Raimondo's ad touts the investment in 24 major companies -- with a lack of diversity in leadership.
Governor Gina Raimondo’s re-election ads highlight what she touts as the success of her nearly four years in office, and the focus is on her investments in growing the Rhode Island economy.
One commercial, titled, “Tall Glass,” shows beer being poured into a glass and Raimondo sitting at a bar, with the ad claiming, “In the last four years in Rhode Island...twenty-four new or expanded major companies...here's to every Rhode Islander helping rebuild our state."
A GoLocal review of the 24 featured companies finds that the touted businesses are all led by men and that none of their top executives are Black or Hispanic.
The companies receiving state incentives to grow jobs in Rhode Island range from global companies like General Electric, Johnson & Johnson and Infosys to smaller companies like Supply Surplus who has expanded to Woonsocket as a result of the state’s incentives.
"As Rhode Island's first female governor I know how important it is for women to help each other doesn't matter if you're in politics, business or sports there's power and strength in numbers and by the way the numbers are on our side women are half the population and half of our world's brainpower if we're gonna solve our world's biggest problems everybody has to be at the table," said Raimondo in a recent promotional video for FEMpower.
Raimondo's campaign defended her record. "Governor Raimondo is a relentless advocate for Rhode Island women. Since Governor Raimondo took office, the number of minority and women-owned businesses in the state has increased by 33 percent. Just this month she announced the extension of a working group that helps minority and women-owned construction businesses," said Emily Samsel, the spokeswoman for the campaign.
But according to one report, Providence is the worst city in the country for Hispanic entrepreneurs. According to a recent study completed by WalletHub, Providence ranks 150th out of 150 ranked cities when it comes to Hispanic entrepreneurs. This is the second straight year in which Providence ranks last.
Raimondo's top Democratic primary challenger took on the issue. "As you know, Matt doesn’t support hand-outs to big corporations. As Governor, he would focus on supporting small business, including local businesses owned by women and people of color," said Juliet Barbara, spokeswoman for Brown.
Women Outperform Men, According to New Study
According to Boston Consulting Group, startups founded by women outperform males despite receiving less in funding.
“According to our research, when women business owners pitch their ideas to investors for early-stage capital, they receive significantly less—a disparity that averages more than $1 million—than men. Yet businesses founded by women ultimately deliver higher revenue—more than twice as much per dollar invested—than those founded by men, making women-owned companies better investments for financial backers,” according to BCG’s report.
The report looked at a wide range of data tied to the investments tied to the Mass Challenge. According to BCG:
Investments in companies founded or co-founded by women averaged $935,000, which is less than half the average $2.1 million invested in companies founded by male entrepreneurs.
Despite this disparity, startups founded and cofounded by women actually performed better over time, generating 10% more in cumulative revenue over a five-year period: $730,000 compared with $662,000.
In terms of how effectively companies turn a dollar of investment into a dollar of revenue, startups founded and cofounded by women are significantly better financial investments. For every dollar of funding, these startups generated 78 cents, while male-founded startups generated less than half that—just 31 cents.
As BCG reported, "Jenny Abramson, Rethink Impact’s founder and managing partner, says, 'Twenty years ago, female founders got a higher percentage of VC dollars than they do today. This is surprising when you consider the fact that data now shows that companies with gender-diverse management teams perform better financially. Our team believes that the next generation of extraordinary companies will find success through their diversity, coupled with a relentless pursuit of mission, for the benefit of all communities.'"
Trouble for Some Major Companies RI Has Invested In
Some of the major companies Raimondo’s Commerce Corporation has invested in have hit significant troubles.
General Electric has hit a number of business setbacks. In June, GE was removed from the Dow Jones Industrial Average. Bloomberg wrote a feature story in February, “How GE Went From American Icon to Astonishing Mess -- Famous for great management, General Electric is staring down a plunging share price, a federal investigation, and possible breakup.”
In Rhode Island, GE was slated to have hired 100 by the beginning on 2019, but to date has hired less than 60.
This past week, Infosys took another major hit. The Indian tech giant had another leadership controversy.
“Infosys, once the bellwether of India’s showpiece $154 billion IT industry, last year witnessed a public row between founding executives and then-CEO Vishal Sikka over alleged corporate governance lapses. Sikka eventually exited the company in August 2017,” Reuters reports.
“The resignation of Infosys CFO MD Ranganath within three years of his predecessor Rajiv Bansal putting in his papers has caught the IT industry by surprise. The Infosys board announced on Saturday that the resignation of Ranganath, a veteran, has been accepted...Industry sources pointed out that it was quite unusual for a CFO to quit before the board could find a replacement for him," reported the Hindu Business Line.
As GoLocal reported at the time of the Infosys announcement:
The controversial company has been rocked in recent months. CIO magazine reports, "Of late, Infosys has been rocked by controversies. The company has its founders and the current management at odds with each other. Here's a quick glance at the major recent outbursts...For the past one year, Infosys has been the center of various controversies. Be it Vishal Sikka, the recently resigned CEO and MD’s salary, or the public tiff between the founders and the current management of the company."
