InnerCity Entrepreneurs (I.C.E.)

About I.C.E.

InnerCity Entrepreneurs (I.C.E.) is a nonprofit membership organization that fills the gap in small business development. Focusing on existing businesses located in lower income communities capable of growth, the organization offers its members a nine-month ‘StreetWise M.B.A.’™ to help entrepreneurs set specific milestones, develop a three-year strategic growth plan, and network with peers, experts, coaches, and capital providers. By helping small businesses to create jobs, generate local wealth, and play leadership roles in their own communities, I.C.E. seeks to address many of the core problems facing lower income communities today.

I.C.E.’s Approach to Performance Measurement

I.C.E. has a robust evaluation system, beginning with the collection of data for its performance measurement system by tracking the number of applications received and collecting financial data on the businesses accepted into its membership community. Throughout its ‘StreetWise MBA’, I.C.E. uses a formative evaluation process, distributing assessment forms following every session to measure the quality of their services. Members are also surveyed annually to assess the impact of the ‘StreetWise MBA’ on the entrepreneurs and their businesses, and also to measure the organization’s progress towards fulfilling their mission of driving small business development.

The Benefits

I.C.E.’s robust performance measurement system has proven instrumental in honing the organization’s approach to small business development. In one of its early years, I.C.E. identified a drop in applications from potential members. Further investiga¬tion indicated that the businesses I.C.E. targeted generally took more time to decide to commit to the organization’s rigorous business-training programs than the recruitment process allowed. As a result, I.C.E. started its recruitment process for the following year six months earlier than usual. Consequently, I.C.E. received more applications to than in earlier years—in fact, 60 percent more applications than the previous year.

I.C.E. has also used data to prove its effectiveness. The organization has always made a commitment to tracking and communicating its results to external stakeholders through an annual external report, which we call a report card, helping the organization retain its original social impact investors while attracting new ones. For example, in 2005, I.C.E. found that its graduates in its first two years of operation had created 77 new part- and full-time jobs in Boston. Fifty-nine percent of those jobs went to residents from the businesses’ local neighborhoods. Reporting this performance data externally helped I.C.E. secure several new funding sources, including a multi-year funder who helped to cover the salary of a CEO, a new position aimed at enabling the organization to scale nationally. By 2009, I.C.E. had launched two more Massachusetts locations in Worcester and the Merrimack Valley. The organization also secured a partnership with the Small Business Administration (SBA) through its Emerg¬ing 200 (e200) Initiative in order to bring I.C.E.’s StreetWise Steps™ curriculum to 15 cities across the United States.

Keys to Success

• Look for opportunities to improve all aspects of your activities. Sometimes small changes can lead to big improvements. When I.C.E. responded to data showing a drop in applications by altering its recruiting practices, the result was a significant increase in its applicant pool.
• Demonstrate a public commitment to performance measurement. By publicly reporting its data on an annual basis I.C.E. has succeeded in attracting investors who have enabled the organization’s growth.

Additional Resources on Performance Measurement from I.C.E.

I.C.E. 2008 Report Card: The latest version of I.C.E.’s annual public report on performance measurement provides an powerful example for organizations seeking ways to report their own data.