Game Plan for Growth

Mapping our Route to Impact

In 2023, Burton D. Morgan Foundation embarked on a pivotal expedition, not through uncharted territories, but within the very framework that defines our mission. This strategic journey involved both our dedicated staff and insightful board members, all committed to honoring the beliefs and intent of our founder, Burt Morgan, while refining our path and intensifying our impact on Northeast Ohio's economic landscape. This process was not merely about sustaining momentum but about accelerating it, ensuring that every step we take is imbued with purpose and potential.

Throughout the year, we worked diligently to realign our funding and program focuses to foster robust growth in both nascent and mature businesses. A prime example of our innovative approach is the continued development of YIPPEE Exchange, a groundbreaking platform that enables K-12 educators to seamlessly integrate entrepreneurship education into their classrooms, ensuring that the next generation is equipped to navigate and shape the future economy of Northeast Ohio. From igniting the entrepreneurial drive in our youth to empowering established businesses with the tools to scale up, our game plan is set to create enduring value in the communities we serve.

The Foundation defined strategic guiding principles that are pivotal in shaping our actions and decisions. We are committed to preserving the free enterprise system and supporting entrepreneurship not only by getting closer to entrepreneurs but also by embodying an entrepreneurial spirit within our own operations. We are sharpening our focus and consolidating our activities to target areas where we can exert the greatest influence, always with an eye toward need, demand, and optimal leverage.

Our actions and decisions are profoundly influenced by our newly articulated core values, which include championing free enterprise, being entrepreneurial, pursuing excellence and producing meaningful impact, being accountable and trustworthy, respecting and empowering others, supporting equity and inclusiveness, and embodying passion and engagement. These values inspire every initiative we undertake and every partnership we forge. Speaking of partnerships, our new collaboration with the Edward Lowe Foundation is a landmark step toward expanding our impact. Through this alliance, we offer a suite of entrepreneurship programs at no charge to second-stage entrepreneurs in Northeast Ohio, designed to elevate their ventures to new heights of success and sustainability.

This strategic planning process was not only a testament to our commitment to future growth but also a profound homage to the wisdom, philosophy, and entrepreneurial spirit of Burt Morgan. A serial entrepreneur who believed fervently in the power of free enterprise, Burt’s vision was clear: to dedicate his resources to advancing entrepreneurship and entrepreneurship education and preserving the free enterprise system. This vision guided our planning process throughout 2023, ensuring that every strategic decision we make reflects our founder's legacy and propels his mission forward, enabling entrepreneurs of all ages and stages to learn, grow, and succeed.

As we present this annual report, we invite you to join us on this journey. This document is not merely a reflection of the past year; it is a forward-looking commitment to the paths we will embark upon together. Burton D. Morgan Foundation is poised for a future where growth is not just a goal but a guarantee, powered by a clear, strategic game plan and a community of innovators eager to drive change. Join us as we turn plans into action, and ambitions into achievements, for a thriving Northeast Ohio.

First Moves

Microgrants Setting the Stage for Startup Success

In the strategic game of entrepreneurship, every move counts—especially the first ones. In 2023, Burton D. Morgan Foundation significantly advanced its recently established microgrants program, achieving full participation from 17 colleges and universities across Northeast Ohio. This milestone year marked a major escalation in our efforts to grow startup ventures, building on the pioneering journey that began in 2021. Aptly aligning with our annual report theme, 'Charting a Course,' we continued to expand the frontier of startup ventures in 2023, turning budding ideas into successful businesses through strategic funding injections coupled with mentoring and instruction.

In 2023, grants totaling $243,140 were awarded to 12 colleges and universities to support the microgrants initiative, bringing the cumulative funding total to $430,550. The schools distributed this funding to student entrepreneurs to help them launch new businesses or grow their early- stage ventures. Since the program’s inception, 502 microgrants have been awarded to startups, nurturing a broad spectrum of entrepreneurial ventures. Beyond financial support, participating institutions provided invaluable educational programming and guidance, equipping students with the skills and knowledge necessary to navigate the turbulent waters of entrepreneurship. These microgrants, typically ranging from $500 to $1,000, proved not only beneficial but were often transformative, empowering students to focus on key areas of their ventures and take them to the next level.

