WORKFORCE INVESTMENT ACT VIRGINIA WORKFORCE LETTER (VWL) #12-04

Transcription

1 COMMONWEALTH OF VIRGINIA VIRGINIA COMMUNITY COLLEGE SYSTEM WORKFORCE INVESTMENT ACT VIRGINIA WORKFORCE LETTER (VWL) #12-04 TO FROM: SUBJECT: LOCAL WORKFORCE INVESTMENT BOARDS OFFICE OF WORKFORCE DEVELOPMENT SERVICES SUPPORTING ENTREPRENEURIAL AND SELF-EMPLOYMENT TRAINING THROUGH THE VIRGINIA WORKFORCE NETWORK DATE: OCTOBER 15, 2012 REVISION DATE: June 10, 2013 Purpse: T establish parameters fr lcal Wrkfrce Investment Bards (WIBs) supprting entrepreneurial and self-emplyment training under Title I f the Wrkfrce Investment Act f 1998 (WIA), which authrizes the prvisin f entrepreneurial training t adult and dislcated wrkers, and authrizes entrepreneurial wrk experiences fr yuth. References: Wrkfrce Investment Act f 1998, Sectin 134(d)(4)(D)(vi); 20 CFR Part , WIA Final Rules; Training and Emplyment Guidance Letter (TEGL) N Supprting Entrepreneurial and Self-Emplyment Training thrugh the Wrkfrce Investment System ; TEGL Cmmn Measures Plicy fr the Emplyment and Training Administratin s Perfrmance ; and, TEGL N , Change 1 Wrkfrce Investment Act Plicy and Waiver Decisins fr PY 2009 and Backgrund: Gvernr Bb McDnnell declared 2012 The Year f the Entrepreneur in Virginia, in rder t recgnize these individuals, t study why they re successful in Virginia and t inspire thers in Virginia t turn big ideas int reality here in the Cmmnwealth. Accrding t the US Small VWL #12-04 Page 1 f 7 (Revised )

2 Business Administratin (SBA), small businesses ttaled 635,977 in Virginia in 2009, representing 97.8 percent f all emplyers and emply 47.7 percent f the private-sectr wrkfrce. Being such a large part f the state s ecnmy, these businesses are central t Virginia s health and well-being. As such, Virginia s recently adpted Wrkfrce Investment Act and Wagner-Peyser State Plan fr includes an bjective t expand entrepreneur educatin and supprt fr small businesses thrughut the Cmmnwealth. The US Department f Labr (DOL) Emplyment and Training Administratin (ETA) ntes the wrkfrce investment system prmtes entrepreneurship and small business develpment primarily by prviding self-emplyment assistance t wrkfrce system custmers. Hwever, data gathered under WIA between 2005 and 2008 indicates this type f assistance was nly prvided t a small number f individuals. Anecdtal infrmatin frm lcal wrkfrce investment areas acrss Virginia prvide additinal evidence that entrepreneurial training and supprt accunts fr a limited amunt f the verall wrkfrce investment activity in the Cmmnwealth. As the Virginia Wrkfrce Netwrk lks t play an enhanced rle in supprting ecnmic recvery in all areas f the State, it will becme increasingly imprtant fr the system t prvide entrepreneurship and self-emplyment training and supprt in a mre cmprehensive and strategic manner. ETA has issued plicy guidance encuraging state wrkfrce systems t integrate entrepreneurship activities int brader wrkfrce develpment effrts. Specifically, TEGL prmtes making entrepreneurship training pprtunities available t peple interested in self-emplyment, and prvides detailed infrmatin abut the ptential design and implementatin f entrepreneurial strategies fr adults, dislcated wrkers, and yuth. Mrever, DOL has issued several cmpetitive awards specifically fcused n supprting entrepreneurship activities. NOVAGATE (Nrthern Virginia Grwing America Thrugh Entrepreneurship) is an example f a successful prgram designed t help dislcated adult jb seekers ld start and expand their wn small business. NOVAGATE was created thrugh a partnership between the Department f Labr Emplyment and Training Administratin (DOL/ETA), the VCCS and the SkillSurce Grup, Inc. A ttal f 207 participants in the prject were given access t special training and assistance in applying fr small business lans. The prject resulted in 88 new business start-ups and 114 jbs created; mre details n NOVAGATE can be fund here. Als in 2012, a cnsrtium f wrkfrce investment bards in Virginia (LWIAs 9, 11,and 16, led by the Skills Surce Grup, nnprfit fiscal agent fr LWIA 11) successfully cmpeted fr funding under the DOL Wrkfrce Innvatin Fund Grant - SGA/DFA PY The Virginia Emplyment Thrugh Entrepreneurship Cnsrtium (VETEC) grant is currently being implemented, and has the ptential fr serving as a mdel prgram fr ther lcal areas in Virginia. Rle f the Virginia Wrkfrce Netwrk in Supprting Entrepreneurship: Examples f activities: The Virginia Wrkfrce Investment Netwrk shuld serve t cmplement and enhance existing effrts t supprt entrepreneurship and self-emplyment in a lcal r reginal ecnmy. Lcal wrkfrce netwrk partners are encuraged t identify existing entrepreneurship rganizatins, VWL #12-04 Page 2 f 7 (Revised )

