FINAL PROJECT REPORTOctober 2013 Report

Rural Business Enterprise Grant RBEG Grant Number 42-1737435

Background & Introduction

The RBEG supported officially launched on January 2011. This document represents our Final Project Report for our second RBEG Grant that ended August 31, 2013. Earlier quarterly reports have been submitted to USDA over the lifetime of this grant reflecting our performance information. The following table provides a summary of the Project’s primary goals:

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Goal 1Community Awareness

This goal focused on going deeper into Year-2 of the RBEG Grant for Deuel County. Its primary focus was in the communities of Gary, Astoria, Toronto, Bemis, Goodwin, Altamont, Clear Lake, and Brandt. Office hours were held each week in Clear Lake, Gary and Toronto. Helping the communities, entities and individuals learn and become familiar with DADi, our mission, strategic goals and outcome of the organization through whatever means took place: website, providing workshops, civic responsibilities, newspaper communiqués, newsletters, building up database, social media, digital development, personal contact with county businesses, attending conferences & seminars, webinars, and participation in many things to promote DADi and our mission. With this in mind, we hope to begin realizing economic development outcomes and more entrepreneurship strategies.

Goal 2Entrepreneur

Program & ResourcesE-Coaching

This goal focused heavily on continuing E-coaching with the director of DADi and entrepreneurial targeting. With the outcome of Goal #1, more DC citizens are aware of DADi and coming in for business assistance. There have been new start-ups, expansion and transitioning happening. DADi has aided in their business planning and connections to External Resources (i.e. SBA, ITC, SBD, 1st District). This grant aided us to help more businesses therefore more finding out about DADi. Statistics will be shown in the body of this report.

Goal 3Incubators:

Business Resource Center

Deuel Community Kitchen

The Business Incubator called the Business Resource Center changed locations and was added into the DADi office. Our budget reflected changes from the use of a local building to shared office space. Workshops/Classes are continuing in the use of the Resource Ctr. as well as advertising for the office space for new businesses and start-ups. Classes for 1-4 people are being offered as well as offerings of Webinar’s from various national/local organizations on a variety of topics.

The Deuel Community Kitchen was the 2nd incubator and 2nd focus of this goal. Initially set up in a Clear Lake restaurant, this restaurant closed its doors in December 2012 before the kitchen could open. A second location was found but that too went out of business. In the Spring of 2013, a new location was found in Toronto, SD at the Deubrook School District’s kitchen. Working with their superintendent and kitchen staff; ‘Deuel Community Kitchen’ held their first informational meeting July 25. At the date of this report, 3 ‘chefs’ have used the DCK.

Goal 4Sustainability After hard work these past 4 years, DADi is focusing on

continued sustainability to see our programs continue with more start-ups and businesses assisted through our organization. A Membership Drive initiative is coming to fruition and is in place. The board along with the director will communicate advantages of financially contribution through membership in DADi to existing and potential members.

Our Final Report is organized into four sections:

Section 1 – Project ProgressSection 2 – Challenges Encountered During the Project

Section 3 – The Future of the Deuel Area Development ProjectSection 4 – Financial Report

Section 1Project Progress

The following map illustrates our Project’s community portfolio as of this 4th Quarter of 2012:

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As the map illustrates, you can see where Deuel County is located within the state and the communities within. Deuel Area Development has a substantial and diverse portfolio of communities both geographically and demographically in which they serve. The following cities and townships that are located and impacted by this grant were.

Clear Lake Gary Toronto Goodwin Astoria Brandt Altamont Rural unincorporated areas

DADi also seeks to represent all the communities in the county and works to keep these communities up-to-date and knowledgeable about DADi’s strategic and operational plan, as well as to include them in the membership.

