Wednesday, July 1, 2009

Senator Hagan Talks Shop with Small Business Owners in Western North Carolina

Senator Kay Hagan (D- NC) made a visit to AEO member Mountain BizWorks in Asheville, NC on Friday, June 26 to host a small business roundtable with seven BizWorks clients. As they took turns sharing their stories with the Senator, one thing became apparent – Mountain BizWorks played a huge role in the success of each business. “Mountain BizWorks is the only reason I am here,” says Jay Weatherly, owner of The Dripolator in downtown Asheville. “They supported me and challenged me the whole way.” Almost all the entrepreneurs got started with a microloan from BizWorks, but the personal investment by the staff was what really made the difference. “BizWorks gave me a shoulder to lean on. They really advocate for us [small business owners] and I really appreciate that support and having someone in my corner,” says Sheryl Rudd, co-owner of Heinzelmannchen Brewery in downtown Sylva.

Ironically, funding for entrepreneur training and technical assistance programs is hard to come by. But as these entrepreneurs demonstrated at the roundtable, it can make the difference between business success and failure. The Small Business Administration (SBA) PRIME program (Program for Investment in MicroEntrepreneurs) provides funding to nonprofit organizations like Mountain BizWorks to provide in-depth and intensive, one-on-one business counseling and training. In order to meet the needs of emerging and existing entrepreneurs in the new economy and to make the program available in more states, AEO is recommending $15 million for PRIME in Fiscal Year 2010. To learn more read our PRIME sign on letter.

The following Mountain BizWorks clients participated in the roundtable discussion with Senator Hagan.

Together these seven entrepreneurs created 50 jobs in Western North Carolina.

Monday, June 22, 2009

AEO Member Spotlight

The Women's Economic Self-Sufficiency Team (WESST)

About the Organization

Location: Statewide in New Mexico, with headquarters located in Albuquerque, NM.

Populations Served: Historically, WE
SST has primarily served low-income women and minorities in New Mexico but extends its services to any entrepreneurs who want to start or grow a business. Since its inception 20 years ago, WESST has facilitated the start-up of 2,025 businesses, the creation of over 3,100 jobs and the provision of $3.5 million in capital to 420 borrowers.

In 2009, WESST opened the WESST Enterprise Center (WEC), a 37,000 square foot LEED-certified small business incubator in downtown Albuquerque. Once fully occupied, the WEC will house between 18 to 22 growth-oriented businesses, each with the ability to create jobs for low-to moderate-income individuals.

Microenterprise Development Services Provided: WESST offers classes, workshops, seminars, consulting, loans, and business incubation. Over 50 training programs are available for clients, ranging from workshops on basic keyboarding skills and seminars like “Facebook for Business” to a 12-session course called Marketlink that addresses business goals, strategies, and set-up.

Mission Statement: The mission of WESST is to facilitate economic self-sufficiency through sustained self-employment, particularly for its target market of low-income women and minorities in the state of New Mexico. Founded in 1988, WESST promotes entrepreneurial development by offering clients a comprehensive array of training, technical assistance and access to capital services targeted to both sta
rt-up and existing businesses.

WESST receives a donation check of $15,000 from Allstate Insurance Company in support of the WESST IDA Program in Albuquerque and Las Cruces. From left are Clare Zurawski, Albuquerque Regional Manager for WESST; Barbara Lopez, IDA Program Coordinator for WESST; Scott Glazier, Territorial Sales Leader for Allstate; Agnes Noonan, Executive Director of WESST; and Karen McCann, Market Distribution Leader for Allstate.

Why Does Microenterprise Matter?

Why does microenterprise development matter in your community?
Small business is the backbone of the New Mexico economy. There are very few large corporate employers, particularly in rural areas.

What are the most pressing needs of entrepreneurs in your community?
Business management skills and access to capital are always in demand. Most of our clients come to us as experts in their given field with little experience actually marketing their product o
r service, managing people or business finances.

