Post on 13-Dec-2015
Workshop for Social Workshop for Social Entrepreneurs with DisabilitiesEntrepreneurs with Disabilities
Sarah Parker Harris, PhDCo-Principal InvestigatorDisability & Human Development
Maija Renko, PhDCo-Principal InvestigatorManagerial Studies
Saturday, October 29th 2011
PARTICIPATION THROUGH INNOVATION™PARTICIPATION THROUGH INNOVATION™
SPONSOR ACKNOWLEDGMENT
This event is made possible by the generous sponsorship and support of the Chancellor’s Discovery Fund for Multidisciplinary Research, the Department of Disability & Human Development, the Department of Managerial Studies and the Institute for Entrepreneurial Studies at the University of Illinois at Chicago, and by Access Living.
The Abilities Fund
Non-profit founded in 2000
Focused exclusively on expanding entrepreneurial opportunities for people with disabilities
Unique combination of financial products, training, technical assistance, and advisory supports
The Abilities Fundprograms & services
Iowa Able Foundation—adaptive equipment loan program
Increasing Options Program—loans from $500--$25,000. Loan guarantee up to $5,000 (*concluded)
Money Smart—online financial education, FDIC designed
DPN Toolkit—self employment resources for DPNs and other service providers
NSES—Nebraska Self Employment Services
NSES July, 2006—contract with NVR to provide self
employment services to consumers with disabilities in NE
400+ referrals
72 BPs completed/Biz starts
49 currently in business, 8 writing BP
NSES Process Exploring Self Employment Workshop NVR Pre-Assessment—SE Discussion
Questionnaire Application—Informed Choices© Application interview Feasibility Study Comprehensive BP/Financial Planning Business Support Services
ESE Workshop Is SE right for me? Interactive small group setting Provides tools and info to help participants
learn about: Testing business idea Personal/business finances Markets/customers/business management Access to capital
Recommended—not mandatory
SE Discussion Questionnaire
Clarify business idea before referral to NSES
Discussion tool for VR Staff
Referral to NSES—or not
Informed Choices© Data collection tool Thought provoking questions Move forward in a planned, thoughtful manner Better understanding of readiness to plan for
business: Capitalization Start up Stabilization Profitability
Application Interview Clarification of business idea Skills, education, experience—technical
ability Accommodations for disability Financial info; personal finances, resources,
estimated capital requirements Summary and recommendations
Feasibility… Is the business idea feasible? Does the
individual have the technical skills necessary to run the business (concept)?
Is there sufficient demand for the product or service (market)?
Can the product/service be provided profitably (financial)?
Concept Feasibility
Summarize idea Describe product/service Overview industry
standards/trends Legal organization Client preparedness
Education/experience Skills Impact of disability
Evaluation of client’s overall ability to manage the business
Evaluation of general concept feasibility
Market Feasibility Growth stage/status of industry overall Geographic area Analyze the competition/advantage Demographic definition of target market
How many How much How often
Financial Feasibility Client current financial
position Debt/income ratio Credit report Benefits participation
Resources Start up costs
Break even analysis Scenarios
Potential sources of funding
SWOT Analysis Recommendations Strengths Weaknesses Opportunities Threats
Identification of possible barriers
Recommendation to either move forward to write business plan or stop business development and WHY
Business Plan Client involvement Comprehensive, “living” document Utilize research from Feasibility Study Marketing plan/Operational plan Sources/uses of funds Financial data; cash flow, break even, risk
mitigation Estimates, photos, forms, support resources
Financial Planning Cost to start up Cost to operate Resources Sources of funds
Client NVR Other—personal loan, F&F, ES, REAP, SBA
Business Support Services Business Launch
Purchases/set up Marketing plan Bookkeeping
Reporting (VR) Monthly revenue and
expense reports Status of business Ongoing support needs
Building Business Building a Better
Business workshop Small business record keeping Marketing your business and
yourself
Networking E-Newsletter Website Listserv Main Street Fair
Tag-A-Long Tami’s Pilot ServiceTami Pierce—Grand Island
Over the road pilot car escort service for oversized loads
BP complete, 9/07 VR $$ for computer,
advertising 2007 Women & Co
award winner--$2,000 2008 WCMB--$1,000 2009 Entrepreneur of
Distinction Award
Daniele’s Body and SoleDaniele Pitts Williams--Lincoln
Extended size women’s lingerie and shoes via internet website and party plan
BP complete, 5/08 VR $$, computer &
software to launch web 2008 Women & Co
grant winner--$2,000 2009 Entrepreneur of
Distinction Award
Upholstery RescueVern Roso--Lincoln
Mobile upholstery service
BP complete, 8/07 VR $$ for commercial
sewing machine, computer, biz ins.
