Transcript Texas Self Employment Project - Florida Agency for Persons

Florida’s Path to SelfEmployment
Beth Keeton
The Center for Social Capital
GRIFFIN-HAMMIS, LLC
Why Customized SelfEmployment?
Self-Employment: A Mainstream
Approach to Business
► Self-Employment
20% annually
rate growing at more than
► 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)
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Self-Employment and Persons
with Disabilities
► Historically
► US
self-employed at higher rate
Census, 1996
 12.8% people with disabilities
 7.8% general labor force
► Proven
to be a viable employment outcome,
regardless of disability type
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FL VR: CBTAC Program
► 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
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Florida DVR: CBTAC
► Provider
certification standards & process
► Comprehensive policy revision
► Tools, handbooks, “Desktop Reference for
Counselors”
► Statewide counselor training
► Networking meetings
► Ongoing TA & support
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FL DVR: Progress to Date
►
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
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Trainings and Resources
► Online
Resources
 CSC/VCU: Online Certification Program
 Essential Learning: www.essentiallearning.com
 Start-Up USA: www.start-up-usa.biz
► CBTAC
► Making
website (under development)
Self-Employment Work for People with
Disabilities (Griffin & Hammis, 2003)
The Myth of the Entrepreneur
► 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
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How would most
entrepreneurs with complex
disabilities fare against this
list?
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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
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Benefits of Self-Employment
► 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
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Customized Self-Employment:
Essential Elements
► Business
Team
► Discovery
► Feasibility
Assessment
► Resource
Planning
► Business
Plan Development
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Discovery
► 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
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Hallmarks of Discovery
► 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
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Linking Discovery to Business
Concept Development
► Identify
vocational themes & cross themes
► Informational
► Utilization
interviewing
of networks and connections
► “Go
where the career makes sense”
► Find
Fish Bob
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Assessing Feasibility: Foundation
► Knowledge
of Market/Industry
 Based on market research
► Knowledge
of individual
 Interests, skills, strengths
 Types of support needed
► Knowledge
of Team
 Supports available
All must be considered in relation to each other in
order to determine if business concept is viable
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Perks of Self-Employment
► Terri
The Path to Self-Employment
► John
DJ Smooth
Resource Planning
► Variety
of programs that can support selfemployment
► Individual
benefits assessment is critical
► Significant
opportunities exist within SSA
benefits programs
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SSI: PESS
Under a rule called Property Essential to SelfSupport (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
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GRIFFIN-HAMMIS ASSOCIATES, LLC
Gross Sales over
$80,000/Year
Net Income over
$30,000/Year
Glen
HI VR: $12,000
PASS:
$9,000
SSI & Medicaid
► 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
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Plan for Achieving Self-Support (PASS)
► 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
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Self-Employment & PASS
► 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
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PASS Example: Earned Income
 Beneficiary: James
 Business: Web Design
 Avg. Monthly NESE: $1100
 SSI Cash Benefit: $167
(eligible for full FBR)
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PASS Calculation: Earned Income
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PASS Example: Unearned Income
 Beneficiary: Natalia
 Business: Clothing Design
 SSDI Cash Benefit: $420
 SSI Cash Benefit: $274
(eligible for full FBR)
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PASS Calculation: Unearned Income
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SSDI: Self-Employment Work
Incentives
► 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
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Other Programs Supporting SelfEmployment
► Individual
► Family
Development Accounts (IDA)
Self-Sufficiency Programs
► One-Stop
Centers
► Medicaid
Waivers
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Business By Disability Type
Based on Sample of 76
Griffin-Hammis Associates, LLC
Gross Income
76 Business Sample
$28,241
$39712
$4,800
$130,000
Average Gross Revenue: $28,241 Omitting 1 $900,000 Business
Griffin-Hammis Associates, LLC
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
Wrapping It Up
► Final
Thoughts?
► Questions??