Evaluation of the Virginia Employment Through Entrepreneurship Consortium (VETEC) Program. Implementation Study Report

Transcription

1 Evaluation of the Virginia Employment Through Entrepreneurship Consortium (VETEC) Program Implementation Study Report May 2014 Authors: Russell Saltz Sonam Gupta Brian Peters David Thomas Alex Tenaglio Submitted to: David Hunn President The SkillSource Group, Inc Boone Boulevard, Suite 450 Vienna, VA Submitted by: Russell Saltz Senior Research Associate IMPAQ International, LLC Little Patuxent Parkway #310 Columbia, MD

2 TABLE OF CONTENTS Page TABLE OF EXHIBITS... iv Executive Summary... v 1. Introduction Report Purpose and Structure VETEC Introduction VETEC Objectives and Service Strategy VETEC Enrollment To Date VETEC Project Implementation and the Workforce Investment System Virginia Labor Market Characteristics THE VETEC Program model Key Players Communication Processes VETEC Implementation Model VETEC Performance ENOVATE Local Labor Market Context Key Players Communication Processes Implementation Activities Summary GR GATE Local Labor Market Context Key Players Communication Processes Implementation Activities Summary Launch Hampton Roads Local Labor Market Context Key Players Communication Processes Implementation Activities Summary IMPAQ International, LLC Page ii VETEC Implementation Report

3 7. Findings across sites Key Players Program Activities Lessons Learned and Recommendations Introduction Lessons Learned Evaluation Next Steps Appendices: IMPAQ International, LLC Page iii VETEC Implementation Report

4 TABLE OF EXHIBITS Page Exhibit 1: Location of VETEC Sites... 4 Exhibit 2: Project VETEC by Site... 4 Exhibit 3: VETEC Enrollment Through April Exhibit 4: Local Labor Market Conditions for Virginia... 8 Exhibit 5: Project VETEC Flow of Services Exhibit 6: VETEC Application Submission and Random Assignment Exhibit 7: VETEC and WIA Exit Requirements Exhibit 8: Local Labor Market Conditions for Northern Virginia Exhibit 9: ENOVATE Organizational Chart Exhibit 10: ENOVATE Flow of Services Exhibit 11: ENOVATE Application Submission Process and Random Assignment Exhibit 12: Local Labor Market Conditions for Richmond Region Exhibit 13: GR GATE Organization Chart Exhibit 14: GR GATE Flow of Services Exhibit 15: GR GATE Application Submission Process and Random Assignment Exhibit 16: Local Labor Market Conditions for Hampton Roads Region Exhibit 17: Launch Hampton Roads Organizational Chart Exhibit 18: Launch Hampton Roads Flow of Services Exhibit 19: Launch Hampton Roads Application Submission and Random Assignment Exhibit 20: Roles and Responsibilities of Key Staff Exhibit 21: Outreach and Recruitment Strategies Exhibit 22: Details of the Information Session Exhibit 23: VETEC Application Process by Site Exhibit 24: Details of the Orientation Session Exhibit 25: Key Program Services Exhibit 26: Details of the Assessment Process Exhibit 27: Details of Business Counseling Provided Across Sites Exhibit 28: Details of the Entrepreneurship Training Services Exhibit 29: Details of Case Management IMPAQ International, LLC Page iv VETEC Implementation Report

5 EXECUTIVE SUMMARY The Virginia Employment Through Entrepreneurship Consortium (VETEC) is a U.S. Department of Labor (USDOL) Workforce Innovation Fund (WIF) federally funded program designed to help eligible individuals attain long-term economic self-sufficiency through self-employment. VETEC integrates entrepreneurship services within the existing Virginia state public workforce system. The purpose of the program is to provide comprehensive entrepreneurship training and technical assistance to Workforce Investment Act (WIA)-eligible adults and dislocated workers over the age of 18, who are interested in starting their own business. The VETEC program expands on previous the USDOL s Growing America Through Entrepreneurship (GATE) initiatives. VETEC operates as a consortium of three Local Workforce Investment Areas (LWIAs) ENOVATE in Northern Virginia (LWIA#11), Greater Richmond GATE (LWIA#9), and Launch Hampton Roads (LWIA#16). Each site manages its own VETEC program under a unique brand name; however, the VETEC program design calls for one singular program operating across three different areas. To achieve this, VETEC identifies a set of activities that sites should be using to implement their programs. The program implementation model outlines procedures to guide the implementation activities within each region. This model outlines the roles and responsibilities of sites VETEC staff, as well as the steps involved in program implementation. Procedures include outreach and recruitment; a program information session; program application and random assignment; an orientation session; receipt of program services; and program exit and follow-up. This report examines how the three sites are implementing their VETEC programs and assesses their fidelity to the implementation model. Our main finding is that the VETEC program has similar objectives and program steps at each site. However, there are variations in the actual implementation of the program across sites at each step of program implementation. The findings presented in this report are based on information obtained via in-depth site visits and thorough reviews of site- and project-specific documents and materials. During each site visit, IMPAQ team members interviewed the VETEC Project Director, each site director, case managers, and other program staff actively involved in outreach, recruitment, and training activities. Staffing Findings. The VETEC model specifies distinct roles for program staff members, including the site director, case managers, and training partners. Sites do not always adhere to these roles, sometimes involving other players not specified in the VETEC model. While site directors for ENOVATE and Greater Richmond GATE are largely serving as envisioned by the VETEC model, the Launch Hampton Roads site manager has taken on additional responsibilities. In addition, Launch Hampton Roads does not have case managers, but has hired an Entrepreneurship Grant Assistant to help with those program-related activities. This site also uses the services of a WIA eligibility expert to determine eligibility for the program, a responsibility the model states is to be performed by the case manager. IMPAQ International, LLC Page v VETEC Implementation Report

