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.

Monday, March 23, 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 16th

AEO IN THE NEWS

SMALL BUSINESS NEWS

Thursday, March 12, 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 9th.

AEO IN THE NEWS

SMALL BUSINESS NEWS

POLICY UPDATE - Federal Microenterprise Development Programs Get a Big Boost in 2009


The Fiscal Year 2009 omnibus appropriations package was passed by Congress this week – and for the microenterprise development field it was worth the wait! Here’s the run down for FY 2009 federal microenterprise development program funding.

SBA Microloan Program
Funding for the SBA Microloan Program is appropriated in two parts – lending dollars and funding for business training and technical assistance. In FY 2009 Congress authorized $21 million in lending for the program – a $1 million increase from last year. The technical assistance portion of the program received and additional $5 million from last year authorizing $20 million to support the business training needs of low-income entrepreneurs.

In FY 2008 the SBA Microloan program made a total of 2682 loans to 992 startups and 1690 existing businesses, which helped create 3889 jobs and retain an additional 5856. The increased funding will only help the microenterprise development field expand its reach and help more entrepreneurs which is particularly important in these troubled economic times.

SBA PRIME
The microenterprise development field once again saved the Program for Investment in Microenterprise (PRIME) from elimination. For the past eight years President Bush has requested zero dollars for the program, which funds much needed business training and technical assistance to very low-income entrepreneurs. Recognizing the need for training dollars, Congress authorized $5 million for PRIME in 2009 – up $2 million from the previous year.

SBA Women’s Business Centers
The SBA Women’s Business Centers will receive $13.75 million in 2009
, an increase of $750,000 from 2008. This highly successful program provides entrepreneurial training to over 150,000 business owners annually and has maintained a 14 to 1 return on the federal funds invested.

Community Development Financial Institution (CDFI) Fund
In 2009 the CDFI Fund will receive an increase of $13 million. Congress provided $107 million for the program which provides economic development and low-cost financial services in underserved communities. On average, each dollar invested in the CDFI Fund leverages $19 for housing and microbusiness loans, community development banks, and other economic development efforts.

The appropriations package also includes funding for the following programs of interest to the microenterprise development field:


  • Community Development Block Grants (Dept. of Housing): $3.9 billion

  • Rural Business Opportunity Grants (USDA): $2.5 million

  • Rural Business Enterprise Grants (USDA): $38.7 million

  • Intermediary Relending Program (USDA): $33.5 million

  • Rural Community Development Initiative (USDA): $6.3 million

Have a question about the FY 2009 omnibus appropriations package? Leave your question as a comment and AEO will respond for all to see. Want to share your thoughts on the FY 2009 funding levels? Leave a comment and spark a discussion!