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Creating Partnerships with WIBs: Expanding ME Training & TA to the Unemployed May 2, 2011 AEO Conference 1 CAMEO - California Association of MicroEnterprise Opportunity Entrepreneurship Works! Small businesses are 99.7% of U.S. employers 70% of American businesses have NO employees Small business is the engine of economic development 2 J Hawkins 2011 DOL Call to Action: Why Workforce Must Integrate Entrepreneurship (TEGL-12.10) 1. Avenues to self sufficiency & income for the unemployed 2. Greater workplace flexibility & income opportunities for individuals w/ disabilities 3. Economic recovery & growth via local work (even at home, particularly in rural areas) 4. Youth benefits/ workforce development from gained skills & work experience (particularly where youth jobs are scarce) 3 J Hawkins 2011 Defining Terms with WIBs: • Self Employment Training • Entrepreneurship • Small business/ microbusiness • Business/technical assistance • Small Business Partnership 4 J Hawkins 2011 Job Creation: Why is Self Employment (SE) a Vital Strategy? 64% net new jobs created by very small (micro) businesses – most without employees “Homegrown” economies--locally owned businesses hire locally Entrepreneurs create new markets Labor market trend –- 28% growth in 5 years 5 J Hawkins 2011 Job Creation Projections (ex.California) 120,000 (5% of CA unemployed) 60,000 Receive SE Training/TA (50%) Start-ups = 48,000 (80% success) Average (2) jobs created over 3-5 years Potential new jobs created: 96,000 6 J Hawkins 2011 Integrating Entrepreneurship SE Training Service Timeframe 7 J Hawkins 2011 SE Training- How Does It Work? Business plan & sustainable practices: 8 management, marketing, financial & planning skills Assessment, training, business counseling & technical assistance: loan packaging/ access to financing Contractor/consultant preparation Entrepreneurial mindset & network Incubation opportunities Employee value-added J Hawkins 2011 Vital Elements for WIA-Funded Entrepreneurial Partnerships: Self Employment (SE) Training provider qualified for WIB Eligible Provider List (EPL) MEO assessment/orientation- for entrepreneur’s interest & aptitude Ongoing support & technical assistance (Community partnerships) WIB/One-Stop staff training & knowledge 9 J Hawkins 2011 Small Business Community Partners- MEO’s Help WIBs Network Resources for Entrepreneurs MicroEnterprise Organization- “CAMEO member” State ME Association- network of Self Employment 10 Training/ TA providers & small business lenders SBDC networks WBC- Women’s Business Centers CDC- Community Development Corps SCORE VBOP- Veterans Business Outreach Program Community Colleges Independent business counselors/coaches J Hawkins 2011 Partnership Elements: Ensuring Success with WIBs Timeframe for entrepreneurial services to produce WIB “positive outcomes” -12-24 months needed for training & TA -Proof of business start-up/living wage 11 J Hawkins 2011 Partnership Elements: Ensuring Success with WIBs WIB Performance Measures: (Adult) • Entered Employment Rate • Retention Rate • Earnings Rate • Credential Rate New Performance Measures needed - SE individuals do not report average earnings/ EDD benefits - MEOs help WIBs adopt relevant measures 12 J Hawkins 2011 Recommended WIA Performance Measures Supplemental Data Sources: ITIN Number w/ IRS Corp ID DBA registration/local business license Business plan Proof of established business checking acct. IRS Schedule C tax return Current purchase orders Business office/store lease Proof of small business loan receipt Administrative Records: Business location, # customers, finance strategy Average Earnings (substitute measure): 13 Business P&L showing equivalent of 30 hours/week at min. wage for your state J Hawkins 2011 Additional Resources (DOL) TEGL-12.10: http://wdr.doleta.gov/directives/attach/TEGL/TEGL1210.pdf ETA 2009-22: “Think Entrepreneurs: A Call to Action- Integrating Entrepreneurship into the Public Workforce System throughout America” http://wdr.doleta.gov/research/keyword.cfm Intuit Institute for the Future: http://about.intuit.com/futureofsmallbusiness/ 14