Georgia Micro Enterprise Network

The Georgia Micro Enterprise Network (GMEN) is a private, not-for-profit organization established in June 1997 and dedicated to making a difference in the economic development of Georgia. The community collaboration for GMEN started in 1994.

On track one, it began as informal discussions about welfare to work issues, self-employment, and loan availability between Nina Harrison of Harrison Research, Erin Ouzts of United Way (pictured left), and Charles Jones of Shasta Corporation (above right). This informal discussion group expanded to about 35-40 folks at meetings at the YMCA on Peachtree-Dunwoody and later at the Dekalb YMCA with a focus on service providers and financial models. At the same time that these discussions were going on, microenterprise development as a field was emerging in Georgia. The YMCA group discovered other microenterprise activity in Atlanta: G-CAPP and BusinessNOW. G-CAPP focus for microenterprise was advocacy and teaching best practices. BusinessNow was the first microenterprise program in Georgia, with G-CAPP support on program design technical assistance and funding through the Turner Foundation and TBS.

G-CAPP’s interest in microenterprise development started as an outgrowth of a Cairo, Egypt conference attended by Jane Fonda and Ted Turner. At this conference the Atlanta duo learned of the tie between economic sustainability and teenage pregnancy rates, and that Georgia had the highest rate of the latter. Ms. Fonda came back to Georgia and started G-CAPP. As a component of G-CAPP she sought out national experts on microenterprise to move to Georgia. G-CAPP brought Kathy Keeley and Patricia Harris, both from the Minneapolis’ Women’s Economic Development Corporation (WEDCO)/Women Venture, to Georgia to forge microenterprise initiatives. G-CAPP’s initial approach to microenterprise development in Georgia included: (1) $50,000 grants respectively to Goodwill Industries of North Georgia and the Center for Black Women’s Wellness (right) for program implementation and loan funds; (2) $200,000 in support services, training, community organizing and organizational development upon request; (3) exposure to best practices around the country; and (4) public policy advocacy services.

BusinessNOW (Neighborhood Organization for Women) started in early 1996 as the first microenterprise program started in Georgia, under Goodwill Industries of North Georgia. The mission of BusinessNOW is to enable women of low and moderate income to achieve economic self-sufficiency through self-employment. Services include business plan training, personal development, and access to capital through a micro loan fund. The 11-week training program includes key aspects of business, completion of a business plan, and development of a support network of  entrepreneurial women. Graduates are eligible to apply for loans ranging from $50 to $5,000. BusinessNOW has taken a leadership role in building microenterprise organizational capacity by facilitating the formation of GMEN and direct assistance to other microenterprise programs.

The second microenterprise program in Georgia started later in 1996, was the Women’s Self-Sufficiency Program under the Center for Black Women’s Wellness. Initial operating funds for microenterprise came from several corporations and foundations, including: the Turner Foundation, the Cousins Foundation, the Woodruff Foundation, the Atlanta Project, Turner Broadcasting and Marriott Corporaton.

GMEN’s formal start: 1997-2000
GMEN started in June 1997 as an informal entity under the umbrella of Goodwill Industries of North Georgia (GWI). At that time Mary McVay was the Director for Community Development at GWI and Elizabeth Williams was the  BusinessNOW Program Manager. Mary and Elizabeth coordinated with the YMCA Microenterprise Consortium: Nina Harrison, Charles Jones and Erin Ouzts to gather people who were interested in expanding microenterprise development in Georgia.

Year 1: June, 1997- May, 1998
With Mary McVay as the facilitator, the primary result of these sessions was the birth of an association known initially as the Microenterprise Consortium. The name was changed in 1997 to the Georgia Micro Enterprise Network or GMEN. GWI served as the Consortium and later GMEN’s fiscal agent. In October, 1997 United Way of Metropolitan Atlanta pledged its support of microenterprise efforts by conducting a community outreach workshop on microenterprise, facilitated by Kathy Keeley. This workshop led to a series of training and technical assistance workshops throughout Georgia, led by Patricia Harris.

In its first year, GMEN:

• Developed a mission statement, goals, values, and an organizational structure (including an executive committee/ governance group)
• Developed an active membership of over 30 organizations
• Held four training workshops:
• Microenterprise state associations
• Microenterprise program design
• Advocacy and policy issues in Georgia
• Potential impact of microenterprise development
• Supported development of three new pilot funds for microenterprise development:
• Department of Family and Children’s Services
• United Way
• Atlanta Women’s Fund
• Held 11 networking meetings
• Initiated planning for a statewide forum on
• Microenterprise development

1998 also saw the start of two new microenterprise programs in Savannah and Cobb County.

Year 2: June 1998 – May 1999
Planning began in August, 1998 for a statewide microenterprise conference. Due to Mary McVay’s departure from Georgia, Jeanette Foreman was hired as GMEN’s second facilitator to ensure the success of the conference and to complete follow-up work from the conference. The purpose of the conference was:

1. Increase awareness and advocate for microenterprise development and
2. Provide training to members in order to mobilize funding and to increase information sharing by expanding membership across the state.

The “Georgia Micro Enterprise Forum” was held on February 10, 1999 at City Hall East. The conference theme was “Micro Enterprise: Crucial to Economic and Workforce Development in Georgia.” The conference sponsors were: Goodwill Industries of North Georgia, Corporation for Enterprise Development, United Way of Metropolitan Atlanta,
Office of the Comptroller of the Currency, The Enterprise Foundation, and Atlanta’s One Stop Capital Shop. There were 8 workshops and 25 presenters.

Elizabeth Williams took on the role of GMEN facilitator in March 1999, continuing Goodwill Industries commitment to provide administrative and fiscal agent support to GMEN. The conference was followed in April 1999 by a strategic

planning meeting facilitated by KathyKeeley. Kathy and her administrative staff (Jeanne Atkins) also provided follow-up support to the task forces in completing their work.