6 The program model clearly defines the roles of the site directors and case managers; however, the roles of training partners are left up to the sites. As a result, the training partners have varying levels of involvement across sites. In GR GATE, the training provider, CCWA, conducts most of the outreach and recruitment activities for the program in addition to providing training services. In Launch Hampton Roads, the training provider, ODU, is also involved in case management and has access to the PTS. Outreach and Recruitment Findings. The model defines specific outreach and recruitment methods sites should use to recruit prospective program applicants. These include targeting individuals already in sites VOS and WIA systems, as well reaching out to AJC customers looking for other employment services. The sites are largely using these and a variety of other methods. ENOVATE relies heavily on WIA/VOS-enrolled individuals and AJCs to recruit for its VETEC program. GR GATE also targets WIA enrolled individuals and uses AJCs to advertise the program. Both GR GATE and Launch Hampton Roads are not using VOS to target individuals. In addition, GR GATE and Launch Hampton Roads use social network sites to advertise and provide program information. Each site uses a different combination of strategies to conduct outreach and recruit participants. Sites do not share any advertising materials and there is no communication among the sites regarding recruitment strategies. Information Session, Application Submission Process, and Orientation Session Findings. Once an individual has expressed interest in the program, they attend an information session. The VETEC model states that information sessions should be devoted to providing an overview of the program model, including discussing the purpose of VETEC, the services it provides, and what will be required of participants. The end of the information session is for filing forms and making copies of eligibility documents. The model leaves it to the sites to conduct the eligibility screening at the information session or later. Both ENOVATE and GR GATE are closely following this model in terms of the duration and content presented during the information session. However, the Launch Hampton Roads information session is longer in duration and includes information not covered in the program model, including topics such as services available to the control group and the follow-up survey. After an individual attends an information session and is determined eligible to participate, they must apply to the program. The model specifies the proper application procedures site should be using. It explicitly states that individuals should not receive WIA application or assessment materials prior to applying to the program and random assignment. Only individuals enrolled in VETEC are required to be dual-enrolled in WIA, so only participants assigned to the treatment group should be administered WIA assessments. ENOVATE and GR GATE are following these processes closely, as case managers update applicant information into VOS only after the applicant is assigned to the treatment group. However, Launch Hampton Roads deviates from the project model slightly, creating a VOS account for all applicants regardless of the outcome of random assignment. Following the application appointment and random assignment, participants assigned to the treatment group attend an orientation session that outlines the program. While the program IMPAQ International, LLC Page vi VETEC Implementation Report

7 model leaves the duration and format of the orientation session to the individual sites, it does specify the topics covered in the session. All sites are adhering to these topics, though the formatting and timing of sessions vary by region. ENOVATE and GR GATE have group components for the orientation sessions, while Launch HR schedules individual sessions. Additionally, ENOVATE and Launch Hampton Roads use an individual meeting format to cover the assessment component of the program. Service Provision Findings. Following the orientation session, VETEC participants are enrolled in an intensive core entrepreneurship training program and begin receiving program services. While the VETEC model gives a large amount of flexibility to sites when implementing their service delivery models, it does specify the core service curriculum sites should be providing. These core curricula include steps for starting a business; business planning, accounting, and finance; sales and marketing; website development and social media; networking and special events; specialized training; and entrepreneurship mentoring. Sites are free to provide additional services that supplement these core services. Additionally, the model states that business counselors that have partnered with the sites should be providing an initial business consultation to participants. This consultation is to help guide participants in developing their business goals and strategy. Throughout the program, sites should be providing in-depth case management to program participants and communicating with them about their training needs and schedule. Given the flexibility provided to the sites in delivering the core program services, there are significant differences in sites service delivery models. All sites are providing initial business consultations to their participants. In ENOVATE and GR GATE, dedicated business counselors provide initial and ongoing business counseling. However, in Launch Hampton Roads the training program coordinator acts as the business counselor. The specific courses involved and the duration of the trainings vary greatly. Total participant contact hours range from 40 hours in Launch Hampton Roads to 80 hours in ENOVATE. All the sites have similar attendance and make-up policies, and all sites provide certificate of completion. Additionally, all sites are utilizing a cohort model that groups participants throughout the program. In terms of entrepreneurship mentoring, the program model states that workforce regions are to coordinate an entrepreneurship mentoring program comprised of VETEC graduates and successful small business owners to serve as mentors and facilitate peer support groups. Both ENOVATE and Launch Hampton Roads match program participants with mentors, with Hampton Roads utilizing a pool of approved small business owners, business coaches, subject matter experts, and those with previous small business mentoring experience in the Norfolk area. The GR GATE program uses business consultants and course instructors as mentors. Exit and Follow-Up Findings. Program participants proceed to a formal exit and follow-up process once they have finished receiving program services. As of yet, no uniform procedures has been disseminated to sites that outline the exiting process, though the VETEC model outlines exit requirements as: completion of core training; developing a business plan; and obtaining a business name, business license, Dun and Bradstreet number, and Federal Employer IMPAQ International, LLC Page vii VETEC Implementation Report

