Greetings! Want to start your day off with a bang? Read Scott Shane's artcle in The American Magazine entitled "The Start-Ups We Don't Need: Are we encouraging the creation of too many low-productivity businesses? It's nothing less than an argument against support for start-ups, particularly low-wage and dislocated workers. The author maintains that:
"Creating
typical start-ups isn't the way to enhance economic growth and create
jobs...Stop subsidizing the formation of the typical start-up and focus on the
subset of businesses with growth potential. "
Well,
we respectfully disagree. As Paula Franke, a coach for the Kentucky
Entrepreneurial Institute told me, " To denigrate start-ups that are
not aspiring to be mega-businesses somewhat delegates those entrepreneurs to
some sort of second class status where they are not "real"
entrepreneurs and small businesses." Also, a recent study of Women's Initiative graduates
indicates they pay their employees an average of $16.45/hour - $2 an hour over
the median wage in the Bay area. Well, that's "real" enough for me!
I
take Shane's article as a challenge to us all - to demonstrate that we can help
these entrepreneurs build strong businesses, especially during tough economic
times. Our commitment in '09 is to highlight the leaders and successful
practices that make for a high performance, sustainable organization. Happy New Year!
Jason Friedman, Friedman Associates
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| Entrepreneurial Training for the "Typical" Business Owner |
 Well, if we can't see the folly of our ways and continue to help people start 'typical' businesses, then we have to ask, "What's the best program design and training approach to help aspiring entrepreneurs start businesses that create a living wage (at a minimum) and lay the foundation for growth?" Based on my experience and learning from colleagues, here are two "must haves" for a program that serves low-wealth adults:
- In-depth Assessment & Screening: business ownership is not for everyone and we have an obligation to use our resources wisely and for maximum impact. Women's Initiative uses its orientation sessions to help individuals assess their business and personal readiness and develop concrete business action plans before the training. Women Entrepreneurs of Baltimore, Inc. uses a group activity that presents business scenarios, poses a series of questions relating to them, and assesses how participants approach these problems. Participants also complete a personality traits assessment and an individual interview. Try this Personal Diagnostic tool to assess personal readiness.
- Adult Learning Metholodolgy: stay away from the information dump, classroom lecture format. Adults need to learn experientially, to approach learning as problem solving, and learn best when the topic is of immediate value.
I am a big fan of Greg Walker Wilson, CEO of Mountain BizWorks, in Asheville, NC, who incorporates these methods in Foundations, MBW's training curriculum. Greg told me that the key is: "(1) to hear the learners voices as much as the instructors; (2) utilize different learning styles; (3) use small group interaction to ensure safety; and (4) to be sure that the individual gets a chance to learn by doing during class sessions so as to fully assimilate their learning."
Is your curricula and training style appropriate for the target audience? Use this Training Styles Inventory tool, developed by TRG, and which Margie Brand, of EcoVentures International, uses at her workshops at AEO conferences.
E-mail me at jason@friedmanassociates.net and tell me your ingredients for effective entrepreneurial training.
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Getting Prepared to Attract Diverse Funders
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 Like
me, you're watching the headlines and wondering just how bad the economy is
going to get. And if you are responsible
for fundraising, you're also wondering how the economic downturn is going to
affect your ability to meet fundraising goals this year. What
should you be doing?
Whether you have development staff or not, you need to consider many factors to
plot a strong plan of action. To start, I
highly recommend you read this article and the nine
practical steps you can take now listed at the end.
What
does this mean for our industry specifically? First, make sure your funders make the
connection between your mission and today's headlines! Review your case statement and create a new
one that explains how your organization's mission is part of the solution to
the current economic crisis in your community.
But it won't matter if you don't keep close to your current funders. This study, by Bank of America and Indiana University, makes the key point that donors need
to be kept engaged and informed in your work in order to continue their
funding.
Finally, make sure
the rest of the community, including potential funders and legislators, make
these same connections. This is why we
emphasize that successful communications and fundraising go hand in hand. Follow Holly's advice below on some
simple, practical and tangible steps to build a community of believers!