Participants in this effort were: Julius Abdul, Angela Copeland, Jeanette Foreman, Patricia Harris, Charles Jones, Natallie Keiser, Chris Martin, Diana Moore, Joyce Pearson, and Elizabeth Williams. This group reviewed GMEN’s history, accomplishments, mission statement, membership capacity development needs, and organizational models for state associations. The output of this effort was setting a strategic direction and task forces in five specific areas:

1. Organizational structure. A state microenterprise association (SMA) as a trade association was the structural direction taken; with a board, membership, working committees, and organizational staffing. Formal non-profit status would also be pursued.
2. Membership. Categories of membership were discussed, along with recruitment strategies and membership benefits.
3. Funding. Two budgets were developed for short term (6 months) and then long term (the following year, October to October). Potential funders were identified: short term/BusinessNOW, G-CAPP, Center for Black Women’s Wellness, One Stop Capital Shop, Lender’s Network, and United Way and long term/Turner Foundation, CFED, and The Community Foundation. Funding was needed for operating support of programs, loan dollars, and GMEN infrastructure support.
4. Training. Four specific training needs were defined:
   • Training and technical assistance on how to start and run a microenterprise program.
   • Training and information sharing on what
   • microenterprise development is in order to increase public understanding
   • Professional development training for staff of microenterprise development programs to build capacity of practitioners
   • Development of shared standards and common evaluation tools.
5. Policy. The policy team would be focused on state funding for a five-year demonstration project through the Department of Community Affairs or the Department of Labor.

In June 1999, GMEN began working on its bylaws and established common terminology for measuring outcomes.

Year 3: June 1999 – May 2000
GMEN’s advocacy work was funded by G-CAPP in the 1998, 1999, and 2000 legislative sessions. GMEN developed a policy position paper for this effort. The first policy breakthrough for microenterprise development was the inclusion of IDAs in the state TANF regulation in 1998.

The 1998 Georgia legislature allocated $150,000 to microenterprise development programs. Unfortunately, the governor subsequently froze the fund. After much discussion DFCS was allowed to use these funds for pilot programs by BusinessNOW and the Entrepreneurship Education and Training Center in Macon.

Further legislative efforts resulted in $500,000 in funding in 1999 and $1.2M in funding in 2000. The 1999 funding was targeted to five organizations: Coffee County Consortium, Goodwill Industries of the Coastal Empire (Savannah), Goodwill Industries of North Georgia (Atlanta), Cobb Microenterprise Council, and Quality Care for Children. Unfortunately the 2000 funding was appropriated out of TANF funds that were later frozen.

During this time GMEN also received seed grants from CFED and garnered the support of Commissioner Michael Thurmond for microenterprise as a workforce entity under the Workforce Investment Act.

During year 3, GMEN also elected its first board of directors, developed its website, hosted a holiday bazaar for entrepreneurs and introduced the “Lunch and Learn” program. The later constituted training sessions added to the bimonthly board meetings to expand awareness about microenterprise.

Year 4: June 2000 – May 2001
During 2001 United Way of Metropolitan Atlanta increased its funding for microenterprise programs to $450,000 for 6 programs. United Way began funding microenterprise programs in 1998:
BusinessNOW and Cobb Microenterprise Council. In 2001, United Way also produced a “211 guide” to provide 411-like service for anyone interested in knowing more about microenterprise.

Through the support of Juanita Blount-Clark, Division Director for DFACS, GMEN did receive $250,000 in funding from the Department of Family and Children Services as part of the welfare-to-work initiative for fiscal year 2000-01. Through this support, GMEN implemented its second statewide conference, provided $136,000 in development grants to microenterprise organizations, and published a statewide training manual.

The theme of the 2nd conference was “Expanding Microenterprise in Georgia.” It was held on June 1, 2001 at the Charles Loudermilk Conference Center in downtown Atlanta. There were 85 conferees, 9 workshops, 2 keynote sessions and 15 presenters. A microentrepreneur fair was held in conjunction with the conference. A membership push was aligned with the conference bringing in 40 organizations and over 65 individuals.

A business meeting and reception preceded the conference on May 30th. Patricia Harris was re-elected board chairperson and the board was expanded from 9 to 13 members. GMEN hired its first Executive Director in April 2001.

GMEN’s 2001 grant process awarded $136,000 in 9 grants to 2 existing programs and 7 new programs. These grantees cover 33 Georgia counties. GMEN expanded its scope to include alternate bimonthly meetings in rural locations: North Georgia (Clarkesville); East Georgia (Augusta); and South Georgia (Savannah). The board of directors was also expanded to include representation from rural microenterprise programs.

Non-profit Status
A strategic planning meeting was held in late October 2001 to revisit the organizational history, accomplishments, mission, and goals. In addition, the board established four working committees for board members: nominations & bylaws; membership & membership services; finance & fundraising; marketing & public policy.

GMEN became an independent 501(c)3 organization in December 2001.

The organization serves as a statewide industry resource to provide training, technical assistance, regranting, and advocacy for the development of microenterprises in Georgia. GMEN is one of 35 state microenterprise associations in the United States.

GMEN’s mission is to create opportunities and support for microenterprise development as an avenue for economic self-sufficiency in Georgia. A “micro” enterprise is a business that is owner-operated with 5 or fewer employees, and start-up capital needs of less than $50,000.

The national microenterprise industry association, Association for Enterprise Opportunity (AEO), has extensive documentation on the impact of microenterprise. These studies have found $2.06 – $2.72 return on every dollar invested in microenterprise, as well as a .50 job creation in addition to the owner.