Attached are tables that provide key performance benchmark information and progress being realized toward stated objectives. Please refer to these spreadsheet attachments (attachments 1-4) for progress information. These tables reflect information from the Rural Business Enterprise Grant-2 containing records of businesses from the past 19 months:

Entrepreneurs seeking DADi’s assistance Jobs created or saved Classes Technical Assistance Grants

Project outcome highlights include the following:

Filling the Community PipelineDADI, during the life of this RBEG project, has exceeded our application projections of community engagement and was a major focus of our grant goal 1. Over the past 19 months, the portfolio of year 1 and year 2 projects has grown contributing to greater economic development impacts (e.g., increased business profitability, business expansion, job creation, business transitioning, new start-ups) and richer opportunities to expand our community-based initiatives and projects. More of Deuel County’s communities are aware of DADi; it’s missions and goals. A bi-monthly column in local area papers, bi-monthly newsletters, workshops, website and more have put DADi in the public’s eye on a regular and growing basis. DADi has been asked to aid individuals

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seeking to start a business, or other entities seeking grant helps and more. DADi is approachable and available.

1 Community Area Betterment Committee Started12 Workshops Held

10 Websites Created or Assisted35 Technical Assistance Grants Awarded

1 WebsiteBi-monthly Newsletters

Bi-monthly Area Newspaper Columns86 + attendees-- Dance Workshops

Filling the Pipeline of Entrepreneurs SummaryOur proposed and approved RBEG grant promised we would achieve the following outcomes.

Connection and enhancement to the ART and ERN for intake, outreach, and deepening the level of service provided to new entrepreneur client.

Assist with client development, networking, portfolio priorities, measuring performance and maintaining communication with program stakeholders.

Connect and develop relationships with deepening involvement with regional business development resources.

This project has successfully increased economic development in our portfolio of rural grow in entrepreneurs. See the attachments for the growth of the entrepreneur in Deuel County and assisted by Deuel Area Development. That impact information has been shared during the quarterly reports and now is condensed in the final report of jobs created and saved. This summary shows a progressive start and continuance of the future of DADi, where it started and the growth we are seeing of business and awareness.

Our program’s history previously involved Entrepreneur Coaching and Training. Area entrepreneurs have been initiated and identification coordinated. Outreach has been conducted offering free confidential business assistance, and networked clients with development services that fit their specific needs. Along with this, an Area Resource Team (ART) comprised of area business service providers was established and would provide free confidential counseling to area entrepreneurs. Also an External Resource Network (ERN) comprised of area, state and national business development resources were provided as well.

E-Training was increased to allow more local entrepreneur access to customized technical assistance and training resources. The following summarizes our project accounting of grant related economic development impacts:

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4 Communities Engaged30 Jobs Created or Saved

31 Total Assisted Clients by DADi 11 New Business Start-ups

8 Entrepreneur Clients- Non-Active9 Entrepreneur Clients--Ongoing

2 Incubators – 3 Chefs, 3 Inquiries91 Business Contacted over life of grant

4 Youth Entrepreneurs Assisted

In our RBEG application, we committed to creating or saving at least 10 jobs. Based on this accounting, we have exceeded our goal.

One new start-up business was provided counseling for their business. They were assisted by our ART team to help with a new business name, a “brand”, legal inquiries to begin their incorporation, business cards (attachment F) and letterheads. They did not have ‘IT’ experience for their business, so we provided a resource to help them on computers and direction to go electronically for their business. DADi also assisted them on social media and marketing by giving them classes and helping them one-on-one. They were assisted by our ERN to help with the financial inquiries in their business plan and then their plan to approach a financial institution. When they have the finished information, DADi awarded them a TA grant to help them with a website.

A newly out-of-college graduate came to DADi for assistance in starting his own construction company. Through our ART team, we assisted him with counseling, a business name, ‘brand’, legal services and ERN financial assistance. He began his business this past summer.

