Growing Entrepreneurship Clinics Around the Globe   

Barbara Schatz Susan JonesColumbia Law School George Washington

University Law School

International Journal of Clinical Legal Education Conference15-17 July 2014

Palacký University, Olomouc, the Czech Republic   1

Plan for our session

What is an entrepreneurship clinic?

Why teach an entrepreneurship clinic?

What are some issues and challenges of an entrepreneurship clinic?

Examples of entrepreneurship clinics worldwide

Would an entrepreneurship clinic work in your environment?

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What is an Entrepreneurship Clinic?

Who are the clients?

Social/Economic Justice Model

o non-profit organizations

microenterprises and small businesses in low-income communities

social enterprises

Incubators

Technology, Innovation Model

inventors, tech companies, high growth start-ups

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What is an Entrepreneurship Clinic?

What services does the clinic provide?

Non-litigation legal services (or advice only)

Education for entrepreneurs Policy analysis and advocacy Business planning and consulting

through partnerships and referrals

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Microenterprises

Harlem dessert company

Makes and sells healthy desserts to Harlem stores and restaurants

“Incubated” by Hot Bread Kitchen which helps low-income and foreign women break into the food industry and educates New Yorkers about the contributions of immigrant communities

Students helped client avoid trademark litigation over the name of her business

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Social Enterprises

Tutoring Business Helps low-income students prepare for college

entrance exams

Fees from higher income students help subsidize services to low-income kids

Clinic students formed a legal entity, advised on employment issues and drafted contract between the business and its tutors

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Social Enterprises

Aquaponics business Developing aquaponic facilities in NYC to

produce fresh food and distribute some at a discount to low-income New Yorkers

Students counseled business on tax and governance issues and drafted operating agreement

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Non-Profit Organizations

Residents Associations of Public Housing Projects

Students helped associations to form legal entities with tax benefits to permit better services to their low-income residents and communities

Students worked with associations to improve governance

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Life Asset

o A “non-predatory” financial resource center for poor, low, and moderate income persons

o Provides affordable financial services and financial education to the “unbanked” and “underbanked”

o Students did corporate, tax, contract and trademark work

 http://www.lifeasset.org

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Community Legal Education and Policy Work

Community Legal Education Workshops for microenterprises and non-

profits Manuals for microenterprises and non-

profits

Policy Work Conference: Barriers to Microenterprise Advocacy to improve law and regulations

governing non-profits Action Research

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Action Research

The Workplace DC

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Why Teach an Entrepreneurship Clinic?

Promote Economic Justiceo help non-profits and social enterprises that

provide resources to low-income individuals and communities to start-up and thrive

o help those who are out of the economic mainstream to start and operate businesses

o Entrepreneurship = gateway to work for those without formal education

o Entrepreneurship = income for those who can’t find jobs

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Why Teach an Entrepreneurship Clinic?

Promote Economic Developmento Create or strengthen economic institutions

controlled or owned by the residents of a low-income community that will o attract outside capital, o improve the physical environment, o increase jobs and entrepreneurial opportunities for

residents, o provide more accessible services and goods to

residents

o Promote innovation and tech/high growth companies with potential to create jobs

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Why teach an Entrepreneurship Clinic?

Students Learn Unique Skills and Values

Interview and counsel organizations rather than individuals

Represent clients in a planning/transactional context

Learn what it takes to grow a business or non-profit

Draft corporate documents and contracts Negotiate transactions Collaborate with business, finance,

management: o Studentso Professionals14

Why teach an Entrepreneurship Clinic?

Meet student needs and interests Prepare students for:

o careers representing enterpriseso pro bono work and board serviceo careers as entrepreneurso entrepreneurial approach to law practice

Form professional identityo Show career paths that are not black and

white – business law work that promotes social justice

o Show variety of lawyering roles when representing enterprises

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Criteria for Choosing Clients, Scope of Work

o Inability to afford legal services?o Availability of other pro bono services?

o Contribution to social and economic justice?o Contribution to [community] economic

development?o Likelihood of success?o Student interest?o Pedagogical value?o Clinic’s competence to handle the matter?o Work which students can complete within the

semester or year?o Reaction of private bar?

