Enterprise Facilitation Passion Entrepreneurship and the Local Economy

Enterprise Facilitation® Passion, Entrepreneurship and the Local Economy Through local leadership, changing lives and the economy one business at a time All Institute materials are Copyright 1999 -2004 by the Sirolli Institute. All rights reserved. These materials may not be used reproduced, displayed, modified, duplicated, in whole or in part, without express prior written consent from the Sirolli Institute. Enterprise Facilitation® is a Registered Servicemark of the Sirolli Institute. Trinity of Management. SM and Sirolli Institute. SM are Servicemarks of the Sirolli Institute.

About the Sirolli Institute… Founded by Dr. Ernesto Sirolli, the Sirolli Institute is an international economic development non-profit organization dedicated to enhancing the overall quality of life in communities, regardless of size or geographic location, through the implementation of Enterprise Facilitation®

What Enterprise Facilitation® is… l Enterprise Facilitation is the exclusive and innovative development process created by the Sirolli Institute l It utilizes proven technique-specific management and development training that is implemented on the local level in communities l Through the use of these management techniques and local civic leadership, communities experience much higher levels of business development success and sustainability than through conventional development

How Enterprise Facilitation® works… l Once invited to work with a community, the Sirolli Institute will begin to guide a group of local leaders through the steps needed to successfully self govern the Enterprise Facilitation process l This requires the commitment of 40 -50 successful community leaders and business people willing to work together to dedicate themselves to the process as a working Board l Once a Board is in place, a search is begun to hire an Enterprise Facilitator to guide the project and consult with prospective entrepreneurs

Who is an Enterprise Facilitator®… l An Enterprise Facilitator is a uniquely qualified economic development and business professional, who has received specific training created and practiced only through the Sirolli Institute l They are a local member of the community, who typically has several years of business experience in the private sector l Working closely with the Board, they adhere strictly to the Institute’s philosophy and practices to guide prospective entrepreneurs to build a successful business management team

What an Enterprise Facilitator® Does… l Upon completion of the Institute’s training, the Facilitator meets confidentially, on a one on one basis with prospective entrepreneurs, free of charge, in confidence l The Enterprise Facilitator then responsively guides the client through the process of developing their business management team, who in turn craft their own business plan l By collaborating with the Board, and networking prospective entrepreneurs with other business professionals and specialists in the local area, Facilitators help to develop not only successful and sustainable businesses, but a true sense of community as well

What makes Enterprise Facilitation® different… The easy answer is RESULTS… Conventionally started new businesses experience a failure rate greater than 80% within five years New businesses utilizing Enterprise Facilitation consistently exceed a sustainability rate of 80% This clearly demonstrates there’s an advantage that Enterprise Facilitation gives to communities who select it as a local economic development tool

Economic Impact for Communities… In one rural area that includes two communities with a combined population of just 600 people, it is estimated that $175, 000 has been infused into the local economy by just ONE business in its FIRST YEAR…This money is predicted to change hands SEVERAL TIMES before leaving the community In a larger urban community of 50, 000, 367 new jobs and 105 new businesses were created, with only one business closing during a period of 4 ½ years… This project has been estimated to have contributed $33. 3 million in direct community investments

Measures of Success… With the focus of today’s economy being on jobs, it is also worthwhile to mention that while Enterprise Facilitation not only assists entrepreneurs with starting new businesses, it also helps the communities who employ it to retain and expand existing businesses Many cities spend countless dollars in attempts to lure existing businesses to their community, failing to take into consideration the impact the loss of this business had on the community it left behind…This is not job creation

Individual Enterprise Facilitation® Project Statistics Oregon - 07/00 -05/04 Baker Co. /Wallowa Co. Combined Population 23, 938 New Jobs Created 231 New Businesses 87 Sustainability Utilizing E. F. 93% Idaho – 10/01 -11/03 Washington/Adams Co. (WAVE) Combined population 13, 384 News Jobs Created 199 New Businesses 31 Businesses Retained 170 Sustainability Utilizing E. F. 90% Kansas – 06/02 -08/04 Chautauqua/Elk/Greenwood/ Woodson/Wilson (QUAD Co. ) Combined Population 28, 598 New Jobs Created 74 New Businesses Started 22 Businesses Expanded 3 Businesses Retained 23 Est. New Sales $ 1, 525, 000 New Capital Invested $806, 000 Richfield, MN – 06/98 -06/04 New Jobs Created 168 New Businesses Started 57 Businesses Exp/Retained 34 Proj. Gross Revenue $28, 082, 000 2004 Average Cost/Job $1, 667 Lincoln County, MN 1990 -2003 (Home to First Enterprise Facilitation Site in the U. S. ) Population 6, 429 New Jobs Created 348 Since the inception of Enterprise Facilitation in Lincoln County… Jobs Retained 329 Families at or below the poverty level down 46. 3% New Businesses Started 125 Median household income up 64. 5% Businesses Exp/Retained 122

Lincoln County, Minnesota is home to the first Enterprise Facilitation site in the U. S. Since the program’s inception in 1990, 125 new businesses have opened, 122 businesses were expanded, diversified or retained, and 677 total jobs were created and/or retained with assistance from the facilitation process Historically one of Minnesota’s poorest counties, Lincoln County, has a total population of 6, 429. Since the inception of Enterprise Facilitation, the number of families at or below the poverty level has decreased 46. 3%, and the median household income rose 64. 5%, while families with a combined income ranging from $35, 000 to over $150, 000 realized a combined increase of over 714% (Statistics from the 1990 & 2000 US Census)

Funding Enterprise Facilitation® It has been estimated that the program cost of Enterprise Facilitation averages about $60, 000 per year…The same it would cost to build a street one block long. Considering the value of a truly sustainable community, this is a minimal investment The average cost per job created is less than $3, 000… Established projects are experiencing costs of around $1, 300 per job Funders of the process often include Banks, Foundations, Chambers of Commerce and Development Organizations, Health and Medical Organizations, Government Entities, and Individuals among others. It is wise to seek out a broad base of funding in order to insure ongoing project support

Examples of Project Impact l Richfield, MN 16 of 32 clients who responded to a survey experienced, in total, an increase of $1, 831, 588 in gross revenue and 19 full-time employees from 1999 -2000, and projected further increases of $2, 015, 000 in sales and 5 full-time employees for this period l QUAD, KS During a three month period (06/04 -08/04) this project experienced the creation of 21 new jobs and 5 new businesses, and added nearly $400, 000 to their estimated sales and an additional $100, 000 in capital investments for this same period