PARTICIPATION THROUGH INNOVATION™
Workshop for Social
Entrepreneurs with Disabilities
Sarah Parker Harris, PhD
Co-Principal Investigator
Disability & Human Development
Maija Renko, PhD
Co-Principal Investigator
Managerial Studies
Saturday, October 29th 2011
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.
Nebraska Self
Employment Services
program management
administered by
The Abilities Fund
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 Fund
programs & 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




Strengths
Weaknesses
Opportunities
Threats
Recommendations

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



NSES
Business Owners
Tag-A-Long Tami’s Pilot Service
Tami Pierce—Grand Island






Over the road pilot car
escort service for
oversized loads
BP complete, 9/07
VR $$ for computer,
advertising
2007 Women & Co
award winner--$2,000
2008 WCMB--$1,000
2009 Entrepreneur of
Distinction Award
Daniele’s Body and Sole
Daniele Pitts Williams--Lincoln





Extended size women’s
lingerie and shoes via
internet website and
party plan
BP complete, 5/08
VR $$, computer &
software to launch web
2008 Women & Co
grant winner--$2,000
2009 Entrepreneur of
Distinction Award
Upholstery Rescue
Vern Roso--Lincoln





Mobile upholstery
service
BP complete, 8/07
VR $$ for commercial
sewing machine,
computer, biz ins.
Biz featured in 10/07
Midlands Business
Journal article
2009 Entrepreneur of
Distinction Award
KD Cleaning Services
Kathy Dick--Hastings




Residential and
commercial cleaning
services
BP complete, 5/08
VR $$ for commercial
vacuum, uniforms,
advertising
2009 Women & Co
award winner--$3,000
Renae’s Custom Cowboy Boots
Renae 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 Services
Robert Danner--Lincoln





Home, small business
& student computer
repair and service,
computer salvage
BP complete, 3/08
VR $$ for advertising
In business since 3/07,
hired 1 FT employee
since VR funded
2010 Entrepreneur of
Distinction Award
Monarch Massage
Betsy Wagner--Lincoln



Licensed massage
therapist
BP complete, 6/07
VR $$ for motorized
massage table,
computer/software,
seated massage chair
BK Design Company
Brett Klusaw--Omaha



BA Degree Studio
Art/Intermedia
Feasibility complete,
9/11
BP in progress, VR $$
requested for computer
software/hardware
updates
B & B Street Motive
Jesse Beaty—Grand Island




Automotive repair and
custom exhaust service
BP complete, 6/10
VR $$ for exhaust pipe
tubing bender, wheel
combo
2011 Entrepreneur of
Distinction Award
VanHorn Saddlery
Jake VanHorn—Ogallala




Custom saddles and
fine leather goods
BP complete, 5/09
VR $$ for leather
splitter, embosser,
sewing machine, tools
2011 Entrepreneur of
Distinction Award
Buckskinz
Devon Adams--Peru



Unique art pieces using
natural materials
BP complete, 4/10
VR $$ for website,
promotional materials,
registration of trade
name, raw materials
Brady Get-N-Go
Jack Mann—Brady (pop. 350)






Gas station-tire shopdeli-grocery-liquorconvenience-bait store
BP complete, 10/09
VR $$ for inventory
Personal loan, REAP
loan
2 FT, 3 PT employees
2010 Entrepreneur of
Distinction Award
Ms. Lucy’s Shea Butter
Thea Scott--Omaha




All natural Shea Butter
products
BP complete, 6/10
VR $$ for camera, raw
materials, computer,
website, cash register,
promotional material
2011 Entrepreneur of
Distinction nominee
NSES Staff

Christine Hess, Program Manager


Cory Roberts, Program Administrative
Assistant


christinehess@abilitiliesfund.org
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.
Comparison of People
with Poverty
Disabilities vs. Without
Income
30%

25%
U.S. Poverty Level in
2010
20%
15% 46.2
Million
With Disability
Without Disability
10%
 15.1%
5%
0%
 52Percentage
years
2009
Percentage
2010
Percentage
Comparison
Income Poverty v. Asset Poverty
 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

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 Building and Disability Community





Accessible Assets, Part 1:
Bringing Together the Disability and AssetBuilding Communities, November 2009
Accessible Assets, Part 2:
Asset Development Strategies for People
with Disabilities, Feb. 2011
University of Madison: Understanding
Attitudes of Disabled Populations about
Savings 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
44
SSI Savers Act of 2010 (H.R. 4937)
 Introduced
 Revise
SSI Savers Act of 2011 (H.R. 2103)
by Rep. Niki Tsongas (D-MA)
Asset Limits:
 $5,000
per individual, $7,500 per couple
 Index to inflation
 Education savings accounts excluded
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
- Income not counted
(exclusion)
___________________
= Countable Income
2)
SSI Federal Benefit Rate
- Countable Income
____________________
= SSI Benefit
$700 (SSDI)
-300 (PASS)
- 20
_____
$380
$694
-380
_____
$314
Federal IDA Reform
Assets for Independence Reauthorization
Act of 2010 (H.R. 6354)
IDA Protection Act of 2010 (H.R. 6067)

Raises the authorization limit to
$75 million

Increase federal funding
available for IDAs by $25 million

Simplifies asset purchase
processes

Eliminate requirement for state
matching funds

Expands eligibility standards

Not reintroduced in 2011

Allows matches to be placed into
a 529 college savings account

Assets for Independence
Reauthorization Act of 2011(H.R.
1623)
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
Thank you!
Karen Harris
karenharris@povertylaw.org
www.povertylaw.org
Thank you!
WORKSHOP AGENDA
Lunch
12:00 pm
Workshop Session 1
1:00 pm
Break
2:00 pm
Workshop Session 2
2:15 pm
Break
3:15 pm
Workshop Session 3
3:30 pm
Cocktails & Networking Hour
4:30 pm