8 Identification Number. However, given that no standard exit procedures have been provided to the sites, there is still ambiguity regarding the operating procedures used to govern the actual program exit process. Lessons Learned. Based on these findings, we identify a series of lessons learned to highlight the successes achieved and challenges faced during program implementation. The sites have been successful in dual enrolling program participants, establishing performance measures, obtaining UI waivers, implementing a peer-learning based cohort model, utilizing workshops and labs to leverage peer-learning effects, designing a rigorous curriculum, adhering to random assignment procedures, and adapting to meet emerging program needs. The program has faced challenges in recruiting from the target population, developing recognizable marketing materials, keeping the information sessions consistent with the model, finalizing case management details, implementing a standard training model at all three sites, developing a standard form for business plans; defining exit and follow-up procedures, and ensuring communication across sites. The lessons learned pertain to implementation processes for the recruitment, outreach, and intake of potential program participants, as well as the delivery of services to enrolled VETEC participants. These lessons serve as both a guide for the three VETEC sites to continue improving program implementation, as well as a roadmap for additional sites who may implement VETEC or similar entrepreneurship training programs in the future. Now that the Implementation Study is completed, in 2015 IMPAQ will conduct the Process Study of the VETEC program. An Impact Study will follow this in The qualitative process evaluation will complement the impact evaluation by examining why and how certain outcomes occurred through a study of the factors that affect program impacts. Both the Implementation and Process Studies will be used to provide context and understanding for interpreting the impact study findings. IMPAQ International, LLC Page viii VETEC Implementation Report

9 1. INTRODUCTION In 2012, the U.S. Department of Labor (USDOL) Employment and Training Administration (ETA) awarded a Workforce Innovation Fund (WIF) grant to the Commonwealth of Virginia. The grant, which was awarded to the SkillSource Group Inc., the Northern Virginia Workforce Investment Board s non-profit fiscal agent, provided funding for the Virginia Employment Through Entrepreneurship Consortium (VETEC) project. VETEC s purpose is to provide comprehensive entrepreneurship training and technical assistance to Workforce Investment Act (WIA)-eligible adult and dislocated workers. This grant builds on the state s entrepreneurial and small-business environment. The project expands on previous USDOL entrepreneurship training efforts in two Virginia workforce investment areas, Northern Virginia and Richmond, and replicates the program in a third, Hampton Roads. As part of the WIF funding requirements, grantees are required to engage a third party independent evaluator to evaluate the grant initiative. In fall 2012, the SkillSource Group Inc., the lead grantee, contracted with IMPAQ International (IMPAQ) to conduct the VETEC Evaluation which includes two parts. The first is an implementation and process study. This report completes the implementation study. IMPAQ will conduct the process study in The second is an impact study to evaluate the impacts of the program on workforce outcomes. The process study will include site visits to each of the three regions running the program. These site visits will include focus groups with VETEC participants, and review of relevant documents on program implementation. A qualitative process evaluation will complement the impact evaluation by examining why and how certain outcomes occurred through a study of the factors that affect program impacts. Both the implementation and process studies will be used to provide context and understanding for interpreting the impact evaluation findings. This Implementation Study Report assesses how the three workforce areas are implementing and running the VETEC program, based on a series of in-depth site visits the IMPAQ team conducted in the first quarter of These visits collected information from all VETEC personnel and site staff responsible for implementing and running the program. The program model outlines intended strategies for use at each of the three VETEC sites. This report describes this model and compares it to the implementation strategies actually used at each site. In doing so, the report details the challenges faced during implementation, as well as identifies best practices, successes, and lessons learned from VETEC implementation. As part of the WIF funding requirements, all grantees are required to engage a third party independent evaluator to examine the impact of the grant on workforce outcomes. The design of VETEC called for eligible applicants to be assigned randomly to either the treatment group (offered VETEC services) or control group (not offered VETEC services) except for veterans, who are given preference, as described below. As the external evaluator, IMPAQ is responsible for all components of the evaluation process. This includes conducting random assignment, managing the Participant Tracking System (PTS) that captures program participant data, IMPAQ International, LLC Page 1 VETEC Implementation Report