3 develp an understanding f they supprt and assistance, and determine hw the lcal system can best integrate pprtunities fr adult, dislcated wrkers and yuth custmers t access entrepreneurship assistance and training as apprpriate. Listed belw are several specific examples f rles lcal wrkfrce investment systems can play in supprt f entrepreneurship (examples are adapted frm TEGL 12-10): Engaging with lcal and reginal partners t develp an entrepreneurial envirnment and strategies t leverage wrkfrce system resurces in rder t identify and supprt ptential entrepreneurs Infrming Virginia Wrkfrce Center custmers abut pprtunities fr self-emplyment and entrepreneurship and wrking with custmers t assess whether self-emplyment is a gd fit; Helping Virginia Wrkfrce Center custmers understand the range f entrepreneurship resurces available and referring them t cunseling and training that best meets their needs; Partnering with rganizatins that supprt entrepreneurship and c-lcating small business develpment resurces within Virginia Wrkfrce Centers as partners; Seeking ut pprtunities t add entrepreneurship training prgrams t the eligible training prvider list; Encuraging recipients f Individual Training Accunts t pursue entrepreneurship training where apprpriate; Integrating entrepreneurship strategies int verall yuth educatin and develpment activities fr at-risk and ut-f-schl yuth; and, Develping strategies t help small business wners t grw their businesses, such as designing training prgrams that help small business wners develp grwth strategies t enable new jb creatin. Partnerships and resurce leveraging: The list f examples prvided abve is nt exhaustive, as there are a number f appraches t supprting entrepreneurs that can be tailred t lcal and reginal needs. In cnsidering the rle f the Virginia Wrkfrce Netwrk, it is critical t keep partnership and resurce leveraging at the frefrnt; the bjective is nt t attempt t duplicate effrts f agencies and rganizatins that have been designated t prvide supprt fr entrepreneurs and small business wners. Hwever, wrkfrce netwrk partners shuld make specific effrts t becme a part f the netwrk f public and private rganizatins that ffer resurces fr prspective and current entrepreneurs. As nted in TEGL 12-10, the SBA funds a rbust prtfli f such resurces, t include Small Business Develpment Centers, Wmen s Business Develpment Centers, and a variety f small business lan prgrams. Detailed infrmatin abut these prgrams can be fund at the SBA s website Belw is a listing f ptential prgrams that lcal wrkfrce netwrk can partner with, in rder t enhance training and supprt services fr entrepreneurs: Small Business Develpment Centers SCORE, Cunselrs t America s Small Business (frmerly the Service Crps f Retired Executives) VWL #12-04 Page 3 f 7 (Revised )

