Presented by:Donna R. Rockin, Director

Illinois SBDC/Duman Microenterprise Center/JVS Chicago

Program NameSmall Business Development or ExpansionCenter Name: Illinois Small Business

Development Center at the Duman Microenterprise Center

Who are we?• The Duman Center was made possible through the

generous gift from Louis Duman to the Centennial Campaign of the Jewish Federation for the JVS Endowment Foundation and a grant from the Illinois Department of Commerce and Economic Opportunity.

• JVS is a 501 (c) (3) nonprofit organization, whose mission is to provide a wide range of employment and educational training services and career counseling that “empower all people in need to find fulfillment through work.”

• The Illinois Small Business Development Center(SBDC) at the Duman Microenterprise Center provides one-on-one counseling at no charge for start-ups and pre-existing small businesses in the Chicago metropolitan area.

Who are we?The Duman Center’s programs also provide, on a limited

basis, start-up and expansion capital for area entrepreneurs via zero and low-interest small business loans. In 2007, the Duman Center began helping clients access and receive larger SBA-backed business loans as well.

The center offers entrepreneurial training, business assistance, mentoring, and access to capital. The center has been helping small business owners since 2001.

The Center partners with local banks, government agencies, business professionals, business schools, organizations, and the Jewish Federation of Metropolitan Chicago.

How many comprise the staff?2.67 full time equivalents (FTE’s)

15 person volunteer Loan Approval Committee

Volunteers and mentors

Who are our clients?Refugees and asyleesImmigrantsDivorced men and women, generally with childrenWidows, widowers, generally with childrenVeterans (make up about 9% of our clients)Young adults: recent high school and college

graduates with little or no assetsOver 41% are African American, nearly 54% are

white, about 3% are Asian, and nearly 2% are Hispanic

Nearly 59% are men and 41% are women

How do we market ourselves?Constant Contact e-News BulletinsCAN-TV (Community Access Network TV)Craig’s ListJVS Offices and all JVS CounselorsLibrariesChambers of CommerceEconomic Development CentersBanksOther Small Business Development CentersWord of mouthRecognition from local media outlets

Who are our funding sources?Private fundersCorporate foundationsFederal grantsState grants

What outcome measurements are built into the program?Economic ImpactSurvey – measures

improvement in financial stability

Jobs CreatedJobs RetainedAccess to CapitalChange in profitsChange is sales

What outcome measurements are built into the program?Amount of capital

obtained

Default rate -remarkably low given the un-bankability of the clients.

Combined overall access to over $700,000 in private capital and $585,000 in SBA capital.

Our private loan funds have only a 3% default rate which is a remarkable measure of financial stability that has been achieved by our clients.

What outcome measurements are built into the program?Down Home Loan

Manager

Client class surveys - service delivery is client centered. JVS Chicago has a terrific, top-notch research department that tabulates and analyzes all or our survey data.

• Allows us to track and manage client loan payments so we can immediately call the client if we see a late loan payment and try to get the business back on track.

• Data determines program topics regarding new classes and seminars

• helps us determine new or revised curriculum

• helps us assess client satisfaction

• gather client feedback to improve service delivery

What outcome measurements are built into the program?Measurement of

program success seen in the numerous grant goals that are met and/or have been exceeded

Exceeded the number of clients served individually.

Exceeded the number of classes taught and the number of clients attending classes.

Got superb ratings from questionnaires the state submits to our clients randomly.

Key statistics Small businesses represent 99.7% of all employer firms and

employ about 50% of all private sector employees. Small businesses pay nearly 45% of the total U.S. private

payroll and have generated 60-80% of the net new jobs annually over the last decade.

52% of small businesses are home-based, while 2% are franchises.

44% of new businesses survive at least 4 years, which appears to be the critical timeline for surviving long-term. After the fourth year, the rate of firm closings declines considerably.

The United States unemployment rate : 8.5% in March 2009 The Illinois unemployment rate: 9.1% in March 2009 Source: U.S. Dept. of Commerce, Bureau of the Census and International Trade Administration; Advocacy-funded research by Kathryn

Kobe, 2007 www.sba.gov/advp/research/rs200tot.pdf and CHI Research, 2003 www.sba.gov/advo/research/rs225505.pdf Federal Procurement Data System; U.S. Dept. of Labor, Bureau of Labor Statistics.

Source: U.S. Dept. of Commerce, Bureau of the Census and International Trade Administration; Advocacy-funded research by Kathryn Kobe, 2007 www.sba.gov/advo/research/rs299tot.pdf and CHI Research, 2003 www.sba.gov/advo/research/rs225505.pdf :Federal Procurement Data System; U.S. Dept. of Labor, Bureau of Labor Statistics.

Source: U.S. Dept. of Commerce, Bureau of the Census and International Trade Administration; Advocacy-funded research by Kathryn Kobe, 2007 www.sba.gov/advo/research/rs299tot.pdf and CHI Research, 2003 www.sba.gov/advo/research/rs225505.pdf; Federal Procurement Data System; U.S. Dept. of Labor, Bureau of Labor Statistics.

Source: “Business Employment Dynamics Data: Survival and Longevity, II,: by Amy E. Knaup and Merissa C. Piazza, Monthly Labor Review, vol. 30, no.0 (Sept. 2007), pp.3-10l :Redefining Business Success: Distinguishing Between Closure and Failure: by Brian Headd, Small Business Economics, vol. 21, no. 1 (August 2003), pp. 51-61.

Source: U.S. Department of Labor website, http://www.bls.gov/lau/

Can Entrepreneurs and Small Business Owners still be viable even in a down economy? Clients are carefully planning growth strategies, including

thoughtfully adding new products or services that will be in demand

Small businesses can be incredibly more price competitive than other medium and large businesses because they have lower overhead, making their services highly attractive to other businesses.

Small business can respond much more quickly to changing economic conditions which is a huge plus in a struggling economy. As a comparison, think how quickly a tug boat can change its course versus a huge ocean freighter.

Client businesses are looking for more business-to-business services they can offer, looking for more wholesale accounts

Clients are offering attractive price points by bundling products and services, a la “meal deals,” and product/service combination sales.

Blockbuster Companies that started during a RecessionSome classic companies More recent pioneers

General ElectricFortune MagazineRevlon CosmeticsHewlett-PackardSports IllustratedBurger KingHyatt CorporationTrader Joe’s

LexisNexisFedEx CorporationMicrosoft CorporationApple ComputerCNN (Cable News

Network)Cliff BarSkype (VOIP)

Two Key PointsUnderstanding the importance of pre and

post-loan technical assistance to entrepreneurs.

How to help clients access capital or bootstrap their business growth.

Questions?How can this model of self-employment be

expanded to other low-income, at-risk populations?

How can we partner with other community resources to expand the range of services we provide to clients?

How to contact us?• Donna R. Rockin

Illinois SBDC/Duman Microenterprise CenterJVS Chicago216 W. Jackson Blvd., Suite 700Chicago, IL 60606-6921Phone: 312-673-3430Fax: 312-553-5544donnarockin@jvschicago.org

• E-mail: sbdcdumancenter@jvschicago.org • Website: www.jvschicago.org/duman