10 providing technical assistance on the PTS and random assignment in all three VETEC sites, and conducting interim and final analyses of the program. 1.1 Report Purpose and Structure This report, as noted, assesses how VETEC is being implemented across the three workforce regions. The focus includes comparing actual program operations at each site during program implementation with the operations specified in the VETEC implementation model. The report describes the VETEC model and then details the specific implementation activities at each of the three participating sites. The findings presented here are based on a combination of information obtained via in-depth site visits which included semi-structured interviews and focus group discussions with VETEC participants and thorough reviews of site- and projectspecific documents and materials. During each site visit, IMPAQ team members interviewed the VETEC Project Director, each site director, case managers, and other program staff actively involved in outreach and recruitment. 1 In addition to helping VETEC sites improve their existing implementation practices, these interviews and the findings from them should serve as a valuable resource to institutions and workforce investment areas interested in adopting similar entrepreneurship programs. In this way, the report will help inform the implementation activities of future efforts to combine entrepreneurship and public workforce system services. This report is designed with multiple audiences in mind. In chapters 2 and 3, the program model is outlined as envisioned by the VETEC program and is descriptive in nature. Site-specific chapters (chapters 4-6) present details on the programs implemented by each of the three sites. These chapters do not present any subjective information and make no comparison to the program paradigm and/or across sites. The cross-site chapter (chapter 7) summarizes sitespecific information and compares each site to the program paradigm. This chapter also includes limited subjective analysis. Chapter 8 concludes the report by focusing on the challenges sites encountered and the solutions they found during program implementation, as well as a series of lessons learned and recommendations. Appendices detail the report methodology and provide a set of program documents collected from each site s implementation activities. 1 Appendix A reports detailed methodology for the site visits. IMPAQ International, LLC Page 2 VETEC Implementation Report

11 2. VETEC INTRODUCTION VETEC is a WIF federally funded 52-month grant program designed to assist eligible individuals in attaining long-term economic self-sufficiency through self-employment. 2 The VETEC program seeks to provide services to roughly 1,000 individuals throughout the life of the program. Current public workforce system outcomes are more suited to wage and salary employment, so WIA-eligible jobseekers interested in self-employment may not receive the same level or intensity of workforce services as those seeking traditional employment. VETEC seeks to address this service gap by integrating entrepreneurship services within the workforce system and making self-employment a viable alternative to traditional jobs. Using previous USDOLfunded Growing America Through Entrepreneurship (GATE) initiatives as a model, VETEC provides eligible jobseekers with entrepreneurship training and technical assistance to start their own business. Currently, VETEC services are offered in three Virginia Local Workforce Investment Areas (LWIAs) (Exhibit 1) 3 : Northern Virginia (Northern Virginia Workforce Investment Board, LWIA#11) the Employing Northern Virginia Through Entrepreneurship (ENOVATE) program Richmond (Capital Region Workforce Partnership, LWIA#9) the Greater Richmond (GR) GATE program Hampton Roads (Opportunity, Inc., LWIA#16) the Launch Hampton Roads program Although each of these programs has its own unique brand and project name, as shown in Exhibit 2, VETEC is designed to operate as a single program carried out in three different regions. Thus, each region s program should provide the same set of entrepreneurial and training services, so participating individuals have the same experience regardless of the region in which they live. In this chapter, we describe the VETEC grant program and its components and provide an overview of the labor market characteristics of the Commonwealth of Virginia LWIAs, workforce areas, sites, and regions are used interchangeably throughout this report. IMPAQ International, LLC Page 3 VETEC Implementation Report

12 Exhibit 1: Location of VETEC Sites Exhibit 2: Project VETEC by Site Virginia Employment Through Entrepreneurship Consortium (VETEC) Program LWIA # 11 Northern Virginia Workforce Investment Board LWIA #16 Capital Region Workforce Partnership LWIA #9 Opportunity, Inc. 2.1 VETEC Objectives and Service Strategy Each site s program pursues objectives consistent with the primary goals of VETEC. These include: Improve the prosperity of workers, businesses, and communities. Provide short-term, focused entrepreneurial training and support services to veterans. Promote policy change within Virginia and its local workforce systems by supporting self-employment as a viable career choice for jobseekers. IMPAQ International, LLC Page 4 VETEC Implementation Report