4 Wmen s Business Centers Veterans Business Outreach Prgrams Small Business Financing Prgrams Nnprfit Cmmunity Develpment Financial Institutins (CDFIs) Integratin f prgram elements: In additin t a fcus n partnerships and resurce leveraging, lcal Virginia Wrkfrce Netwrk are strngly encuraged t integrate a number f critical elements int any prgram design fr supprt fr entrepreneurship training and self-emplyment. As a result f several entrepreneurship demnstratin prjects, ETA has fund that a cmbinatin f assessment, training, and additinal technical assistance, delivered thrugh a netwrk f strategic partners, is a prmising practice fr serving custmers. The fllw elements shuld be a part f lcal prgram design fr entrepreneurship training and self-emplyment supprt: Brad partnerships Rather than duplicate existing services, the wrkfrce investment system shuld develp partnerships with the lcal entrepreneurship cmmunity and leverage expertise in supprt f entrepreneurial needs. In additin t selecting key partners frm the previus list, lcal wrkfrce netwrks shuld cllabrate with lcal and reginal educatinal institutins, lcal and reginal ecnmic develpment rganizatins, public and private fundatins, and ther financing rganizatins such as banks, ventures capitalists and angel investrs. Apprpriate assessments Entrepreneurship is a high-risk endeavr and nt every Virginia Wrkfrce Netwrk custmer is well-suited t self-emplyment. Apprpriate assessments shuld be utilized t help custmers understand the demands and ptential difficulties f entrepreneurship, as well as what is likely t be required f them as an entrepreneur. Assessments will help custmers determine whether their financial skills, tlerance fr risk, and ther persnal attributes and characteristics make them gd candidates fr starting their wn business. Effective training Lcal wrkfrce netwrk partners will need t identify and evaluate a variety f training and service prviders t determine thse with the capacity t meet the needs f Virginia Wrkfrce Center custmers. Specific steps shuld be taken t ensure that custmers are referred t quality training prgrams, that ffer at a minimum, basic curses fr thse just starting a business that fcus n business plan develpment; labr market research, marketing, pricing, financing, cash flw, accunting hiring, permits and licenses, and ther legal issues. As nted previusly, lcal WIBs shuld seek pprtunities t add effective entrepreneurship training prgrams t the eligible training prvider list. Onging supprt and technical assistance Based n evaluatins f previus demnstratin prjects, DOL has nted that individuals are mre likely t succeed in entrepreneurial effrts when they have access t additinal supprt services, such as business cunseling, business incubatrs, and assistance with applicatins fr business lans. Onging technical assistance in the areas f marketing, netwrking, and cntracting are als highly recmmended. These services can be prvided thrugh agreements with entrepreneur supprt partners, as well as directly thrugh lcal Virginia Wrkfrce Centers. VWL #12-04 Page 4 f 7 (Revised )

5 Knwledgeable staff While several areas in Virginia have a strng recrd f prviding entrepreneurship training and self-emplyment supprt thrugh the wrkfrce investment system, this may be a new fcus fr ther areas. WIB staff, in partnership with the designated One-Stp Operatr, shuld ensure that staff members are prvided with prfessinal develpment pprtunities, s that they will be knwledgeable abut the Accuntability and fllw-up Requirements fr Perfrmance Accuntability: Emplyment Perfrmance Measures ETA has cnfirmed that custmers receiving entrepreneurial and self-emplyment training will be included under WIA s perfrmance accuntability system and are subject t negtiated perfrmance measures. Virginia Emplyment Cmmissin Unemplyment Insurance (UI) wage recrds are the primary data surce fr verifying emplyment perfrmance utcmes, and certain types f emplyment, particularly self-emplyment, are generally nt cvered by UI recrds. Hwever, supplemental data ptins fr sme perfrmance measures ffer flexibility t accmmdate entrepreneurship training within the wrkfrce system. In rder t verify emplyment status fr the adult Entered Emplyment, Emplyment Retentin and yuth Placement measures, supplemental data and administrative recrds will be accepted. Credential Perfrmance Measures While the cmmn measures fr WIA d nt include a credential measure fr the Adult and Dislcated Wrker prgrams, the 2010 Virginia Wrkfrce Cuncil (VWC) added Credential Attainment as a state level measure t stress the need fr lcal areas t cntinue t prvide wrkfrce training pprtunities t participants. As nted previusly, TEGL prmtes making entrepreneurship training pprtunities available t peple interested in selfemplyment, and prvides detailed infrmatin abut the ptential design and implementatin f entrepreneurial strategies fr adults, dislcated wrkers, and yuth. WIA enrlled custmers wh receive entrepreneurship training will be included in Virginia s Credential Attainment measure: The number f adult r dislcated wrkers wh were emplyed in the first quarter after the exit quarter and received a credential by the end f the third quarter after exit divided by the number f individuals participants wh exit during the quarter. The chart n page 5 illustrates applicable perfrmance measures and acceptable data surces fr ETA cmmn measures and the VWC Credential Attainment measure. VWL #12-04 Page 5 f 7 (Revised )

