Strategic Plan

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Presented byBetty Emarita, IACED - Development
and Training Resources, Minneapolis, MNPatricia
Harris, Cobb Microenterprise Center, Kennesaw
State University, Kennesaw, GASeptember 5,
2003, San Antonio, Texas
Building Strategic Alliances and Partnerships
with Impact
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Norms

• Everyones thinking is important.
• Different viewpoints are welcomed and respected.
• Silence is okay.
• Everyone has an opportunity to speak.
• Everyone participates.
• TURN CELL PHONES AND PAGERS TO VIBRATE.

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The Agenda

• Part I What is microenterprise why is it
  important and why do we need more partnerships?
• Background and history
• A record of successful program designs
• Strategies for creating self-sufficiency models
• BREAK 10 minutes
• Part II The power and impact of collaborations
• Identifying collaboration stages
• Focusing on results
• Measuring impact
• BREAK 10 minutes
• Part III Putting it all together A Case Study
• Use strategies learned in Part I
• Use strategies learned in Part II
• Create an entity Report Back
• Q A
• Conclusion

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A Collaborative Strategy
Microbusinesses Building Strategic Alliances
and Partnerships with Impact

• In a shifting economic demographic environment
  and an uncertain economy, microbusinesses are
  craving an increasingly important niche.
• How can you form strategic alliances and
  partnerships with organizations and agencies that
  are experienced in this area?
• As budgets continue to shrink, how can you
  effectively respond to the highly diverse
  audiences that are asking for help?
• GOAL THIS WORKSHOP WILL FOCUS ON BEST
  PRACTICES IN FORMING STRATEGIC ALLIANCES AND
  PARTNERSHIPS THAT HAVE IMPACT AND STAYING POWER.

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WHAT IS MICROENTERPRISE DEVELOPMENT AND WHY
SHOULD WE CARE?
Its Origins 30 year History

• Developed as an anti-poverty and economic
  development strategy began in third-world
  countries in the 1970s
• Emerged as a strategy to stimulate economic
  growth and reduce poverty in urban and rural
  America in the 1980s.
• Practitioner pioneers began innovative programs
  in scattered rural and urban areas across the
  country from 1980 1990s.
• Recognizing the opportunity and value of learning
  together, over 150 pioneers from 100
  organizations and 30 states convened in Berkley,
  CA in 1991, and 100 organizations formed the
  first national microenterprise trade association
  Association for Enterprise Opportunities.

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WHAT IS MICROENTERPRISE DEVELOPMENT AND WHY
SHOULD WE CARE?
Its Origins 30 year History (cont.)

• Today, there are over 600 organizations in the
  U.S. operating microenterprise initiatives.
• In the midst of todays great economic challenges
  microenterprise development is a best practice
  for eradicating the cycle of povertyone family
  at a time.
• This economic development strategy is a promise
  to the community to support poverty and low to
  moderate income women and minorities seeking
  self-employment and self-sufficiency.

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Microenterprise Works!!
Community Impact

• 72 percent of poor microenterpreneurs increased
  their household income over five years by an
  average of 8,484, or from 13,889 to 22,374
  16 increase (in 5 years).

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Microenterprise Works!!.
Changing the Lives of Families

• Household assets increased by 15,909 over five
  years
• Over half 55 percent, of poor entrepreneurs
  moved over the poverty line
• Reliance on public assistance decreased by 61
  percent

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A Microenterprise Defined
A Microenterprise has

• Under five employees
• Under 100,000 in annual sales
• Under 35,000 needed for capital (usually much
  less)
• Owner Operated Generating income to support
  self and family
• Predominately women operated
• Entrepreneur faces obstacles to accessing
  traditional sources of business development
  assistance

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Who does Microenterprise Development Serve?
TARGET MARKET

• Poverty and Low to Moderate Income Families
• Women and minorities
• Dislocated Workers
• Immigrants and refugees
• Native Americans
• Disabled
• Welfare Recipients
• Low paying wage jobs workers
• Disadvantaged Youth
• Corporate downsize, restructured

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Why Microenterprise?