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Is a Social/Economic Justice Focus Important?

Innovation Advancement Program at Arizona State Universityo Clinic represents inventors, technology entrepreneurs, emerging

technology companies, faculty who want to commercialize their discoveries

o Multi-disciplinary team of students (business, engineering, science, law) provide business planning and management consulting services

o Selection criteria:o Can’t afford local attorneys/consultantso Technology-based companieso Potential for growth and hiringo Arizona-based companieso Preference for ASU students, professors and alumni

o Charges “program” fees

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Is a Social/Economic Justice Focus Important?

Advantages of Tech Clinico Train students for jobs in growth sector of economyo Promote economic development in locality o Availability of funding

Disadvantageso Low-income people and communities lose scarce clinic resourceso Lost opportunity to explore role of business lawyer in promoting social

justiceo Possible complaints from private bar

o Blended Clinicso Skills largely transferable

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Entrepreneurship Clinics Worldwide

United States o Currently 145 entrepreneurship clinics at US law schools

United Kingdomo Northumbria University, Newcastle-on-Tyne o Queen Mary University of London o University of South Wales, Pontypridd

Georgiao Free University (FreeUni), Tbilisi

Croatiao Josip Juraj Strossmayer University, Osijek

iLINC – European Network of Law IncubatorsOthers?

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Entrepreneurship Clinics Worldwide

Northumbria University, UKo Students at the Student Law Office are divided into “law firms”

which assist businesses, charities and social enterprises regardless of their size or financial means.

o Typical projects: o registering a trademarko drafting website terms and conditionso drafting company registration documents and advising on

directors’ dutieso drafting and advising on a music video production

contracto Students offer free workshops to the public and to

entrepreneurs’ groups.Contact:

Elaine Campbell Senior Lecturer +44 191 243 7548 elaine.campbell@northumbria.ac.uk

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Entrepreneurship Clinics Worldwide

Queen Mary University of London Legal Advice Centreo qLegal, starting in 2014, will offer free legal advice (not

representation) on business, commercial and intellectual property issues to non-profit social enterprises and for-profit companies which meet income guidelines.

o The Law for the Arts Centre offers free legal advice monthly to those involved in the creative industries.

qLegal Contact: Patrick Cahill

www.qmul.ac.uk/qLegal  020 7882 3977p.cahill@qmul.ac.uk

www.qmul.ac.uk/qLegal 

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Entrepreneurship Clinics Worldwide

University of South Wales, Pontypridd, UKo Legal and Financial Advice Clinic advises small

businesses and social enterpriseso Enterprises are not eligible for free legal advice

through government programs – goal of the Advice Clinic is to fill this gap, especially for the many individuals who have no livelihood alternative other than starting a business.

Contact:

Richard Owen Director Legal and Financial Advice ClinicFaculty of Business and SocietyUniversity of South WalesTel: 01443 654639Fax: 01443 483008 e-mail: richard.owen@southwales.ac.uk 

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Entrepreneurship Clinics Worldwide

Josip Juraj Strossmayer University in Osijek Croatiao Law faculty and Economics faculty planning a

clinic to assist start-up entrepreneurs.o Working in teams, law students will provide

advice and documents necessary to start a company, and economics students will provide industry analyses.

