1 / 33

Bernardo Ramirez - Hispanic Economic Development Corp, Kansas City, MO

Wealth Building for the Spanish-Speaking Microentrepreneur and Self-Employed: The Primer Paso Curriculum. Bernardo Ramirez - Hispanic Economic Development Corp, Kansas City, MO. Entrepreneurial Activity in US.

prince
Download Presentation

Bernardo Ramirez - Hispanic Economic Development Corp, Kansas City, MO

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Wealth Building for the Spanish-Speaking Microentrepreneur and Self-Employed: The Primer Paso Curriculum Bernardo Ramirez - Hispanic Economic Development Corp, Kansas City, MO 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  2. Entrepreneurial Activity in US • In 2007, .30% of the adult population (300 out of every 100,000 adults) created a new business each month • 495,000 new businesses were created each month in 2007 • 27.8 million businesses in US *Information provided by Kauffman Index of Entrepreneurial Activity and Association for Enterprise Opportunity 2008 NCLR Annual Conference, San Diego, CA – July 15, 2008

  3. Microenterprise Definition • Five or fewer employees, often just one • Start-up costs of $35,000 or less • Generally do not meet the credit and/or collateral requirements to access conventional financial services • Owner often represents an under-served population * Information provided by the Association for Enterprise Opportunity 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  4. Small Business Definition • Depends on industry • Average of less than 500 employees or $12 million in average annual receipts • Range of employees (max) 100 – 1500 • Range of receipts (max) $6 million – $28.5 million * Source: U.S. Small Business Administration 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  5. Microenterprise Development Microenterprise development is an income generating strategy that helps poor, low- to moderate-income, and other disadvantaged or under-served individuals start or expand microenterprises. 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  6. Microenterprise Client Profile • 78% women • 62% racial or ethnic minorities • 60% low- to moderate-income • 30% below poverty line, 11% TANF recipients • 83% HS grads, 58% some post HS * Information compiled by Aspen Institute and AEO 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  7. Microenterprise as Part of the Economy • 24.5 million microenterprises • 87% of all businesses • 31.3 million employees • 18% of all private employment (nearly 1 in 5) * Information compiled by AEO using data from Census Bureau and Department of Commerce 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  8. Why Microenterprise? • Changes in the safety net that seek to require and/or support work • The need for working parents – particularly working women – to balance their working and caregiving roles • Growth in immigration 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  9. Why Microenterprise? • The move to downsize major corporations by outsourcing jobs and relying more heavily on contingent and temporary workers • The loss of well-paying, secure “middle class” jobs • The aging of the population * Aspen Institute 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  10. Microenterprise Works! • Increases in median household income • 91% in a five-year study • 78% in two-year study of welfare recipients • 36% moved out of poverty after two years, 53% after five years • Receipt of TANF dollars declined from 94% at intake to 25% after 18 to 24 months 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  11. Microenterprise Works! • 57% of microenterprises still in business five years after start of longitudinal study • Average net worth grew 34% • Homeownership increased from 14% to 22% • 37% reported increased savings one year after program services * Compiled by AEO using studies by Aspen Institute and Ms. Foundation 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  12. Common Characteristics of the Microentrepreneur • Start part-time • Income-patching • Industry experience • Little or no business experience • Business survival rates compare favorably to other small businesses 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  13. Trends in Latino-owned Businesses • The entrepreneurial activity rate among Latinos increased from .33% in 2006 to .40% in 2007 • Largest increase for any major ethnic or racial group • Immigrant entrepreneurial activity rate increased from .37% in 2006 to .46% in 2007 • Native-born rate constant at .27% *Information provided by Kauffman Index of Entrepreneurial Activity 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  14. Common Characteristics of the Latino Microentrepreneur • Independent • Motivated by others • Energetic (spirit) • Resourceful • Observant (attentive) • Family 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  15. Hispanic Economic Development Corporation (HEDC) • The only CDC in Missouri engaged in the creation of economic development initiatives for the Latino community. • Developed a continuum of services that are not only unique but also vital to the Greater Kansas City’s Latino community.  