Inclusive Entrepreneurship* Implementation Considerations for the VR System Gary Shaheen, MPA,...

Inclusive Entrepreneurship* Implementation Considerations for the

VR System

Gary Shaheen, MPA, Senior Vice President, Burton Blatt Institute

Adjunct Faculty, Whitman School of Management

Nicole LaCorte-Klein, Senior Program Development Associate, Burton Blatt Institute, Syracuse University

July 12, 2012

“Inclusive Entrepreneurship” is developed and trademarked by The Syracuse University Whitman School of Management and Burton Blatt Institute and used with permission

TACE Center: Region IV, a project of the Burton Blatt Institute.Funded by RSA Grant # H264A080021. © 2012

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Overview

• “Inclusive Entrepreneurship”-A summary of the approach

• “Moments of truth”

• Conditions for success

• Leveraging funding, services and expertise

• Implementation process

• VR example

• Discussion, Q&A, Next Steps


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“Inclusive Entrepreneurship TM”

A strategy and process for assisting people with diverse disabilities to become entrepreneurs through

• business planning training• use of customized business development goal and support

planning • access to financial resources • utilizing the resources of diverse public and private • partners working within

a consensus-driven collaborative framework

Syracuse UniversityBurton Blatt Institute/Whitman School of Management

2009


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‘4 Stage Inclusive EntrepreneurshipTM Process’

STAGE I

Entrepreneurial Awareness

Business concept and goal planningSelf-assessment,Team building

ResearchDevelop business feasibility

Outcomes: Approve business training and business planning

STAGE IV

Sustained Growth

ProfitabilityExpansion

Outcome: Meet intermediate and

long-term income goals

STAGE III

Early Start UP

Refine and test business planAdditional trainingRegister business

Generate salesFinancing/accounting

MarketingScore or other mentors

Outcome: 90 day sustainability

STAGE II

Nascent EntrepreneurBusiness training

Benefits advisementFinancial literacySBDC counseling

Develop initial business planTest business assumptions

Utilize team and business mentors

Outcome: Develop initial business plan


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Analysis of SE Outcomes within Federal/State VRS

• Percentage of closures in SE 2003: 2% 2007: 1.7%

• US avg. Earnings/week at closure 2003: $315 (SE)/ $308 (all other status 26 closures) 2005: $329/ $324 2007: $396/ $350

• US avg. dollar/hour at closure 2003: $10.94 (SE) / $9.36 (all other status 26 closures) 2005: $11.73/ $9.76 2005: $12.97/ $10.52

Revell et. al., 2009


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‘Moments of Truth’

• Defined in business as the decision point when your customer decides to buy or not buy your product or service

• Determined by perception that it fills a customer need or by generating a need

• Influenced by marketing impact, price, quality, quantity, feel, look, taste, smell, ease of purchase, confidence and trust, advantage compared to competitors and many other buyer-determined factors

• The business owner needs to understand these ‘moments of truth’ and build business development strategies around them

• VR agencies are also a ‘customer’-what are your ‘moments of truth’ that a prospective entrepreneur needs to understand in order to get VR support for a self-employment goal??


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Some VR ‘Moments of Truth’

• What are the experiences, perceptions and training that affect their decision to support self-employment as a rehabilitation goal?

• Is the business goal feasible?• Will the entrepreneur invest (time and resources) to succeed?• Are all business training and support needs and individual

accommodations identified and do they meet VR criteria?• Does VR has the funds, staff, partners, processes in place to

support?• Will VR funds achieve their return on investment (ROI)?• Will the entrepreneur succeed in achieving a status 26

outcome? • On the basis of these and other factors: VR counselors

will make a decision to “buy or not buy” (into) a self-employment goal and plan


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Policy Challenges

• Guidelines not clearly defined

• Lack of awareness and knowledge

• The “Fear Factor” and “There once was a case”

• Lack of integration across agencies or systems


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Potential VR Policy Challenges

• Assessment/Screening

• IPE development

• Referral/support process

• Stability/closure criteria

• Vendor issues

• Role of VR

• Plan review and assessment (across stages)

• Implementation supports


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Florida DVR Self Employment Regulations• Self-employment and supported self-employment can be considered

as a viable employment outcome for individuals. This option must be consistent with an individual’s strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice. Those individuals considered must contribute to the development of a business service, product, or perform a core function of the business.

• VR has the ability to provide services necessary to support this outcome. The services are described in an IPE as necessary to assist an individual to prepare for, secure, retain, or regain an employment outcome.

• Self-employment is defined as working for oneself with direct control over work and services undertaken and fees and charges are set for the purpose of making a profit. This includes sole proprietorships, limited liability companies (LLC), partnerships, and corporations.


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Florida DVR Example

• Developed provider certification standards and process (CBTAC)

• Comprehensive policy revision

• Tools, handbooks, “Desktop Reference for Counselors”

• Statewide counselor training

• Networking meetings

• Ongoing TA & support


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Conditions for Success

• Agreement

• $$$$$$

• Time

• Plan

• Commitment

• Milestones

• Metrics

• Impact


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Assessment for Self-Employment

• Assessment services are designed to obtain information that will help clarify VR eligibility questions, and/or assist both the consumer and VR counselor in the development of an appropriate IPE goal.

