New Credit Program Proposal Documentation Guide Data Requirements Program Title: Small Business Entrepreneurship AA Degree Program Goal: To be a CTE program that prepares students to understand the process of developing, launching and managing a small business. Through academic coursework and experiential learning students will leave prepared to pursue the entrepreneurial lifestyle and be ready to maximize their entrepreneurial potential. Students who complete the program will be proficient in the process and procedures needed to transform an initial entrepreneurial idea into a viable business operation. Upon completion of the program the goal is for students to be proficient in the following skill-sets: Conducting feasibility studies toward analyzing and evaluating business ideas. Developing a quality product or providing a reliable service. Constructing a Business Plan integrating innovative Marketing and Advertising Plans. Preparing business financial statements. Conducting sales and advertising by way of traditional methods and digital methods. Formatting flyers, business cards and websites for the marketing of a small business. Through business simulations, mentorships and internships within local small businesses in the surrounding community this program will also provide students with practical knowledge, hands-on experience, and the skills to be a successful entrepreneur. Program TOP Code: 0506.40 Effective Date: September 2014 Units for Degree Major or Area of Emphasis: 41 Total Units for Degree – Minimum and Maximum: 60 Required Units – Certificate only: N/A Annual Completers: Projected 25-30 Faculty Workload: 1 New Faculty Positions: 1 New Equipment: N/A New/Remodeled Facility: N/A 1 Library Acquisitions: N/A Program Review Date: Spring: 2014 Gainful Employment: Yes Courses Required (including pre-requisite courses) Required Courses Orientation Small Business Management Business Computations Business Law Microcomputer Software Survey In the Office Business Communication Principles of Accounting Principles of Marketing Spreadsheet Analysis Personal or Small Business Finance Elements of Supervision Principles of Selling The Business of Electronic Commerce Venture Launch / Internship Total Required N/A MGMT 013 BUS 038 BUS 05 CAOT 82 BUS 032 ACCT 001 MKT 021 CAOT 85 Fin 8 SUPV 001 MKT 001 BUS 22 Marketing 025 N/A 3 3 3 3 3 3 3 3 3 3 3 3 3 41 LABOR MARKET INFORMATION AND ANALYSIS Entrepreneurship plays a vital role in the growth of the U.S. economy. The Obama administration has recognized the need for an increase in small business entrants and has committed to helping America celebrate, inspire, and accelerate high-growth entrepreneurship throughout the nation. The mission to promote entrepreneurship is a core component of President Obama’s national innovation strategy for achieving sustainable growth and quality jobs. According to the U.S. Bureau of Labor Statistics the number of new business establishments (establishments that are less than 1 year old in any given year) tends to rise and fall with the business cycle of the overall economy. The U.S. Bureau of Labor Statistics (BLS) collects data on new businesses and job creation. Its Business Employment Dynamics (BED) data are designed to provide some insight as to the contribution of new and small businesses to the number of businesses and jobs in the economy. As stated in the BED data series covering the years from 1994 to 2010 the number of new establishments for the year ending March 2010 was lower than any other year since the series began in 1994. (see – Business Employment Dynamics: Chart 1). 2 The number of jobs created by small business establishments less than 1 year old has also decreased from 4.1 million in 1994, when this series began, to 2.5 million in 2010. This trend combined with that of fewer new establishments overall indicates that the number of new jobs in small business establishments are declining. (see - Business Employment Dynamics: Chart 2). Small Business survival also plays a vital role in contributing to the vitality of the economy. The BED also conducted a study that tracked cohorts of new business establishments to measure how many survived from year to year. The data revealed that small businesses who have been in business more than five years have a higher failure rate, due to lack of technology and market adaptation, than those businesses now entering the marketplace. The data also conveyed that businesses emphasizing health care and social assistance consistently rank among the industries with the highest survival rate, while those emphasizing construction rank among the lowest. (see – Business Employment Dynamics: Charts 3 and 4). According to the Employment Development Department – Labor Market Information Division for the Los Angeles-Long Beach-Glendale areas, the most current information related to small businesses having 1 to 499 employees reveals a concentration of businesses within the service and retail industries. Within the service industry there are an estimated 275,774 businesses employing 1,796,896 workers. Within the retail trade industry there are an estimated 25,831 businesses employing 394,731 workers. Many of our students at LATTC are presently employed, or seeking to establish their own businesses within these prominent industries. Most important for our students