2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  16. Hispanic Economic Development Corporation - Programs • Business Development (current and aspiring entrepreneurs) • Business Planning • Finance/Accounting • Licensing/Permits • Location/Real Estate • Marketing • Preparation for loan packaging • MBE/WBE Certification assistance • Primer Paso FastTrac 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  17. Hispanic Economic Development Corporation - Programs • Real Estate Development and Reinvestment Program • assisting neighborhoods by developing blighted and/or underdeveloped properties • attracting public and private resources that will encourage real estate development 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  18. Primer Paso FastTrac • 36-hour, 12-week business training course • Designed to introduce business concepts to aspiring and existing entrepreneurs who have little or no business experience • Employs an experimental “how-to” hands on approach where students complete a feasibility plan for their business concept 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  19. Course Overview • Class 1: Introduction to Primer Paso FastTrac • Class 2: Communicating the Business Concept • Class 3: Gathering Information for Feasibility • Class 4: Product and Service • Class 5: Market Analysis - Industry and Competition • Class 6: Market Analysis - Market Segments and Strategies 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  20. Course Overview • Class 7: Price and Profitability - Pricing and Product/Service Cost • Class 8: Price and Profitability - Profits • Class 9: Price and Profitability - Cash Flow • Class 10: Plan for Further Action - Resources for Success • Class 11: Plan for Further Action - Next Steps • Class 12: Feasibility Plan/Graduation 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  21. Statistics To Date • Five courses offered (as of 2007) • 60 participants • 33% female, 67% male • 57% KS, 43% MO • 9 businesses started • 15 jobs created 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  22. Lessons Learned Facilitating Primer Paso FastTrac • Stage of business – integrating current and aspiring entrepreneurs • Explain feasibility plan incentives • Program fee • Evaluations of the program • Location • Expectations • Student-to-instructor ratio • Strengths of the business coach and the needs of the participants • Reputation (guest speakers) 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  23. Partnerships are Critical • Microenterprise Development Organizations • Community Development Corporation • Educational Institutions • Chambers of Commerce • Social Service Organizations • Media 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  24. Partnering Tips • Recognize that it takes time • Figure out how a collaboration would benefit the other party – give before you get • Meet on their territory • Determine mutual allies • Have clear, consistent goals • Model from other successful collaborations • Ask for suggestions of other potential partners 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  25. Partnering Tips • Emphasize the “Win-Win” • Be willing to share the praise with partners • Be willing to share results • Be willing to share resources • Be flexible • Don’t give up, be persistent • Contracts/written agreements reduce confusion 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  26. Funding Sources • Philanthropic donors interested in • particular under-served populations • workforce development • unique economic development strategies • offering hand-up versus hand out resulting in a hand shake! 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  27. Funding Sources • Corporate • Banks • Accounting firms • Attorneys • Local small businesses 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  28. Funding Sources • Federal government • SBA Microloan, WBC’s, and PRIME • CDFI (Dept. of Treasury) • Community Development Block Grants (HUD) • Job Opportunities for Low-income Individuals (ACF, OCS) • Office of Refugee Resettlement (ACF) • Rural Development through USDA 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  29. Funding Sources • Regional, state, and locals governments • CDBG (entitlement and non-entitlement) • General fund revenues appropriated by state legislatures 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  30. Funding Sources • Partner sources • Workforce Development Boards • SBDC’s, WBC’s, Microloan Programs (SBA) • Community Development Corporations • Community Action Agencies • Economic Development Corporations • Individual Development Account Programs 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  31. Resources • ACCION USA • www.accionusa.org • Association for Enterprise Opportunity • www.microenterpriseworks.org • CFED • www.cfed.org • Ewing Marion Kauffman Foundation • www.kauffman.org • FIELD through the Aspen Institute • www.fieldus.org • First Step FastTrac • www.firststepfasttrac.org 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  32. Resources • National Association for Latino Community Asset Builders • www.nalcab.org • National Council of La Raza • www.nclr.org • Small Business Administration (www.sba.gov) • Women’s Business Centers • Small Business Development Centers • Microloan Programs 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

  33. Thank you Gracias Questions? ¿Preguntas? 2008 NALCAB Annual Conference, San Francisco, CA – September 4, 2008

More Related