13 The steps and sequencing that each of the sites should use to meet these objectives are laid out by the VETEC implementation model. This model, described in detail in Chapter 3, guides the implementation of each sites VETEC program and consists of six basic steps: Community Recruitment and Outreach VETEC Intake and Information Session Application and Random Assignment Orientation VETEC Services Program Exit and Follow-Up. 2.2 VETEC Enrollment To Date To participate in VETEC, individuals must be WIA-eligible adults and dislocated workers over age 18, with priority given to veterans (who are automatically enrolled in the program and do not, therefore, go through the random assignment process). 4 Individuals randomly assigned to the treatment group will be dual-enrolled in both WIA and VETEC and will receive VETEC services and training on essential entrepreneurship core curricula. These services and training include courses on starting and planning a business; business accounting and financing; marketing and networking; and an entrepreneurial mentorship component. 5 VETEC s goal is to serve 1,000 WIA-eligible jobseekers over the 52-month grant period. Six hundred of these participants will be randomly assigned into the treatment group to receive VETEC services, while 150 will be automatically enrolled in the program through veteran preference. VETEC estimates the remaining 250 participants will be those individuals who join the program after the random assignment period ends. Since this will mark the period outside of the WIF study window, these 250 individuals will not be part of the study and will be placed directly into the program. Exhibit 3 provides a summary of VETEC enrollment through April 2014, across all regions. Since May 2013, when program services began, 1,183 individuals have attended a VETEC information session at any of the three sites. Of these 1,183 individuals, 460 have applied, and 371 have gone through the random assignment process with 190 assigned to receive program services. The remaining 89 applicants were eligible for veteran s preference and automatically enrolled in the program. With a goal to enroll 420 individuals into the treatment group by April 2014, VETEC is currently at 45 percent of its projected enrollment at the time of this report Individuals assigned to the control group do not receive VETEC program services. IMPAQ International, LLC Page 5 VETEC Implementation Report

14 Exhibit 3: VETEC Enrollment Through April 2014 Performance Outcomes VETEC Total Attended Information Session 1,183 Total Applicants 460 Assigned to Treatment Group 190 Assigned to Control Group 181 Veterans Enrolled 89 Source: Participant Tracking System Note: Total Applicants is the sum of: Assigned to Treatment Group, Assigned to Control Group, and Veterans Enrolled. Veterans are not subject to random assignment. 2.3 VETEC Project Implementation and the Workforce Investment System The VETEC project is largely the result of Virginia s previous experience with the Growing America Through Entrepreneurship (GATE) II program. Like VETEC, GATE II had been a USDOLfunded demonstration program designed to provide entrepreneurship-training services through the public workforce system between 2009 and Modeled after USDOL s first round of GATE programs, GATE II sought to assess the efficacy of offering self-employment training to rural dislocated and older workers (i.e. workers who were at least 45 years old) who were eligible for WIA services. The program, which also included an impact and evaluation component, demonstrated that entrepreneurial programs could be effective in helping Virginia workers start their own businesses. Observing the success of GATE II, SkillSource, the lead VETEC grantee, wanted to work towards expanding the role that entrepreneurship training plays in the public workforce system. Using WIF funds to implement a new round of entrepreneurship programs would allow SkillSource the opportunity to provide entrepreneurship and self-employment trainings as part of Virginia s workforce system. SkillSource and the Northern Virginia Workforce Investment Board are working with Capital Region Workforce Partnership (CRWP) and Hampton Roads, the two other sites participating in VETEC. These sites were chosen based on the quality of their working relationships with the Northern Virginia Workforce Investment Board. CRWP in particular had developed a rapport with SkillSource and had experience with entrepreneurship training, as it had participated with the Northern Virginia Workforce Investment Board in the GATE program. Together, the three sites worked to incorporate VETEC into the public workforce investment system, by requiring all participants to be dual-enrolled in both WIA and VETEC. Dual-enrolling participants helped the VETEC program go beyond the role that entrepreneurship training would provide alone, by allowing the workforce system to provide entrepreneurship services in addition to its range of other workforce services. To do this, however, VETEC needed to be in accordance with regulations set forth by WIA and the Virginia Workforce Council (VWC). As stated, WIA laws and performance measures do not translate directly to entrepreneurship and self-employment services. They are more suited to wage and salary employment. The program, IMPAQ International, LLC Page 6 VETEC Implementation Report

