Presented by:

Betty Emarita, IACED - Development and Training Resources, Minneapolis, MN

Patricia Harris, Cobb Microenterprise Center, Kennesaw State University, Kennesaw, GA

September 5, 2003, San Antonio, Texas

Building Strategic Alliances and Partnerships with Impact

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Norms

• Everyone’s 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

• 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.

Microbusinesses: Building Strategic Alliances and Partnerships with Impact

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WHAT IS MICROENTERPRISE DEVELOPMENT AND WHY SHOULD WE CARE?

• Developed as an anti-poverty and economic development strategy began in third-world countries in the 1970’s

• Emerged as a strategy to stimulate economic growth and reduce poverty in urban and rural America in the 1980’s.

• Practitioner pioneers began innovative programs in scattered rural and urban areas across the country from 1980 – 1990’s.

• 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.

Its Origins – 30 year History

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WHAT IS MICROENTERPRISE DEVELOPMENT AND WHY SHOULD WE CARE?

• Today, there are over 600 organizations in the U.S. operating microenterprise initiatives.

• In the midst of today’s great economic challenges microenterprise development is a best practice for eradicating the cycle of poverty—one 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.

Its Origins – 30 year History (cont.)

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Microenterprise Works!!

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).

Community Impact

                                                                                                         

                        

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Microenterprise Works!!.

• 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

Changing the Lives of Families

                                                                                                         

                        

                                                                                        

                    

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A Microenterprise Defined

• 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

A Microenterprise has:

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Who does Microenterprise Development Serve?

• 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

TARGET MARKET

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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 Framing…just to name a few!

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Successful Microenterprise Development Program Designs

• 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

MUST:

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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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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?

•What’s next?

Stage I:

A Shared Vision

Stage II:

Resolve Conflicts

Stage IV:

Assess The Work

Stage III:

Pilot Project

Entity

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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

•Exchange information

•Market your relationship to the other organizations

•Clearly state the mission and vision of the work

Measure Impact

•Contribute resources

•Planning and implementation time

•More detail in budgets, work plans, funders,etc.

•Sharing information

•Establish structure and MOU’s

•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 Autocratic

Democratic

Diffuse

• Everyone has a vote and everyone votes on everything

• Small groups make decision assigned to them

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Taking Action

• 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

RESULTS

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Taking Action (cont.)

• Build Trust

• Analyze Membership

• Map membership

• Assign roles to members

• Discuss progress at home office

• Promote funder involvement

• Streamline communications

• Promote customer involvement

RELATIONSHIPS

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Taking Action (cont.)

• Advance sustainability

• Diffuse decision making

• Gain financial support

• Create or confirm a governance agreement

RESILIENCE

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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 Women’s 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: 703-841-7760

Web site: www.microenterpriseworks.org

• Ms Foundation for Women

– Phone: 212-742-2300

Web site: www.msfoundation.org

Aspen Institute, Publications Office

– Phone: 410-820-5338

Email: publications@aspeninst.org

• Institute for Social and Economic Development (ISED)

– Phone: 319-338-2331

Web site: www.ISED.org

• Georgia Micro Enterprise Network

– P.C. Williams

678-296-1059

Web site: www.georgiamicroenterprise.org

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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

(612) 823-5193

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

(612) 823-5193

bemarita@aol.com

Patricia Harris

Executive Director and CEO

Cobb Microenterprise Center

Kennesaw State University

1000 Chastain Road, KSU Center 3305

Kennesaw, GA 30144

(770) 499-3228

patricia@cobbmicro.org

Website: www.cobbmicro.org

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