Micro Business group to assist Longmont startups

LONGMONT – Longmont is planting the seed to grow more entrepreneurs.

The Micro Business Development Corporation, or MBD, a nonprofit that helps entrepreneurs with capital, education and consulting, is opening a satellite office in Longmont and is teaming up the Longmont Free University to teach entrepreneurship.

Kersten Hostetter, president of the business development group in Denver, said Longmont has a “vibrant small business community,” and Micro Business has wanted to expand there for a while.

“There’s been an increase of demand over the past year for business development services so we decided to open a satellite office to better serve the residents of Longmont and Boulder County,” Hostetter said, “Our purpose is to increase the success rate for new and emerging community businesses and reduce the risks and obstacles that may frustrate the creation of new businesses.”

Micro Business offers business-planning classes, marketing advice, access to startup capital, and one-on-one marketing. Public relations and sales consulting are also available for a minimal charge.

Micro Business plans to serve more than 210 customers with at least half of its clients falling in the “low to moderate” income range through training and workshops, technical assistance, access to capital and youth entrepreneurship.

A majority of the funding comes from a city of Longmont development block grant. Longmont recently granted funds to support the opening of the new office. Micro Business is seeking additional funding from community foundations and philanthropists.

The organization’s budget for the program is $75,000 ($357 per client).

At Longmont Free University, Dean of Faculty Steve Elliott said the Micro Business class called “Foundations” will be held on Monday nights at the university beginning in March.

Hostetter said the organization wants to expand services in both geographic scope and programming options. During 2007 Micro Business will work with urban and rural communities to bring affordable business development to a variety of areas, she added.

“We hope to have specific programs in Greeley, San Luis Valley, Pueblo, Castle Rock and Englewood in 2007,” she said.

The group’s programs are currently available to entrepreneurs living or operating businesses in the seven metro Denver counties, along with Boulder, Colorado Springs and Pueblo.

Hostetter said the organization has assisted 31,000 individuals in Colorado, provided 1,145 capital and asset opportunities, and has lent more than $7.3 million to community entrepreneurs.

“These businesses and their owners have created 2,800 jobs, repaid their loans, stayed in and grown their businesses, significantly increased their personal incomes, (with) many reducing or ending their need for public assistance,” she said. “Because of the success of these entrepreneurs, every dollar invested in MBD returns $10 to the community.”

Cindy Chambers, executive director of the Longmont Small Business Association, or LSBA, said she met Edwin Velis and Benjamin Weeda from Micro Business in August when the two men were in town to take part in a community event. Micro Business then joined the small business group in October.

Chambers says the small business association is looking forward to supporting Micro Business.

“Having members that teach small business and leadership for entrepreneurship is a great asset to our association,” Chambers said. “We’re excited to have MBD be a part of the Longmont community.”

Hostetter said Micro Business was founded in Denver in 1993 to eliminate barriers to economic independence for disadvantaged entrepreneurs – both youth and adult – through access to markets, resources and business capital.

It began by providing access to capital for struggling business owners who were not considered bankable by traditional institutions. Then it worked on creating skills development courses and programs.

The organization’s office in Denver includes conference rooms, a technology center, commercial kitchen facilities, an event and training center, an art gallery and individual office space. It also offers a youth entrepreneurship program and lending programs at or below market interest rates.

Denver Mayor John Hickenlooper has said Micro Business is serving “as a leading force in economic opportunity” for entrepreneurs, and that it is “sending a message that great things can happen when you start small and think big.”

Hostetter said the organization is driven to provide innovative channels for building strong, sustainable businesses in some of the Colorado’s most disenfranchised communities.

“We believe in individualized services tailored to meet each client’s definition of success,” she said.
In keeping with that philosophy, Micro Business also has crafted its core programs to meet the specific needs of the communities it serves, including specialized services for women, refugees, youth and clients with disabilities.

“MBD envisions a world where enterprise will be taught as a core strategy to foster economic health in communities,” Hostetter said. “We’ll get there by ensuring that every entrepreneur has access to affordable, effective business services, capital and market opportunities.”
Some of the Micro Business classes will be in taught in Spanish.

Who gets business help?

MBD serves:

_ Women: 74 percent
_ Minorities: 71 percent
_ Low income: 63 percent
_ Youth: 21 percent
_ Spanish-speaking: 20 percent
_ People with disability: 5.6 percent
_ Refugee: 3.6 percent
_ 24 percent of clients are existing businesses
_ 38 percent of clients are startup businesses
_ 38 percent of clients are in the “idea stage”

on Facebook on LinkedIn