How is your organization assisting entrepreneurs survive the recession?
There is obviously no magic formula to survival, but in the case of our loan fund, we are allowing our borrowers to restructure their loans to get through these tough times. We are also offering training and consulting in affordable marketing strategies such as search engine optimization and social media. We are committed to developing our incubation program so that the early stage companies located at the WESST Enterprise Center will be well positioned to not only survive
, but to leverage this economy to their benefit.

How do you think the US microenterprise development field can best help microentrepreneurs nationwide?
Microenterprise development programs can best help entrepreneurs nationwide by listening carefully to their needs and responding with as much depth and quality as possible. Some entrepreneurs need to change their core business model to survive; others need to cut costs and leverage the Internet to find new customers. To support small businesses effectively, our own organizations must adapt to the “new normal,” model the best practices we advise our clients to employ, and find ways to innovate ourselves.



WESST Enterprise Center,
609 Broadway Blvd. NE,
Albuquerque, NM 87102


Organization Successes and Challenges

What was your biggest success in 2008?
Finalizing the construction and set up of a new building, the creation of a small-business incubator and moving into the new facility was a great success for WESST. The culmination of several years of diligence made the WESST Enterprise Center a reality.

What was your biggest challenge in 2008?
Managing ongoing business training and creating new material for WESST clients appropriate to the economic situation while simultaneously moving into the Enterprise Center was a challenge, but the WESST staff achieved a seamless transiti
on.

What are your goals for 2009?
• To continue to grow the WESST Enterprise Center incubator program by recruiting new companies, and to be fully occupied by the end of 2010.
• To develop and implement strategies regarding WESST’s distance learning initiative.
• To grow the WESST Loan Fund by 10%.

Organization Statistics

In 2008
Clients served: 1,265
Microloans: 43
Dollars loaned: $698,250
Average loan: $16,238
Jobs created by microenterprise clients: 162

Cumulative (last 10 years)
Clients served: N/A
Microloans: 410
Dollars loaned: $3,302,649
Average loan: $6,051
Jobs created by microenterprise clients: 3,100











WESST Grand Opening – Ribbon cutting ceremony.
From left: Dr. Jacki Peiracci Riggs, Senator Jeff Bingaman, Mayor Martin Chavez, Lt. Governor Diane Denish, WESST Past-Chair Carol Radosevich,
EDA regional Manager Pedro Garcia and WESST Executive Director Agnes Noonan.

Wednesday, June 17, 2009

AEO Community Helps Entrepreneurs Find Opportunity in the Green Economy

The Green economy is regarded by many as the next big business wave and has been touted by some, including President Obama, to have great potential in creating new jobs. The U.S. microenterprise development industry is responding to this new market opportunity and launching innovative green business support services including loans specifically geared towards environmentally friendly services and products and helping existing business owners go green.

Green Innovations in the AEO Community
In Georgia, AEO member Appalachian Community Enterprises (ACE) recently launched the Georgia Green Loans program to provide $35,000 or less in business capital to help entrepreneurs green their businesses. Grace Fricks, ACE President and CEO says the new loan program will soon be available statewide through partnerships with Albany Community Together in Albany, GA and the Small Business Assistance Corporation in Savannah, GA. “Green is not a fad,” Fricks said. “It’s the future for all of us.”

In New York City, AEO member ACCION USA is a partner in the city’s Green Carts program. The initiative promotes access to healthy foods and supports street vendors who sell fresh fruits and vegetables in neighborhoods where the majority of the population report rarely consuming the recommended daily serving of fruits and vegetables. ACCION USA offers reduced-interest rate loans to Green Cart vendors to provide them with the money to purchase a cart and the inventory to get started.

While many AEO members do not yet have a formal green loan program, they’re still finding ways to support their clients’ eco-interests. The Utah Microenterprise Fund in Salt Lake City has previously given funds to businesses like Eco Moto, an alternative transportation specialty store.

Resources for AEO Members
EcoVentures International, an AEO member in Washington, DC provides consulting services, tools, and training to help microenterprise development organizations assist their microenterprise clients to understand and take advantage of the new opportunities in the green economy. At the AEO National Summit on Entrepreneurship last month EVI presented the Rural Enterprise Development and the Green Economy workshop, which discussed the trends and tools needed to link rural entrepreneurs to green sectors and markets. (To download the training materials, click here).