• Assessment information evaluates consumer skills, aptitudes, interests, capacities, behaviors, work readiness and functional limitations and provides suggested vocational options in keeping with these

findings.

Some Examples• GA: Two phases of formalized assessments specific

to self-employment Phase I is an assessment, by both the client and VR staff,

of the individual's capabilities and potential for operating a business

Phase II consists of the client’s completion of information on the feasibility of his/her business, as well as monthly personal and living expenses.

• KY: Assessment for a consumer interested in self-employment involves the assessment of three variables prior to the development of the Business Plan and IPE for self-employment: Vocational goal assessment (VR Counselor) Consumer’s aptitude for self-employment (VR Counselor

and Business Consultant) The Feasibility Study (VR Counselor and Business

Consultant)


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Entrepreneurial Awareness as an Assessment Service Option• Appraisal of the patterns of work behavior and skills

related to a proposed business idea

• Identification of personal support needs and resources relevant to the proposed self-employment goal

• Guided self-assessment of the services needed to acquire business skills relative to the proposed self-employment goal

• Facilitated testing of business concepts and the self-employment related attitudes, habits, tolerance, and behaviors necessary for successful business creation.


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Example: Entrepreneurship Worksheet “Transferable Skills” Griffin-Hammis Associates

These are Skills I Have How These Skills are Transferable to Entrepreneurship


17Example: Entrepreneurship Worksheet Skills and Needed Supports Griffin-Hammis Associates

Needed Skills I Can Do This and Example

I Need These Supports

Who Can Help and How?

Market Assessment

Bookkeeping

Managing Inventory

Ordering Supplies

Producing the Product/Service

Customer Service

Record Keeping

Sales

Marketing & Promotion

Managing Cash and Checks


18Example: Entrepreneurship Worksheet Skills and Needed Supports Griffin-Hammis Associates

Needed Skills I Can Do This

I Need These Supports

Who Can Help

Hiring and Interviewing Staff

Supervising Staff

Meeting with Lenders

Presenting or Public Speaking

Developing a Website

Using Software (EXCEL, Quickbooks, etc)

Establish and Maintain a Work Schedule

Legal/Contractual

Accommodating Employees

OTHER

Example: Feasibility Worksheet 1

“Is My Business Idea Viable?”

Feasibility Elements Key Research Questions

Opportunity • What is the nature of the opportunity or problem? (the underlying need )

• What forces are creating the opportunity?

• Why is the opportunity now? What is the size of the opportunity?

Business Concept and Product or Service

• How would you describe the business to a potential investor, team member, or customer if you had only a short elevator ride to share together?

• What is unique about this venture?

• Develop a brief concept statement for the product or service that can be shown to potential customers.

• How will the product be used? What are some unique features? What existing problem(s) will you solve with your service or product offering? What are the primary benefits to customers? How does your solution improve or replace current offerings?

Competitive Advantage • What special knowledge or technology do you possess and how will you protect it?

• What are the barriers to entry? Who will the competitors be?

• How will your service or product compare to those of your competitors in terms of usefulness, cost, styling, ergonomics, time-to-market, strategic alliances, technological innovations, compatibility with related product, etc.?




Description of the Target Market • Briefly define your relevant market.

• What is the current size and expected growth of your target market?

• What segments will you be targeting?

• Who will your first customer(s) be?

• What proof can you offer that your target customers will value your product or service?

Essence of Marketing Approach • What do you need to do very well in order to win this market?

• Indicate the key marketing methods used to accomplish sales

• Summarize your pricing position relative to the rest of the industry

• Summary the distribution channel approach

Technology and Operational Issues • What technology will you employ?

• Where are you in terms of Research & Development (R&D)on the products/services?

• Will production be handled by you or outsourced?

• What is unique about your approach to production or operations?




The Team • Who are you and why can you do this?

• Briefly summarize your team’s qualifications

Economics • What are the firm’s sales margins and volumes?

• Is the cost structure more fixed or variable?

• Make clear the model for making money

Financial Highlights • When will breakeven be achieved?

• What is the level of potential sales of your product or service?

• What level of profits do you expect to achieve?

Financial Need • How much money are you requesting?

• From what sources are you looking for money and in exchange for what (e.g., how much equity)?

• What the rate of return investors will receive and when will they receive their return?

Option: Use Free Rather than Contracted Business Plan Development• VR counselors are generally not trained to develop or

evaluate business plans

• Based upon an assessment of feasibility, VR counselors may authorize the development of a formal business plan, often by contracting with an outside business planning consultant

• Upon review and approval of that plan, VR may authorize use of its funds to capitalize business expenses consistent with the goals of the SE/IEP


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SBDC Business Planning

In the United States, small business development centers (SBDCs) are funded in part by the Small Business Administration (SBA) and also work with local colleges and some other funding agencies. Every state has at least one SBDC, and most states have offices in several cities.

