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Growing Entrepreneurship Clinics Around the Globe Barbara SchatzSusan Jones Columbia Law SchoolGeorge Washington University Law School International Journal.

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Presentation on theme: "Growing Entrepreneurship Clinics Around the Globe Barbara SchatzSusan Jones Columbia Law SchoolGeorge Washington University Law School International Journal."— Presentation transcript:

1 Growing Entrepreneurship Clinics Around the Globe Barbara SchatzSusan Jones Columbia Law SchoolGeorge Washington University Law School International Journal of Clinical Legal Education Conference 15-17 July 2014 Palacký University, Olomouc, the Czech Republic 1

2 Plan for our session What is an entrepreneurship clinic? Why teach an entrepreneurship clinic? What are some issues and challenges of an entrepreneurship clinic? Examples of entrepreneurship clinics worldwide Would an entrepreneurship clinic work in your environment? 2

3 What is an Entrepreneurship Clinic ? Who are the clients? Social/Economic Justice Model o non-profit organizations  microenterprises and small businesses in low-income communities  social enterprises  Incubators Technology, Innovation Model  inventors, tech companies, high growth start-ups 3

4 What is an Entrepreneurship Clinic? What services does the clinic provide?  Non-litigation legal services (or advice only)  Education for entrepreneurs  Policy analysis and advocacy  Business planning and consulting through partnerships and referrals 4

5 Microenterprises Harlem dessert company  Makes and sells healthy desserts to Harlem stores and restaurants  “Incubated” by Hot Bread Kitchen which helps low- income and foreign women break into the food industry and educates New Yorkers about the contributions of immigrant communities  Students helped client avoid trademark litigation over the name of her business 5

6 Social Enterprises Tutoring Business  Helps low-income students prepare for college entrance exams  Fees from higher income students help subsidize services to low-income kids  Clinic students formed a legal entity, advised on employment issues and drafted contract between the business and its tutors 6

7 Social Enterprises Aquaponics business  Developing aquaponic facilities in NYC to produce fresh food and distribute some at a discount to low-income New Yorkers  Students counseled business on tax and governance issues and drafted operating agreement 7

8 Non-Profit Organizations Residents Associations of Public Housing Projects  Students helped associations to form legal entities with tax benefits to permit better services to their low-income residents and communities  Students worked with associations to improve governance 8

9 Life Asset o A “non-predatory” financial resource center for poor, low, and moderate income persons o Provides affordable financial services and financial education to the “unbanked” and “underbanked” o Students did corporate, tax, contract and trademark work http://www.lifeasset.org 9

10 Community Legal Education and Policy Work Community Legal Education  Workshops for microenterprises and non-profits  Manuals for microenterprises and non-profits Policy Work  Conference: Barriers to Microenterprise  Advocacy to improve law and regulations governing non-profits  Action Research 10

11 Action Research The Workplace DC 11

12 Why Teach an Entrepreneurship Clinic? Promote Economic Justice o help non-profits and social enterprises that provide resources to low-income individuals and communities to start-up and thrive o help those who are out of the economic mainstream to start and operate businesses o Entrepreneurship = gateway to work for those without formal education o Entrepreneurship = income for those who can’t find jobs 12

13 Why Teach an Entrepreneurship Clinic? Promote Economic Development o Create or strengthen economic institutions controlled or owned by the residents of a low-income community that will o attract outside capital, o improve the physical environment, o increase jobs and entrepreneurial opportunities for residents, o provide more accessible services and goods to residents o Promote innovation and tech/high growth companies with potential to create jobs 13

14 Why teach an Entrepreneurship Clinic? Students Learn Unique Skills and Values  Interview and counsel organizations rather than individuals  Represent clients in a planning/transactional context  Learn what it takes to grow a business or non- profit  Draft corporate documents and contracts  Negotiate transactions  Collaborate with business, finance, management: o Students o Professionals 14

