Q & A

We recently sat down with Audra Ladd to find out more about her passions, her calling and generally dive in deeper to get to know her.

2

What are some of the biggest challenges you’ve faced in your work over the last few years?

I feel like COVID showed us so much about our broken system, but also how resilient parts of it could be—not just about the money, but how we support one another when things are difficult to shift. It also highlighted how important domestic manufacturing is. It’s good we have this commitment from the federal government to really invest in our supply chain, but in order to truly do it right, we need to revise and evolve our financial system and also acknowledge where the money is going so that we can make sure it goes to the right folks. We also need to talk about things that can impact industry, like childcare. Nearly 2 million women have left the workforce since COVID. For some manufacturers, they will take it upon themselves to figure out an option like daycare on site or some subsidized pool. But larger manufacturers are very aware that maintaining talent is the number one issue and they are trying to figure out what that looks like. Whenever you have major events, you see this boom of new companies that launch out of recessions or economic depression. I don’t think COVID will be different. Now the key is, how do we help them grow?

3

Developing alternative business models to the startup status quo has become a central moral challenge of our time. These alternatives want to balance profit and purpose and put a premium on sharing power and resources. Why is getting investments in this alternative model crucial for those who seek it?

In traditional lending that manufacturers, not only does it take more money but also takes more time to pay back the loan. We really work with bankers who understand both the scale that’s needed and the timeline that is needed—that is why we have pathways to patient capital. At UMA, we work closely with a practitioner cohort to build on existing programs and create pathways to capital access by uniting a range of capital investors. We also convene a group of policymakers, investors, and other thought-leaders in the capital access space through the Capital Access Advisory Board. These leaders may not serve manufacturing-related businesses directly, but their expertise on capital needs and diversity, equity and inclusion can inform and scale the work of the practitioner cohort. The best part is hearing the success stories!

4

How do we shift the narrative about the role of capital in BIPOC communities and reframe the perceptions of the risk involved?

Just acknowledging that manufacturing is a pathway to wealth building is a start. This idea is something that has been lost. Talking about entrepreneurship in a broader context, and really looking at the impact of place. We have a lot of communities that are struggling with historical disinvestment, by alternating what can be done in spaces, allowing small batch manufacturers to function in more places. This can actually create wealth in your business, in the community. We have to also acknowledge that there is structural racism in our lending system. At UMA, we are bringing Community Development Financial Institutions (CDFIs) in a cohort form and network. Then we have a manufacturer looking for capital, we can connect into that CDFI. I’m really positive to what is happening, but it also to happen on multiple levels: funding, the funders and how they look at investments, changing what we can do in communities to retain people’s amazing ideas and also the overarching policy that is happening at the federal and state level to all deploy patient capital within manufacturing.

5

What are the top three pieces of  advice you would give to BIPOC entrepreneurs, who are dedicated to both purpose and profit, as they are starting or scaling their business?

1. Really understand your business model and the profitability within that business model. And whether or not it is scalable, and whether or not you want to scale it first. Start with the end in mind. Find a financial partner that understands you personally and your business–start forming a relationship. Look to the CDFIs, not just the banks you conduct your personal business.

2. Build your community. Figure out who else is in your situation and reach out to find out how they did it. Manufacturing, especially small bath manufacturers, are extremely generous with information and knowledge.Put together a team of advisors that can really help build networks, opportunities and think think through strategy to help the business grow.

3. If you are somebody who is thinking about going into manufacturing, don’t discount acquiring a company. There are hundreds of thousands of small manufacturers businesses run by people of retirement age, mostly white men who don’t have a succession plan. Acquiring a company is actually an easier lift than starting one and you still need to be an entrepreneur to do it. Acquisition as entrepreneurship!

6

What is the call to action for investors who seek to promote social justice through investment solutions?

Find groups or entities that you can really lean into and provide your investment that will invest in the way you want. CDFIs across the country could use an infusion of capital from private investors, and they just don’t know that’s a possibility. Get involved. Don’t just write the check, but get involved in how it gets deployed. I think there are a lot more opportunities to increase program relation investment in this space, and help make this change. It’s going to take our philanthropies to not just invest their interest, but their principle. Every one of us can be an investor. I think there is the ability to impact the work and life of a manufacturer beyond buying their goods. So if you love a company, don’t hesitate to ask the company how you might be able to invest either financially or with knowledge/connections to their business. And also, join ICC!