Best Practices and Resources for Supported Self Employment & Micro-Enterprises

1. Best Practices and Resources for Supported Self Employment &Micro-Enterprises Growth through Change, Partnering & Data Collection

2. Supported Self Employment & Micro-Enterprise in Michigan • Last December, 7 CMHs, vendors and consultants were asked by MIG to meet and discuss their SSE/ME Initiatives. • We discussed collecting and tracking some baseline data; identifying when does a hobby become a business. • Best Practices Examples in various counties/agencies. • Looking at the current Statewide Micro Enterprise Association Initiative. • How best to partner with MRS, MCB, etc to enhance outcomes for both individuals and partners. • Purpose: to build a collective story and voice for sustainable, collaborative support to make self-employment a viable option for persons with disabilities.

3. Micro-Enterprise: A brief history • The interest in Microenterprise for innovatively providing ways for people to move out of poverty in the US has been steadily growing in many areas: homelessness, disabilities, among organizations involved in economic / community development. • Supported Self-Employment and micro enterprise initiatives gained energy in Michigan beginning in 1999 and 2000. The foundation of both models is built on the principles of self-determination” (Supported Self Employment 101 Booklet). • Services for microenterprise development have been provided by Community Mental Health Medicaid Funds for people with developmental disabilities and mental illnesses for the past decade.

4. Micro-Businesses How are they defined: • Fewer than 5 employees; typically one owner, non-employer businesses with over $1,000 in gross receipts and subject to taxes according to SBA. • $35,000 or less in start-up capital Why are they important to an economy/community: • Micro-Businesses generated $950 billion or 7.5% of GDP in 2006, with over 25 million individual micro businesses. • 15.8% of all Michigan employment in micro-business, approximately 780,000 in MI. • 13% of the United States adult population run them. • Micro-Business represents 87% of all businesses in the US. Entrepreneurs have brought the US out of 8 out of the last 9 recessions.

5. Public-Private Partners Results: EDC/CMH • 39 Micro Business referrals • 462 Micro Business appointments conducted • 60% of entrepreneurs' sold products/services • Earning income from $20 - $4,400 gross/year • 3 new tax payers • Received economic stimulus checks 23 Micro Businesses have recorded sales • Occurred from April 2007-September 2008. • Total gross sales of over $19,000!

6. Top 20 National Best Practices Identified Identified Best Practices: To use best practice means to use techniques or methodologies that (through experience and research) have proven to reliably lead to a desired result. A literature review was conducted to determine whether there was evidence MBI used implementation strategies associated with best practices in the field. The success of any MB program is attributed to evidence that the program was aligned with the following best practices. 1. The target group identified. 2. Expectations are clear and goals are upfront: Group Orientations 3. Interviews of potential entrepreneurs are part of the in-take process. 4. A curriculum that outlines content and process is selected prior to participant recruitment. 5. Skill sets and experience necessary for program staff are clearly stated. 6. Personal dedication is necessary for all partners (clients, program administrators and trainers, financial support institutions, mentors). 7. Clients are assisted in self-assessment, discovery & self-determination. • Core training will give entrepreneurs the technical support to develop and write a business plan and to help individuals to “think like entrepreneurs.” 9. Micro-business programs cultivate individuals as well as educate. 10. Assistance with financial capital is generally a necessary component to micro-business programs.

7. More Best Practices • Mentoring and consulting opportunities that link entrepreneurs to experienced peers and professionals are created. • Advice on access and integration of technology is available. • Networks of entrepreneurs to make business connections. • Micro-business training, counseling, and mentoring are driven by needs of entrepreneurs and are inclusive of all types of talents. • Collaborative-leadership across private and public sectors. • On-going support after start-up phase is crucial. • Formative and summative evaluation procedures are integrated into the program to assure continuous quality improvement. • There is internal revenue generation along with diversified external finding with some long-term funding streams. • Product marketing and consulting services are developed. • Innovation

8. Community Connection Examples • Easter Seals Micro Loan Support • Michigan Rehabilitation Services • Local Community Foundation • Pro Bono Certified Public Accountants • Bankers as Loan Committee Volunteers • Chambers of Commerce • (Micro Entrepreneurs as volunteer/trade for discounted fair vendor space) • Community Mental Health Leaders • Economic Development Leaders • Continuous Communication via E-Newsletters

9. Current Statewide Partners • Representatives from • Community Mental Health • Michigan Rehabilitation Services • Michigan Commission for the Blind • Community Service Providers • Small Business Consultants • Community Development Consultants

10. Lets start tracking! • Data Collection is gauging: • DBA Filing • Business Plans • Net Earnings over $400/yr (IRS standard for a “concerned business” vs hobby) • Fundability • Quarterly Gross Sales • Quarterly Local Purchases

11. Data Parameters • On-line Spreadsheets (google docs) • Nine area agencies to date • 170 micro-businesses in Data Pool • 100% Confidential (only #’s used) • 1st 3 Quarters of 2010; • January – October 18, 2010 • Ten months of data as of 10/18/10

12. A beginning Glimpse into Michigan’s Micro Enterprise Economic Impact and its potential! • 98%of micro-enterprises have a Business Plan! • 85% percent secured Funding! • Medicaid, MRS, Loan or Other • $60,700 in collective Gross Sales! • $116,750 in local, B2B Purchases!

13. More Economic Impact!!! • One third (33%) meet the IRS definition of real business versus a hobby. • Nearly half (46%) have filed their DBA with local County Clerk’s office. • 33% have Natural Supports for businesses. • 38% have quarterly Gross Sales of over $100. • 20% have $500+ in quarterly Gross Sales. • 10% have $1,000+ in quarterly Gross Sales. • 27% have purchased over $500 in a quarter for raw materials/services needed Micro Enterprise; • 13 of whom spent over $2,000 in one quarter • 3 of whom spent over $5,000 in one quarter Now that’s ECONOMIC IMPACT!

14. Shared Internet Tools & Resources • www.google.com • You can also share online presentations, forms, surveys, word processing docs. • Create Local FACEBOOK FAN PAGES for your MICRO ENTERPRISES at www.facebook.com

15. Resources & Partners for Funding • Small Business Resources • Resource List • Kent County Model & Resources • Other Ideas • Roundtable

16. Call to Action! • Contact Us! For more Information! • Joe Longcor, Project Manager, MI Medicaid Infrastructure Grant. • Deborah Nale, Certified Business Consultant & Micro-Enterprise Specialist. • Join Us! To increase our Collective Voice! • Call Deborah at (231) 920-4260. • Call Joe at (517) 241-1730.

17. Acknowlegements • Prepared by; Deborah Nale, B.A., CBC, Manistee, MI (231) 920-4260 under Contract with & funded under the Michigan Medicaid Infrastructure Grant Award Number: 1QACMS030532/01 from the U.S. Department of Health and Human Services Centers for Medicare and Medicaid Services received by the Michigan Department of Community Health.  However, the seminar does not necessarily represent the policy of the U.S. Department of Health and Human Services and the Michigan Department of Community Health. Employment Works! 10/15/2010