is that approximately 70% of all businesses employ less than five workers. These are the true “start - up” businesses and the foundation of the small business enterprises. (see – Employment Development Department: Chart 4). New small business establishments make an important contribution to the economy. However, it is inevitable that some of these establishments will eventually fail due to lack of innovation and/or management education. For an underprivileged community such as that surrounding Los Angeles Trade-Technical College these facts are a reality for budding entrepreneurs and small businesses within the community. Los Angeles Trade-Tech’s Small Business Entrepreneurship AA Degree Program has the power to change that by offering students the knowledge and skills necessary to successfully start, run, and grow their small businesses. 3 A. APPROPRIATENESS TO MISSION I. STATEMENT OF PROGRAM GOALS AND OBJECTIVES The Small Business Entrepreneurship AA Degree Program at Los Angeles Trade-Technical College will prepare students to understand the process of creating, launching and managing a small business. Through academic coursework and experiential learning students will leave prepared to pursue the entrepreneurial lifestyle and be ready to maximize their entrepreneurial potential. Students who complete the program will be proficient in the process and procedures needed to transform an initial entrepreneurial idea into a viable business operation. Upon completion of the program students will be proficient in the following skill-sets: Conducting feasibility studies toward analyzing and evaluating business ideas. Developing a quality product or providing a reliable service. Preparing a Business Plan that integrates innovative Marketing and Advertising Plans. Preparing business financial statements. Conducting sales and advertising by way of traditional methods and e-commerce. Formatting flyers, business cards and websites for the marketing of a small business. Through business simulations, mentorships and internships within local small businesses in the surrounding community this program will also provide students with practical knowledge, hands-on experience and the skills to be a successful entrepreneur. I. CATALOG DESCRIPTION OF PROPOSED PROGRAM The Small Business Entrepreneurship program will provide practical knowledge, real-world experience and the advanced business skills necessary to be a successful entrepreneur in any environment. The graduate possessing the AA degree will be able to identify and rationalize business opportunities, identify customer markets, identify licensing and legal regulations of the industry, realize capital potential and prepare dynamic business plans that will lay the foundation for successful venture launch. Completion of the AA will portend long-term business success in areas such as; business and human resource management, e-commerce, marketing, advertising and preparation of business financial statements. The program will enhance the academic experience by utilizing an integrated, hands-on learning approach that will encompass internships with local small business partners. The mission of the program is to ultimately provide the student an environment of excellence in knowledge and with the latest technological resources and practices of Small Business Entrepreneurship. Students who complete 60 units of small business entrepreneurship will be eligible to transfer to a four year institution and/or receive an AA Degree in Small Business 4 Entrepreneurship and students who complete 32 units of Small Business Entrepreneurship study will be eligible to receive a Certificate of Achievement. II. PROGRAM REQUIREMENTS: ASSOCIATE OF ARTS DEGREE To obtain an AA degree in Small Business Entrepreneurship students must pass 60 units of study: 19 units of general education (Education Plan “B”), in addition to 41 Small Business Entrepreneurship units. Students will be required to attend a no credit orientation upon entrance into the program. III. BACKGROUND AND RATIONALE Los Angeles Trade-Technical College occupies a twenty-five acre site at the corners of Washington Boulevard and Grand Avenue near the central business district of Los Angeles. According to resource information from the college’s Educational Master Plan Trade-Tech is considered a depressed local economy and a community facing a dangerous existence with little economic opportunity as measured by the Educational Needs Index (ENI). Our students see self-employment as a viable way to secure employment and a sustainable income. The Business Administration and Technologies Department at LATTC has developed the Small Business Entrepreneurship program to serve and further satisfy the demands of this growing population. Los Angeles Trade-Technical College has been training students in its community since 1925. The college offers both occupational and academic programs to accommodate the transitional and transformational workers that are in search of new careers in a changing environment. With the down turn of the economy in 2005 and the election of a new president that promotes small business, entrepreneurship has been on the rise. As communities across the country attempt to revitalize their lives within their local economies through entrepreneurship and small business growth they call on