Innovative Partnerships to launch new businesses and create new jobs in rural

communities

Dr. George MillsapsSmall Business Center Network

North Carolina Community Colleges

Barry RyanInstitute for Rural Entrepreneurship

N.C. Rural Economic Development Center

Overview

• N.C. Facts and Perspective• Small Business Development in N.C.• Program Model / Partnership Evolution– NOW– GATE– Ventures

• Lessons Learned

• 10th population• 9.6 million• 68.5% white• 21.5% black• 1.3% American

Indian• 8.7% all other

• GSP $425B (USD)

• Avg. Household income $45,570 (USD)

• Business Ownership• 16.8% minority• 28.2% women

The State of North Carolina

• Highest mountain in Eastern US

• 3rd Largest Banking Center• Historically Agriculture and

Medium Manufacturing

The State of North Carolina

• 120 Colleges and Universities including 58 Community Colleges

NC Public Higher EducationUniversity of

North Carolina

•1st Public University•16 Campuses•Board of Governors•Strong Central Office•State Agencies

North Carolina Community Colleges

•Two-year Colleges•Vocational Education•58 Campuses•Strong Local Control•Local Entities

History of Small Business Services in NC• Pre 1984 – “add on” (NC Ag, etc.)• Early 1980s – Major Networks (SBTDC, SBCN),• Late 1980s-2000’s – Sector Specific• Mid 2000’s – Provider Level Coordination• Current – Policy Level Coordination, Provider

Level Partnerships

State Level Policy Developments

• SB Budget Priority in late 2000’s• SBCN/SBTDC Exempted from Public

Records Law• Small Business Commission• Public/Private Partnerships

SBCN Today

The most extensive state funded small business assistance program in the nation

SBCN Organizational Hierarchy

TEST

SBCN FY 2012-2013 Impacts at a Glance

• 3,781 Entrepreneurship Training Events

• 46,782 Event Attendees • 6,971 Counseling Clients • 17,664 Counseling Hours • 1,732 Jobs Created • 1,235 Jobs Saved • $2,097 Per Job Created/Retained• 528 Business Startups

Rural North Carolina

N.C. Unemployment - 2009

Rural North Carolina

Prepared by the Labor Market Information Division, Employment Security Commission of North Carolina 12_2009

UI rate: 11.9%

N.C. Unemployment - 2013

Rural North Carolina

Prepared by the Labor Market Information Division, Employment Security Commission of North Carolina 12_2009

•UI rate: 8.8%•# Unemployed : 416,767•#Self-emlpoyed: 212,786

Prepare the Workforce for

Tomorrow’s JobsWorkforce

Development

Workforce Development

Business DevelopmentCreate Tomorrow’s Jobs

Partnership Model

Program Model Evolution

2004-2007

2009-

2012-

New Opportunities for Workers• Offered in 22 community college sites

in N.C. 2004-2007• Thousands of dislocated workers

attended information sessions• Built to fit community college

infrastructure and procedural system• Hundreds received free training, but

relatively few business starts

Growing America Through Entrepreneurship

• Launched in 2009 - $1.6M from USDOL• Program model built around case

management and coaching• Built to leverage community college

capabilities and strengths• One-on-one assessments and

customized training plans• Work search waiver and microloans

GATE Partners

GATE Client Profile

51%49%

Gender

MaleFemale

54%39%

2%4%Race/Ethnicity

White/Caucasion

African American

Hispanic

Other

6%

54%16%

15%

9%

Education

< 12 years

12 (high school)

14 (associate's)

16 (bachelor's

> 16 years

20%

30%29%

21%

Household Income

<$10,000

10,000-24,999

25,000-49,999

>$50,000

GATE Results 2009- present

• 1,500 scholarships awarded to clients from 83 N.C. Counties

• 8,000 hours of counseling and over $250,000 in tuition reimbursements

• 203 GATE clients have started a business creating 534 jobs to date.

Cost/outcome FY 09-12 FY13 ActualScholarships $1,617 $1,537 Startups $12,857 $8,310 Jobs created $4,848 $3,262

Client Case ExampleKimberleigh – Irish PubCeltic Fringe, Reidsville

Juan -LandscapingGreen Knights Landscaping

New Generation Ventures

• Builds on GATE model, targets rural young adults ages 18-30

• Virtual Service Delivery• Emphasis on online training• Average scholarship provides

$300 in coursework • Innovative finance solutions

New Generation VenturesMicroloan Circles

•5-6 clients meet using Google hangouts and make loan recommendations to the Rural Center. •Small loans (most under $5,000) and short terms (less than 1-2 years).•2 clients funded to date, additional rounds coming soon!

Ventures Client Profile

42%

58%

Gender

MaleFemale 47%

47%

5% 2%Race/Ethnicity

White/Caucasion

African American

Hispanic

Other

5%

40%

18%

25%

13%Education

< 12 years

12 (high school)

14 (associate's)

16 (bachelor's

> 16 years

22%

28%33%

17%

Household Income

<$10,000

10,000-24,999

25,000-49,999

>$50,000

New Generation VenturesResults 2012 - present

• 216 young adults served• Average age: 26• 35 business starts• 23 existing businesses• 84 jobs created

Lessons Learned• Training is necessary but not sufficient. Training is

best when customized to client needs• Case management is key. Traditional counseling

model doesn’t work for rural dislocated workers and young adults.

• Community college / non-profit partnership leverages strengths of both organizations

• Job search waiver helps to create a runway for those who are unemployed..

Questions / DiscussionOur Contact Info

Dr. George MillsapsSmall Business Center Network

North Carolina Community Collegesmillsapsg@nccommunitycolleges.edu

(919) 807-7217

Barry RyanInstitute for Rural Entrepreneurship

N.C. Rural Economic Development Centerbarry@ncruralcenter.org

(919) 250-4314