Dale Verstegen, M.B.A.
Wisconsin Dept. of Development, Division of Economic Development, Milwaukee, Wisconsin

Nancy L. Arnold, Ph.D.
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Research and Training Center on Disability in Rural Communities, The University of Montana Rural Institute,
Missoula, Montana.

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In 1991, the Wisconsin Department of Vocational Rehabilitation (Wisconsin DVR) surveyed all identifiable self-employment outcomes for a four-year period. The analysis indicated that:

• There were few self-employment outcomes.
• Available technical assistance such as small business development centers were not widely used.
• Assistance with developing a small business was provided by counselors with little experience in that area.
• In most cases small business loans were not obtained.

To increase the number of self-employment outcomes, insure greater success for people starting businesses, and address deficiencies uncovered by the survey, Wisconsin DVR formed a partnership with the Wisconsin Department of Development (Wisconsin DOD) called the Business Development Initiative (BDI). This partnership combines the business expertise of the Wisconsin DOD with the resources and experiences of the Wisconsin DVR in working with people with disabilities. The purpose of this partnership is to improve the business development services provided by Wisconsin DVR. Goals of the partnership are to provide Wisconsin DVR consumers with:

• Greater access to, and use of, small business loans.
• Technical assistance with developing small business plans. This technical assistance is provided by experts rather than by Wisconsin DVR counselors who have little or no expertise with developing small businesses.

To inform counselors and staff about the program and how it operates, Business Development Program training seminars are conducted in all district offices. During this training, materials developed by the Wisconsin DOD (specifically for this project) to facilitate the self-employment process are distributed to counselors and district offices. These materials include a Business Development Program Handbook, a BDI videotape for potential entrepreneurs, and application and evaluation forms.

The program operates as follows. A Wisconsin DVR client completes a Business Development Request form which is reviewed by a Wisconsin DVR counselor. If the proposed business shows promise, the consumer and/or counselor meet with the Wisconsin DOD Business Development Program consultant for evaluation. If this evaluation is positive, the next step is to determine the extent of Wisconsin DOD's involvement. When this is determined a venture development grant is awarded by Wisconsin DOD to the consumer. The venture development grant allows the VR consumer to hire outside consultants to assist with developing a business plan. This business plan includes a marketing plan, a sales forecast, an operational plan, and financial projections. Additionally, the Wisconsin DOD business consultant works with the Wisconsin DVR consumer, counselor and other possible funding sources to develop a financial package for business start-up and expansion, and provides follow-along technical assistance as needed to ensure the ongoing viability of the business.

This program has been so successful that the initial partnership covering the FY 93/94 has been renewed and is expected to continue on an ongoing basis. Funding for the FY 94/95 year was $232,059 from Wisconsin DVR Title I-B (basic rehabilitation) funds and $62,800 from Wisconsin DOD. The partnership employs a business development program supervisor, business development program consultant, and one program assistant.

To date, a total of 31 potential entrepreneurs have been served by the program. Eleven business plans and financial packages have been completed. A total of $526,777 was used to form the new businesses: $80,577 from Wisconsin DVR, $140,200 from consumers, and $306,000 in loans from local banks and economic development agencies. This has resulted 11 full- and 7 part-time jobs.

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The opinions expressed in this document are those of the authors and do not necessarily represent the policy of the Department of Education, and you should not assume endorsement by the Federal government.

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