Melissa Paulsen
Melissa Paulsen
Gigot Center for Entrepreneurial Studies
Mendoza College of Business
Mendoza College of Business
University of Notre Dame
Existing microenterprise development programs:
Aimed services on pre-launch/launch
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Focused on general start-up issues, business
planning, financial literacy, etc.
Are equipped to accommodate homogeneous needsAre equipped to accommodate homogeneous needs
at start-up through group instruction, etc.
Unable to address more heterogeneous post-launch
A new model was
A new model was
needed that would aid
in stabilizing,
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sustaining and
growing the
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SOCIAL
ENTREPRENEURSHIP MICROVENTURING CONSULTING
ENTREPRENEURSHIP CONSULTING
Business and non-business
students focus on case Students work with low-income entrepreneurs in a students focus on case
study analysis and
business model exercises
income entrepreneurs in a consulting capacity to
improve overall business through the lens of
microenterprise development and
profitability, and in
industries such as food services, retail, cleaning, p
microfinance as a viable tool for poverty alleviation.
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ND defines Microventuring as the process of
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assisting emerging microentrepreneurs with
entrepreneurial training and development, as
well as providing them with a link to enabling
well as providing them with a link to enabling
organizations, including consulting,
microlending and other commercial activities
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and support.
412 students enrolled in either the fall or spring courses, or both,
over the last six years, including spring 12.
31 certificates were awarded through summer 11 (10%)
Of the 412 students who enrolled in the courses, approximately: 42% represent the College of Businessp g
40% College of Arts and Letters 12% College of Science
2% College of Architecture 2% College of Architecture, 2% Non-Degree
1% College of Engineering
Many of the students are double-majors, as well as minors in peace
studies, poverty studies, and human/international development studies.
Microventuring was the single most influential class I took at Notre Dame. By teaching me
to think about social business in both a micro In Guatemala I worked with rural female entrepreneurs, who marketed and distributed
and macro context, the class changed my outlook on economic development as a whole, forced me to think more critically about the causes I supported and believed in, and reminded me that oftentimes the most
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health care products. Another intern and I were tasked with researching the technical use of various types of water filters. We held focus groups to determine if adding this product to the women’s portfolios was plausible, given transportation difficulties and product costs
reminded me that oftentimes, the most effective economic development can happen in your own neighborhood.
Since graduating from Notre Dame last May I
transportation difficulties and product costs. Personally, the class gave me the confidence to understand and contribute both to the development and private sectors.
Your tests are not tests of
Since graduating from Notre Dame last May, I have been blessed with the opportunity to create my own business that now employs 6 people in the South Bend area. We are currently developing software applications for
t ti 3 di i l b
Your tests are not tests of
memorization, but application, and those tests become
engrained in your approach to problem solving and project
next-generation 3 dimensional webcams. Most importantly, my experience with the Microventuring program provided the knowledge, inspiration, and confidence to forgo traditional career opportunities to
problem solving and project management
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Second semester student teams are balanced with
Business/NB students and each team has at least one Business/NB students and each team has at least one finance or accounting student
We “accept” microentrepreneurs into the program – avg p p p g g
7 to 9 each spring (10 – 12 in Spring 12) – and they represent a wide range of industries, ethnicities, both genders and “levels”
genders and levels
All MEs receive mid- and post-semester assessments to
complete and we will administer the questionnaire verbally for those unable to complete on their own
Passion, skill and the
“management trinity”
the technical skills necessary to produce the goods or services
or services
the ability to market one’s goods or services the ability to financially manage one’s affairsy y g Ernesto Sirolli, Ripples from the Zambezi
PREPARATION OF NON-BUSINESS STUDENTSON O NON US N SS S U N S
Demand for the
program by non-business students exceeds capacity exceeds capacity Additional requirements inhibit b l
our ability to meet this demand
MICROENTREPRENEURIAL BUSINESS MODELS
M C O N N U US N SS MO S
Business models are
often flawed
Businesses are barely
hanging on one step hanging on, one step away from failing
If we move up the p
proverbial “food
chain,” it minimizes our mission
Level 1 Level 2 Level 3 Level 4
Limited education Some experience Good experience Educated (may have degree)
Marginal track record Some education Professional approach Established business
Small financial plan and
footprint Small, but meaningful financial plan Expansive financial footprint Possesses or should possess comp. adv.
Relatively
unsophisticated Some capacity to implement Capacity to implement major initiatives Stronger financial position; good cash flow
Poor record keeping Some records Fair record keeping Perhaps reinvesting in the business
Inadequate cash flow;
un-dercapitalized Marginal cash flow Adequate cash flow Still problems acquiring capital from formal source
Triage approach Likely to slide back w/o
Level 1
Move to level two; keep business operating; build
lifeline; solve immediate needs
L
l 2
Level 2
Move to level three; prove success is possible
Level 3
Level 3
Move to level four; make into a winner; create
greater vision of what is possible
Level 4
Move out of ME category; plant bigger seeds for
success success
If we are going to gain more traction, we need to be bolder in our thinking:
We believe there needs to be a more holistic approach taken We believe there needs to be a more holistic approach taken There is no sustainability when we troubleshoot issues in the
business and when we are constantly starting over again with new enterprises
enterprises
“Boxes” allow us to replicate models and to tweak the boxes as we
implement
The question however is what businesses will be successful; The question, however, is what businesses will be successful;
more to the point, what are the essential elements?
Not everyone who wants to be an entrepreneur should be – what
are the critical components for the screening process? are the critical components for the screening process?
How do we increase our batting average – our trinity is person,
New opportunity with long-time partner CE Solutions will arm
would be entrepreneurs with the following: would-be entrepreneurs with the following:
selection of the most viable market opportunities, locations, and business
models;
screening of, and training for, microentrepreneurs in the areas of finance,
accounting, operations and marketing;
infrastructural support for the microentrepreneur; initial capital
Pilot taking place in Guatemala with the hopes that we will
expand the model to other locations.
CE Solutions provides field leadership and support while the ND
Microventuring program is providing curricular leadership and support.
