrepreneurs across Greater Houston, Harris County, Fort Bend County, and surrounding rural communities to build capacity, networks, and capital so they can grow and access the State Small Business Credit Initiative (SSBCI) and other federal programs and funding opportunities that facilitate scaling.

Join the Support Stack

Entrepreneurs, innovators, and business ecosystem stakeholders may register at https://mpacthubhouston.eventbrite.com to attend the celebration, launch, and future events.

Eligible innovators, entrepreneurs, and business owners are invited to apply for Support Stack assistance and programs at https://bit.ly/supportstackintakeform.

Entrepreneur support organizations interested in joining the Support Stack and receiving referrals, or those seeking more information about the program or Impact Hub Houston, please contact Grace Rodriguez at [email protected].

About Impact Hub Houston, MBDA, and HMSDC

Impact Hub Houston is a nonprofit organization dedicated to inspiring, connecting, and empowering diverse entrepreneurs and impact ventures. As part of a global network of over 120 Impact Hubs in 68 countries across six continents, Impact Hub Houston catalyzes innovative solutions, equitable entrepreneurship, and transformational ecosystem development for a more just and sustainable world.

The Minority Business Development Agency (MBDA) promotes the growth and global competitiveness of Minority Business Enterprises (MBE) in order to unlock the country’s full economic potential. The Minority Business Development Agency (MBDA) traces its origins back to March 5, 1969, when President Richard M. Nixon established it as the Office of Minority Business Enterprise. MBDA’s Capital Readiness Program (CRP) is funded by the Department of Treasury’s State Small Business Credit Initiative (SSBCI) and was reauthorized under the American Rescue Plan Act of 2021. CRP is a $125 million technical assistance program to help minority and other underserved entrepreneurs grow and scale their businesses.The launch of the Capital Readiness Program marks a monumental milestone for MBDA, following the Agency’s enactment as a permanent Federal Agency in November 2021 as part of President Biden’s Bipartisan Infrastructure Law.

Houston Minority Supplier Development Council (HMSDC) is part of a national network of 23 regional councils representing over 17,000 minority-owned businesses and over 900 Major Corporations, including most Fortune 500 companies. HMSDC actively involves its members in efforts to increase and expand business opportunities and business growth for Minority Business Enterprises (MBEs) and to drive excellence in supplier diversity and supplier development. HMSDC provides minority entrepreneurs the chance to connect with many of America’s largest public institutions and private sector companies.  Learn More

Contact: Grace Rodriguez, CEO/Executive Director of Impact Hub Houston

[email protected]

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Female Founder Puts Her Mission into Action

Female Founder Puts Her Mission into Action

How female founder Action Jackson impacts the face of business in Houston 

Written by Impact Hub Houston Team member Camila Aguiar

She was born Joy, but chose Action as her moniker. “After all, an idea without action is worth nothing,” she says.  This intense need to turn ideas into action pushed her to open a media production company for small businesses back in 2018. It was also what brought her to Impact Hub Houston, where she found support to build a business model for her most audacious project: The Black Business LabAction was one of the 8 founders to participate in the Female Founders Program,  an initiative of Impact Hub sponsored by Frost Bank. From May to July 2021, Action worked closely with Impact Hub’s CEO, Grace Rodriguez, and received support from additional experts to build the Black Business Lab Project business model. “The Lab” is a spinoff of the Black Marketing Initiative, which she created to help black owners thrive in business. 

To understand how she got here, we must look back to 2020, when COVID hit and caught her by surprise. At that time, Action was celebrating one-and-a-half years as head of Action One Media. She wanted to change the narrative about Black business owners and started by helping small businesses communicate with clients and the community through media content, especially in video format. The company was online but got its client base from having 20-100 people come to their small studio every week and doing events outside. Action decided to close the company as soon as COVID hit. The following three months were hard. She had no clients, no revenue, and no clue where to go next. But she knew she had to do something, and she decided to start by listening.

In June 2020, Action and her team–the Action Squad–led a survey with 226 small business owners. Over a hundred of them answered they were about to close if they didn’t get online.  Action soon realized the need and the urgency to do something about it. She used the data from the survey to pivot her business and offer a well-rounded marketing strategy for clients.