The feedback received from staff, faculty, and recipients was overwhelmingly positive, painting a picture of a successful strategy in fostering early-stage business growth. One recipient, reflecting on the impact of this initiative, shared, "This program has not only helped my business immensely but has changed the way I view myself as a woman in business. The resources and mentorship have allowed me to realize that starting a business at a young age isn't only doable, but seeing early success is possible!" Such testimonials confirm our hypothesis upon engaging in this experimental initiative that small infusions of cash, when combined with supportive, educational programming, can make a big impact.

Among the various startups propelled by this initiative, one standout success story is Dorm Dudes Break, a venture founded by students at Ashland University. Launched in early 2023, this innovative enterprise set out to sell sports memorabilia through vehicles like TikTok Live Streaming. The company utilized a $3,000 microgrant for crucial legal services and for inventory. By the year’s end, Dorm Dudes Break had escalated to a stage 2 company, boasting over $2.5 million in sales.

The entrepreneurial team behind Dorm Dudes Break masterfully expanded their operations to over 14 hours of live streaming daily, engaging an ever-growing customer base and employing eight individuals. Their journey from a fledgling startup to a rising contender on the entrepreneurial board game in Northeast Ohio underscores the profound impact of microgrants and educational support. It also highlights the critical role of strategic early funding and mentorship in navigating the complexities of scaling up operations.

Reflecting on the resounding success of this experimental initiative, we're spurred on to further deploy resources as ladders, helping entrepreneurs climb to new heights. What began with microgrants for early-stage ventures on Northeast Ohio campuses, now dubbed Morgan Startup Grants, has expanded beyond academia to include organizations known for their dedication to fostering startup triumphs. Morgan Foundation remains steadfast in its commitment to innovative approaches for channeling crucial capital into the hands of entrepreneurs. As we strive to maximize our impact and navigate this exciting terrain, we eagerly anticipate the unfolding of more success stories, enriching our contribution to the flourishing landscape of entrepreneurship and a thriving economic community.

Leveling Up

Partnering to Accelerate Business Growth

Amidst several priorities that emerged from Burton D. Morgan Foundation’s strategic planning process in 2023, one stood out with profound significance – the need to redouble our commitment to supporting second-stage businesses. With annual revenues ranging from $1 million to $50 million, scale up businesses represent the backbone of our economy, driving innovation, job creation, and sustained economic growth, yet there is far less support available to them than startups.

Second-stage companies, often referred to as scaleups, stand at a crucial juncture in their journey. They have proven their mettle and secured a foothold in the market, yet they face unique challenges on their path to expansion. We wasted no time embarking on a mission to identify opportunities to empower second-stage entrepreneurs and catalyze growth across the region. By year’s end, we had forged a partnership with the Michigan-based Edward Lowe Foundation to equip this important subset of entrepreneurs with the tools and resources they need to flourish in today’s competitive landscape and catalyze growth across the region

Together, we are co-investing funds to provide motivated second-stage entrepreneurs with high-quality programming and opportunities that are tailored to their specific needs, free of charge. Developed and administered by Edward Lowe Foundation, programming is available both virtually and in person and includes immersive retreats, roundtable discussions, mentoring, and networking. In 2023, our inaugural retreat at the Edward Lowe Foundation drew 17 entrepreneurs from across the region. Fueled by a commitment to innovation, these entrepreneurs seized the opportunity to connect, learn, and grow. Their feedback was resoundingly positive, with attendees lauding the event for its transformative impact. In the words of one retreat participant, "The fact that ELF [Edward Lowe Foundation and BDM [Burton D. Morgan Foundation] exist for business owners is just unheard of; as a matter of fact, it’s mind-blowing. It’s so hard to believe that someone out there actually wants to help you with your business." Guided by the expertise of the Edward Lowe Foundation, these entrepreneurs continued their journey virtually, participating in roundtable discussions to spark innovation and drive additional growth.

As we continue to chart the course for growth and prosperity, we remain steadfast in our commitment to supporting second-stage entrepreneurs through a variety of avenues. Scalerator NEO, a six-month cohort-based educational program for leadership teams, was launched by Morgan Foundation and the Richard J. Fasenmyer Foundation in 2017, and continues to excel, offering a lifeline to businesses seeking to accelerate their growth trajectory. Developed by Daniel Isenberg, a luminary in the field of entrepreneurship education, and led by industry experts, the program empowers leadership teams to unlock their full potential, driving tangible results and sustainable growth. Scalerator NEO boasts impressive results, with more than 75% of participating companies doubling their growth within twelve months of program completion. To date, 84 companies from our region have graduated from the program, with more in the pipeline.

