The Trajectory of an Entrepreneur, Statistically Speaking
In a down economy, who could possibly be willing to start up a business? The answer may surprise you.
Perhaps it is people that have experienced a layoff, and despite hard work just can’t find another position that meets their needs. Or maybe they have a little money set aside, strong skills developed through years of work experience and they see an opportunity before them now to branch out on their own.
Contrary to common thinking, just as many businesses are started during recessionary times as during good economic times (statistics taken from a recent study by the Federal Reserve Midwest region). Long-term viability of businesses are also similar, from either starting point. Starting a business during a recession if the project idea is right may be just what is needed to help renew the local economy!
Out of curiosity, we looked to our own SWIF microloan program statistics to analyze the numbers of unemployed that received loans from us since July 1, 2009. Here’s what we found:
- Since that date, SWIF has made 30 microloans (small loans under $35,000).
- Nine of those loans were to people that had lost their jobs during the recession (almost 30 percent).
- Historically, 60 percent of our microloan portfolio has been comprised of women but since the recession started our portfolio has become an even split between men and women.
As the recession has moved through most industries, it is clear that the market has made many decisions for people while at the same time opened up new opportunities.
Passion, experience and capacity are still the most important factors that are needed to make a new business venture successful for the long haul. The opportunity comes when people are forced to look at their career and realize that things will most definitely change over time. Owning your own business is clearly not for everyone. But, if the opportunity is right and you have the skills and capacity this could be the time to take the plunge.
Berny Berger is the Southwest Initiative Foundation’s Microenterprise Program Coordinator. She started SWIF’s microloan Program in 2001 and has been active in both state and national organizations focused on building entrepreneurship in rural areas.
photo credit: Banalities
Calling All Early Boomers…Baby Boomers, that is.
Got an itch to start a new business? You’re not alone . . . you’re part of another ‘boom’ or movement, of sorts.
According to the Kaufman Foundation, early boomers are the fastest growing segment of new business start-ups – a 16 percent increase, to be exact. That works out to 10,000 new businesses every month. Maybe it’s a combination of circumstances . . . 401K shrinkage, a wealth of experience, some money poked away for a rainy day or maybe we just finished the honey–do list and are getting bored of that thing called retirement.
The trend is so strong that the Kauffman Foundation predicts a sustained entrepreneurship boom, not in spite of the country’s aging workforce but because of it.
Other researchers agree. “The older you are, the more likely you are to be self-employed. I don’t think it’s new, but I do think it’s growing,” says Edward Rogoff, the Lawrence N. Field Professor of Entrepreneurship at Baruch College in New York. “Their chances of finding traditional employment are restricted, so more of them get pushed into entrepreneurship. Or they just find it attractive.”
As entrepreneurs, boomers have a lot going for them – including a career’s worth of accumulated knowledge about an industry, plus a network of people to tap as financiers, suppliers and customers. Recession or not, they’re also more likely to have retirement or other savings to fund a new venture. In many cases, it can become the perfect storm.
As with most things, it won’t necessarily be easy. Older entrepreneurs face obstacles their younger counterparts needn’t worry about – especially time. “If you’re starting a business as a way to supplement your income, you can’t wait the typical five years or more that younger entrepreneurs are told to expect before turning a profit,” Rogoff says.
So, boomers, if you’ve got the itch, go out and scratch it. You’re not alone and you could find some unexpected company while you’re out there.
One resource…The Southwest Initiative Foundation’s Paul and Alma Schwan Aging Trust Fund has a program called Encore Entrepreneurship dedicated to nurturing older entrepreneurs through networking, training and in some cases financing.
Greg Jodzio is an Encore Entrepreneur. He is retired from his first career as a sales executive and is now spending his time growing his newest venture, Red’s Hot, LLC, and providing business training and assistance to other Encore Entrepreneurs.
Stories from Our 25th Anniversary Staff Tour: Southwest Minnesota’s Diversity
As mentioned in the July 23 blog entry, there are many great stories to share from our recent 25th Anniversary Staff Tour. I’ve asked other staff to share some of their experiences and favorite moments firsthand from our two days of traveling through southwest Minnesota. Enjoy!
In Our Differences, We are the Same
Greg Jodzio
Microenterprise Technical Assistance Provider
You might label traveling and making calls to microloan clients with SWIF Super Woman Berny Berger (aka Microenterprise Program Coordinator) an under-the-radar tour. Unofficially, when we travel together Berny refers to it as the “senior tour” but that’s another story, for another time.
While recently driving and partially retracing the anniversary bus tour, Berny mentioned that 56 languages are spoken in Worthington (which probably includes some dialects). That was my “ah-ha” moment – my brain congealed the 25th anniversary bus tour into one word…diversity.