• Responds to Changes and Trends in the Economy
• Creates Jobs in the Community
• Poverty Alleviation Strategy
• Fastest Growing Economic Development Sector
• Corporate Restructuring, Downsizing
• Wages not keeping pace with the cost of Living
• Changes in Welfare System
• Shifts in Middle Class Rich/Poor Dichotomy
• Income Patching
• Promoting Social Purpose Business Ventures

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Examples of Microenterprise Program Structures

• OVERVIEW OF US PROGRAMS
• New organizations started
• Existing organization adds a new program
• Collaboration of organizations form a program
• THREE MAJOR PROGRAM COMPONENTS
• Lending (collateral, character, initial short
  term)
• Business Consulting and Training
• Personal Effectiveness (moving from receiver to
  owner)

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Microenterprise Service Delivery Models

• CREDIT LED
• Group Lending
• Individual Lending
• BUSINESS ASSISTANCE/TRAINING TECHNICAL
  ASSISTANCE
• SELF-SUFFICIENCY OR HOLISTIC PROGRAM
• COMMUNITY DEVELOPMENT NEIGHBORHOOD BASED

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Examples of Microenterprise Program Structures
(cont.)

• EXAMPLES OF BUSINESSES
• Catering, Desk Top Publishing, Jewelry, Gift
  Baskets, Crafters, Wedding Planning, Florist,
  Seamstress, Car Detailing, Deck Restoration,
  Computer Training, Technology Services, Day Care
  Learning Centers, Artisans, Hair Design, Personal
  Trainers, Health Food, Art Framingjust to name a
  few!

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Successful Microenterprise Development Program
Designs
MUST

• Articulate a clear mission
• Define a specific target population
• Select program outcomes not activities
• Match the service delivery model with the above
  components
• Build a strong community collaborative
• Measure and consistently evaluate outcomes

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Making Microenterprise Work in Your Community

• THE POWER AND IMPACT OF COLLABORATIONS

• What do successful collaborations do?
• Can partnerships be clever, agile and responsive?
• Can we find effective ways to manage our work
  together and act quickly when we need to?
• Is a capable collaborative an oxymoron?
• Can a successful collaborative be nimble?

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Summary of Part I

• Microenterprise impacts the community with a new
  economic choice
• Microenterprise has a return on the investment
• Microenterprise change lives and communities
• Microenterprise has a target market that reaches
  deep in our communities
• Microenterprise responds to changes and trends in
  the economy
• Microenterprise is a poverty alleviation strategy
• Microenterprise service delivery models
• Microenterprise promotes successful program
  designs

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It's Break Time
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A Collaboration Defined

• A mutually beneficial and well-defined
  relationship entered into by two or more
  organizations to achieve results they are more
  likely to achieve together than alone.
• Michael Winer and Karen Ray, Collaborations
  Handbook Creating , Sustaining, and Enjoying the
  Journey (St. Paul, MN Amherst H. Wilder
  Foundation, 1994), 24

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Four Stages in Starting a Collaboration
Collaboration Stages

• Describe specific results

• Work through trust issues
• WIIFM

• Word into the community
• Evaluating Results

• How well did we do?
• Whats next?

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So Why Is Collaborating So Hard?

• Continuously unproductive meetings.
• Changing representatives at meetings.
• Decisions that get made over and over again.
• Partners who are not accountable to one another.
• Conflicts that continue unresolved just under the
  surface.
• Partnerships that die when the funding runs out.
• Failure to embed best practices into the system.
• Turf issues and hidden agendas.
• Any others?

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Two Types of Collaboration
STRATEGIES
Collaborate to resolve complex community issues
such as promoting sustainable agriculture,
eliminating drug addiction, developing
microenterprise initiatives, or exposing children
to the arts.
Collaborate to integrate services in education,
housing, health care, recreation, the arts, law
enforcement and social services
Entity
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Effective Collaboration Focus on Results

• Albert Einstein said, I know why everyone loves
  to chop wood. One immediately see the results.
• Focusing on results is one of the three primary
  strategies an effective collaboration employs.
• Gaining clarity about results will help you and
  your partners focus on the rewards of doing this
  work.