Biz featured in 10/07 Midlands Business Journal article
2009 Entrepreneur of Distinction Award
KD Cleaning ServicesKathy Dick--Hastings
Residential and commercial cleaning services
BP complete, 5/08 VR $$ for commercial
vacuum, uniforms, advertising
2009 Women & Co award winner--$3,000
Renae’s Custom Cowboy BootsRenae Tollman Jones--Crawford
Custom cowboy boots and boot repair
BP complete, 1/08 VR $$ used for skiver,
stitcher, & finisher 2008 Women & Co award
winner--$2,000 2009 Entrepreneur of
Distinction Award Boots & Saddles Band
Fairley Good Cattle Co.Erin Clark Fairley--Brady
Cow/calf operation producing high quality beef
BP complete, 11/07 VR $$ for panels/posts,
fencing materials 2009 Women & Co
award winner--$5,000
Open Doors Computer ServicesRobert Danner--Lincoln
Home, small business & student computer repair and service, computer salvage
BP complete, 3/08 VR $$ for advertising In business since 3/07,
hired 1 FT employee since VR funded
2010 Entrepreneur of Distinction Award
Monarch MassageBetsy Wagner--Lincoln
Licensed massage therapist
BP complete, 6/07 VR $$ for motorized
massage table, computer/software, seated massage chair
BK Design CompanyBrett Klusaw--Omaha
BA Degree Studio Art/Intermedia
Feasibility complete, 9/11
BP in progress, VR $$ requested for computer software/hardware updates
B & B Street MotiveJesse Beaty—Grand Island
Automotive repair and custom exhaust service
BP complete, 6/10 VR $$ for exhaust pipe
tubing bender, wheel combo
2011 Entrepreneur of Distinction Award
VanHorn SaddleryJake VanHorn—Ogallala
Custom saddles and fine leather goods
BP complete, 5/09 VR $$ for leather
splitter, embosser, sewing machine, tools
2011 Entrepreneur of Distinction Award
BuckskinzDevon Adams--Peru
Unique art pieces using natural materials
BP complete, 4/10 VR $$ for website,
promotional materials, registration of trade name, raw materials
Brady Get-N-GoJack Mann—Brady (pop. 350)
Gas station-tire shop-deli-grocery-liquor-convenience-bait store
BP complete, 10/09 VR $$ for inventory Personal loan, REAP
loan 2 FT, 3 PT employees 2010 Entrepreneur of
Distinction Award
Ms. Lucy’s Shea ButterThea Scott--Omaha
All natural Shea Butter products
BP complete, 6/10 VR $$ for camera, raw
materials, computer, website, cash register, promotional material
2011 Entrepreneur of Distinction nominee
NSES Staff
Christine Hess, Program Manager christinehess@abilitiliesfund.org
Cory Roberts, Program Administrative Assistant cory@abilitiesfund.org
Carol Blood, Business Support Services carol@urpr.biz
website: www.abilitiesfund.org
ACCESSIBLE ASSETS: ASSET BUILDING IN THE DISABILITY
COMMUNITY
THE SHRIVER CENTER
PARTICIPATION THROUGH INNOVATION
University Of Illinois At Chicago Chancellor’s Discovery Fund For Multidisciplinary Research
OCTOBER 29, 2011
Recipient of 2010 Macarthur award for creative and effective institutions
Shriver Center
The Sargent Shriver National Center on Poverty Law◦ A national law and policy center that provides
national leadership in identifying, developing and supporting innovative and collaborative approaches to achieve social and economic justice for low-income people.
Asset Opportunity Unit ◦ Takes action against poverty by advocating for
policies that expand asset-building opportunities for all.
Income Poverty
U.S. Poverty Level in 2010
46.2 Million
15.1%
52 years
Comparison of People with Disabilities vs. Without
Income Poverty v. Asset Poverty
1 in 5 U.S. families are asset poor.
In Illinois over 25%, or 1 in 4, households are asset poor.
1/3 of U.S. households have zero or negative assets.
As many as 80% of households with a disability have zero assets.