Contact:Anamarija Delic, PhDAssistant ProfessorFaculty of Economics in OsijekTel: +385 31 224 426Fax: +385 31 224 438

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Entrepreneurship Clinics Worldwide

iLINC: European Network of Law Incubators

Goal: build European capacity to provide legal advice to ICT (information, communications, technology) start-ups and entrepreneurs

Service Delivery Models Individual client representation Workshops Internet portals (no person-to-person engagement)

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Entrepreneurship Clinics Worldwide

Small Business and Community Economic Development Clinic, George Washington University Law SchoolSmall Business & Community Economic Development Clinic- Law 6621

Professor Susan Jones, Director Professor Kevin Peska, Adjunct Professor Alice Hamilton Evert, Visiting Associate (Fellowship) 8-10 Students

Eligibility Open to 2nd and 3rd year students Prerequisites: Law 6250 (Corporations) and Law 6300 (Federal Income

Tax) Recommended: Law 6472 (Copyright), Law 6474 (Unfair Competition &

Trademark Law), and 6314 (Nonprofit Organizations: Law and Taxation)Credit hours/duration

Students may enroll for 4, 5, or 6 creditso 4 Credits- 16 hours per week 208 hours/semestero 5 credits- 20 hours per week 260 hours/semestero 6 credits- 24 hours per week 312 hours/ semestero One semester clinic25

Entrepreneurship Clinics Worldwide

Small Business and Community Economic Development Clinic, George Washington University Law SchoolGrading Method

o This clinic is graded on an H, P, LP, or NC basicWeekly Seminar

o Wednesday, 1:40-3:40pm (2 hours)Other Course Requirements

o Students of the Week (SOW)-intake new clientso Weekly case supervision meetingso Maintain weekly time sheetso Case team meetingso Learning goalso Small Business Education

o Exampleso The New DC Nonprofit Code, DC Bar Pro Bono Programo Enterprise Community Partners Faith Based Community Initiative

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Entrepreneurship Clinics Worldwide

Community Enterprise Clinic of Columbia Law School

Professor: Barbara A. Schatz Two semestersCredits: 7 credits in fall, 4-6 credits in spring (student option)Enrollment: 8 students Class meeting time: Tuesday 4:20 to 6:10 PM and Thursday 3:00 to 5:50 PMGrading: Students may choose to be graded CR/F or with a letter grade.

Goals: The goal of this clinic is to help students to become effective and ethical lawyers by providing high quality transactional representation to non-profits, microenterprises and social enterprises. An additional aspect of the Clinic involves helping students to achieve personal goals related to becoming professionals, e.g., improving time-management; learning to collaborate with a partner; improving ability to work with people of different age, sex, race or economic status; learning how to enjoy working as a lawyer.

Cases and Projects

Non-profits - community groups, international organizations and arts organizations, both start-ups and mature organizations.   Typical projects o helping the client to choose and create an appropriate entityo developing a governance structure and drafting by-laws, conflict of interest and other corporate policies o applying for tax exemptionso helping an organization create a corporate and tax structure for a business activity o helping a local organization to create a national structure o reviewing and drafting leases and contracts o creating structures through which charities can participate in the political process o advising on trademark and copyright issues 27

Entrepreneurship Clinics Worldwide

Community Enterprise Clinic of Columbia Law School

Microenterprises – serve low income communities and are unable to afford market rates for legal services

Social Enterprises – organizations interested in both generating income and achieving a social or environmental goal

Typical projects for microenterprises and social enterprises:o helping entrepreneurs to choose and form appropriate business structures o drafting or reviewing contracts, leases, financing documentso advising on trademark and copyright issues o complying with regulatory requirements  

Community Education and Policy Work: Students offer workshops and prepare publications for non-profits and community entrepreneurs on corporate, tax and regulatory issues. They also participate in law reform projects related to our clients.

Pedagogy: The early weeks in the clinic are designed to prepare students to see clients. Classes, out-of-class exercises, readings, videotaped simulations and individual meetings with the professor are used to build students’ substantive knowledge, skills, judgment and sensitivity to ethical issues. Once casework begins, simulations taper off and the actual cases become the subject of weekly supervision meetings and some classes. Throughout the semester, we focus on the lawyer’s role, especially the unique issues in representing organizations rather than individuals, and on helping students to develop a workable personal conception of that role.

