1. Innovative Partnerships to launch new businesses and create new jobs in rural communities Dr. George Millsaps Small Business Center Network North Carolina Community Colleges Barry Ryan Institute for Rural Entrepreneurship N.C. Rural Economic Development Center

2. Overview N.C. Facts and Perspective Small Business Development in N.C. Program Model / Partnership Evolution – NOW – GATE – Ventures Lessons Learned

3. 10 th population 9.6 million 68.5% white 21.5% black 1.3% American Indian 8.7% all other GSP $425B (USD) Avg. Household income $45,570 (USD) Business Ownership 16.8% minority 28.2% women The State of North Carolina

4. Highest mountain in Eastern US 3 rd Largest Banking Center Historically Agriculture and Medium Manufacturing The State of North Carolina 120 Colleges and Universities including 58 Community Colleges

5. NC Public Higher Education University of North Carolina 1 st Public University 16 Campuses Board of Governors Strong Central Office State Agencies North Carolina Community Colleges Two-year Colleges Vocational Education 58 Campuses Strong Local Control Local Entities

6. History of Small Business Services in NC Pre 1984 – add on (NC Ag, etc.) Early 1980s – Major Networks (SBTDC, SBCN), Late 1980s-2000s – Sector Specific Mid 2000s – Provider Level Coordination Current – Policy Level Coordination, Provider Level Partnerships

7. State Level Policy Developments SB Budget Priority in late 2000s SBCN/SBTDC Exempted from Public Records Law Small Business Commission Public/Private Partnerships

8. SBCN Today The most extensive state funded small business assistance program in the nation

9. SBCN Organizational Hierarchy TEST

10. SBCN FY 2012-2013 Impacts at a Glance 3,781 Entrepreneurship Training Events 46,782 Event Attendees 6,971 Counseling Clients 17,664 Counseling Hours 1,732 Jobs Created 1,235 Jobs Saved $2,097 Per Job Created/Retained 528 Business Startups

11. Rural North Carolina

12. N.C. Unemployment - 2009 Rural North Carolina Prepared by the Labor Market Information Division, Employment Security Commission of North Carolina 12_2009 UI rate: 11.9%

13. N.C. Unemployment - 2013 Rural North Carolina Prepared by the Labor Market Information Division, Employment Security Commission of North Carolina 12_2009 UI rate: 8.8% # Unemployed : 416,767 #Self-emlpoyed: 212,786

14. Prepare the Workforce for Tomorrows Jobs Workforce Development Business Development Create Tomorrows Jobs Partnership Model

15. Program Model Evolution 2004-2007 2009- 2012-

16. New Opportunities for Workers Offered in 22 community college sites in N.C. 2004-2007 Thousands of dislocated workers attended information sessions Built to fit community college infrastructure and procedural system Hundreds received free training, but relatively few business starts

17. Growing America Through Entrepreneurship Launched in 2009 - $1.6M from USDOL Program model built around case management and coaching Built to leverage community college capabilities and strengths One-on-one assessments and customized training plans Work search waiver and microloans

18. GATE Partners

19. GATE Client Profile

20. GATE Results 2009- present 1,500 scholarships awarded to clients from 83 N.C. Counties 8,000 hours of counseling and over $250,000 in tuition reimbursements 203 GATE clients have started a business creating 534 jobs to date. Cost/outcomeFY 09-12FY13 Actual Scholarships$1,617$1,537 Startups$12,857$8,310 Jobs created$4,848$3,262

21. Client Case Example Kimberleigh – Irish Pub Celtic Fringe, Reidsville Juan -Landscaping Green Knights Landscaping

22. New Generation Ventures Builds on GATE model, targets rural young adults ages 18-30 Virtual Service Delivery Emphasis on online training Average scholarship provides $300 in coursework Innovative finance solutions

23. New Generation Ventures Microloan Circles 5-6 clients meet using Google hangouts and make loan recommendations to the Rural Center. Small loans (most under $5,000) and short terms (less than 1-2 years). 2 clients funded to date, additional rounds coming soon!

25. Ventures Client Profile

26. New Generation Ventures Results 2012 - present 216 young adults served Average age: 26 35 business starts 23 existing businesses 84 jobs created

27. Lessons Learned Training is necessary but not sufficient. Training is best when customized to client needs Case management is key. Traditional counseling model doesnt work for rural dislocated workers and young adults. Community college / non-profit partnership leverages strengths of both organizations Job search waiver helps to create a runway for those who are unemployed..

28. Questions / Discussion Our Contact Info Dr. George Millsaps Small Business Center Network North Carolina Community Colleges millsapsg@nccommunitycolleges.edu (919) 807-7217 Barry Ryan Institute for Rural Entrepreneurship N.C. Rural Economic Development Center barry@ncruralcenter.org (919) 250-4314