Also at the National Summit, Melissa Bradley-Burns, Senior Strategist for Green For All, delivered a rousing challenge to the microenterprise development field to “escalate and elevate” their work as green jobs take center stage in the Obama economic recovery process. Green For All is a national organization dedicated to improving the lives of all Americans through a clean energy economy. The group works in collaboration with the business, government, labor, and grassroots communities to create and implement programs that increase quality jobs and opportunities in green industry – all while holding the most vulnerable people at the center of its agenda. Audio of Melissa’s speech will be available on AEO’s website soon.

Entrepreneurs can also find sources for environmental grants and loans, including pollution control loans, green technology grants and energy efficiency projects, through the U.S. Small Business Administration at Business.gov.

Measuring the Carbon Footprint of Business
Existing businesses that want to “go green” but perhaps don’t know where to start can look to Intuit for help. The company that makes QuickBooks and TurboTax is now offering a free service for entrepreneurs called Green Snapshot, which creates a carbon footprint analysis for businesses, and provides them with recommendations on how to lower their impact and communicate their environmental achievements to their customers.


Does your organization offer special support or loan options to businesses seeking to be a part of the Green Economy? If so, let AEO know.

Tuesday, June 16, 2009

AEO Policy Alert


USDA has decided not to issue a Notice of Funding Availability (NOFA) for the Rural Microentrepreneur Assistance Program for FY ’09 funds. Instead USDA will propose rules, likely in December for FY 2009 funds with a comment period and then final rules sometime in FY 2010. The $4.5 million slated for FY 2009 will roll over in the program for FY 2010. The 2010 President’s budget provides approximately $22 million for the Rural Microentrepreneur Assistance Program which does not include the $4.5 million from FY ’09 funds. Adding in those funds, the total budgeted amount would be $26.5 million in FY ‘10.

It’s great that more funds will be available for programs next year. However, programs now are suffering because the FY 2009 dollars have not been distributed in FY 2009.

Contact your Congressional member today. Call US Congressional Switchboard Toll-free Numbers: 1.800.833.6354 and USDA at: 202.720.9113 today and request that the $4.5 million allocated for the Rural Microenterprise Entrepreneur Assistance Program in FY 2009 be distributed to programs in FY 2009.


What do you think about funding for the Rural Microenterprise Entrepreneur Assistance Program? Leave your comments on the AEO Exchange Blog.

Monday, May 4, 2009

AEO Member Spotlight

Maine Centers for Women, Work, and Community (WWC)
About The Organization

Location: Statewide in Maine, operating out of 18 centers and sites. Administrative offices are located in Augusta, ME.

Populations Served: Displaced homemakers, single parents, dislocated
workers, unemployed individuals, low-wage workers, and others in transition. 82% of those served are women; 78% are low to moderate income. 58% are in rural communities. We serve over 1600 individuals per year through all program areas including over 700 microenterprise participants.

Mission Statement: The mission of Maine Centers for Women, Work, and Community (WWC) is to help women succeed in the Maine economy and achieve economic security for themselves and their families through access to education, jobs that pay a livable wage, self employment, financial literacy and asset development, and civic leadership.





Laurie Ouellette - owner, Sweet Pea Designs,
a wedding planning and florist business in Lewiston, ME. She started in 2004 and has grown steadily. She recently got a contract with a local college.


Why Does Microenterprise Matter?

Why does microenterprise development matter in your community?
Maine is characterized by small towns and communities that offer a high quality of life surrounded by a natural environment that is well appreciated and attractive. Small enterprises form the core of the economies in these communities.

Maine is a state of small businesses, with 78.4% of businesses having nine or fewer employees while only 1.6% have 100 or more employees. In 2006, the number of individuals employed by microenterprises in Maine
was 177,182 or 21.2% of all employment in the state.