community colleges and their partners to provide skilled training, educational services, and guidance, in realizing their innovative ideas while fostering that development and economic growth. The Los Angeles Trade-Tech Small Business Entrepreneurship AA Degree will aid students in their entrepreneurship endeavors and equip them with the knowledge and procedures needed to transform an initial idea into a viable business operation. This program will also provide services and information to the surrounding community especially in light of its urban realities related to a concentrated poverty, homelessness and criminal actives. As part of its program the Small Business Entrepreneurship program will seek funding and LATTC support to offer business assistance workshops and seminars to the surrounding community and local small businesses. 5 Student Survey A student survey (see Student Survey attachment) that included 50 LATTC students from a variety of disciplines was conducted, 85% of those students expressed a desire to open a small business. The remaining 15% stated that they were actively running a small business but wanted to gain more small business knowledge to be successful, or was taking Small Business Management as a requirement, or had not decided if they wanted to pursue an entrepreneurial career. The survey results also illustrated that students believed that a Small Business AA Degree Program would assist in providing them the necessary fundamentals that are needed to operate a business, give them more knowledge to go out into the work force with more confidence, aid in providing the necessary knowledge to grow their business to the next level, and inspire them to open a business while fulfilling their academic goal. The survey also highlighted that LATTC is the students’ preferred choice to pursue their Small Business Entrepreneurial education. Ninety-One percent of the students relayed that LATTC was either close to their home or job. The remaining eight percent stated that LATTC was most convenient due to the close proximity of surrounding recourses, the accessibility to public transportation, and the opportuneness of receiving a small business education while pursuing another LATTC Degree. The Small Business Entrepreneurship program is designed to teach students to understand the problems of organizing and operating a small business and how to analyze one’s own personal qualifications for small business management. Particular emphases are placed on record keeping, hiring appropriate personnel, marketing techniques, and the use of the latest technology to enhance small business capabilities toward promoting small business success. Employer Survey (see Employer Survey attachment) In order to assure that our students possess the most up-to-date requisite knowledge and skill to be successful entrepreneurs an employer survey was conducted of local Los Angeles businesses through the following companies: Nusabi Natural Health U.C.B College Salon Thornton & Fathy CPA J.R. Income Tax & ACCTG DocuINK Curacao Deal Makers White Family Child Care Perpetual Capital Resource Group 6 The survey revealed that the Small Business AA Degree program should provide the student with communication skills in terms of expository writing, the use of the computer as a technological aide, and provide the student with appropriate oral communication skills. Students should possess general business knowledge related to marketing, customer relations, and general managerial skills. Finally, the survey revealed that students should understand that as a member of the business organization loyalty to that organization is expected. B. NEED IV. ENROLLMENT AND COMPLETER PROJECTIONS The most recent LATTC data compiled over the past 2 academic years concerning student enrollment in Small Business Entrepreneurship courses project that 25-30 students annually will complete the Small Business Entrepreneurship AA Degree program. V. PLACE OF PROGRAM IN CURRICULUM/SIMILAR PROGRAMS The Small Business Entrepreneurship Program will be placed in the Business and Administrative Technologies Department. VI. SUMMARY OF SIMILAR PROGRAMS AT OTHER COLLEGES IN SERVICE AREA There are two other Small Business Entrepreneurship Programs in the Los Angeles Community College District. Los Angeles City Community College(LACC) and West Los Angeles Community College (WLAC). Los Angeles City College used to offer a Small Business Entrepreneurial AA Degree but is now a part of the Goldman Sachs 10,000 Small Businesses Management Education Program. Its program focuses primarily on established small businesses. The program comprises 11 short module classes equivalent to 80 hours of business education. The West Los Angeles Small Business Program focuses on on-line instruction and is primarily an evening program. In LATTC’s particularly depressed area a majority of students do not have access to adequate resources to succeed in evening or on-line programs. A Small Business Entrepreneurship AA Degree will be vital to LATTC students and essential to the local community. 