15 Why teach an Entrepreneurship Clinic? Meet student needs and interests  Prepare students for: o careers representing enterprises o pro bono work and board service o careers as entrepreneurs o entrepreneurial approach to law practice  Form professional identity o Show career paths that are not black and white – business law work that promotes social justice o Show variety of lawyering roles when representing enterprises 15

16 Criteria for Choosing Clients, Scope of Work o Inability to afford legal services? o Availability of other pro bono services? o Contribution to social and economic justice? o Contribution to [community] economic development? o Likelihood of success? o Student interest? o Pedagogical value? o Clinic’s competence to handle the matter? o Work which students can complete within the semester or year? o Reaction of private bar? 16

17 Is a Social/Economic Justice Focus Important? Innovation Advancement Program at Arizona State University o Clinic represents inventors, technology entrepreneurs, emerging technology companies, faculty who want to commercialize their discoveries o Multi-disciplinary team of students (business, engineering, science, law) provide business planning and management consulting services o Selection criteria: o Can’t afford local attorneys/consultants o Technology-based companies o Potential for growth and hiring o Arizona-based companies o Preference for ASU students, professors and alumni o Charges “program” fees 17

18 Is a Social/Economic Justice Focus Important? Advantages of Tech Clinic o Train students for jobs in growth sector of economy o Promote economic development in locality o Availability of funding Disadvantages o Low-income people and communities lose scarce clinic resources o Lost opportunity to explore role of business lawyer in promoting social justice o Possible complaints from private bar o Blended Clinics o Skills largely transferable 18

19 Entrepreneurship Clinics Worldwide United States o Currently 145 entrepreneurship clinics at US law schools United Kingdom o Northumbria University, Newcastle-on-Tyne o Queen Mary University of London o University of South Wales, Pontypridd Georgia o Free University (FreeUni), Tbilisi Croatia o Josip Juraj Strossmayer University, Osijek iLINC – European Network of Law Incubators Others? 19

20 Entrepreneurship Clinics Worldwide Northumbria University, UK o Students at the Student Law Office are divided into “law firms” which assist businesses, charities and social enterprises regardless of their size or financial means. o Typical projects: o registering a trademark o drafting website terms and conditions o drafting company registration documents and advising on directors’ duties o d rafting and advising on a music video production contract o Students offer free workshops to the public and to entrepreneurs’ groups. Contact: Elaine Campbell Senior Lecturer +44 191 243 7548 20

21 Entrepreneurship Clinics Worldwide Queen Mary University of London Legal Advice Centre o qLegal, starting in 2014, will offer free legal advice (not representation) on business, commercial and intellectual property issues to non-profit social enterprises and for-profit companies which meet income guidelines. o The Law for the Arts Centre offers free legal advice monthly to those involved in the creative industries. qLegal Contact : Patrick Cahill 020 7882 3977 21

22 Entrepreneurship Clinics Worldwide University of South Wales, Pontypridd, UK o Legal and Financial Advice Clinic advises small businesses and social enterprises o Enterprises are not eligible for free legal advice through government programs – goal of the Advice Clinic is to fill this gap, especially for the many individuals who have no livelihood alternative other than starting a business. Contact: Richard Owen Director Legal and Financial Advice Clinic Faculty of Business and Society University of South Wales Tel: 01443 654639 Fax: 01443 483008 e-mail: 22

23 Entrepreneurship Clinics Worldwide Josip Juraj Strossmayer University in Osijek Croatia o Law faculty and Economics faculty planning a clinic to assist start-up entrepreneurs. o Working in teams, law students will provide advice and documents necessary to start a company, and economics students will provide industry analyses. Contact: Anamarija Delic, PhD Assistant Professor Faculty of Economics in Osijek Tel: +385 31 224 426 Fax: +385 31 224 438 23

24 Entrepreneurship Clinics Worldwide iLINC: European Network of Law Incubators  Goal: build European capacity to provide legal advice to ICT (information, communications, technology) start-ups and entrepreneurs  Service Delivery Models  Individual client representation  Workshops  Internet portals (no person-to-person engagement) 24