“In a nutshell, you can get video to show your face. You get the consulting to know where to put your video and help yourself get the clients you want. And we can also save you time by automating the process for you.”

She implemented an entirely new system to meet the unique needs of small businesses. Finally, things started getting better, but Action was still not happy. She knew from the surveys that most owners couldn’t afford the service. Action was struggling herself to put her company back in business after months without revenue. 

“We realized we didn’t need just to sell the services. We could create a program and offer the services to the business through the program funded by grants, crowdfunding or anything we could pull together to help Black owners.”

Impact Hub was crucial in implementing the first pilot she did with 16 Black owners. Grace Rodriguez even participated in some of the sessions and helped shape the business training. But Action wants to go further. Her next goal is to build a Black innovation corridor in South Houston. She compares it to other Houston initiatives, such as the Energy Corridor and The Museum District. She already gathered more than 20 businesses, and they are working together to create a safe space to help Black owners get the support, the funds and the collaboration they need to thrive. 

Action’s pitch sounds firm and convincing. She says this was one of the best aspects of the Female Founders Program. The constant practice and interaction helped her strengthen her case for support. Frost Bank’s advisors also helped her build some new financing strategies, especially regarding balancing her statements.

“They gave their hearts to make sure we learned. These are things sometimes we ignore as founders. I got some strategies behind changing our financial year.” 

The three intense months of coaching sessions and hard work also helped her build new perspectives on her business. “We got counsel from them to build up the part we were missing. If you are a service business like us, you think you don’t need a supply chain, for example. Until you answer those questions in the assessment that they gave us. That in itself opened my eyes the most. It gave me a different perspective. And you need all the perspective you can get.”

Since we are talking about Action, we shouldn’t be surprised by how fast she is putting everything she learned in the service of her community! She is working with partners to expand the Black Marketing Initiative into the Black Business Lab. They applied for grants and are developing an asset map for the Black Innovation Corridor. The project has the support of some of her largest clients, including NANCo Aero–an aerospace company creating a “flying car”; South Union CDC–a STEM Foundation for youth and seniors with a solar co-op; and The Fish Bowl Experience–a  pitch competition that gives away up to $50,000 in funding to small businesses owned by college students, veterans, and entrepreneurs with serious hustle. 

“The ability to be who we are, take action on the things that matter, and impact is a blessing. We can build business models that can be used by the world to improve the world while making money. The sky is no longer the limit.”

Stay up to date with Action and her initiatives! Follow Action One Media on Facebook, Instagram, LinkedIn, Twitter, and YouTube

Our team at Impact Hub Houston is here to help you take your venture to the next level. Learn how with an Accelerate Membership.

Houston Founder Makes Impact for Safer, Healthier Environments

Houston Founder Makes Impact for Safer, Healthier Environments

McMac Cx creating safe and healthy environments, one building at a time 

Written by Impact Hub Houston Team member Nabiha Khetani.

Founder and President of McMac Cx, a company devoted to safer and healthier buildings and environments, David MacLean shares his story behind the meaning of his mission and how Impact Hub Houston is helping to achieve his goals. McMac Cx aims to achieve SDG 11: Sustainable Cities and Communities. While SDG 11 is their primary goal, the company addresses needs that also target SDG 4: Quality Education and SDG 9: Industry, Innovation, and Infrastructure.

David joined the Accelerate Membership Program to increase his knowledge on branding and marketing to further advance his goals for his company. His biggest challenge, he shares, is getting people to understand why they should care. Why is it important to create buildings which are above minimum code requirements? 

It begins with addressing the unrealistic expectations of inhabitants and what creators can deliver with the institutional barriers getting in the way. That is where McMac Cx comes in. To minimize the sacrifices on the health and safety of citizens and maximize on impact, MacLean and his company look at first, costs of buildings while also evaluating what the social and environmental impact would be. They work with partners around the globe and use advanced social tech to have immediate implementation of sustainable improvements for a safer environment. David works diligently to change the reality of the current operation of buildings and create a standard that is above minimum code. 

“The pivoting and changing conversation is all about education, and people understanding the order of magnitude of the problem.” David says.

