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Hope Network Micro Enterprise
www.micro2e.org
micro . . . 2 Enterprise . . . and BEYOND!!!
What is Micro Enterprise?
• Globally– Targeting people living in extreme poverty– Micro loans
• Nationally– In 1991, the SBA recognized the need for micro
enterprise for targeted populations
• Statewide– SSE / ME Work Group (supported by CMH $s)– Current Data
Statewide Data
• 170 micro businesses owned by people with disabilities (supported by CMH services)
• 98%of micro-enterprises have a Business Plan!
• 85% percent secured Funding!• Medicaid, MRS, Loan or Other
• $60,700 in collective Gross Sales!
• $116,750 in local purchases!
More Data
• One third (33%) meet the IRS definition of real business versus a hobby.
• Nearly half (46%) have filed their DBA with local County Clerk’s office.
• 33% have Natural Supports for businesses.• 38% have quarterly Gross Sales of over $100.• 20% have $500+ in quarterly Gross Sales.• 10% have $1,000+ in quarterly Gross Sales.• 27% have purchased over $500 in a quarter for raw
materials/services needed Micro Enterprise; • 13 of whom spent over $2,000 in one quarter • 3 of whom spent over $5,000 in one quarter
Three Types of Poverty
Money
Meaning
Friends
A Great Big Question
What is a
meaningful life?
“Ultimately, man should not ask what the meaning of his life is, but rather must recognize that it is he who is asked. In a word, each man is questioned by life.”
(Victor Frankl, Man’s Search for Meaning)
A Meaningful Life
How do we find meaning in life?
1. By discovering and claiming our gifts
2. By using, or contributing, them in a way that makes a difference
Every person on this earth comes here with what I call birthright gifts. Using those gifts gives us purpose and meaning in life. This world suffers when even one person is denied the opportunity to use their gifts to make a difference.
Our Reason for Existence
• It all comes down to the face to face work we do everyday
• As we care for others, what is the quality of our relationships?
• Do we engage people? In life?
• Do we engage them in discovering and contributing their gifts?
• Are we fully present?
Purpose Statement
The Kent County Micro Enterprise Initiative provides business development services through one-on-one business coaching. Micro businesses are built on solid business principles including thorough upfront assessment of feasibility (person, product, profitability, and the support team), market research, writing business plans, accessing micro loans, and developing leadership skills.
Purpose Statement
Creating systems of support is integral to the sustainability of micro businesses:
• Macro networks of support include community partnerships; tapping business expertise in universities and small businesses.
• Micro networks of support are built around each micro business; assisting the business owner in every aspect of running a business.
Feasibility
• Feasibility assessment is done at every stage throughout the Micro Enterprise Development Process
• Four Areas of Feasibility:• The person• The business concept• The profitability• The support system
Feasibility: the person
• Leadership• Does the person take charge of the business?
(Business)
• Or wait for others to take the initiative? (Hobby)
• Making the product• Only when they feel like it? (Hobby)
• To meet customer demand? (Business)
• Whose idea is it anyway???
Feasibility: business concept
• Is the product or service unique?
• How available is it?
• Do people want it? Enough to pull out their wallets while asking, “How much?”
• Is there a demand beyond friends and family (and staff)?
Feasibility: profitability
• How much per hour will the potential business owner make?
• If less than $10.00 per hour, then the feasibility is questionable.
• Why?– By IRS rules a business is not recognized until it makes at least
$400 in profit in a year– Once it achieves this status, then self-employment taxes become
applicable and required. This is “15.3% of net earnings from self-employment”
– Businesses are required to file projected income taxes quarterly– Sales tax license is necessary when one is selling non-food items– Sales taxes (6%) must be paid to the state for all items sold
Feasibility: the support system
• How much of the business is the potential business owner able to do?
• Who is going to do what the person cannot do?• Does the person have support outside of paid
professionals?• Is this support network well organized with
everyone having clear roles?• Is there a good communication system between all
those involved?
How It Works
Micro Enterprise Development Process– Our Micro Enterprise Development Process is based
on person-centered practice and small business development principles. Balancing the two facilitates the movement of both the business and the business owner toward independence in their community.
Step 1: Person-Centered Discovery Process
Step 2: Feasibility Study
Step 3: Business Development
Telling the Stories
• Business Owners’ Successes• Overview of businesses
• Partnership and relationships
• More than monetary value
• Business Owners’ Challenges• Pre-ownership feasibility (hobby or business)
• Marketing and sales
• Bookkeeping
Open Discussion
• Micro Enterprise Development Successes– Partnerships and community involvement– Statewide work group / presentations at MARO
(2Xs) and MACMHB (2Xs). Based on response to the Micro Enterprise Development Process
– A very pure form of person centered practice
Person Centered: from policy to practice
• 1980s: John O’Brien and colleagues coin the term person centered planning
• They supported it with tools such as MAPS and PATH
• 1990s: Michigan made it into policy• It became policyized: Documentation feeds policy • No time for person centered practice• Micro Enterprise is a very pure form of person
centered practice. It fails unless it is done right.
Open Discussion
• Micro Enterprise Development Challenges– Ensuring that the work is person centered
• Choice includes being informed• Outcomes cannot dominate the growth process• Outcomes cannot be allowed to rush the process
– Supporting one on one work within a system designed for group work
– Natural supports• Support networks needed for all marginalized groups• Poverty: money, meaning, friends
Online Tools & Resources
• Bloghttp://www.micro2e.org/
• Online Business Directory (under construction)
http://micro2e.org/wiki/Business_Directory • Forms and Documents
http://www.micro2e.org/wordpress/forms-and-documents/
Find us on facebook: Micro 2 Enterprise Network
