Self-employment in Telework Presented by: Andrea Dimond Washington Assistive Technology Foundation.
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Transcript of Self-employment in Telework Presented by: Andrea Dimond Washington Assistive Technology Foundation.
Where we’re going PART I: Who is the Telework entrepreneur
PART II: Reaching the Telework entrepreneur
PART III: Funding the Telework entrepreneur
PART I: Who is the Telework entrepreneur Thousands of people with disabilities have been successful
as small business owners.
The 1990 national census revealed that people with disabilities have a higher rate of self-employment and small business experience (12.2 percent) than people without disabilities (7.8 percent).
The Disabled Businessman’s Association estimates that 40 percent of home-based businesses are operated by people with disabilities
The Federal Reserve Board’s report, “National Survey of Small Business Finances (1995),” found that small businesses were home-based 53 percent of the time
First National Study of People with Disabilities Who are Self-Employed
Conducted by Research & Training Center on Disability in Rural Communities
Research Goals 1. Gather information on the self-employment experiences
of people with disabilities.2. Use this information to improve services for current and future entrepreneurs with disabilities and the agencies supporting them.
Research Process: They sent a 51-question survey to 1,059 individuals. 203 surveys were undeliverable and 390 completed surveys were returned. Of these returned surveys, 330 were usable (45 percent response rate).
What professional back grounds do entrepreneurs with disabilities have? Variety of educational
backgrounds (see chart)
More than half (67%) of entrepreneurs were between the ages of 40 and 59
H.S /GED -18%Voc.School -11%SomeCollege -30%Bachelor's Degree18%Post-Grad- 20%
Why choose entrepreneurship?4 out of 10 respondents chose theentrepreneurial route because:
They "needed to create their own job."
They wanted flexible hours and working conditions "to accommodate a disability."
Other reasons to choose self-employment #1 Reason: Wanted to “work for myself”
Wanted to make more money
Identified need for product or service
What business sectors do microentrepreneurs represent? The RTC did not ask this question in their study, but a survey of
MDOs in WA performed by the WSMA showed these results.
0 5 10 15 20 25 30
Manufacturing
Retail
Professional services
Trade services
Artist/crafts person
Technology
Childcare
Agricultural/Farming
Environmental
Annual gross income of businesses owned by people with disabilities
<$5,000 34%
$5,001 - $10,00010%$10,001-$20,00010%$20,001-$30,000 8%
$30,00,-$100,00010%$100,001-$500,00014%>$500,000 6%
PART II: Reaching the Telework entrepreneur WATF’s experience with Telework Loans
Partnerships & outreach to the small business community
Workshops
Tabling Events
WATF’s Experience with Telework Loaned $38,700 in 9 loans 6 self-employment:
-Wildlife Photographer (Vehicle)-Landscaper (Tractor)-Mobility Specialist (Vehicle)-Embroidery Digitizer (Computer & software)-Notary (Notary equip.)-Online clothing retail (Computer & camera equipment)
3 employment: Primarily computer equipment & accessories
Our Experience in WA Establish Washington State Microenterprise
Association
Referral Source
Opened doors
Lesson Learned: This relationship was not enough to get the results we wanted. We need to better leverage our Telework funds.
Microenterprise Development Organizations (MDOs) Microloan programs are typically non-profit
entities and partnerships that assist individuals in starting microenterprises. MDOs provide hands on technical assistance.
MDOs offer a variety of training and funding products depending on their focus. Many are limited geographically by funding.
MDOs want to reach out to people with disabilities but may not know how
Microenterprise: a business with start up costs of $35,000 or less and employing 5 or fewer people.
Small Business Development Centers (SBDC) These centers provide free business
counseling to entrepreneurs for both start-up and existing businesses.
Many SBDC clients fall into the category of microenterprise, and an increasing number are home-based.
SBDCs do not offer funding but offer referrals to funding sources and help business owners prepare loan applications
Other potential partnersSmall Business AdministrationOffice of Minority and Women Owned BusinessesSCOREOthers?All of these entities can provide: Marketing opportunities
-Publications-Workshops-Newsletter
Networking opportunities-Source of other funding to combine Telework loan with
Client resource-Clients can use SBA business library-Service Corp of Retired Executives (SCORE)
Workshops Small Business Assistive Technology Financial Literacy
Lessons Learned: 1. Workshops are an opportunity for partnership with MDOs, Housing authorities, VR, Independent Living Centers, etc.2. There is a high demand for self-employment workshops 3. It’s a long trip from workshop participant to borrower: include benefits planners, VR, microenterprise, and other small business resources to get a borrower ready for a loan
Tabling & presenting Small Business Fairs
Employment fairs
Lesson Learned: Give a presentation—don’t just table
PART III: Funding the Telework entrepreneur Startup Funding Needs
Tiered Funding Strategy
Putting together a full funding package
Startup Funding Needs Supplies
Inventory (for a product business)
Licensing & Insurance
Equipment
Lesson Learned: 1. It takes more than equipment to start a business2. No one knows what Telework is, but they do know that they need business equipment
Tiered Funding Strategy Evaluate a need vs. a want
Challenge business owners to think of business in stages
Plan on providing multiple small loans to start up businesses
Lesson Learned: Borrowers learn a lot in the first year of business and will spend money more wisely once they have some experience under their belt
Business Loan Requirements Business Plan with 12 months of financial
projections All local & state licenses and insurance
requirements necessary to be legal Borrowers who require funding greater than
$10,000 must have personal health insurance and key person insurance if they are a business owner
Business Checking Account
Lesson Learned: You won’t necessarily get the insurance reimbursement check just because you’re an additional named insured
Putting together a full funding package Business Funding Resources
Partner with other funding sources (MDOs, VR, PASS)
Help clients leverage funds
Lesson Learned: Providing multiple loans from various agencies to one client can be difficult when collateral comes into play.
Thank YouAndrea DimondWashington Assistive Technology Foundation100 South King Street, Ste. 280Seattle, WA [email protected]
Study referenced:First National Study of People with Disabilities Who are Self-EmployedRural Disability and Rehabilitation Research Progress Report #8February 2001This Research Progress Report was prepared by Nancy Arnold, Tom Seekins, and Diana Spas © RTC: Rural, 2001. This publication is available in Braille, large print, and ASCII DOS text formats.