As one of his current initiatives, David created the USGBC Texas Best Practices App as an educational tool and a way for members to connect with nonprofits and other organizations achieving similar altruistic passions. He is also the founding Board Member of the Texas Chapter of the US Green Building Council (USGBC) and created the Best Practices Committee as a platform of connection between the creators and inhabitants to work together.

“At the end of the day, it’s not about me doing something that anybody else can do” David says “it’s actually me helping somebody else over that lift so they can be more successful, because it’s about impact that we want to make, right.”

Part of the reason David was drawn to Impact Hub was because of the global Sustainable Development Goals they use as a guide and a lens for their work. Out of the 17 SDGs passed by the United Nations in 2015, IHH primarily focuses on six. David says the SDGs create a global language to articulate what is important and what more can be done. Although he strongly resonates with three or so of the goals, the Accelerate Program keeps him engaged in how the rest of the world is acting across the 14 other SDGs. 

Looking ahead, David wants to keep growing his company nationally and globally. His current services are largely focused locally in Texas, but are all transferable to any other place in the world. He recently launched a global video competition to reach advocates across the world to become ‘Air Champions’ in their neighborhood. The video content focuses on why they think air quality is important. Although having McMac Cx recognized is a priority since it is a for-profit company, David prioritizes sending a certain message to his community which he is eagerly passionate about. 

McMac Cx works with partners from around the globe to aggregate advanced Social Tech, allowing the immediate implementation of sustainable improvements that create positive social and environmental change. Its goal is to economically enable everyone to live, learn, work, and play in places that are safe, healthy, efficient, and prosperous. Learn more about McMac Cx and connect with David.

Our team at Impact Hub Houston is here to help you take your venture to the next level. Learn how with an Accelerate Membership.

Female Founder Impacts Education Quality through Technology

Female Founder Impacts Education Quality through Technology

How a female founder is impacting education quality by targeting self-esteem through technology

Written by Impact Hub Houston Team member Camila Aguiar

When you talk to Margo Jordan it is hard to imagine that she once suffered from low self-esteem. Yet, this confident and persuasive entrepreneur says she struggled when she was a little girl back in Milwaukee, WI, where she grew up. Today, she is a successful and passionate founder who turned her own struggle into an educational company that helps students overcome low self-esteem and depression.  Her entrepreneurship journey started in 2013, after 10 years in the Army and a brief experience in the finance sector.  She was only 26 years old when she opened her first company, a facility in Northeast Houston to offer enrichment programs for children, including day camps and workshops.  

Thanks to a combination of creativity and strong knowledge in finance, Margo was able to develop her leadership skills and grow her business. But like many founders, she had to deal with unpredictable events that tested her resiliency and leadership skills. The first big challenge came in 2017 when Hurricane Harvey destroyed her facility in Northeast Houston. Nevertheless, Margo didn’t give up and was able to raise funds to continue serving families in Houston.

Two years later, another major disruption menaced her business. COVID forced her to stop the in-person programs, but also offered an opportunity to make a greater impact and help students cope with a new reality marked by isolation and uncertainty. She pivoted and focused all her efforts on her e-learning platform, Enrichly

Currently, Enrichly has 500 subscribers and impacts more than 10,000 students from different grade levels and backgrounds. The platform offers self-esteem-based learning workshops and curriculum, live content with teens and influencers, and mental health resources. The goal is to help members build their confidence, recognize their capabilities, and put limitations in perspective. According to Margo, having high self-esteem helps prevent depression, anxiety disorders, and even suicide. It affects all aspects of life including academic performance.

When parents and schools from countries worldwide started coming back to her for help, she realized she was dealing with a global issue and started expanding her business outside the US. Her platform currently reaches members from 12 countries, mainly parents and educators trying to help students overcome depression and low self-esteem. Margo is also negotiating with corporations and schools in countries such as Brazil and the United Arab Emirates. Her most recent contract was with the Arabian American School, which will bring a self-esteem learning program to their campus middle school students in Dubai.

