Sean C. Morgan
The Sweet Home City Council agreed to join a regional partnership to assist “microenterprises.”
The proposed partnership would include Sweet Home, Lebanon, Albany, Linn County and Benton County. With the support of these jurisdictions the partnership can access Community Development Block Grants through the Oregon Microenterprise Network.
Nichalaus Sims presented the proposal to the council at its regular meeting on Feb. 8.
The Linn-Benton Microenterprise Program (LBMP) was started three years ago through Corvallis Neighborhood Housing Services.
The program is designed to help low-income entrepreneurs and support communities by fostering microenterprises in sectors, such as secondary processing of forest products, Northwest inspired arts and organic foods and agricultural products.
A microenterprise is defined as a business with five or fewer employees and start-up costs of less than $35,000, Sims said. In practice, they are usually sole proprietorships, which may expand to employ the owner’s family or other community members.
Typically, capital needs range from $500 to $9,000, which makes them too small to access commercial lending and assistance, Sims said. Microenterprises can include hairdressers, caterers, craft artisans, florists, carpenters, daycare providers, bakers, bookstores and more.
Microenterprise development is a relatively new strategy, Sims said. The strategy builds income and assets for low-income persons. It started as a way for even the most disenfranchised individuals to access capital, build personal and business skills and achieve economic self-sufficiency.
Microenterprise development has created opportunities for persons in low-wage jobs to supplement their incomes at a lower cost than public assistance, Sims said. It also has helped dislocated workers create jobs for themselves and allowed many to balance the responsibilities of work and family, helping strengthen local economies.
More than 500 microenterprise (MEPs) operate nationally and serve about 100,000 participants. Oregon has five full-service MEPs, which served 1,600 low-income entrepreneurs and enrolled 160 into their programs last year.
The MEPs take a holistic approach by offering training, one-on-one assistance, access to capital and access to marketing opportunities, Sims said.
The LBMP is a program of Corvallis Neighborhood Services, whose mission is to improve lives and strengthen neighborhoods through quality affordable housing, homeownership, economic opportunity and community partnerships. Microenterprise development is among its asset-building strategies, which help low-income families create tangible and permanent assets.
The LBMP specifically targets low-income entrepreneurs, Sims said. Those persons often face challenges, like poor or no credit or financial history, lack of collateral, lack of education about basic financial transactions and statements, discomfort or intimidation in traditional academic settings, low self-esteem, life crises, unfamiliarity with the professional sector and logistical barriers, like transportation, childcare and substandard housing.
Based on a survey, the typical participant will be an English-speaking Caucasian female between 30 and 40 years old with a household income ranging from $10,000 to $25,000 annually with no one to one person in the household employed.
Over three years, the program expects 324 participants at feasibility and orientation workshops. At those workshops, persons receive help determining the feasibility of their business ideas. About one-third enroll in microenterprise training, about 108 over the first three years of the program. During the time, the program estimates about 63 microenterprises will remain open or expand within 12 months.
After 12 months, participants’ household incomes increase by about 40 percent, Sims said. Nationally, 53 percent of those below the poverty level worked their way out of low-income designations, and 61 percent reduced their dependence on public assistance.
In its first year of operation, the LBMP will employ one full-time employee to serve as program coordinator through a grant and budget of $107,000 the first year.
The City of Corvallis cannot participate in the program, Sims said. It is designated as an entitlement community.
In other business, the council:
– By consensus, decided not to allow social gambling in Sweet Home.
– Appointed Kim Lawrence to serve on the budget committee. Her term expires in 2007.
– Appointed Ron Lawrence to serve on the transportation safety committee. His term expires in 2006.
– Appointed Steve Scerini to serve on the board of appeals. His term expires on Oct. 31.
– Approved a resolution establishing a capital improvements list for water and wastewater systems development charges.
– Adopted a resolution setting new systems development charges for water and wastewater.
– Held the first and second readings of an ordinance establishing rules for public contracts and purchasing to meet new state statutes. The ordinance would replace an older ordinance.
– Held the first reading of an ordinance authorizing the city to collect water systems development charges (SDC). The provision was deleted with the repeal of the city’s old SDC ordinance on Jan. 25. This ordinance will incorporate the authorization into the city code.
– Held the second reading of two ordinances creating new residential zones.