ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, March 16, 1996 TAG: 9603180011
SECTION: CURRENT PAGE: NRV-3 EDITION: NEW RIVER VALLEY
DATELINE: BLACKSBURG
SOURCE: ELISSA MILENKY STAFF WRITER
Potential small business owners who are economically disadvantaged or have lost their jobs as a result of defense downsizing will have help setting up shop starting next month.
A three-part program, which is open to everyone but specifically targets these two groups, will offer a course on how to develop a business plan, one-on-one counseling and help with financing. People who qualify as economically disadvantaged generally would be opening micro-businesses, meaning five employees or less.
"Look at this as a three-legged stool," said Michael Hensley, director of the Economic Development Assistance Center at Virginia Tech. "Training as one leg, counseling as another leg and financing as a third leg. Without the third leg, it wouldn't stand."
This program, which will be offered five times this year in the New River Valley and once in Wythe County, is a joint effort of Virginia Tech, Radford University, Wytheville Community College and the New River Valley Small Business Development Center. It was funded with $61,000 in state and federal funds, though there is a $150 fee to recover the cost of materials.
Each course lasts eight weeks and can hold a maximum of 20 people. Classes will be held twice a week for two hours at a time, with counseling available during and after the program.
People who have been through this program can apply for a small loan from the New Enterprises Fund, a new nonprofit community development corporation created to direct $1,000 to $20,000 loans to new business owners in the New River Valley.
The New Enterprises Fund has set aside $61,000 specifically for this program, though more money is available to those who are approved. Local bankers also will be brought in to advise the potential small business owners.
Organizers say the fact that financing is included in the program makes it unusual. Usually, only the course and counseling are available.
"The biggest problem today is 'where do I come up with the money to do this?'" Hensley said.
It's a fact that the majority of small business start-ups fail. Jerry Kopf, director of Radford University's new Small Business Assistance Center, said 80 percent of small businesses close within the first five years, a number that could be different if people gained the type of training now being offered.
"The people who have the best ideas are frequently the people who know the least about business," he said. With training, however, that equation evens out, Kopf said.
The first small business training program will start April 2 at the Business Assistance Center in Radford, 600 H in the Norwood Plaza on Norwood Street. This session, classes will be held Tuesdays and Thursdays from 7 to 9 p.m. Course times and locations will change for other programs throughout the year.
To apply, call 831-6056. Spaces are limited.
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