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Example A Community Collaboration

• Premise Responding to the changing trends in
  the economy in Cobb County, GA
• Resolution Microenterprise Development and
  Access to Capital
• Initial Partners Kennesaw State University,
  Coles College of Business Small Business
  Development Center YWCA of Cobb Cobb Family
  Resources and United Way of Cobb County
• Initial Funders Community Development Block
  Grants United Way Turner Foundation

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Services and Resources to impact the community

• KSU Business Development training, MBA mentors,
  Accounting, Business Plan preparation space and
  logistics
• CFR Family connection services, transitional
  housing, emergency assistance, child care, Life
  Skills Management workshops
• YWCA lead agency and fiscal agent for two
  years and incubator for micro businesses
• UW Funder, outcomes measures and logic model
  business mentors and marketing

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Results

• Premise
• Promise
• Mission
• Vision
• Outcomes
• Evaluation criteria
• Work plan

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Three Screens to Measure Impact
Coordination, Cooperation and Collaboration
Assess the Strategy
Measure Impact

• Exchange information
• Market your relationship to the other
  organizations
• Clearly state the mission and vision of the work

• Contribute resources
• Planning and implementation time
• More detail in budgets, work plans, funders,etc.

• Sharing information
• Establish structure and MOUs
• Sharing resources
• Joint funding opportunities

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Getting the Process Started

• Identify the problem or issue
• Which strategy? Integrate Services or Resolve
  Complex Issues
• Who is the Initiator?
• Identify the Convener and Facilitator
• Identify the SPOC (Special Point of Contact)
• Identify Agency Representatives
• Identify Clients in the community
• Invite potential funders to the planning table
• Identify a fiscal agent and lead agency
• Identify Consultants for special projects
• Develop an Action Plan
• Develop an Evaluation Process

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Decisions Making Process in a Collaboration
Refine Your Process

• One person or a small group makes the decision

• Everyone has a vote and everyone votes on
  everything

• Small groups make decision assigned to them

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Taking Action
RESULTS

• Determine premise of the work
• Determine the promise of the work
• Describe the mission and vision
• Define outcomes
• Evaluate
• Deal with pilot projects
• Change the system
• Reduce the need for a coordinator

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Taking Action (cont.)
RELATIONSHIPS

• Build Trust
• Analyze Membership
• Map membership
• Assign roles to members
• Discuss progress at home office
• Promote funder involvement
• Streamline communications
• Promote customer involvement

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Taking Action (cont.)
RESILIENCE

• Advance sustainability
• Diffuse decision making
• Gain financial support
• Create or confirm a governance agreement

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It's Break Time
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What Element Describes You?

• Solids
• Liquids
• Gases

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Case Study Exercise

• Read the case study
• Elements divide into groups
• Create a collaborative entity
• Report back

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Summary of Part III

• Questions on Report Back

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Microenterprise Development National Funding
Resources

• Government Programs
• PRIME SBA (Small Business Administration)
• SBA Womens Business Centers
• JOLI (Job Opportunities for Low Income
  Individuals)
• Workforce Investment Act (WIA)
• Health and Human Services (in job creation
  programming)
• Community Development Financial Institutions Fund
  (CDFI)
• Office of Refugee Resettlement
• U.S. Department of Agriculture (USDA)

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Microenterprise Development Resources

• Association for Enterprise Opportunity (AEO)
• Phone [phone]
• Web site www.microenterpriseworks.org
• Ms Foundation for Women
• Phone [phone]
• Web site www.msfoundation.org
• Aspen Institute, Publications Office
• Phone [phone]
• Email publications_at_aspeninst.org
• Institute for Social and Economic Development
  (ISED)
• Phone [phone]
• Web site www.ISED.org
• Georgia Micro Enterprise Network
• P.C. Williams
• 678-296-1059

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Best Practice Microenterprise Development
Curriculum

• How To Start a Home-Based Business from Scratch
• Development and Training Resources
• 4830 Oakland Avenue South
• Minneapolis, MN 55417
• [phone]
• Contact Betty Emarita, President
• First Step FastTrac
• Kauffman Entrepreneurial Center
• P.O. Box 12444
• North Kansas City, MO 64116
• (877-450-9800
• Contact Stephanie Weaver

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Building Capacity Recommendation

• Identify community stakeholders interested in
  collaborating in microenterprise
• IACED will facilitate an entrepreneurial
  institute in your community to certify up to ten
  facilitators, thereby building sustainability

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Contact Information

• Betty Emarita
• President
• Development and Training Resources
• 4830 Oakland Avenue South
• Minneapolis, MN 55417
• [phone]
• bemarita_at_aol.com

• Patricia Harris
• Executive Director and CEO
• Cobb Microenterprise Center
• Kennesaw State University
• 1000 Chastain Road, KSU Center 3305
• Kennesaw, GA 30144
• [phone]
• patricia_at_cobbmicro.org
• Website www.cobbmicro.org

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Thank You