Maine is also a largely rural state, with a strong, if diminishing foundation of traditional natural resource based industries and self-employment in forestry, fishing and farming. Maine residents have cultivated an independent streak over many decades and are well suited to self-employment. Mainers are creative, self-reliant and hard-working.

What are the most pressing needs of entrepreneurs in your community?
When asked, entrepreneurs say they need help with the following things:

  • Skills and services in marketing and promotion
  • Regulations, financing, and other government programs that are more responsive to the scale of their operations rather than being geared to the few large enterprises in the state
  • Access to health care and health insurance that is affordable for owners and employees
  • Better infrastructure, such as high speed internet access and roads, rail and other transportation systems
  • A coordinated technical assistance, training and support system, with easy access to information
How is your organization assisting entrepreneurs to survive the recession?
WWC microenterprise trainers are helping entrepreneurs weather the economic storm in a couple of ways:
  • Assisting them in focusing on their strategic vision and planning
  • Connecting them with peers, helping them expand their networks
  • Promoting their businesses through our website, events, and news articles (Example: the Maine legislature holds an auction every year to raise money for a scholarship. This year WWC offered a basket of products made by our entrepreneurs)
How do you think the US microenterprise development field can best help microentrepreneurs nationwide?
  • First, we need a strong association that can speak to the value of microenterprise on national and state levels.
  • Second, we need to empower microentrepreneurs to speak with their own voice on issues of importance: health care, education, the environment, energy, community.
  • Third, we need to ensure that microenterprise organizations receive the support they need to do the work in the field and to do it well and to document what we do.





Jennifer Moore Temple, owner, Buzzie Bee Diapers, a cloth diaper service that emphasizes the environmental and health values of her business. She operates in the Rockland area.



Organization Successes and Challenges

What was your biggest success in 2008?
This is our 30th Anniversary! Sustaining our diverse organization over that time period has to be our biggest success. We have been holding celebrations in regions throughout the state that will culminate in a final event in May. As part of our celebrations, we are honoring 30 “Champions” – individuals who have been our partners, who have supported our mission, who have worked side by side to advance women’s economic opportunities. Those partnerships are part of our greatest success.

We were also successful for the first time in receiving a federal grant to conduct a two-year general program evaluation and demonstration of the effectiveness of our service strategies.

What was your biggest challenge in 2008?
We are always challenged to stay fresh, focused and flexible in a dynamic environment, whether facing changes in funding, personnel or external trends and demands. This year, the general economic conditions merely added depth to those on-going challenges.

What are your goals for 2009?
Our goals for the coming year include:
  • Stabilize our core funding
  • Focus on delivering and documenting training and technical assistance that best supports our mission and the needs of our participants as identified in the federal grant
  • Support rural entrepreneurs in building skills and comfort in using new technologies (web 2.0 tools and resources)
  • Continuing to experiment in designing and delivering training using distance education technologies
  • Promote policies that increase state support for microenterprise development




Anna Marie Tocci, owner, North Star Cafe, Portland. Her cafe has become a community hub in a resurgent part of downtown. With her business partner, Kim Anderson, they serve teas, coffee, local foods, and support live music, poetry readings.

Organization Statistics

In 2008
Clients Served: 148
Microloans*: 4
Dollars loaned: $4000
Average loan: N/A
Jobs created by microenterprise clients: 1.3 jobs per business started (estimate based on past outcome surveys)

Cumulative (last ten years only)
Clients Served: 2547
Microloans*: 10
Dollars loaned: $8815
Average loan: 880
Jobs created by microenterprise clients: Estimated at 1300 jobs over last ten years


* WWC also works with clients to leverage loans from other public and private lending sources. One third of all WWC-supported FDA savings accounts are for business assets.
Susan Landry, owner of Tranquility Acres in Buckport, a grass-fed Belted Galloway cattle and Bard Rock chicken farm she operates with her husband. They sell natural meat and eggs.

Monday, April 6, 2009

Exchange Weekly Microbusiness News Roundup


Every week AEO gathers small business headlines and links from online media publications and blogs. Here’s what was in the news the week of March 30th.

