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Florida ’ s Path to Self-Employment

Florida ’ s Path to Self-Employment. Beth Keeton The Center for Social Capital. GRIFFIN-HAMMIS, LLC. Why Customized Self-Employment?. Self-Employment: A Mainstream Approach to Business. CSC. Self-Employment rate growing at more than 20% annually

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Florida ’ s Path to Self-Employment

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  1. Florida’s Path to Self-Employment Beth Keeton The Center for Social Capital GRIFFIN-HAMMIS, LLC

  2. Why Customized Self-Employment?

  3. Self-Employment: A Mainstream Approach to Business CSC Self-Employment rate growing at more than 20% annually Micro-enterprises generated over 40% of all new jobs in last decade Small business creates more jobs in US than the Fortune 500 (Wehman, 2006)

  4. Self-Employment and Persons with Disabilities CSC • Historically self-employed at higher rate • US Census, 1996 • 12.8% people with disabilities • 7.8% general labor force • Proven to be a viable employment outcome, regardless of disability type

  5. FL VR: CBTAC Program CSC • Goal: • Screen customers “in” not “out” of SE • Develop supports for all “gap” areas • Statewide provider certification program • Providers trained to support all key areas of business development • Works in collaboration with existing resources • Ongoing TA available • Resource development

  6. Florida DVR: CBTAC CSC Provider certification standards & process Comprehensive policy revision Tools, handbooks, “Desktop Reference for Counselors” Statewide counselor training Networking meetings Ongoing TA & support

  7. FL DVR: Progress to Date CSC • Over 100 Self-Employment Providers • Online certification & recertification program • Increase in Self-Employment Referrals • Increase in Self-Employment Outcomes • Continuation of Capacity Building Efforts: • Coordination with other state systems • Technical Assistance for VR Counselors • Networking meetings throughout the state

  8. Trainings and Resources • Online Resources • CSC/VCU: Online Certification Program • Essential Learning: www.essentiallearning.com • Start-Up USA: www.start-up-usa.biz • CBTAC website (under development) • Making Self-Employment Work for People with Disabilities (Griffin & Hammis, 2003)

  9. The Myth of the Entrepreneur CSC Has “entrepreneurial mindset” & personality Performs all tasks, at all times… …independently Develops industry skills for years prior to launch Takes significant financial risk Works 80-100 hours/week

  10. How would most entrepreneurs with complex disabilities fare against this list? CSC

  11. GRIFFIN-HAMMIS ASSOCIATES, LLC Joe KS DDC: $9,000 KS VR: $4,000 PASS: $12,000 Gross Sales over $70,000/Year Net Income over $12,000/Year CSC

  12. Benefits of Self-Employment CSC • Flexibility in design • Businesses grown specifically around individual • Planning for support is inherent part of process • Potential for greater financial rewards • Unique opportunities with SSA benefits • Challenges “job scarcity” and “tight labor market” assumptions in ways that benefit entire community

  13. Customized Self-Employment: Essential Elements CSC • Business Team • Discovery • Feasibility Assessment • Resource Planning • Business Plan Development

  14. Discovery CSC • Foundation for all CE outcomes • Goal is to get to know person • Identify skills, capacities, interests • Learn about social networks and connection • Not business concept development! • If done well, will reveal the path to business concepts

  15. Hallmarks of Discovery CSC • Structured Process • Action-oriented (requires verbs!) • Skill-based and skill-driven • Leads to identification of: • Ideal conditions for employment • Contributions, capacities, and skills • Support needs

  16. Linking Discovery to Business Concept Development CSC Identify vocational themes & cross themes Informational interviewing Utilization of networks and connections “Go where the career makes sense” Find Fish Bob

  17. Assessing Feasibility: Foundation All must be considered in relation to each other in order to determine if business concept is viable • Knowledge of Market/Industry • Based on market research • Knowledge of individual • Interests, skills, strengths • Types of support needed • Knowledge of Team • Supports available CSC

  18. Perks of Self-Employment Terri

  19. The Path to Self-Employment John DJ Smooth

  20. Resource Planning CSC Variety of programs that can support self-employment Individual benefits assessment is critical Significant opportunities exist within SSA benefits programs

  21. SSI: PESS CSC Under a rule called Property Essential to Self-Support (PESS): • A sole proprietorship or partnership can have unlimited wealth excluded from resource limit • Property must be in current use: • Had been in use, and reasonably expected use will resume w/in 12 months of last use • 12 month extension possible • Consider the possibilities

  22. GRIFFIN-HAMMIS ASSOCIATES, LLC Gross Sales over $80,000/Year Net Income over $30,000/Year Glen HI VR: $12,000 PASS: $9,000

  23. SSI & Medicaid CSC • Section 1619(b): • Medicaid eligibility can continue even after reaching the break-even point if cash benefit lost due to earnings(other req. still apply) • Individual thresholds may be established that exceed the state figure • FL 2011 Threshold: $28,753

  24. Plan for Achieving Self-Support (PASS) CSC • PASS allows individuals to: • Set aside money for a self-employment goal • Have resources over the asset limit • Maintain Medicaid eligibility • Individuals contribute funds • NOT SSI check!!! • SSI benefits can increase to full FBR

  25. Self-Employment & PASS CSC • PASS can cash-flow by paying for: • Equipment, employment supports • Virtually any business expense (and then some!) • Lasts a minimum of 18 months • Requires business plan • Financial projections for life of PASS + 1 year • www.passplan.org

  26. PASS Example: Earned Income • Beneficiary: James • Business: Web Design • Avg. Monthly NESE: $1100 • SSI Cash Benefit: $167 • (eligible for full FBR) CSC

  27. PASS Calculation: Earned Income CSC

  28. PASS Example: Unearned Income • Beneficiary: Natalia • Business: Clothing Design • SSDI Cash Benefit: $420 • SSI Cash Benefit: $274 • (eligible for full FBR) CSC

  29. PASS Calculation: Unearned Income CSC

  30. SSDI: Self-Employment Work Incentives CSC • Unpaid Help • “Cost” of unpaid help deducted from NESE • Reduces amount of NESE that “counts” • Unincurred Business Expenses • “Costs” deducted from NESE • Depreciated or full value • Can significantly reduce countable income

  31. Other Programs Supporting Self-Employment CSC • Individual Development Accounts (IDA) • Family Self-Sufficiency Programs • One-Stop Centers • Medicaid Waivers

  32. Business By Disability TypeBased on Sample of 76 Griffin-Hammis Associates, LLC

  33. Gross Income76 Business Sample $28,241 $39712 $4,800 $130,000 Average Gross Revenue: $28,241 Omitting 1 $900,000 Business Griffin-Hammis Associates, LLC

  34. Individual Funding Sources $99,395 $737,600 $474,925 $59,000 $394,600 $347,000 $33,200 Sample 76 Businesses: Total Start-up Investment $2,145,000 Griffin-Hammis Associates, LLC

  35. Wrapping It Up Final Thoughts? Questions??

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