7 A. CURRICLUM STANDARDS Proposed Curriculum Sequence Course Name Course Number Number of Units First Semester Orientation Small Business Management Business Computations Business Law Microcomputer Software Survey In the Office First Semester Units Principles of Accounting N/A MGMT 013 BUS 038 BUS 05 CAOT 82 Second Semester ACCT 001 Business Communications BUS 032 Or Oral Communications for Customer Service Personnel BUS 014 Principles of Marketing MKT 021 Spreadsheet Analysis CAOT 85 Second Semester Units Third Semester Personal or Small Business Finance Fin 8 Elements of Supervision SUPV 001 or Personnel Management MGMT 033 Principles of Selling MKT 001 or Fundamentals of Advertising MKT 11 The Business of Electronic Commerce BUS 22 Third Semester Units Fourth Semester Venture Launch / Internship Marketing 025 Fourth Semester Units Total Core Units VII. TRANSFER APPLICABILITY It is the intent of the Business and Administrative Technologies Department in collaboration with the Los Angeles Trade-Technical College Articulation Officer to have most, if not all, of the Small Business Entrepreneurship courses articulated with four –year schools. There are fouryear degrees that students could pursue after completing their AA degree, and or IGETC or CSU and UC transfer requirements. Currently there are some four-year colleges and universities that offer majors for transfer students in the field of Small Business Entrepreneurship. California State University at Dominguez Hills and California State University at San Bernardino are two 8 N/A 3 3 3 3 12 5 3 3 3 3 14 3 3 3 3 3 3 12 3 3 41 schools that accommodate transfer majors. All updated course outlines will be attached to application. Attachment: All updated course outlines will be submitted Attachment : Transfer Documentation will be provided B. ADEQUATE RESOURCES IX. LIBRARY OR LEARNING RESOURCES PLAN Los Angeles Trade –Technical College will work with faculty to insure the availability of class material to accommodate the needs of our students. We also have extensive library support systems located at the Los Angeles County Library located in downtown Los Angeles, LATTC’s library and student services, and the libraries located on the campuses of California State University at Los Angeles (CSULA) and the University of Southern California (USC). The Small Business Entrepreneurship program will also use internal and external resources to provide the required learning resources for students. Small Business computer software such as Quick Books, Business Simulations and Business Plan Templates will be available to students for research and small business assistance. Students will also attend introductory and professional seminars that will be arranged with companies such as the Small Business Administration and other community resource initiatives. X. FACILITIES AND EQUIPMENT PLAN The Small Business Entrepreneurship program will require students to have designated space that will keep them focused on their studies and small business entrepreneurship activities. The Business and Administrative Technologies Department will secure classroom space equipped with computers with the latest small business software technology. XII. FINANCIAL SUPPORT PLAN The program will access funding from a variety of sources. The initial funds will come from its primary support-general apportionment funds. It will also project additional allocated funds through the Business Administrative Technologies Program Review process. Additionally, private grants will also be written to support program. XIII. FACULTY QUALIFICATIONS AND AVAILIBILITY It is the desire of the discipline to have faculty who possess an MBA degree with at least 3 years of small business experience. 9 E: COMPLIANCE XIV. MODEL CURRICULUM The main focus of LATTC’s Educational Master Plan is student success. The implementation of the Pathway for Academic, Career, and Transfer Success (PACTS) model is one of LATTC’s strategic priorities. The plan states the “PACTS model is a sequence of postsecondary instructional programs and activities, with coordinated supportive services, designed to provide individuals with the competencies they need to successfully access a college education, attain industry-recognized and post-secondary credentials and obtain a career that pays family-supporting wages and offers opportunities for advancement and growth”. The Los Angeles Trade-Technical College Small business Entrepreneurship program will offer curriculum that offers students the practical knowledge, real-world experience and the advanced business skills necessary to be a successful entrepreneur within their community or in any environment. The program will enhance students industry and post-secondary credentials by offering a sequence of innovative, technologically challenging coursework and utilizing internships to provide a hands-on learning experience. In addition to LATTC’s Educational Master Plan, the Transfer Model Curriculum (TMC) is another central focus. The Academic Senate for the California Community Colleges has collaborated with the Academic Senate for the California State Universities to develop statewide TMCs in the most popular majors completed by students who have transferred to a CSU and pursued a business administration major (or major comprising business administration courses). The Los Angeles Trade-Technical Small Business curriculum has courses that align and have been approved as TMC courses such as Accounting, Business Law, and Introduction to Business. XV. STUDENT SELECTION AND FEES Students will self-select and standard student fees will apply. 10