6 COMMON MEASURE ALLOWABLE DATA SOURCE Adult / Dislcated Wrker Measures Entry t Emplyment Wage Recrds and Emplyment Retentin Wage Recrds and ADDITIONAL NOTES SPECIFIC TO ENTREPRENEURSHIP AND SELF- EMPLOYMENT CUSTOMERS Either f the fllwing data surces can be used t verify entry int emplyment fr custmers receiving entrepreneurial training*: Acquiring a Federal emplyment Identificatin Number (EIN) Acquiring a DUNS Number Acquiring a Business License Cmpleting a Preliminary Business Plan Supplemental data surces can be used t verify emplyment retentin fr custmers receiving entrepreneurial training*: Internal dcumentatin frm the business t include (but nt limited t: (a) Quarterly tax returns (b) Sales receipts (c) Cntracts fr service Average Earnings Wage Recrds Custmers whse emplyment in either the 1 st, 2 nd, r 3 rd quarter after exit was determined frm supplemental surces (nt wage recrds) are excluded frm the calculatin f this measure Credential Attainment** Yuth Measures Placement in Emplyment r Educatin Wage Recrds and Either f the fllwing data surces can be used t verify entry credential attainment** fr custmers receiving entrepreneurial training if it is accmpanied by WIB-apprved dcumentatin f successful cmpletin f entrepreneurial training. Acquiring a Business License Acquiring a Federal emplyment Identificatin Number (EIN) Acquiring a DUNS Number Cmpleting a Preliminary Business Plan Either f the fllwing data surces can be used t verify entry int emplyment fr custmers receiving entrepreneurial training: Acquiring a Federal emplyment Identificatin Number (EIN) Acquiring a DUNS Number Acquiring a Business License Cmpleting a Preliminary Business Plan *In cases where a custmer s emplyment is verified by wage recrds in the first quarter, but the custmer des start a business in the secnd quarter, the fllwing data surces can be used t verify retentin in emplyment: Acquiring a Federal emplyment Identificatin Number (EIN) Acquiring a DUNS Number Acquiring a Business License Cmpleting a Preliminary Business Plan **Credential Attainment is nt a Cmmn Measure under ETA; it is a Virginia Wrkfrce Cuncil perfrmance requirement. VWL #12-04 Page 6 f 7 (Revised )

7 Virginia Wrkfrce Cnnectin Data Entry Requirements: Successful implementatin f prgram elements fr entrepreneurial and self-emplyment training will require slid recrd-keeping strategies, timely data entry, and fllw-up effrts. Virginia s virtual ne-stp, the Virginia Wrkfrce Cnnectin, will be mdified t allw fr entry f self-emplyment utcmes. It is expected that a questin Is this Entrepreneurial and/r Self-Emplyment? will be added t the emplyment tabs f the WIA case clsure and quarters after exit links. The questin wuld be a yes/n ptin. It is als anticipated that this field will be added t the case clsure t emplyment reprt fr ease f tracking entry int entrepreneurship. Additinal guidance n entering supplemental data will be prvided in a separate cmmunicatin. Actin Requested: Lcal WIBs are encuraged t review the examples f ptential activities, partnerships, and critical prgram elements fr entrepreneurial and self-emplyment training. Specific bjectives and actins can be cnsidered fr implementatin as lcal areas develp strategic wrkfrce plans. Inquiries: Please submit inquiries regarding this VWL t the VCCS Office f Wrkfrce Develpment Services: Wrkfrce Investment Act Prgrams Administratr Najmah Thmas, Ph.D. James Mnre Building, 17 th Flr 101 N. 14 th Street Richmnd, VA Telephne: (804) Fax: (804) nthmas@vccs.edu VWL #12-04 Page 7 f 7 (Revised )