As part of our collaborative strategy to fortify second-stage companies, Morgan Foundation is also actively engaging in partnerships with nonprofit organizations through targeted grantmaking initiatives. Last year, we allocated a grant of $200,000 to bolster Greater Cleveland Partnership’s (GCP) efforts to advance minority-owned businesses, reflecting both our steadfast commitment to nurturing growth in second-stage enterprises and our belief in the need to address systemic racial inequalities that hinder economic progress in our region. These endeavors have yielded tangible results, exemplified by a recent article spotlighting GCP's pivotal role in facilitating multi-million dollar deals for two minority-owned businesses.

As we journey onward to support businesses in scaling, we draw inspiration from the perseverance and successful entrepreneurial career of foundation founder Burt Morgan, and we are guided by the spirit of collaboration and innovation. Through strategic partnerships with likeminded partners, we can pave the way for accelerated growth, innovation, and prosperity in Northeast Ohio.

Game Changer

YIPPEE Innovates Entrepreneurship Education in the Classroom

In the realm of education, innovation is not merely a luxury but a necessity. It is a force that drives progress, empowers individuals, and transforms communities. At Burton D. Morgan Foundation, we have long been champions of entrepreneurship education, recognizing its power to ignite young minds and shape the leaders of tomorrow. This commitment to innovation and empowerment led us to collaborate with our long-time partner, Young Entrepreneur Institute, on the development of YIPPEE Exchange—an online platform that has revolutionized entrepreneurship education for K-12 students.

YIPPEE Exchange embodies our foundational beliefs in empowerment, inclusion, and innovation. Born from a decade of experience in building a youth entrepreneurship education ecosystem in Northeast Ohio, YIPPEE Exchange was officially launched in 2022 with the goal of providing K-12 educators with access to high-quality entrepreneurship resources at no cost. Through a market-based approach to philanthropy, educators are empowered to decide what resources best suit their students' needs using a points-based system. This innovative model not only ensures accessibility and efficient allocation of resources, but also fosters a sense of community and agency among educators.

Throughout 2023, our focus was on optimizing YIPPEE Exchange. We worked tirelessly to enhance the user experience, expand the range of products available on the platform, and attract new educators to join our growing community. By the end of the year, we had achieved significant progress, with 165 products available for purchase and 1,874 educators registered on the platform.

As we reflect on the successes of 2023, we are particularly proud of a significant milestone in the evolution of YIPPEE Exchange - the introduction of funding partnerships. This groundbreaking development represents a new chapter in our journey—a testament to our commitment to innovation and our willingness to embrace new, entrepreneurial endeavors. The Walton Family Foundation's investment in the platform to build youth entrepreneurship in Northwest Arkansas serves as a shining example of YIPPEE Exchange as a game changer, transforming communities and inspiring the next generation of entrepreneurs.

The funding received from the Walton Family Foundation marks the beginning of a new era for YIPPEE Exchange—one focused on collective giving, through which funders can now easily and directly support entrepreneurship education in the areas they care most about. This innovative funding model allows donors the opportunity to support educators and invest in the platform with minimal risk, as dollars follow demand, and with ease, as Morgan Foundation takes care of the administrative details. It also helps to ensure the sustainability of YIPPEE Exchange, while allowing us to expand our reach and impact, bringing the benefits of entrepreneurship education to educators and students outside the borders of Northeast Ohio.

We are excited about the possibilities that lie ahead for YIPPEE Exchange. With the continued support of our partners and educators and the addition of new funders, we are confident we can build on the successes of 2023, enabling educators to instill the entrepreneurial mindset and empowering the next generation of entrepreneurs as they navigate the game board of life. Together, we can meet the challenges ahead, overcome obstacles, and create a future where every student can unleash their potential and make a positive impact. With YIPPEE Exchange as our compass, the possibilities are limitless.

Do you want to see more kids connected with real-world, skill-building experiences? Donate today to become part of the YIPPEE movement. No amount is too small to make a difference.