Expectations: Students should plan on spending at least 21 hours per week on Clinic work and can expect to come out of the Clinic with a good grounding in the corporate and tax law relevant to our clients; a sense of how the law functions in practice; basic skills in communicating with clients, facilitating the work of a group enterprise, problem-solving and drafting; sensitivity to ethical issues; good work habits involving careful planning and the ability to reflect on and learn from experience; and an understanding of how lawyers can use their skills to benefit communities. 28

Entrepreneurship Clinics Worldwide

Would an entrepreneurship clinic be feasible and useful your environment? o Regulatory environmento Availability of business planning serviceso Possibilities for collaborations with other

facultieso Private bar support/oppositiono Relationship to other poverty-reduction

strategies

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Resources

o Law School Entrepreneurship ClinicsKauffman Foundation

http://www.entrepreneurship.org/entrepreneurship-law/

o Bigger Than You Think: The Economic Impact of Microenterprise in the United States available at www.aeoworks.org 

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Resources

Selected Books & Law Review Articles by Professor Susan R. Jones

BOOKS   Building Healthy Communities: A Guide to Community Economic Development for Advocates, Lawyers and Policymakers, Chicago, IL: American Bar Association, 2009. (with Roger A. Clay, Jr.)   Legal Guide to Microenterprise Development. Chicago, IL: American Bar Association, Section of Business Law, 2004.   

ARTICLES 

Viewing Value Creation by Business Lawyers Through the Lens of Transactional Legal Clinics, forthcoming ___UC Davis Bus.L. J.___(2014) (with Prof. Jacqueline Lainez).

Clinical Collaborations; Going Global to Advance Social Entrepreneurship (with Deborah Burand ( Michigan); Jonathan, Ng (General Counsel & Global Legal Director, Ashoka) and Alicia Plerholpes (Georgetown), 20 International Journal of Clinical Legal Education,499 ( 2014).

Enriching the Law School Curriculum: The Rise of Transactional Legal Clinics in U.S. Law Schools, 85 Univ. Wash. J. L & Pol'y 85 (2013) (with Prof. Jacqueline Lainez).  Innovative Approaches to Public Service through Institutionalized Action Research:  Reflections from Law and Social Work, 33 U. Arkansas L R 377 (2011)  (with Dr. Shirley J. Jones).   Supporting Urban Entrepreneurs: Perspectives on Small Business Development - Law, Policy & the Role of Lawyers, 30 Western New England L.R. 71 (2008).   Dr. Martin Luther King, Jr.’s Legacy: An Economic Justice Imperative -, 19 Washington U. J. L & Policy 39 (2005).   Promoting Social and Economic Justice Through Interdisciplinary Work in Transactional Law, 14 Washington U. J. L & Policy 249 (2004).    Pro Bono Pays Off: Transactional Lawyers Supporting Economic Development in the Nation's Capitol, 17 GP Solo & Small Firm Lawyer 38 (March 2000).   Representing the Poor and Homeless: Innovations in Advocacy: Tackling Homelessness through Economic Self-Sufficiency , 19 St. Louis University Public Law Review 385-412 (2000).    Small Business and Community Economic Development: Transactional Lawyering for Social Change and Economic Justice,  4 Clinical Law Review 195-234 (1997). 31

Resources

Starting Off Right, Columbia Law School 2012 Small Business Start-Ups , Columbia Law School 2012 B. Schatz and A Cody, Community Lawyering in The Global Clinical Movement, Frank S. Bloch, ed.,Oxford University Press, 2011 

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Resources

George Kuney and Brian Krumm, The Entrepreneurial Law Clinic Handbook, Thomson Reuters, St. Paul, MN, 2013

Alicia Alvarez and Paul Tremblay, Introduction to

Transactional Lawyering Practice, West Academic Publishing, St. Paul, MN, 2013

Richard Neumann Jr., Transactional Lawyering Skills, Wolters Kluwer Law & Business, New York, NY, 2013

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