Gigot Center for Entrepreneurial Studies. University of Notre Dame

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1 Melissa Paulsen Gigot Center for Entrepreneurial Studies Mendoza College of Business University of Notre Dame

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3 Existing microenterprise development programs: Aimed services on pre-launch/launch Focused on general start-up issues, business planning, financial literacy, etc. Are equipped to accommodate homogeneous needs at start-up through group instruction, etc. Unable to address more heterogeneous post-launch issues

4 A new model was needed that would aid in stabilizing, sustaining and growing the microenterprises. i

5 SOCIAL ENTREPRENEURSHIP Business and non-business students focus on case study analysis and business model exercises through the lens of microenterprise development and microfinance as a viable tool for poverty alleviation. MICROVENTURING CONSULTING Students work with low- income entrepreneurs in a consulting capacity to improve overall business profitability, and in industries such as food services, retail, cleaning, landscaping, etc.

6 ND defines Microventuring as the process of assisting i emerging microentrepreneurs with entrepreneurial training and development, as well as providing them with a link to enabling organizations, including consulting, microlending and other commercial activities and support.

7 412 students enrolled in either the fall or spring courses, or both, over the last six years, including spring certificates were awarded through summer 11 (10%) Of the 412 students who enrolled in the courses, approximately: 42% represent the College of Business 40% College of Arts and Letters 12% College of Science 2% College of Architecture, 2% Non-Degree 1% College of Engineering Many of the students are double-majors, as well as minors in peace studies, poverty studies, and human/international development studies.

8 Microventuring was the single most influential class I took at Notre Dame. By teaching me to think about social business in both a micro and macro context, the class changed my outlook on economic development as a whole, forced me to think more critically about the causes I supported and believed in, and reminded me that oftentimes, the most effective economic development can happen in your own neighborhood. Since graduating from Notre Dame last May, I have been blessed with the opportunity to create my own business that now employs 6 people in the South Bend area. We are currently developing software applications for next-generation ti 3 dimensional i webcams. Most importantly, my experience with the Microventuring program provided the knowledge, inspiration, and confidence to forgo traditional career opportunities to pursue my dreams. In Guatemala I worked with rural female entrepreneurs, who marketed and distributed health care products. Another intern and I were tasked with researching the technical use of various types of water filters. We held focus groups to determine if adding this product to the women s portfolios was plausible, given transportation difficulties and product costs. Personally, the class gave me the confidence to understand and contribute both to the development and private sectors. Your tests are not tests of memorization, but application, and those tests become engrained in your approach to problem solving and project management

9 Second semester student teams are balanced with Business/NB students and each team has at least one finance or accounting student We accept microentrepreneurs into the program avg 7 to 9 each spring (10 12 in Spring 12) and they represent a wide range of industries, ethnicities, both genders and levels All MEs receive mid- and post-semester assessments to complete and we will administer the questionnaire verbally for those unable to complete on their own

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13 Passion, skill and the management trinity the technical skills necessary to produce the goods or services the ability to market one s goods or services the ability to financially manage one s affairs Ernesto Sirolli, Ripples from the Zambezi

14 PREPARATION OF NON-BUSINESS N SS STUDENTS S Demand for the program by nonbusiness students exceeds capacity Additional requirements inhibit our ability bl to meet this demand

15 MICROENTREPRENEURIAL N BUSINESS SS MODELS Business models are often flawed Businesses are barely hanging on, one step away from failing If we move up the proverbial food chain, it minimizes our mission

16 Level 1 Level 2 Level 3 Level 4 Limited education Some experience Good experience Educated (may have degree) Marginal track record Some education Professional approach Established business Small financial plan and footprint Small, but meaningful financial plan Expansive financial footprint Possesses or should possess comp. adv. Relatively unsophisticated Some capacity to implement Capacity to implement major initiatives Stronger financial position; good cash flow Poor record keeping Some records Fair record keeping Perhaps reinvesting in the business Inadequate cash flow; un-dercapitalized Marginal cash flow Adequate cash flow Still problems acquiring capital from formal source Triage approach Likely to slide back w/o help Success likely Growth potential exists

17 Level 1 Move to level two; keep business operating; build lifeline; solve immediate needs Level l2 Move to level three; prove success is possible Level 3 Move to level four; make into a winner; create greater vision of what is possible Level 4 Move out of ME category; plant bigger seeds for success

18 If we are going to gain more traction, we need to be bolder in our thinking: We believe there needs to be a more holistic approach taken There is no sustainability when we troubleshoot issues in the business and when we are constantly starting over again with new enterprises Boxes allow us to replicate models and to tweak the boxes as we implement The question, however, is what businesses will be successful; more to the point, what are the essential elements? Not everyone who wants to be an entrepreneur should be what are the critical components for the screening process? How do we increase our batting average our trinity is person, business, model?

19 New opportunity with long-time partner CE Solutions will arm would-be entrepreneurs with the following: selection of the most viable market opportunities, locations, and business models; screening of, and training for, microentrepreneurs in the areas of finance, accounting, operations and marketing; infrastructural support for the microentrepreneur; initial capital Pilot taking place in Guatemala with the hopes that we will expand the model to other locations. CE Solutions provides field leadership and support while the ND Microventuring program is providing curricular leadership and support.

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