AEO IN THE NEWS

SMALL BUSINESS NEWS












Wednesday, March 25, 2009

Distance Learning WESST Style


In 2009 AEO is making a commitment to use new technology to provide the field with more training, communication, and networking opportunities – i.e. social networking sites , webinars, and the AEO Exchange Blog – our members are experimenting with distance learning to reach more entrepreneurs. Below, guest blogger, Wally Drangmeister of AEO member WESST in New Mexico shares their distance learning experience.
Guest Blogger: Wally Drangmeister, WESST Director of Client Services

WESST is a non-profit organization in New Mexico that provides entrepreneurs across the state with the resources, information, skills and technical assistance they need to be successful. New Mexico spans over 121,000 square miles, and is nearly the size of New England and New York combined. There is a tremendous need for WESST’s services across all of New Mexico, but the sheer geographic size makes reaching every entrepreneur a challenge. Distance learning is helping the organization overcome these challenges and serve more entrepreneurs.

Cost of Entrepreneur Training
The cost of providing services increases as the number of participants per instructor decreases. The number of rural entrepreneurs in need of training taken in aggregate across the state may be sufficient to make training cost-effective, but that’s not so in any given location. In the sparsely populated areas in rural New Mexico it is difficult to fill training classes and travel to these areas increases the costs. Technology allows us to offer distance learning opportunities as an alternative to in-person training.

Technology Solution
Distance learning is the best way for WESST to provide specialized training services to all rural areas in New Mexico. We are able to aggregate clients across the state instead of across a small region, which dramatically reduces the time and expense of travel. As an added benefit, the trainings are recorded and available online so clients can access the training when and where they desire. This has increased the attractiveness of training for our clients and reduced the costs even further for WESST.

Distance Learning Approach
Our approach to distance learning still relies heavily on the face-to-face meetings that traditionally have been important in developing and maintaining relationships with our clients. Instead of using extensive staff time to travel to remote locations to provide training and consulting services to small numbers of people, staff members now travel with the more attainable goal of briefly meeting with large numbers of potential and existing clients.

A typical scenario in our new distance model would be to make contact with a potential client through networking at a rural community event, or through a local partner. The new client’s initial participation would be through a recorded distance learning program downloaded from our website. As a follow-up to the online training, the client would take part in a group webinar or conference call hosted by our staff and community trainers. This model allows for maximum client benefits at an extremely low cost of delivery. When appropriate, the client can always access dedicated consulting services for an additional fee.

Distance Learning ChallengesDistance learning is not without its challenges. Using the latest and greatest technology for training only works if our clients and potential clients have access to it. Many rural areas of the state are still without reliable Internet services and we continue to see low levels of computer ownership among many in our target audience. To overcome these challenges WESST will build upon the tremendous ongoing advancements in wireless communication technology and media-enable hand-held devices as we move forward with our distance learning programs.

Our belief is that wireless multi-function devices such as the Apple iPhone, which have the ability to wirelessly download, store and playback audio and video, will offer the best opportunity to effectively expand services to a large group of currently underserved rural clients in the coming years.


Technology with a Personal Touch
For now, serving rural clients means being able to provide business training and technical assistance by multiple means, including teleconferences, online training, DVDs, audio CDs, and audio and video downloads in addition to good, old fashioned face-to-face meetings. We are also proving audio training programs using the latest generation of low cost MP3 players. We are building our programs today in a manner which will allow us to develop and expand in the direction technology is headed in terms of functionality, market penetration, and price. Along with existing and new technology, we must also maintain the personal touch that has made WESST so successful. Technology should enhance these face-to-face meetings and pave the way to provide our clients with more efficient and effective services to make their business dreams a reality.

Wally Drangmeister is director of client services at WESST. He is a native New Mexican with a broad background in business and entrepreneurial ventures. Wally has experience with technology start-up businesses, venture capital investing, and strategic and financial planning. He has worked for companies in extractive industries, water, natural gas, electric utilities and financial services. Wally has a Bachelor of Accountancy Degree from New Mexico State University, although he refers to himself as a recovering CPA.