15 thus, needed to develop a standard set of regulations and performance measures to document entrepreneurship outcomes, which traditional WIA performance measures may not capture. SkillSource addressed this issue by working with the Virginia Workforce Network (VWN) system) to develop a new state policy that would allow local workforce areas to count entrepreneurship outcomes in their case management systems. This policy, promulgated through an official Virginia Workforce Letter (VWL) #12-04 from the Virginia Community College System (VCCS), specifies a set of outcomes associated with starting and owning a business that would be accepted in lieu of traditional workforce investment performance criteria (called the WIA Common Measures). 6 Specifically, the VWL provides performance measures acceptable in the VETEC program for the following four WIA Common Measures: 1) entry to employment, 2) average earnings, 3) retained earnings, and 4) credential attainment. In addition to developing this guidance, SkillSource needed to obtain an Unemployment Insurance (UI) work search waiver that exempted VETEC participants receiving UI benefits from the UI program s work search requirement. This waiver allowed program participants to focus solely on the VETEC program and their self-employment, without having to engage in a job search to receive UI benefits. Obtaining this waiver was a high priority since SkillSource anticipated the VETEC program would serve a large number of WIA dislocated workers who were receiving UI benefits. 7 Setting in place these WIA performance measures and waivers not only made it easier for sites to dual-enroll VETEC participants in WIA, but also helped integrate entrepreneurship services into Virginia s workforce system. The conviction was that this would ultimately benefit the state, should it decide to move from the pilot and demonstration entrepreneurship programs of the past to offering full-scale self-employment services within the public workforce system. 2.4 Virginia Labor Market Characteristics Small businesses and entrepreneurs play a significant role in Virginia s economy. Exhibit 4, which shows statewide employment and small business statistics, documents that small businesses make up close to 98 percent of all employers in the state, account for almost half (47%) of Virginia s private sector labor force, and have an annual payroll of about $61 million. Notably, small business startup performance has fared particularly well recently. According to the Small Business Association (SBA) s small business profile of Virginia, 2011 saw a net increase in both the number of small businesses and the number employed by small businesses, which has likely been aided by an improvement in self-employment options generally over the last 6 Virginia Workforce Letter (VWL) #12-04, Supporting Entrepreneurial and Self-Employment Training Through the Virginia Workforce Network ( VWL-rvsd pdf). The VCCS serves as Virginia s WIA Administrative Agency. 7 Chapter 3 discusses VETEC WIA performance measures, UI waiver, and their role in the implementation of the project. IMPAQ International, LLC Page 7 VETEC Implementation Report

16 decade. Self-employment and entrepreneurships have increased by 16 percent since 2000, largely driven by men, who make up close to 61 percent of total self-employment. 8 The strength of the Virginia s small business environment is reflected in the performance of the state s labor market. In 2013, while the national unemployment rate stood at 7.4 percent, Virginia as a whole averaged 5.6 percent, while veterans experienced an unemployment rate of less than 4 percent. This was bolstered in part by a notable contingent of self-employed workers, who make up close to 9 percent of the state s total employed population, and over 10 percent of veteran workers. However, the state s strong labor market performance does not imply a lack of need for workforce services. In fact, Virginia served more than 127,000 adult and dislocated workers across its 32 American Job Centers (AJCs) in This, in addition to the state s pro small business environment, suggests a real need for providing entrepreneurial workforce services to tens of thousands of job seekers. Exhibit 4: Local Labor Market Conditions for Virginia Statewide Veterans Civilian Non-Institutional Population 6,384, ,000 Unemployment Rate (2013) 5.6% 3.6% Labor Force Participation Rate (2013) 66.3% 61.9% Self-employed (as % of civilian employed population) 8.7% 10.6% # of Small Businesses (<500 Employees) (% of all firms) 143,612 (97.8%) # Employed by Small Businesses (% of all employed) 1,431,801 (47.3%) Total Annual Payroll of Small Businesses $60,700,612 Source: Bureau of Labor Statistics, Local Area Unemployment Statistics; Bureau of Labor Statistics, 2013 Veterans Supplement; American Community Survey, 2012; U.S. Census Bureau, Statistics of U.S. Businesses 8 Small Business Profile-Virginia, SBA, Office of Advocacy, 2012: 9 PY 2012 WIA Annual Report: IMPAQ International, LLC Page 8 VETEC Implementation Report

17 3. THE VETEC PROGRAM MODEL VETEC s program implementation model sets out the design, management, and organization of VETEC. This model covers all aspects of the project, and details the processes sites should be using to guide participants through the program. While this model allows for modification to accommodate each site s local conditions, it includes standard operating procedures sites should be following to graduate participants from the program. These procedures specify the methodology to use during program implementation and define the specific steps involved in carrying out the program. These steps include engaging potential participants through community outreach and recruitment, program intake and application, program orientation, receipt of services, and program exit. These procedures involve common methods intended for use across all sites. This chapter provides an overview of the implementation model. Sections 3.1 and 3.2 briefly introduce the key players and partners responsible for program implementation, and how they should communicate with one another. Section 3.3 details the specific processes and steps to follow during the VETEC program implementation and section 3.4 presents program performance measures. 3.1 Key Players The VETEC model specifies several key players who pursue an organized, concerted effort: VETEC Project Director The VETEC Project Director is responsible for overall program oversight and monitoring, coordination within and between sites, reporting, fiscal oversight, and assuring performance outcomes. Site Director The site director is responsible for program oversight at the site level; for monitoring, coordination between partners, reporting, and fiscal oversight; and for assuring performance outcomes. Case Managers VETEC case managers are the primary points of contact for individuals interested in the program. Their responsibilities include communicating with prospective program applicants prior to the application process; confirming VETEC eligibility; reviewing, accepting, and submitting VETEC applications; and entering applicant data into the PTS. Case managers are also responsible for conducting the primary outreach and recruitment activities for prospective applicants, though there is nothing in the model that restricts site partners from participating in this process. Site Partners Site partners are responsible for conducting all the training-related activities of the VETEC program, including business consulting, mentoring, and providing the core curricula. The model does not prevent partners and training providers from engaging in intake processes not related to service delivery. Sites are also free to seek partners assistance in identifying and recruiting prospective applicants. IMPAQ International, LLC Page 9 VETEC Implementation Report