25 Entrepreneurship Clinics Worldwide Small Business and Community Economic Development Clinic, George Washington University Law School Small Business & Community Economic Development Clinic- Law 6621  Professor Susan Jones, Director  Professor Kevin Peska, Adjunct  Professor Alice Hamilton Evert, Visiting Associate (Fellowship)  8-10 Students Eligibility  Open to 2 nd and 3 rd year students  Prerequisites: Law 6250 (Corporations) and Law 6300 (Federal Income Tax)  Recommended: Law 6472 (Copyright), Law 6474 (Unfair Competition & Trademark Law), and 6314 (Nonprofit Organizations: Law and Taxation) Credit hours/duration  Students may enroll for 4, 5, or 6 credits o 4 Credits- 16 hours per week 208 hours/semester o 5 credits- 20 hours per week 260 hours/semester o 6 credits- 24 hours per week 312 hours/ semester o One semester clinic 25

26 Entrepreneurship Clinics Worldwide Small Business and Community Economic Development Clinic, George Washington University Law School Grading Method o This clinic is graded on an H, P, LP, or NC basic Weekly Seminar o Wednesday, 1:40-3:40pm (2 hours) Other Course Requirements o Students of the Week (SOW)-intake new clients o Weekly case supervision meetings o Maintain weekly time sheets o Case team meetings o Learning goals o Small Business Education o Examples o The New DC Nonprofit Code, DC Bar Pro Bono Program o Enterprise Community Partners Faith Based Community Initiative 26

27 Entrepreneurship Clinics Worldwide Community Enterprise Clinic of Columbia Law School Professor: Barbara A. Schatz Two semesters Credits: 7 credits in fall, 4-6 credits in spring (student option) Enrollment: 8 students Class meeting time: Tuesday 4:20 to 6:10 PM and Thursday 3:00 to 5:50 PM Grading: Students may choose to be graded CR/F or with a letter grade. Goals: The goal of this clinic is to help students to become effective and ethical lawyers by providing high quality transactional representation to non-profits, microenterprises and social enterprises. An additional aspect of the Clinic involves helping students to achieve personal goals related to becoming professionals, e.g., improving time-management; learning to collaborate with a partner; improving ability to work with people of different age, sex, race or economic status; learning how to enjoy working as a lawyer. Cases and Projects Non-profits - community groups, international organizations and arts organizations, both start-ups and mature organizations. Typical projects o helping the client to choose and create an appropriate entity o developing a governance structure and drafting by-laws, conflict of interest and other corporate policies o applying for tax exemptions o helping an organization create a corporate and tax structure for a business activity o helping a local organization to create a national structure o reviewing and drafting leases and contracts o creating structures through which charities can participate in the political process o advising on trademark and copyright issues 27

28 Entrepreneurship Clinics Worldwide Community Enterprise Clinic of Columbia Law School Microenterprises – serve low income communities and are unable to afford market rates for legal services Social Enterprises – organizations interested in both generating income and achieving a social or environmental goal Typical projects for microenterprises and social enterprises: o helping entrepreneurs to choose and form appropriate business structures o drafting or reviewing contracts, leases, financing documents o advising on trademark and copyright issues o complying with regulatory requirements Community Education and Policy Work: Students offer workshops and prepare publications for non-profits and community entrepreneurs on corporate, tax and regulatory issues. They also participate in law reform projects related to our clients. Pedagogy: The early weeks in the clinic are designed to prepare students to see clients. Classes, out-of-class exercises, readings, videotaped simulations and individual meetings with the professor are used to build students’ substantive knowledge, skills, judgment and sensitivity to ethical issues. Once casework begins, simulations taper off and the actual cases become the subject of weekly supervision meetings and some classes. Throughout the semester, we focus on the lawyer’s role, especially the unique issues in representing organizations rather than individuals, and on helping students to develop a workable personal conception of that role. Expectations: Students should plan on spending at least 21 hours per week on Clinic work and can expect to come out of the Clinic with a good grounding in the corporate and tax law relevant to our clients; a sense of how the law functions in practice; basic skills in communicating with clients, facilitating the work of a group enterprise, problem-solving and drafting; sensitivity to ethical issues; good work habits involving careful planning and the ability to reflect on and learn from experience; and an understanding of how lawyers can use their skills to benefit communities. 28