The power of connections

As a visionary entrepreneur, Margo thinks it is important to take risks and learn from mistakes. She recognizes the value of connections and resources for her business. In 2021, Margo was selected to participate in a three-month support program offered by Impact HUB Houston in partnership with Frost Bank. Since May, she and seven additional Founder women had weekly meetings with advisors and mentors to refine their business model. The program has also helped them gain a deeper understanding of business and financial management, while working on their pitching and funding model.

“The amount of resources we received are invaluable. Being able to connect with Grace and Michelle has allowed me to put some of the pieces I’ve been missing together. Grace and I worked on my diagnostic and defined a lot of what my company does and gave me a more concrete plan moving forward. This was very instrumental in making sure I’m capturing my impact more efficiently,” says Margo. 

Margo’s next steps include launching the Enrichly app and growing her membership program. She is also working on a side project to help students develop leadership skills and an entrepreneurial mindset. She admits it was particularly difficult to build her reputation and raise money being a Black woman, and she wants to inspire others to believe in themselves and fight for their dreams. Considering her personal story, and the passionate way she talks about her mission,  Margo is certainly a great inspiration. 

Visit Youth Enrichments to learn more about Margo’s mission! Connect with them on social media and stay up-to-date with their journey: Facebook, LinkedIn, and Twitter

Impact Hub Houston is here to help you take your venture to the next level. Learn how with an Accelerate Membership. 

Workforce Solutions, MassChallenge, and Impact Hub Houston Join Forces to Support Female Founders

Workforce Solutions, MassChallenge, and Impact Hub Houston Join Forces to Support Female Founders

Workforce Solutions selects MassChallenge and Impact Hub Houston to operate a startup bootcamp designed for female founders. 

(Houston, TX) April 1, 2021 – MassChallenge, the global network for innovators, Workforce Solutions, the public workforce system for Houston and the surrounding 13 counties in Southeast Texas, and Impact Hub Houston, a locally rooted and globally connected impact innovation incubator, today announced a new partnership to launch a bootcamp to support female founders in the greater Houston region.

Together, Workforce Solutions, MassChallenge, and Impact Hub Houston will identify and support female founders looking to start a new high-growth or high-impact startup and support them through the earliest stages of building a business.

“There is unprecedented growth in startup creation as a result of the pandemic and founders from all corners of the world are connecting in this virtual environment to build and scale amazing ideas,” said Jon Nordby, Managing Director of MassChallenge Texas. “With these new collaborations, we are also witnessing a massive gap in access to startup development resources. Our partnership with Workforce Solutions and Impact Hub Houston will help female founders build on their existing knowledge to become life-long innovators. MassChallenge is thrilled to partner with Workforce Solutions to equip bold entrepreneurs, disrupt the status quo, and create meaningful change.”

Grace Rodriguez, CEO/Executive Director of Impact Hub Houston, adds: “As a female founder myself, I’m incredibly excited about this opportunity to support and uplift more women entrepreneurs and women-led businesses in our region. By now, it’s no secret that women, and especially women of color, are under-invested in; and this is our chance to change that by helping more women strengthen their businesses and prepare to seek funding. It makes perfect sense that we’re starting in Houston — one of the most diverse cities in the country and consistently ranked one of the Top Ten cities for women entrepreneurs — and that we’re launching this with our partners at MassChallenge Texas and Workforce Solutions, both of whom have been strong allies in our collaborative mission to empower diverse entrepreneurs and talent.”

“Workforce Solutions is excited to partner with MassChallenge and Impact Hub Houston to bring to life a new bootcamp designed for mission-driven women focused on creating, sustaining, or expanding a business,” said Mike Temple, executive director of Workforce Solutions. “We recognize that small businesses and startups are vital to the continued growth of the local economy. Our goal is to drive a community that will support female leaders in support of entrepreneurial activities that create income and new job opportunities across the greater Houston area.”

The female founder bootcamp leverages MassChallenge’s proven acceleration model and Impact Hub Houston’s inclusive incubation expertise to identify, accelerate, and connect female founders with the resources they need to launch and scale high-impact businesses. The bootcamp is industry agnostic and applications are open to all female founders in the Houston-Galveston region, offering them access to the global MassChallenge and Impact Hub curriculum, workshops, and networks of expert mentors and resources.

Applications to the bootcamp are live April 1 – April 7 and applicants will need to meet the Workforce Solutions eligibility criteria in order to participate.