Read more: http://www.bplans.com/business_planning_resources/sbdc/#ixzz1znoUT9BU

http://www.bplans.com/business_planning_resources/sbdc/




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Inclusive Entrepreneurship as a VR Process

VR intake/eligibilityWage or

self-employment?Goal and service plan

Refer to Stage I vendorFor Assessment

Stage I: Identify/AssessSkills

Strengths, GiftsSupports

Develop feasibility and goal for VR review

Meet with VR-Go/No Go

Authorize business plan and basic training

from SBDC

VR plan reviewAuthorize business start

-up funding if needed

Contract with SBDC for Extended servicesMonitor 30-60-90

SBDC Business planning, counseling, training

Develop initial businessplan

Submit plan to VR for review

Natural Business Supports

for Sustainability/Growt

h+ Personal Team

Supports


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Example: CBVH (Pilot)MOU for Inclusive Entrepreneurship• CBVH will purchase services through a 4-stage model to be

implemented in the Syracuse and NYC regions. • Individuals will be referred to participate in the four stage model and

served accordingly, after which the model will be evaluated for effectiveness.

• The four stages as previously described include: Entrepreneurial Awareness, Nascent Entrepreneur, Early Start-UP and Sustained Growth.

• There are specific services and deliverables at each stage. The total cost per consumer, if she/he completes the entire process, is $3000.

• This model is comprehensive, focused and based on constant communication and includes the consumer, who maintains prime responsibility for the tasks in each stage, the CBVH referral counselor, the navigators, who guide the consumer through the process, and the individual support team developed through the discovery process.

• The consumer will only move to the next stage based on her/his successful completion of the previous stage.


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SBDC Services in NYS CBVH Pilot – Stage TwoSTAGE TWO REFERRAL and DELIVERABLES: CBVH will refer individuals meeting program criteria to SBDC, and will remain involved to support the individual throughout the process. Referral will be made using standard forms developed in the program. •Refined business concept•Draft of initial business plan


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SBDC Services in NYS CBVH Pilot – Stage ThreeSTAGE THREE DELIVERABLES:•Integrated Team Planning with Stage One Navigator, Benefits Advisor and other support team members identified by Entrepreneur•Business Plan (including marketing plan and financials)•Business registration•Enrollment in IDA•Access to SBDC Business Planning Classes•SBDC Participation in CBVH Business Plan Presentation


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SBDC Services in NYS CBVH Pilot – Stage FourSTAGE FOUR DELIVERABLES:• Case closure including written summary of progress

and earnings tracked after 90-180 days of business registration (customized business performance)

• Networking for sustained growth, on-going access to customized business training and business performance

Examples-”What is Successful Self-Employment?”• GA: There are two options for self-employment case closure as follows:

Case may be closed in competitive employment if the client is averaging a business profit or salary over a 90 day period at a rate equal to or above minimum wage. This is the anticipated outcome to be reached; or

Case may be closed in non-competitive employment if client is averaging a business profit or salary over a 90 day period at a rate less than minimum wage. In these cases the VR counselor shall ensure that the client’s work is progressing satisfactorily and closure is warranted

• KY: A case should be closed when planned services are completed and the business shows definite signs of stability. Ideally, the revenues from the business venture should equal or exceed operating costs. The financial statement should show that the consumer is making enough money to cover long-term cost without external support. In most cases, this will require a minimum of one year in operation.


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Questions to consider…

• What training do VR counselors need to better provide self-employment as an option?

• Who are the partners you have now that can help with self-employment; what do they provide and how effective?

• Who are the partners you need that can help with self-employment; what can they provide and how effective?

• How can self-employment services be seamlessly integrated into VR Unified Services Contracts?

• How can the Southeast TACE help?


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Comments & Questions


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Thanks and Good Luck!


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Contact InformationGary Shaheen

Senior Vice President, Burton Blatt Institute Adjunct Faculty, Whitman School of Management

Email: [email protected]

Nicole LaCorte-Klein, Senior Program Development Associate, Burton Blatt Institute, Syracuse University


mailto:[email protected]

mailto:[email protected]


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Education CreditsCRCC Credit - (1.5)Approved by Commission on Rehabilitation Counselor

Certification (CRCC) • By July 22, 2012, participants must score 80% or

better on a online Post Test and submit an online CRCC Request Form via the MyTACE Portal.

My TACE Portal: TACEsoutheast.org/myportal


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Southeast TACE Region IVToll-free: (866) 518-7750 [voice/tty]

Fax: (404) 541-9002

Web: TACEsoutheast.org

My TACE Portal: TACEsoutheast.org/myportal



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DisclaimerThis presentation was developed by the

TACE Center: Region IV ©2012 with funds from the U.S. Department of Education, Rehabilitation Services Administration (RSA) under the priority of Technical Assistance and Continuing Education Projects (TACE) – Grant #H264A080021. However, the contents of this presentation do not necessarily represent the policy of the RSA and you should not assume endorsement by the Federal Government [34 CFR 75.620 (b)].

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