18 While each of the key players has a specific role within the project model, successful implementation of the program requires all parties to: 1) be aware of not only their own roles and responsibilities, but also those of the other key players; and 2) work interdependently across many components of program. Coordinating in this way involves a communication plan that not only specifies the frequency and modes by which staff and partners will communicate, but also provides flexibility for the players to open their own communication channels. 3.2 Communication Processes The implementation model specifies that the VETEC Project Director should implement an effective and flexible communication plan by engaging in planned meetings and discussions with each participating VETEC site. The Project Director engages in frequent phone calls and monthly in-person meetings to discuss any site and project related issues. These meetings allow sites to communicate project status updates, programmatic issues and challenges, and performance measures and outcomes (number of individuals receiving services, number of individuals exiting program, etc.) Additionally, in order to ensure program uniformity across all sites, the Project Director is expected to attend information sessions, networking events, and orientations at each site. The implementation model also requires each site to have a monthly meeting with its partners to discuss outreach activities, challenges, and any other program issues; and to include the VETEC Project Director in all monthly meetings with site partners. All communications across sites which can occur in any number of ways, including , phone, or during the in-person monthly meetings are facilitated through the VETEC Project Director. The next section discusses the program model s intake process and the specific activities staff members conduct. 3.3 VETEC Implementation Model The VETEC implementation model illustrated in Exhibit 5 outlines the processes that sites employ to implement their programs. These processes cover all activities associated with program participation from recruiting participants to exiting them from the program. Exhibit 5: Project VETEC Flow of Services Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Outreach and Recruitment Activities Information Session VETEC Application Submission and Random Assignment VETEC Program Orientation Receipt of VETEC Services Program Exit and Follow-Up A brief overview of these six program steps follows. IMPAQ International, LLC Page 10 VETEC Implementation Report

19 1) Outreach and Recruitment: Sites work with local institutions to identify and target WIAeligible job seekers, age 18 years and over, using a variety of print and non-print materials. 2) Information Session: The information sessions apprise all prospective applicants of the VETEC program, including the eligibility requirements, level of effort required from participants, and random assignment. 3) VETEC Application and Random Assignment: Once an applicant has been determined eligible for the program, s/he schedules an appointment with a case manager to apply for the program. Project staff enters individuals into the PTS for random assignment or enrolls them into the program, automatically through Veterans preference. 4) VETEC Program Orientation: Individuals assigned to the treatment group work with program staff to attend a scheduled VETEC program orientation. Orientations introduce participants to program partners and training providers; discuss program requirements and milestones; and provide an overview of expectations from program participants. 5) Receipt of VETEC Services: VETEC participants receive training on essential skills for entrepreneurship and self-employment. Training includes simple steps for starting a business; business planning; accounting; financing and credit; sales and marketing; website development social media; mentoring; and, where appropriate, specialized training not provided in the classroom. 6) Program Exit and Follow-Up: Participants exit the program upon completion of all program requirements. To capture important outcomes necessary to the evaluation of the project, each participant engages in a 12-month follow-up with IMPAQ Outreach and Recruitment Each site engages in a planned, strategic effort to target and recruit prospective program applicants. In most cases, site s Program Manager directs this effort and site s AJCs carry it out. However, sites are free to coordinate with partner organizations that provide similar and ancillary employment services. Each outreach and recruitment strategy includes the following activities: Communicate with VEC. All sites communicate with the Virginia Employment Commission (VEC) to identify and recruit prospective participants. The VEC is a principal contact point for both unemployed jobseekers and veterans a key VETEC target population. Coordinate with VOS and WIA. In addition to identifying prospective applicants through the VEC, sites target individuals already in their Virtual One-Stop (VOS) and WIA data management systems. The reason is that individuals already attached to the WIA/VOS system are more likely to be VETEC-eligible. IMPAQ International, LLC Page 11 VETEC Implementation Report