Applicants can apply by: 

  1. Submitting the pre-screening application by the deadline of 5PM CT on April 7 2021.
  1. If a pre-screening application is approved, a Workforce Solutions staff person will reach out to the applicant to schedule a meeting; a response is needed within 2 business days.
  2. At the conclusion of the assessment the applicant will be asked to complete the Workforce Solutions Financial Aid Application and upload supporting documents; this process must be completed by April 19, 2021.

Twenty-five applicants will be selected to participate in the Women’s Entrepreneur Bootcamp on April 29th and 30th. Content will be available in both English and Spanish.

Questions? Email [email protected]

About Workforce Solutions 

Workforce Solutions is dedicated to keeping the Gulf Coast region a great place to do business, work, and live. Our employer-driven, people-focused approach elevates the economic and human potential of the region to attract and retain the best employers, afford everyone the dignity of a job, and remain indispensable to the global economy. As the public workforce system for Houston and the surrounding 13 counties in Southeast Texas, we work in tandem with the Texas Workforce Commission and the statewide Workforce Solutions network.

About MassChallenge 

MassChallenge is the global network for innovators. Headquartered in the United States with seven locations worldwide, MassChallenge equips bold entrepreneurs to disrupt the status quo and to create meaningful change. Since launching in 2009, more than 2,900 MassChallenge alumni have raised $8.6B in funding, generated $3.6B in revenue, and created more than 186,000 total jobs. Learn more about MassChallenge at masschallenge.org.

About Impact Hub Houston 

About Impact Hub Houston (houston.impacthub.net): Impact Hub Houston is a locally rooted, globally connected, 501c3 nonprofit impact innovation incubator that empowers diverse changemakers to solve some of society’s most pressing issues. A member of the Impact Hub global network — the world’s largest community recognized by the United Nations for accelerating entrepreneurial solutions towards measurable and scalable impact for the Sustainable Development Goals (SDGs) — Impact Hub Houston intentionally designs places, platforms, and programs to build an inclusive innovation ecosystem that looks like Houston and works for all.

About Impact Hub 

About Impact Hub (https://impacthub.net): Impact Hub is a global network focused on building entrepreneurial communities for impact at scale. With 100+ communities of 16,500 social entrepreneurs & innovators in more than 55 countries across five continents, Impact Hub is one of the world’s largest communities and accelerators for positive change. It contributes to the development of social enterprise ecosystems to drive collaboration and innovation around the Sustainable Development Goals through locally rooted Impact Hubs, as well as with partners and allied networks.

Announcing: Frost Bank Sponsors First Accelerate Scholarships for Female Founders at Impact Hub Houston

Announcing: Frost Bank Sponsors First Accelerate Scholarships for Female Founders at Impact Hub Houston

FROST BANK SPONSORS FIRST ACCELERATE SCHOLARSHIPS FOR FEMALE FOUNDERS AT IMPACT HUB HOUSTON

2021 March 18 – Houston, TX – Impact Hub Houston, a nonprofit impact innovation incubator dedicated to helping diverse changemakers and social entrepreneurs launch impact-driven ventures, announces a new partnership with Frost Bank to sponsor eight female founders to participate in their new Accelerate Membership Program.

The first Impact Hub in the United States to provide the global Accelerate Membership program, Impact Hub Houston will work with Frost Bank to select eight women entrepreneurs from applicants across the Greater Houston area to receive the program for three months at no cost to them, ensuring that critical business and financial support goes to diverse entrepreneurs that need it most.

From Solution Diagnostics to Business Model Validation to Funding Readiness, this inaugural cohort will offer women entrepreneurs at any stage of their development journey a step-by-step methodology to rapidly and systematically refine their business model among peers, and gain a deeper understanding of business and financial management while getting their venture ready for pitching to stakeholders and potential funders.

