Providing small business training for low-income individuals

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Abstract

AmeriCorps*VISTA members with Yazoo Community Action, Inc., located in Yazoo City, Mississippi, ran a micro-enterprise project to train low-income individuals in how to start a small business. The free classes included assistance in writing a business plan. This practice was shared during the AmeriCorps*VISTA Financial Asset Development Institute held August 7-9, 2001, at Brown University, Providence, Rhode Island.

Issue

Starting a small business can be one way for low-income individuals to become self-sufficient. However, knowing how to start a business and determining its likelihood for success can be difficult without the proper training. The Yazoo Community Action, Inc. micro-enterprise project encouraged and supported low-income individuals in starting small businesses.

Action

AmeriCorps *VISTA members organized weekly small business classes. The training number was limited to 18 people on a first come, first served basis. Participants developed a business plan during the training that could be used to apply for a small business loan. The agency provided assistance to qualifying individuals in acquiring loans from lending institutions.

The classes were as follows:

Class one: overview of the business plan

Personal finance and money management
Business structure
Start-up costs
Break even analysis and fixed versus variable costs
Marketing plan (customer analysis, competitive analysis, location, pricing, and promotion)
Cash flow concepts
Record keeping and taxes

Class two: record keeping

Taxes
Control of the business: making decisions
Business checking account
Initial set up of books
Who keeps the books

Class three: marketing plan

Customer analysis
Product analysis
Competitive analysis — local markets
Pricing
Promotion

Class four: Cash flow concepts and business planning

Cash flow cash cycle
Pro-forma cash flow
Cash flow versus budget

Class five: Review

Key concepts
Importance of a written business plan

Individual technical assistance was offered at each class.

Context

Yazoo Community Action Inc. is a nonprofit organization that provides a variety of services to the Yazoo County community in Mississippi. Two major areas of focus are social services and economic development. The organization's objective is to identify and eliminate poverty through the most efficient and effective use of resources and to enable the less fortunate to secure opportunities needed to become self-sufficient.

Yazoo County has a population of 25,697. The unemployment rate in 1999 was 8.1 percent.

Posted On

August 28, 2001

For More Information

Arthur James

Yazoo Community Action, Inc.

Executive Director

P.O. Box 290, 224 East Broadway

Yazoo City, MS 39194

Phone: (662) 746-5742

Fax: (662) 746-0910

Resources

The following book is available from The Resource Center library to programs funded by the Corporation for National and Community Service:
Micro-Enterprise Project: Yazoo Community Action Inc.

Item No: R1931

See the website of the Small Business Administration for guidance on how to write a business plan.