20 Follow Up with AJC. For similar reasons, sites reach out to customers who come into the AJC of their own accord to use employment services. 10 Target Veterans. Sites specifically target veterans as they are a program priority and work with local organizations serving veterans. To reach those individuals not already served by the VEC or captured in VOS, sites have an option to use print and non-print outreach materials that include but are not limited to: blasts Letters Advertisements in local magazines, newspapers, and newsletters Online advertisements Attending community events, and local employment and entrepreneurial events (e.g., job fairs). These materials include a basic overview of the program, as well as registration information and a contact phone number, , and program website link Information Session Individuals interested in applying register for an information session either online or by telephone. Sites maintain a list of such individuals in case contact is required before the session. Sites are free to reach out to registrants to confirm registration and the session s time and place. However, contact with these individuals prior to the session is not required, and individuals who attend an information session without registering are not turned away; walkins are welcome. Case managers and program staff at each site s AJC location(s) conduct information sessions at least monthly. The goal of the information session is to provide enough information to: 1) allow prospective applicants to make an informed decision on whether or not to apply, and 2) encourage them to spread awareness about the program among friends and family. Hence, most of the information session is devoted to provide a program overview including a discussion of the purpose of VETEC, the services it provides, and what is required of participants. Detailed discussions outside this scope are not included, because they may confuse participants in a way that will negatively affect their decision to apply. Each information session should last no more than one hour and cover the following: 10 Virtual One-Stop is a for-purchase workforce development software that captures information on employers, clients, and others in a region. It can be used as a management information system for a local region. IMPAQ International, LLC Page 12 VETEC Implementation Report

21 VETEC informational video containing program overview that clearly identifies the three sites Details about the local VETEC program (name, purpose, contacts, training partners, timeline) Review of program eligibility criteria, application process, program services, and level of effort required of participants Brief overview of the evaluation component, including random assignment and veterans priority of service. It should be clearly note that veterans are not part of random selection and can enroll in the program as long as they meet all other criteria. Following the information session, attendees get the opportunity to ask clarifying questions and meet individually with case managers. If an attendee decides to apply, s/he schedules a separate appointment with a case manager. If the individual has his/her eligibility documents, case managers conduct the eligibility screening immediately after the information session. However, because the information session is open to anyone, eligibility determination is not required at that time, and can be conducted during the separate application appointment VETEC Application and Random Assignment Exhibit 6 illustrates the activities sites follow during step 3 of the VETEC program process (as shown in Exhibit 5 above). After the information session, interested applicants schedule an application appointment with a case manager. If the applicant s eligibility is not determined during the information session, case managers notify them, at the time, they make their appointment, of the documents required to verify eligibility. Sites are free to provide information to the potential participants about eligibility documents prior to attending the information session based. The case manager reviews these documents at the application appointment and, if the applicant is determined eligible, s/he continues with the VETEC application process. After an individual completes and submits the VETEC application, a caseworker enters the applicant s information into the PTS. Once the information is uploaded, IMPAQ receives notification that s/he is ready to be randomly assigned. IMPAQ conducts the random assignment the same day and assigns the individual to either the treatment or the control group. As noted, only those individuals assigned to the treatment group receive VETEC program services. The project staff notifies the individual of the random assignment outcome within 10 days from the date they submitted their application. IMPAQ International, LLC Page 13 VETEC Implementation Report

22 Exhibit 6: VETEC Application Submission and Random Assignment VETEC Intake Process: Step 3 VETEC Application Submission and Random Assignment Sub-Step 1 Sub-Step 2 Sub-Step 3 Sub-Step 4 Sub-Step 5 Applicant schedules application appointment Case manager reviews documents to determine eligibility Individual completes VETEC application Case manager enters the individual s information into the Participant Tracking System (PTS) Individual is randomly assigned to either the treatment or control group Once an individual is assigned to the treatment group, s/he schedules an appointment with a case manager to complete the WIA enrollment process including any necessary WIA assessments, at which point case manager enters their application into VOS. This process varies depending on the individual s WIA history. Participants already enrolled in WIA prior to VETEC do not need to re-submit WIA eligibility documents and complete assessments as long as they are still open in the WIA VOS system. However, their WIA VOS activities are updated and their WIA program duration extended. It is important to stress here that only individuals enrolled in the VETEC program (i.e., the treatment group) are dual-enrolled in both WIA and VETEC. This means that 1) the VETEC intake process as modeled does not include submission of a separate WIA application and 2) individuals are entered into VOS only after random assignment. In an effort to avoid additional paperwork, information needed for an individual s WIA application submission in VOS is included within VETEC application form VETEC Program Orientation After individuals are assigned to the treatment group, they work with program staff to schedule a VETEC program orientation session. Program staff organizes and leads orientations with active participation from site partners and training providers. These sessions introduce program participants to the program and provide an overview of key program details and expectations including a discussion of VETEC requirements and milestones, an introduction to site partners and their roles and responsibilities, and a description of expectations from participants.. While the VETEC model defines what an orientation is, it does not specify the timing, frequency, or length of program orientation sessions. These details are left up to the discretion of the sites Receipt of Services The program model specifies that the all sites should adhere to cohort model for providing training services. Cohort refers to the group of individuals that go through the training together. IMPAQ International, LLC Page 14 VETEC Implementation Report