accion usa financial education overview

Lending. Supporting. Inspiring.

Empowering Microentrepreneurs

Through Education

ACCION USA

Financial Education Program

2www.accionusa.org

Microenterprise Market in the U.S.

• More than 87% of small businesses in the U.S. are microenterprises• Microenterprises employ one in six private sector employees

• AEO/FIELD estimate that there are 20+ million microentrepreneurs in

the U.S.– 5.13 million women-owned businesses– 2.5 million minority-owned microbusinesses– 4.3 million business owners with personal incomes <$10k

• Approximately 10 million lack access to services such as credit,

training, business advice

3www.accionusa.org

Financial Education Program: Origins

• 2002 New York

• Technical Assistance program launched after September 11th

• 2005 ACCION USA

• Seed funding provided by the Allstate Foundation

4www.accionusa.org

A Complement to our Lending Program

Business Development

• Brand awareness– Grassroots strategy– Web presence

• Partnerships – Entrée into new areas

• Drive contacts– Conversion into closed loans

• Hook for fundraising and sponsorship

Customer Service

• Enhance customer experience

• Save borderline applicants

• Improve client retention

• Encourage repayment

5www.accionusa.org

Interesting Facts

What percentage of America’s small businesses today rely on credit cards to finance day to day operations?

a.) 24%

b.) 59%

c.) 89%

d.) Who the heck knows?

6www.accionusa.org

Curriculum Development

Methodology

• Focus groups

• Consultant

• Daily interactions with clients

7www.accionusa.org

Your Money and You

• Topics

Money ManagementUnderstanding CreditSmall Business FundamentalsBusiness Taxes and Insurance

• Funded by Allstate

• Toolkits (workbook, quizzes, resource brochures)

• Roll out in New York, Boston, Atlanta and Miami

8www.accionusa.org

Build Your Credit

• Topics

How to build a credit history in the USHow to strengthen your credit history

• Funded by AIG

• Booklet, articles

9www.accionusa.org

Business Survival Strategies 2010

• Interviewed several ACCION Clients

• Topics include

Protecting creditFreeing up cash flowBuilding your business network

Words of Wisdom from AUSA Clients

– Power Points– Instructor Guide– Participant Handout

10www.accionusa.org

Supporting Materials

• Articles

www.univision.com

www.latinoaol.com

Web directories

• Tip sheets

• Podcasts(in Spanish) www.accionusa.org

11www.accionusa.org

Delivery Channels

Workshops

www.accionusa.org/workshops

• Organized with community, financial and corporate partners

• Fulfill key deliverable for many funders

• Facilitate networking

opportunities for attendees

One-to-one counseling

12www.accionusa.org

Quiz

• What ACCION USA event will be taking place on September 22nd ?

(Hint: It’s on ACCION USA Workshop Calendar)

13www.accionusa.org

Delivery Channels Continued

Speed coaching events

• Organized with corporate

partners

• 1-1 counseling for business

owners with industry experts

• Webinars

Quiz: Does anyone know what topic June’s webinar series focuses on?

14www.accionusa.org

Delivery Channels Continued

• Websitewww.accionusa.org/financialeducation

• Loan Process

15www.accionusa.org

Interesting Facts

What is the #1 Source of In-Bound Links for the ACCION USA Website?

a.) Small Business Administration

b.) University Small Business Development Centers

c.) Content sharing partnership with www.univision.com

d.) Credit Counseling Agencies

16www.accionusa.org

Train the Trainer

• Volunteer instructors

• Agent partners– Puerto Rico– Oregon– Minnesota– Idaho

• Other – Adult education programs, community organizations

17www.accionusa.org

Impact – Outputs**

Workshops• Participants

14,532 Participants

Participant demographics*

6,264 Women

2,853 Latinos

1,826 African Americans

1,998 Business Owners

* Incomplete reporting

One-on-one counseling• Sessions

8,212

= 27,000direct touches

** 2002-YTD (4/30/2010)

18www.accionusa.org

Impact - Outcomes

• Loans – 253 (through YE 2009)

• Increase in financial literacy

• 96% of workshop participants in New England reported an increase in their financial literacy after attending an ACCION USA workshop

• Workshop attendees exhibited a 15% average increase in correct answers in post quizzes. A survey of workshop participants in NY indicated that 85% of attendees found the Build Your Credit workshop to be helpful or very helpful.

19www.accionusa.org

Challenges

• Engaging our target audience

• Maximizing impact – how to measure beyond the outputs

• Building connections to our products

20www.accionusa.org

New Directions

• Continue integrating education into our lending process

• Leverage education program as a networking venue for small business owners (coaching clinics)

• Credit Coaching Pilot in Miami

• Enhancing impact measurement tools

21www.accionusa.org

Greg (check out the ACCION USA blog for more)

Greg’s journey with ACCION USA began in February 2009. He owns an

answering service business and needed a loan to keep up with his growing list

of clientele. When a damaged credit history and low credit score meant that he

didn’t qualify for a loan, Greg demonstrated two characteristics that

entrepreneurs tend to possess: persistence and a desire to learn. He

contacted our Boston office, determined to understand how he could improve

his credit history.

That call was the first of many. Throughout the next year, ACCION USA staff

member Melissa led Greg through the process of improving his score. With

her guidance, Greg took control of his debt, improved his credit score over 60

points, and regularly called to check in with Melissa. And his hard work paid

off: last month, Greg was approved for a loan.

22www.accionusa.org

Leveraging AUSA’s Value-Added Services

Communications

• Get email addresses and ask for contributions to Tip of the Month

Online Resources

• Refer clients interested in growing their businesses to tips on

www.accionusa.org/financialeducation

YOLA

• This is a great, low cost marketing tool for clients! Tell them about it!

1-1 counseling

• Refer clients in need of additional support to financial education team

Events

• Promote events to your clients! www.accionusa.org/workshops

Client Directory

• Encourage clients to sign up and use for your own reference

23www.accionusa.org

Who is on Your Financial Education Team?

• Andrea Stiles Pullas (Ecuador)

• Elizabeth Garlow (Boston)

• Shaina Peterson (Boston)

• Benjamin Himmelfarb (Miami)

• Nancy DelaCruz (NY)

• Clare Scanlan (NY)

Lending. Supporting. Inspiring.

Thank you!

Questions? Comments?

Please email us:

Andrea Stiles Pullas – astiles@accionusa.org

Elizabeth Garlow – egarlow@accionusa.org