Impact Hub Houston CEO/Executive Director, Grace Rodriguez, shares: “We are passionate about Gender Equality (SDG 5), Reducing Inequalities (SDG 10), and Economic Growth (SDG 8); and want to help women build strong startups that secure the capital they need to succeed and scale. We designed our Accelerate Programs to offer diverse entrepreneurs continuous education, community, and support to develop their ventures, graduate into renowned accelerator programs from our partners like MassChallenge and Greentown Labs, and then return to us to expand into the many markets around the world where Impact Hubs have a presence. We’re so excited that Frost Bank shares this passion for creating impact through supporting diverse entrepreneurs and local businesses; and we look forward to working with them to empower more women onto paths of financial resilience and generational wealth.”

Trisha Bradley, Vice President and Community Development Officer at Frost Bank, states: “Giving back to our communities has been part of the Frost culture since our company was founded more than 150 years ago, and we’re proud to support local women-owned small businesses through our partnership with Impact Hub Houston.”

“At Impact Hub we believe the time to act is now. It’s why we are excited to launch our new Accelerate Membership”, says Maria Trindade, Global Network Development Director at Impact Hub Global. “Its unique approach combines all the benefits of an enterprise support program with the flexibility that entrepreneurs need; plus its tailored nature makes this intervention highly accessible for entrepreneurs from diverse backgrounds who may not be able to dedicate full-time to their business idea.”

To apply for the Frost Bank Female Founder Scholarship, please click here or scroll down to the form below.

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About Frost (frostbank.com): Frost is the banking, investments and insurance subsidiary of Cullen/Frost Bankers, Inc. (NYSE: CFR), a financial holding company with $42.4 billion in assets at Dec. 31, 2020. One of the 50 largest U.S. banks by asset size, Frost provides a full range of banking, investments and insurance services to businesses and individuals in the Austin, Corpus Christi, Dallas, Fort Worth, Houston, Permian Basin, Rio Grande Valley and San Antonio regions. Founded in 1868, Frost has helped Texans with their financial needs for three centuries.

About Impact Hub Houston (houston.impacthub.net): Impact Hub Houston is a locally rooted, globally connected, 501c3 nonprofit impact innovation incubator that empowers diverse changemakers to solve some of society’s most pressing issues. A member of the Impact Hub global network — the world’s largest community recognized by the United Nations for accelerating entrepreneurial solutions towards measurable and scalable impact for the Sustainable Development Goals (SDGs) — Impact Hub Houston intentionally designs places, platforms, and programs to build an inclusive innovation ecosystem that looks like Houston and works for all.

About Impact Hub (https://impacthub.net): Impact Hub is a global network focused on building entrepreneurial communities for impact at scale. With 100+ communities of 16,500 social entrepreneurs & innovators in more than 55 countries across five continents, Impact Hub is one of the world’s largest communities and accelerators for positive change. It contributes to the development of social enterprise ecosystems to drive collaboration and innovation around the Sustainable Development Goals through locally rooted Impact Hubs, as well as with partners and allied networks.

APPLICATIONS FOR THE FROST BANK SCHOLARSHIP ARE NOW CLOSED. THANK YOU FOR YOUR INTEREST!

Winter Storm Uri: What, Who, How and Why Texas’ Power Grid and ERCOT Failed Houston

An Overview of the Texas Power Market to Understand the Impacts of Winter Storm Uri

Written by Michelle Avalos, Deputy Director of Impact Hub Houston 

It’s February 22, 2021, and millions are dealing with the aftermath of the winter storm that ran across Texas last week. As our community bands together, mourns the friends and family we’ve lost, and aid begins to reach Houstonians in need, some of us are starting to piece together the facts so we may be able to co-create recovery and resiliency solutions to prevent this from ever happening again.

To support these efforts, we’ve put together a high level and unbiased outline focusing on mapping the existing process and infrastructure of the Texas power market. We hope this will give you some clarity and allow you to better problem solve as we move forward.

The first thing you need to know is that the United States is broken up into three primary power market transmission grids called the Western, Eastern and Texas Interconnection. Yup, most of Texas stands alone. Why? Interestingly enough, our grid underwent changes in 1970 after a major blackout that occurred in the Northeast in 1965. Since then, our state’s power grid has undergone several hiccups, but we’ve continued to remain independent from the rest of the country, with only minor connections to the Eastern and Western grids as well as to Northern Mexico’s grid. If you want to dig deeper into the history, check out this article by the Chron.