"Today's partnership with Rhode Island marks another important step forward for Infosys in the United States. The state's educational institutions, design-rich environment, and economic development tools positioned Rhode Island competitively for this type of specialized partnership. This will enhance our ability to provide design-driven, digital technologies across the country and enable breakthrough innovations at the intersection of industry and design for our clients,” said Ravi Kumar, President of Infosys.
“We are excited to welcome Infosys to Rhode Island. Because of our investments in higher education and job training at CCRI and other institutions across the state, Rhode Islanders are well-equipped and well-prepared to compete for these good-paying jobs. Infosys joins a growing local market of innovative, advanced industry companies that have chosen to plant a flag in Rhode Island," said Raimondo. READ MORE HERE
Related Slideshow: GoLocal Statewide Poll - Conducted by Harvard’s Della Volpe - June, 2018
Q4: When it comes to voting, do you consider yourself to be affiliated with the Democratic Party, the Republican Party, Moderate, or Unaffiliated with a major party?
Q5: Next year, in November of 2018, there will be a statewide general election for Governor and many other state offices. How likely is it that you will vote in this election? Will you definitely be voting, will you probably be voting, are you 50-50...
Definitely be voting.............................. 81%
Probably be voting............................... 19%
All others............................................. 0%
Q20: If the election for Governor were held today and the candidates were: Democrat Gina Raimondo, Republican Allan Fung and Independent Joe Trillo - for whom would you vote?
Q20: If the election for Governor were held today and the candidates were: Democrat Gina Raimondo, Republican Patricia Morgan and Independent Joe Trillo - for whom would you vote?
Q21: If the election for Governor were held today and the candidates were: Democrat Matt Brown, Republican Allan Fung and Independent Joe Trillo - for whom would you vote?
Allan Fung, a Republican..................... 35%
Matt Brown, a Democrat...................... 25%
Joe Trillo, an Independent.................... 14%
Q22: If the election for Governor were held today and the candidates were: Democrat Matt Brown, Republican Patricia Morgan and Independent Joe Trillo - for whom would you vote?
Matt Brown, a Democrat...................... 30%
Patricia Morgan, a Republican............. 20%
Joe Trillo, an Independent.................... 18%
Q23: If the election for the U.S. Senate were held today and the candidates were: [ROTATE] Democrat Sheldon Whitehouse and Republican Robert Nardolillo - for whom would you vote?
Q24: If the election for the U.S. Senate were held today and the candidates were: [ROTATE] Democrat Sheldon Whitehouse and Republican Robert Flanders - for whom would you vote?
Q25: If there was an election today, would you vote to approve or reject issuing $250 million in financing supported general obligation bonds to repair Rhode Island's deteriorating school buildings and bring them up to minimum standards called "warm, safe and dry"?
Q26: The Rhode Island General Assembly is in the process of negotiating a $40 million public financing deal with the Pawtucket Red Sox for a new stadium, hoping to bring a vote before the House and Senate this summer.
In general, do you favor or oppose the use of public funds to help finance a new stadium for the Pawtucket Red Sox?
Q27: The City of Providence and the state of Rhode Island are considering a proposal by New York developer Jason Fane to build a 46-story luxury residence tower in Providence, next to a public riverfront park. The developer will invest $250 to $300 million of his own funds. The project is called the Hope Point Tower, it would be 170-feet taller than the Superman building and would require waiving height restrictions and the use of state tax credits.
In general, do you favor or oppose development of the Hope Point Tower?
Q29: Since it was launched in 2016, UHIP -- the Rhode Island program designed to improve customer service for those who receive federal benefits -- has run into significant problems, including long lines, cost overruns, lost applications, over- and under-charging of patients and families.
Based on what you know at this time, what percent of blame for this do you assign to:
Deloitte, the consulting company who
produced the system........................... 53.3%
Governor Gina Raimondo, who has
been governor since the system
launch in September 2016................... 47.1%
Q30: Presently, there are local groups opposing the development of a natural gas facility in Burrillville, solar projects in Exeter, a LNG facility in Providence and wind projects in North Kingstown.
Some people say that it is important for local groups to play a role in opposition of projects like these that could be dangerous or harmful to citizens;
Others say that local groups have gone too far to the detriment of the state’s long-term energy needs.
Which statement comes closer to your own view?
Local groups play an important role...... 46%
Local groups have gone too far............. 31%
Not sure................................................. 24%
Q32: The next question is about the total income of YOUR HOUSEHOLD for the PAST 12 MONTHS. Please include your income PLUS the income of all members living in your household (including cohabiting partners and armed forces members living at home).
$50,000 or less.................................... 33%
More $50,000 but less than $75,000..... 18%
More $75,000 but less than $100,000... 16%
More $100,000 but less than $150,000. 13%
$150,000 or more................................ 10%
Q33: What particular ethnic group or nationality - such as English, French, Italian, Irish, Latino, Jewish, African American, and so forth - do you consider yourself a part of or feel closest to?
