These comments are responses to the Civic Caucus interview with
Bill Sands, former Western Bank chair,
and Mike Temali, Neighborhood Development Center CEO
March 6, 2015
How can Minnesota best tap the
energy, talent and job-creating potential
of low-income entrepeneurs?
Overview
According to the former chair of St. Paul's Western
Bank, Bill Sands, society must foster entrepreneurship, because job creation
is as important as having enough people in the workforce. To that end, the
Neighborhood Development Center (NDC), a nonprofit located in St. Paul, was
founded in 1993, after a University of Minnesota study found that there were a
variety of active and potential entrepreneurs in St. Paul's Frogtown and
Summit-University neighborhoods. Sands recounts that the NDC was the successor
organization to the bank's own community development corporation, established
in 1990.
The NDC developed a 20-week entrepreneurial class
that has become a mainstay of the organization and has trained 4,700 people
over the years. Participants in the classes must be low-income and are largely
recent immigrants or nonimmigrant people of color. Sands notes that about 25
percent of the class participants go on to start businesses. As of 2012, there
were 457 NDC-assisted businesses that employed nearly 2,300 people at an
average wage of $12 an hour.
In addition, NDC President Mike Temali says, the NDC
offers micro loans and larger loans to finance small businesses that can't get
loans at banks. It also offers continuing technical assistance to the
entrepreneurs it has trained. NDC focuses on four inner city neighborhoods in
Minneapolis and St. Paul. Challenges for NDC, he notes, include finding
effective ways to work in the suburbs, forging stronger connections with
secondary and postsecondary educational institutions and increasing
self-sustainable sources of funding.
For the complete interview summary see:
Temali-Sands interview
Response Summary:
Average response ratings shown below are simply
the mean of all readers’ zero-to-ten responses to the ideas proposed and
should not be considered an accurate reflection of a scientifically structured
poll.
To assist the Civic Caucus in planning upcoming
interviews, readers rated these statements about the topic on a scale of 0
(strongly disagree) to 5 (neutral) to 10 (strongly agree):
1. Topic is of value.
(9.4 average response)
The interview summarized today provides valuable
information or insight.
2. Further study warranted.
(8.0 average response)
It would be helpful to schedule additional
interviews on this topic.
Readers rated the following points discussed during
the meeting on a scale of 0 (strongly disagree) to 5 (neutral) to 10 (strongly
agree):
3. Start-ups needed as well as expansion.
(9.7 average response)
Minnesota's economic future is dependent
upon the creation of new employers as well as the expansion of businesses by
existing employers.
4. Low-income entrepreneurs generate jobs.
(9.3 average response)
The state should recognize that its lower
income population, including immigrants, represents a ready source of
initiative for job creation.
5. Neighborhood support more effective.
(9.6 average response)
Entrepreneurial energy is more likely to be
unleashed at the neighborhood level by neighborhood-based organizations than
by outside governmental entities.
6. NDC provides vital assistance.
(9.5 average response)
The Neighborhood Development Center in St. Paul
provides new entrepreneurs vital training and financial help without which
they would be far less likely to grow sustainable businesses.
7. Family businesses improve neighborhoods.
(9.6 average response)
Start-up businesses that are family-based
can significantly broaden personal economic benefit, while strengthening the
neighborhood as a whole.
|
Response Distribution: |
Strongly disagree |
Moderately disagree |
Neutral |
Moderately agree |
Strongly agree |
Total Responses |
|
1. Topic is of value. |
0% |
0% |
0% |
33% |
67% |
9 |
|
2. Further study warranted. |
0% |
0% |
22% |
44% |
33% |
9 |
|
3. Start-ups needed as well as expansion. |
0% |
0% |
0% |
33% |
67% |
9 |
|
4. Low-income entrepreneurs generate jobs. |
0% |
0% |
0% |
44% |
56% |
9 |
|
5. Neighborhood support more effective. |
0% |
0% |
0% |
33% |
67% |
9 |
|
6. NDC provides vital assistance. |
0% |
0% |
0% |
33% |
67% |
9 |
|
7. Family businesses improve neighborhoods. |
0% |
0% |
0% |
33% |
67% |
9 |
Individual Responses:
Bert LeMunyon (7.5) (5) (10) (7.5) (10) (7.5) (10)
Dave Durenberger (10) (5) (10) (10) (10) (10) (10)
4. Low-income entrepreneurs generate
jobs. As should local schools and colleges and the health care industry
6. NDC provides vital assistance. It's the
linkage to existing resources of all kinds Bill has developed that makes this
work
Scott Halstead (10) (10) (10) (10) (10) (10) (10)
2. Further study warranted. We need
similar programs in the suburbs and rural Minnesota.
The large immigrant population in many rural
communities could be very fruitful places for similar programs and diversify
the economies in those communities.
Trixie Ann Golberg (10) (10) (10) (10) (10) (10)
(10)
5. Neighborhood support more effective.
Yes, but State policy creates or limits this from being realized. Must include
private sector commitment and investment or will not evolve beyond cottage
industry approach.
7. Family businesses improve neighborhoods. Must
make this an option for young entrepreneurs in particular.
Vici Oshiro (10) (10) (10) (10) (10) (10) (10)
1. Topic is of value. Very strongly
agree.
Excellent choice.
Bryan Anderson (na) (na) (na) (na) (na) (na) (na)
I don't feel that the loans are being paid
back. Most new small business fails in less than 3 years in this state and
those that get free education in this state leave for right-to-work states.
Southern states tend to attract our younger recent grads because they are
actually adding jobs; [they are]warmer, [have] lower taxes, [are] cheaper to
live [in] and [are] not mandatory union. We have a manufacturer of snowmobiles
headquartered in Minnesota that just greatly expanded in Alabama. When the CEO
was asked if Minnesota was even considered, he said no. This funding of free
education and low-income business loans is absolutely a waste.
Wayne Jennings (10) (8) (9) (8) (9) (10) (9)
Chuck Lutz (8) (9) (9) (9) (8) (9) (8)
Larry Schluter (10) (8) (9) (9) (9) (9) (9)
It is great to see such a successful
program. Mr. Sands has done a great job as a banker in low-income
neighborhoods. It would be wonderful to see more business people like him.
Tom Spitznagle (9) (7) (10) (10) (10) (10) (10)
It seems highly effective to provide
assistance to people who are already self-motivated to improve their personal
well-being and, in the process, contribute to the well-being of their
communities. This seems much more effective than trying to entice people into
doing something positive via a state or federally administered "top down"
program of some sort. Kudos to Bill and Mike.
The Civic Caucus is a non-partisan,
tax-exempt educational organization. The Interview Group
includes persons of varying political persuasions,
reflecting years of leadership in politics and
business. Click here to see a short personal background of each.
John
S. Adams, David Broden, Audrey Clay, Janis Clay, Pat Davies, Bill
Frenzel, Paul Gilje (Executive Director), Randy Johnson, Sallie Kemper, Ted
Kolderie,
Dan Loritz (Chair),
Tim McDonald, Bruce Mooty, John Mooty, Jim Olson, Paul Ostrow, Wayne
Popham, Dana Schroeder, Clarence Shallbetter, and Fred Zimmerman |
© The Civic Caucus, 01-01-2008
2104 Girard Avenue South,
Minneapolis, MN 55405. civiccaucus@comcast.net
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A. Gilje, coordinator, 952-890-5220.
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