Figure 1. U.S. Power Grid Map (Source: EPA) 

Figure 1. U.S. Power Grid Map (Source: EPA) 

There are two primary characteristics of the Texas Interconnect: 

  1. The Texas grid system has minimal transmission interconnections to the other grids in the U.S.; and, 
  2. Our power market is largely unregulated, which means no single entity has a monopoly on the sale of electricity in the state. As a result, across most of Texas, consumers can choose their electricity provider.

Our power market is run by a power grid operator, or Independent System Operator (ISO), called The Electric Reliability Council of Texas, or “ERCOT.” There are six other ISOs in the U.S. and a couple more in Canada. (See Figure 2.)

Figure 2. Map of Other ISOs in North America (Source: CME Group)

Figure 2. Map of Other ISOs in North America (Source: CME Group)

ERCOT, however, is one of the least interconnected to the rest of the country’s grid. In a way, you can say that ERCOT is an island, which you can see more clearly in Figure 3, below.

Figure 3. Map of U.S. Grid Interconnections (Source: EIA)

Figure 3. Map of U.S. Grid Interconnections (Source: EIA)

So, what is behind our “Power to Choose” in Texas?

A lot of people assume that their electricity provider is also the one generating the actual power for their homes or businesses. Nope. In fact, for most providers, this is not the case.

While some electricity providers own generation facilities, most are just retailers who purchase power in bulk from the wholesale market, then, mark up the price to sell it to customers on the retail market. In other words, most of the electricity providers we have accounts with are like grocery stores: They are responsible for selling, managing, and providing support to the customers (you and me), while profiting from their retail price markup margins. In the Houston area, there are about 50 of these companies for the residential sector.

Some people think that CenterPoint Energy is the one generating our power in Houston. Not true. CenterPoint Energy is responsible for the delivery of power and maintains the infrastructure (wires/ poles) that allows electricity to reach the 2.3 million customers in the Houston metro area. CenterPoint Energy also distributes natural gas for cooking and heating, but they do *not* generate or sell electricity to customers.

So then, who actually produces our electricity?

There are 500+ independent power generators across Texas. They own and operate the power plants that convert various fuels and renewables into electricity for our power grid. However, the power generators across our state do not decide when and how much power is produced for customers. They are only able to submit offers to sell their generation capacity at a given price in hopes that they will be selected (or dispatched) to supply electricity to meet the markets demand for energy. These offers get sorted into a “supply stack” and dispatched daily starting with the lowest price offers.

Who tracks our power needs and signals the power generators to produce electricity?

ERCOT, our power grid operator, is responsible for properly managing the supply of power to meet the actual or “real-time” demand and importantly, the system operator must ensure a balanced market at all times. What balancing really means is that if power demand is greater than the available power supply, ERCOT will forcibly reduce demand by executing power blackouts. ERCOT estimates short and long term power needs, but ultimately, the market supply and demand balance is managed by 24/7 operations. The forecast generated by ERCOT serves to let power generations know when they might be needed but does not give them any guarantee that they will be dispatched.

Is ERCOT the one buying and selling the electricity for the grid?

No. ERCOT does not buy or sell the electricity on our power grid. They just coordinate the various pieces to ensure balance. You can think of ERCOT as a real time matchmaker between the power generators and our demand for electricity. The buying and selling ultimately happens 1) on the wholesale market (between the power generators and the electricity providers) and 2) on the retail market (between the electricity retailers/providers and the commercial/residential customers).

Figure 4. Flow of Electricity under ERCOT Structure

Figure 4. Flow of Electricity under ERCOT Structure

 

Before we move to outline the impacts of the winter storm, here are a couple more important factors you need to know about our power market:

We explained how the deregulated market works for you as the customer, but how does the market impact the companies who are producing our electricity?

The power generators that operate inside of ERCOT make decisions about their fuel source, infrastructure, operating schedule and more based on forecasted demand trends and their need to operate a profitable business. These power generators only make money when ERCOT selects their price offer for a certain amount of electricity and dispatches their power plant to add electricity supply to the grid. The power generators receive revenues only for the actual amount of electricity that is dispatched by ERCOT and consumed by the end user. If you are a power generator and your price offer is not selected by ERCOT, you don’t make money that day and your power plant just sits there. This revenue structure is referred to as an energy payment. 