From Olivia’s fields of corn to Lake Benton’s “hole in the mountain,” the landscape differs dramatically across Minnesota’s Great Southwest. Consider the variety of businesses from large to small, hands-on to tech, large scale manufacturing to rural theaters that manufacture “make believe,” wind turbines contrasting bio-fuel plants.
And how about the diversity of the people? Beautiful Native American teens—some saddled, some bareback—on their magnificent horses. Business owners, operators, managers—young and old, short and tall—Latinos, Ethiopians, Hmong, Caucasians and more.
If they ever bring back the game show Password, and I’m a contestant, and the clue is “diversity,” my answer will be “Southwest Minnesota.”
Berny would point out that there’s a sameness too…smiles, pride and the prairie work ethic.
Country Alterations Receives Loan Assistance from Southwest Initiative Foundation
Rural Glencoe business benefits from SWIF Microenterprise Loan Program
Joyce Mathews received loan assistance from the Southwest Initiative Foundation’s (SWIF) Microenterprise Loan Program to purchase specialized equipment for the start up of her sewing and alterations business in rural Glencoe.
Mathews has been sewing and making alterations for family and friends more than 40 years, including sewing and altering bridal gowns, tuxes, bridesmaids’ dresses and formals, and matching miniature brides dresses for flower girls. She has also done drapes, curtains, pillows and costumes.
When researching a business idea, many people suggested she use her skills and experience and go into business. By adding an embroidery machine, Mathews is able to serve the expanded needs of her area customers, including designs, logos and personalization. She can be reached at 320-864-6197 to discuss any sewing, alterations or embroidery needs.
“Joyce is a good example of an entrepreneur making use of their skills and talents to start their own business,” said SWIF Microenterprise Program Coordinator Berny Berger. “In addition, she has been making use of the Microenterprise Program’s technical assistance benefits to further grow her business.”
Proceeds from the loan will be used for equipment. SWIF’s Microenterprise Loan Program offers loans of up to $35,000 for starting or expanding for-profit small businesses located within the 18 counties of southwest Minnesota that have a need for additional sources of funds. In addition, technical assistance is available from SWIF as needed for the length of the loan. The program receives funding assistance from the U.S. Small Business Administration, as well as from the U.S. Department of Agriculture.
The Southwest Initiative Foundation is a regional community foundation dedicated to advancing southwest Minnesota through leadership, relationship building, program development and philanthropy. The Foundation has contributed more than $50 million through its grant and loan programs in southwest Minnesota. It has also helped more than 480 businesses start or expand through its business finance programs, which have created or retained more than 7,600 jobs. The Southwest Initiative Foundation is an equal opportunity provider. To learn more, visit www.swifoundation.org.
Matthew Wahl Expands Insulation Business with Loan Assistance from Southwest Initiative Foundation
Walnut Grove business benefits from Microenterprise Loan Program
Matthew Wahl, dba Wahl Spray Foam Insulation, recently received loan assistance from the Southwest Initiative Foundation’s (SWIF) Microenterprise Loan Program for the expansion of his spray-in insulation service business in Walnut Grove. Wahl started his business in 2009, offering spray foam insulation service to customers in a 120-mile radius.
Customers and contractors have been requesting the option of blow-in insulation as well. Wahl purchased additional equipment to meet this customer need. Free estimates for home, farm or business insulation needs are provided. Wahl can be reached at 507-828-7265.
“Matt is a good example of a young entrepreneur with determination, skills and a hard work ethic who strives to meet his customers’ demands,” said SWIF Program Officer Kurt Thompson. “SWIF is pleased to be able to assist Matt with expanding his business.”
Proceeds from the SWIF loan were used to purchase equipment for the expansion of the business. The State Bank of Lucan and the Walnut Grove EDA have also been involved in the financing package to help Wahl start and expand this business.
SWIF’s Microenterprise Loan Program offers loans of up to $35,000 for starting or expanding for-profit small businesses located within the 18 counties of southwest Minnesota that have a need for additional sources of funds. In addition, technical assistance is available from SWIF as needed for the length of the loan. The program receives funding assistance from the U.S. Small Business Administration, as well as from the U.S. Department of Agriculture.
Photo caption: Matthew Wahl, owner of Wahl Spray Foam Insulation, pictured with his family Stacey Engstom, Natasha and Natalie.
The Southwest Initiative Foundation is a regional community foundation dedicated to advancing southwest Minnesota through leadership, relationship building, program development and philanthropy. The Foundation has contributed more than $50 million through its grant and loan programs in southwest Minnesota. It has also helped more than 480 businesses start or expand through its business finance programs, which have created or retained more than 7,600 jobs. The Southwest Initiative Foundation is an equal opportunity provider. To learn more, visit www.swifoundation.org.