The first client under this RBEG grant was a grain bin construction business. DADi assisted at length with his business plan: writing, grammar, counseling, IT support. A Business Resource Center computer was utilized to since he did not have a personal computer. DADi spent many hours helping prepare his plan and the Small Business Development Center was active in his and several other business start-ups through the life of this grant with DADi. Unfortunately he ran into a personal problem, but he is working that out and hoping to begin in the near future.

Two other businesses began in the first RBEG and continued into our second grant with assistance. We were able to assist each with an online website for their business. One of them have grown from 1 job to 5 now.

To date, three Chefs have used the Deuel Community Kitchen. Please see attachments for Deuel Community Kitchen “Brand” (attachment A), Kitchen Guidelines (attachment B), Check List (attachment C) and Application (attachment D) for user inquiries. These have also been placed on the website so they may be printed for inquiries. Promotion is

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ongoing for this incubator and it’s expected to promote itself as more use it. Already the number of inquiries is increasing and in time it is expected to grow from word of mouth through farmer’s markets, users, and visible marketing of products. The kitchen was featured on the front page of 4 area newspapers. It will continue to be a focus in the years ahead and a big aspect of sustainability. We are now pursuing purchasing stickers that will accompany the products produced in the kitchen “Made in the Deuel Community Kitchen”, as well as a brochure to be put in strategic locations in county to promote these incubators (attachment E). A list of purchased items is attached that was purchased for equipment for the kitchen. (attachment I)

The Sustainability of DADi

This work will continue for two very important reasons. Two Rural Business Enterprise Grants were awarded to Deuel Area Development setting the path for the future. A new strategic plan has come out of these grants setting the course for entrepreneurial-ship, incubators and a future focus on the business climate of our county. This plan will be put on paper in the near future. A great deal of time, effort and sacrifice has also gone into this organization to develop it for the future, and sustainability is a must to see that happen. Revamping our ideas of sustainability has the organization rethinking, reorganizing and moving ahead with a focus on membership and growth so the initiatives and endeavors will continue moving forward.

Section 2Challenges Encountered During the Quarter

During the life of this project, such challenges have been documented in each of our quarterly reports. Beyond the normal operational challenges associated with collaborative work between board members and those engaged in the goals, as well as assisting entrepreneurs – we are pleased to report that there have not been many challenges during the last quarter. With the hiring of a new executive director two years ago, the start of this grant was delayed. Because of this, knowledge and management of procuring the grant’s goals, monies and understanding during the duration was a slow process and hindered us some documentation for some grant dollars unfortunately. Managing this grant was one of the greatest challenges along with finding location for a kitchen incubator. Although in place at the end of the grant, it was the last remaining part that needed completing. This goal was a huge success and the Deuel Community Kitchen came out of it.

Section 3

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The Future of Deuel Area Development

The vision of DADi focused on enabling our rural communities to become active contributors in a variety of ways. Businesses were presented workshops to help in the business arena (attachment G). Citizens of these rural communities are included in the business to entrepreneurial development system. Our hope was and still is to reach underserved communities in our county and area entrepreneurs, increase communities in entrepreneur-focused economic development and stimulate increased economic development in rural South Dakota. Bottom line, DADi has made meaningful and hopeful progress towards their vision that came out of the RBEG grant. Please note attachment of our prospectus that was developed for the DADi Annual Membership Drive. Plans are underway for this Membership Drive (attachment H). Adequate progress has been made to ensure continued funding and operation DADi in 2014 and beyond. Continued progress realized in 2012-2913 will determine the likely level of DADi support and activity in 2014 and beyond among it’s citizens.

Section 4Financial Report

Match Compliance. Based on community progress, Area Resource Team, and other contractors related to this grant, we have realized most of our match during the past 19 months. Match realization associated with this project is realized in the budget submitted within this Final Report.

Questions and Additional Information

Joan B. Sacrison—Executive Director of Deuel Area Development, Inc.Voice 605.874.8038 -- Email dadi@itctel.com -- www.deuelarea.com

DADi Report--Final Report

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