Asset poverty focuses on total household wealth, rather than just income
An “asset poor” household does not have enough
assets to meet its expenses for 3 months if no outside sources of income
Asset Building and Disability Community
Accessible Assets, Part 1: Bringing Together the Disability and Asset-Building Communities, November 2009
Accessible Assets, Part 2:Asset Development Strategies for People with Disabilities, Feb. 2011
University of Madison: Understanding Attitudes of Disabled Populations aboutSavings and Financial Education, April 2011
Washington State Asset Building Coalition, June 2011
North Carolina Asset Building Conference, Oct 2011
Mayor's Office for People with Disabilities
Asset Building Strategies for the Disability Community
Asset Limit Reform
Individual Development Accounts (IDAs) and PASS Plan
ABLE Accounts
Asset Limit Rules
States have authority to eliminate asset tests in TANF and Medicaid and, with USDA approval, in SNAP
Several states have implemented asset test reform
States can implement asset limit reform by legislation or administrative rule
See “Reforming State Rules on Asset Limits,” Clearinghouse Review (Mar-Apr 2007), State Asset Limit Toolkit, and CFED Resource Guide
Federal Asset Limit Reform
Introduced by Rep. Niki Tsongas (D-MA)
Revise Asset Limits:
$5,000 per individual, $7,500 per couple Index to inflation Education savings accounts excluded
SSI Savers Act of 2011 (H.R. 2103)
44
SSI Savers Act of 2010 (H.R. 4937)
Individual Development Accounts
Matched savings accounts (1-4 times) operated by service providers or institutions
The income limit to participate is usually 200% of FPL
Typically savings are designated for a goal of either purchasing a home, starting a business, or attending school
Participants receive financial literacy training
Allies, Inc.
Success of Saving (SOS): A saving program engaged in the fight to reverse endemic poverty among people with disabilities in New Jersey.
•Program offers matched savings accounts to provide an incentive for attending and completing financial literacy coursework with case management services provided by Allies, Inc.
•Unlike AFI IDA programs, savers may save for any asset goal (furniture, television, vacation, engagement ring, etc.)
•Savings accounts are opened jointly between Allies, Inc. and the saver. Because Allies, Inc. acts as the corporate fiduciary of these accounts, funds deposited are ineligible for consideration of Social Security benefits.
PASS Plan
Beneficiaries can write a plan that SSA approves to set aside earned or unearned income to meet an occupational goal, such as starting a business, attending school, or supporting their current or prospective employment
The income or resources set aside for this goal will not count to determine the amount of SSI monthly benefits
IDA and Plan to Achieve Self -Support (PASS)
Unfortunately, income and assets used for expenses of getting a job or starting a business do not count toward a PASS plan.
IDA for post-secondary education or business start-up can be folded into a PASS account.
Hector receives $700 in SSDI benefits. He writes a PASS Plan which SSA approves that includes setting aside $300 per month in an IDA to start a business. Hector receives a 2:1 match in his IDA program. The PASS Plan will allow for Hector to receive a total monthly benefit amount of $714 and he will have $600 per month of savings for his goal.
PASS Budgeting
1) Total Income $700 (SSDI) - Income not counted -300 (PASS) - 20
(exclusion) ___________________ _____ = Countable Income $380
2) SSI Federal Benefit Rate $694 - Countable Income -380 ____________________ _____ = SSI Benefit $314
Federal IDA Reform
Raises the authorization limit to $75 million
Simplifies asset purchase processes
Expands eligibility standards
Allows matches to be placed into a 529 college savings account
Assets for Independence Reauthorization Act of 2011(H.R. 1623)
Increase federal funding available for IDAs by $25 million
Eliminate requirement for state matching funds
Not reintroduced in 2011
Assets for Independence Reauthorization Act of 2010 (H.R. 6354)
IDA Protection Act of 2010 (H.R. 6067)
Achieving a Better Life Experience (ABLE)
Act of 2009 H.R. 1205 & S. 493 (February 26, 2009)
Introduced by Sen. Robert Casey (D-PA) and Rep. Ander Crenshaw (R-FL)
Purpose: ◦ To encourage & assist individuals & families in saving
private funds for the purpose of supporting individuals with disabilities to maintain health, independence, and quality of life
◦ To provide secure funding for disability- related expenses on behalf of designated beneficiaries with disabilities that supplement, not supplant, public benefits
◦ Not reintroduced in 2011
Karen Harriskarenharris@povertylaw.org
www.povertylaw.org
Thank you!