My goal is to equip and inspire people who would otherwise not acquire financial and business skills. The people that I want to reach are unlikely to seek out and ask for help learning financial and business skills. By working initially in groups, a “fun” and approachable environment can be generated which may attract more of the target demographic. The skills being taught would be nothing new, only the packaging would change. Money and finance can be very intimidating for some people, but I do not want this kind of phobia to stop people from learning. These important subjects should be “cool” for everyone to know, not just for select groups. As Andre Carter would say, the program needs to “Sizzle.”
I envision a two step series. The first would be the basic learning environment consisting of businesses that students would run for the duration of their training period. Small teams of business people, particularly recent retirees and business students, would work with the teens to operate every facet of the operation. Using teams of business mentors would reduce the burden placed on each volunteer. The mentors will guide them, but the young executives will make the decisions and do the work. There is no better way to learn than from real life situations with actual funds and real responsibility. I believe the unparalleled degree of responsibility will inspire and motivate students to work harder and learn more than they would in a conventional class room environment.
Numerous lessons would need to be taught during this phase of the program. Students should leave the program with an exposure to each part of business operations and a set of corresponding fundamental skills. Many challenges unique to at risk youth will require special attention. Mindsets, sources of motivation, communications styles and other issues unique to low income groups need to be considered. Program mentors would model generally accepted business behaviors that the students could learn from. The goal is not to destroy the students’ identity; instead it is equipping them to enter a business world that operates within certain parameters. Business is much like a game. And it is much harder to win or even play when one does not know the rules. Sharing the rules of the game and some additional advice gives people the opportunity to win.
Computers need to be an integral component of the program. Computer literacy is vital for all people in this generation. Business data would be stored on a server that could be remotely accessed by participants. The computers would be a vital tool for running the business and learning or improving skills. Students would learn how to use accounting and other business productivity software. Email etiquette and other computer aided business writing skills would be reinforced. Other areas like basic web design and research skills would also be covered.
Selecting a good business for the pilot program is one the major challenges. I am sure that numerous other opportunities exist for the creation of these companies. Regardless of the business selected, some revenue and a good learning opportunity would need to provide. A program like Jade which has a successful model would be very helpful in this respect. The following are three possibilities that have been proposed.
After seeing the Jade program it became clear that consulting is a possibility. Businesses or marketing agencies could work with the student consultants on ways to more effectively advertise to people in lower income brackets. Collectively the low income has a tremendous amount of buying power.
A gifted business student recommended the publishing business. Who could be better at communicating to the youth of low income communities than youth with the same background? This could provide revenue and reach a community that has been largely ignored or instructed with ineffective materials. Materials could be sold to schools as a comprehensive tool to teach financial literacy. A team from the program could go to these schools to build excitement and help launch these initiatives.
A local financial consultant recommended a business collecting empty beverage containers, with the MI ten cent deposit, at busy events where people may not recycle. In exchange for the bottles, people would be eligible for a raffle to win items from local merchants.
The initial training is unlikely to produce lasting changes. This is where the second part of the program and entrepreneurial support comes into play. Students that successfully complete the first part of the program would become eligible to apply for assistance for launching a business. Groups or individuals working with business mentors could start businesses with funding from microfinance loans. Such programs have been applied very successfully in developing nations and with some modifications could transition well to this application. This process would be run by students and would provide accountability, additional experience, and support for aspiring entrepreneurs. As need, additional help could be solicited for these businesses in the form of legal, IP, or IT advice.
Students would also receive help managing the proceeds of these businesses. Teaching people how to make money also necessitate teaching them how manage it effectively. First the low interest rate loans would need to be repaid. Some of the proceeds should be used for savings or investments. Colleges could match funds in college savings accounts, making higher education more attainable. The process of establishing budgets and good financial habits will serve them well.
This program is intended to be complementary to existing educational services. The skills necessary to be successful entrepreneurs are not currently being provided to many low income youth. It is impossible to completely eradicate poverty, but this program could make a difference. The weakness of many nonprofits is high overhead and program expenses. Donation based funding makes programs vulnerable. My proposed program seeks to minimize the resources needed to help these people. The revenue produced by business operations should offset the program costs. Investments would be needed to start additional programs, but existing ones should be self supporting or require only minimal support. Foundations could achieve strong social returns on investments made in these programs. If proven viable, this model could be used nation wide as an effective and efficient tool to address the root causes of poverty.
Brent Courson
4701 Birch Lane
Dexter, MI 48130
734-426-3767 Office
734-426-1169 Home
BrentCourson@chartermi.net