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Developing Effective Communications Objectives
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 Just
as Melanie discussed above, it is now time to focus on small steps to get your message out and be
seen as part of the solution to creating economic opportunity in your
community.
For
example, take a look at this video from CBS on Women's Initiative in Oakland, SF, or this story from Crain's Detroit Business, where micro-lending is credited with helping to
spur economic growth.
No
organization can be healthy and successful without being able to talk to - and
with - your community. Does it take a
lot of money, staff and experts to implement a communications plan? Not
necessarily.
Luckily,
there are several easy ways to get started now, with minimal staff resources, to
develop messages and the tools to deliver them, such as the following:
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Develop or update your
press list. Build upon existing contacts and ensure that
you have up-to-date contact information for reporters who cover business,
politics, housing and other issues that your organization addresses every
day. By developing relationships with
these reporters, you can become the local expert - or "go-to" place - for more
information, quotes and editorial content.
Check out this article about how to get to know reporters and ensure
that your press release gets the attention it deserves. And when they are "primed," send them a press release like this one from Mountain BizWorks, Asheville, NC.
- Write an op-ed or letter to
the editor.
Writing a letter or an op-ed is an effective and relatively easy way to
highlight the work of your organization.
Letters are generally written in response to a recent article, whereas
op-eds can elevate attention to an important issue. The Humane Society offers some excellent tips
on how to do this. Looking for "talking points" to make your case? See this from AEO.
In
February, we will host a webinar on these and other simple, effective ways to
jump start a communications effort. Look for details on this soon!
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Federal Funding Strategy for Microenterprise
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Along
with its partners, the Association for Enterprise Opportunity (AEO) has
developed a stimulus proposal for Microenterprise - a Main Street Approach - that
will invest in the can-do attitude of American business. Also, in December AEO met with Treasury officials to discuss an award of
$50 million to AEO for a national loan fund - the American Dream Fund- that
would allow AEO to provide low-interest capital to members across the
country. Here is a sample letter you can send to the Treasury in support of the proposal.
Also FIELD and CFED have co-written "Encouraging Entrepreneurship: A Microenterprise Development Policy Agenda," that
proposes a number of public policies that would support emerging entrepreneurs. Write, call, e-mail your Congressional Delegation and tell them about the power of microenterprise! |
Chambers of Commerce: Partners in Sustainability?
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Does your local Chamber embrace microenterprise? Are you a member of your Chamber? Many MDOs have developed strong ties to their local chambers to support their new business owners.
Take this quick survey to tell us about your experiences with your local chamber and see real-time responses from fellow subscribers!
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Clients Struggle to Complete Their Business Plans?
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Many practitioners have bemoaned the struggle to get clients to complete
their plans. Check out this new online tool, developed by microenterprise pioneer Kathy Keely, to help them! It provides
information, the outline and fill-in worksheets to write a complete
business plan, and resources to improve their research while writing the
plan. Simple and practical, its an organized way to complete the business plan at their own pace and timeline.
E-mail Kathy Keely at KSKEELEY@aol.com or call her at 877-870-6630 for more information.
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Let's Talk!
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Friedman Associates can assist you to strengthen your training and loan programs, develop a strategic plan and create capacity in communications and fund development. We work closely with staff at all levels of your organization to ensure that you have the tools and skills necessary to maintain and adapt your goals and objectives. Call us for a free consultation at
319.341.3556.
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Scholarship Grants
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The Bollinger Foundation, a unique foundation created to provide
financial assistance to families of economic development, community
development, and public housing workers is seeking nominations for this year's
awards. Specifically, assistance is
available to families who have lost a parent or guardian where the deceased or
surviving parent or guardian worked in the field of public housing, community
development, or economic development.
Visit the Foundation's website to make a nomination of an eligible family or by
mail or fax to Corie Ziegler, The Bollinger Foundation, c/o IEDC, 734 15th St., NW, Suite 900, Washington, DC 20005, (202) 223-4745. The deadline
for nominations is May 15, 2009.
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