29 Entrepreneurship Clinics Worldwide Would an entrepreneurship clinic be feasible and useful your environment? o Regulatory environment o Availability of business planning services o Possibilities for collaborations with other faculties o Private bar support/opposition o Relationship to other poverty-reduction strategies 29

30 Resources o Law School Entrepreneurship Clinics Kauffman Foundation law/ o Bigger Than You Think: The Economic Impact of Microenterprise in the United States available at 30

31 Resources Selected Books & Law Review Articles by Professor Susan R. Jones BOOKS Building Healthy Communities: A Guide to Community Economic Development for Advocates, Lawyers and Policymakers, Chicago, IL: American Bar Association, 2009. (with Roger A. Clay, Jr.) Legal Guide to Microenterprise Development. Chicago, IL: American Bar Association, Section of Business Law, 2004. ARTICLES Viewing Value Creation by Business Lawyers Through the Lens of Transactional Legal Clinics, forthcoming ___UC Davis Bus.L. J.___(2014) (with Prof. Jacqueline Lainez). Clinical Collaborations; Going Global to Advance Social Entrepreneurship (with Deborah Burand ( Michigan); Jonathan, Ng (General Counsel & Global Legal Director, Ashoka) and Alicia Plerholpes (Georgetown), 20 International Journal of Clinical Legal Education,499 ( 2014). Enriching the Law School Curriculum: The Rise of Transactional Legal Clinics in U.S. Law Schools, 85 Univ. Wash. J. L & Pol'y 85 (2013) (with Prof. Jacqueline Lainez). Innovative Approaches to Public Service through Institutionalized Action Research: Reflections from Law and Social Work, 33 U. Arkansas L R 377 (2011) (with Dr. Shirley J. Jones). Supporting Urban Entrepreneurs: Perspectives on Small Business Development - Law, Policy & the Role of Lawyers, 30 Western New England L.R. 71 (2008). Dr. Martin Luther King, Jr.’s Legacy: An Economic Justice Imperative -, 19 Washington U. J. L & Policy 39 (2005). Promoting Social and Economic Justice Through Interdisciplinary Work in Transactional Law, 14 Washington U. J. L & Policy 249 (2004). Pro Bono Pays Off: Transactional Lawyers Supporting Economic Development in the Nation's Capitol, 17 GP Solo & Small Firm Lawyer 38 (March 2000). Representing the Poor and Homeless: Innovations in Advocacy: Tackling Homelessness through Economic Self-Sufficiency, 19 St. Louis University Public Law Review 385-412 (2000). Small Business and Community Economic Development: Transactional Lawyering for Social Change and Economic Justice, 4 Clinical Law Review 195-234 (1997). 31

32 Resources Starting Off Right, Columbia Law School 2012 Small Business Start-Ups, Columbia Law School 2012 B. Schatz and A Cody, Community Lawyering in The Global Clinical Movement, Frank S. Bloch, ed.,Oxford University Press, 2011 32

33 Resources George Kuney and Brian Krumm, The Entrepreneurial Law Clinic Handbook, Thomson Reuters, St. Paul, MN, 2013 Alicia Alvarez and Paul Tremblay, Introduction to Transactional Lawyering Practice, West Academic Publishing, St. Paul, MN, 2013 Richard Neumann Jr., Transactional Lawyering Skills, Wolters Kluwer Law & Business, New York, NY, 2013 33

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