In Texas, most power generators receive the bulk of their energy payments in the peak summer months, particularly late July and August. During the winter months, when our state’s electricity demand is typically lower, some power generators tend to schedule power plant maintenance or full shutdowns because the likelihood that they will be dispatched and paid to generate power is significantly lower.

Seems pretty straight forward, right? 

Well, this is how the structure defers from other states:

Power generators that operate in a regulated market also get paid a capacity payment which is calculated based on the maximum output that the power generator can produce. States that offer capacity payments to power generators will pay the amount even if the respective power plant is not called upon to produce electricity. Essentially, the state pays the capacity payment to have the power plants built and available as needed. When those plants are dispatched, energy payments will also kick in.

Power generators operating inside of ERCOT do not receive capacity payments: They do NOT get paid to be on standby. This payment structure lowers the power generator’s incentive to make other significant investments to their facilities. 

So, how did Winter Storm Uri shock the ERCOT power grid?

There are a fair share of articles to choose from that are aiming to answer this question. Here’s a brief summary:

  • The Texas grid is set up to support peak demand during the summer heat but doesn’t have similar reliability measures in place during our winter months.
  • Last week, electricity demand for heating spiked as a response to the winter storm. 
  • The spike in demand occurred in the midst of scheduled power plant maintenance and shutdowns which traditionally take place during winter in Texas. These are referred to as planned plant outages.
  • The power plants that were actually operating and able to generate electricity for us also ran into unplanned outages caused by the extreme weather conditions. 
  • This combination further cut the supply of electricity to the grid. 
  • ERCOT’s supply stack became very thin and it was not able to dispatch sufficient power generators to meet our electricity needs.
  • Millions were left without power for days.
  • While the power generators worked to get their facilities back online and ERCOT worked to prevent a full system shutdown, pressure was placed on the consumer (you and me) to conserve power.
  • After a series of rotating outages and forced power cuts, more Houstonians began to regain power until eventually, ERCOT’s supply stack was replenished and supply and demand was rebalanced. This was also supported by a drop in heating demand from the customers once the extreme weather had past. 

Our largest bottlenecks during the storm were both the physical infrastructure and the nature of how our power grid functions.

As mentioned , February is historically not a peak demand season in Texas. This meant that several power plants were previously scheduled to undergo maintenance because they didn’t expect to be called upon to generate power this month. The maintenance process varies by power plant type, age and other factors. The duration of the maintenance can last for days, weeks or months depending on the needs of the respective power plant. Once a power plant is undergoing maintenance or a full shutdown, they can’t immediately flip the switch to be back online.

On February 8, ERCOT sent an Operating Conditions Notice (OCN) to all power generators to prepare their power plants for the anticipated winter storm. The Chron outlines the timeline that followed in this article which is derived from the Operating Messages sent by ERCOT in the days to follow.

Power generators received about a four to five day notice to prepare their facilities. Whether or not this was sufficient time for the power plants that were offline to come back online is truly dependent on where they were in their maintenance/shutdown process.

As the winter storm moved in, we also began to see unplanned outages at the power plants that were still online. These outages occurred for a couple of reasons: 1) infrastructure at the facilities was not prepared for harsh winter weather, and 2) at some point, access to the fuel sources was also obstructed by the winter weather conditions.

Why didn’t we have any back up power?

Looping back to how our power generator makes money: Since they only receive “energy payments” and not “capacity payments,” power generators are not incentivized to build and manage back up power facilities, so they don’t.

In a time of crisis, our “Power to Choose” worked against us.

The outcomes of Winter Storm Uri shed a light on fundamental opportunities for improvement to our power grid. The same structure that was set up to save us money on electricity, also worked to disincentives investments in infrastructure that could have prevented the massive outages that occurred last week. 

There are so many other factors we can discuss around this topic, but for now, we want to leave you with an objective outline so that you, dear problem solver, can use this information as you digest and prepare for the decisions to come.

What will Texas choose going forward?

What do we truly want as consumers when it comes to our access to electricity? 

 

Helpful Links for Additional Research: