Developing a Program Success Theory Model: A case study of microenterprise development in Vermont.

I recently presented a workshop on my Master's thesis work, "Developing a program success theory model: A case study of microenterprise development in Vermont", at the 2007 annual conference of the Association for Enterprise Opportunity (AEO) on May 16, 2007 in Kansas City, MO.

This workshop reviewed my Master's thesis study conducted at the University of Vermont on factors that lead to client success in microenterprise development (MED) programs. A model of program success theory, including the relationships between client characteristics, program activities, interim outcomes, and impacts were examined through a path regression analysis of data from the Vermont Micro Business Development Program. Workshop attendees participated in an open dialog about the results of this study and provided insight on recommendations for program improvement and future study.

AEO is the national association of community-based organizations that provide entrepreneurial education, access to capital, and support to aspiring and active low-income entrepreneurs. AEO provides its members with a forum, information, and a voice to promote enterprise opportunity for people and communities with limited resources.

Microenterprise development program success: A path analysis of factors that lead to and mediate client success.

Through a path regression analysis of data from the Vermont Micro Business Development Program, this study examines the relationships between client characteristics, program activities, interim outcomes, and impacts, to understand factors that lead to and mediate client success in micro enterprise development programs and as entrepreneurs.

Statistics demonstrated excellent model fit to the data. The interim outcome of improved personal well-being was related to more sources of capital, course completion, being partnered and younger. Starting a business was related to having more financial resources and mediated by improved well-being. Clients who experienced an increase in income had previous business experience and an increase in assets. Increased income was mediated by improved well-being and business start. Reduction in public assistance was related to course completion, more sources of capital, not being in poverty, and increased assets. Increased assets were related to more education, not being in poverty, and more sources of capital. Being older, more sources of capital, a larger family, and improved well-being led to job creation.

Overall, access to more financial resources enabled clients to meet personal and business goals and work toward self-sufficiency. The results suggest implications for public policy regarding business training and loan financing.

Schmidt, M.C. and J. Kolodinsky. Microenterprise development program success: A path analysis of factors that lead to and mediate client success. Journal of Developmental Entrepreneurship; March 2007.

Short term change in attitude and motivating factors to change abusive behavior of male batterers after participating in a group intervention program.

The Domestic Abuse Education Project (DAEP), in Burlington, Middlebury, and St. Albans, Vermont, is a group based domestic abuse intervention program, based in a pro-feminist and cognitive-behavioral approach for domestic violence intervention and prevention. A pre and post-test instrument was developed and implemented to determine short-term change in attitude of participants and motivating factors to change behavior, after completing the twenty-seven session program. After the program, participants reported a positive change in attitudes regarding their abusive behavior and stereotypical beliefs about women. Participants were also more motivated to change their behavior by the effect abuse has on their family relationships.

However, many participants continued to agree that insecurity, jealousy, and alcohol and drug use can cause violence. The positive changes in attitude and motivational factors show that this is an effective model in changing underlying batterer attitudes that provide rationale for abusive behavior.

Cranwell, M., J. Kolodinsky, G. Carsten, F. Schmidt, M. Larson, and C. MacLachlan. (2007). Short term change in attitude and motivating factors to change abusive behavior of male batterers after participating in a group intervention program based on the pro-feminist and cognitive-behavioral approach. Journal of Family Violence 22(2).

Perspectives on self-employment as a viable option for Vermont TANF recipients.

Microenterprise development (MED) in the United States is a holistic approach that embraces poverty alleviation, human development, and economic development strategies. This study gathered staff perspectives from welfare and MED agencies in Vermont on self-employment as an option for welfare recipients to meet their work requirements and move off of public assistance. Interviews were conducted with Vermont Reach-Up Financial Assistance district managers and coordinators of the Vermont Micro Business Development Program (MBDP).

Findings show that client characteristics influence self-employment viability, including strengths, barriers, length of time on Reach-Up, and location. District managers are supportive of self-employment for clients yet support can be inhibited by the need to get clients off of the welfare system as quickly as possible. MBDP staff noted receiving various levels of support for self-employment from Reach-Up staff, with support level and frequency of client referral related to interagency relationships established. District managers are possibly more supportive of self-employment than case managers. Vermont legislation is supportive of self-employment, however work phase time limits pose a barrier. In addition, the federal “work first” philosophy and use of federal minimum wage to determine benefit amount have negative impacts on self-employment. Suggestions for improving agency relationships, communication, and education, and recommendations to simplify and change legislation to further support self-employment are discussed.

Schmidt, M.C. , Jewiss, J, Koliba, C, and J. Kolodinsky. (2006). Perspectives on self-employment as a viable option for Vermont TANF recipients. Unpublished Master’s Thesis. University of Vermont.

The impact of microenterprise training on low-income clients.

This study examined the impact of microenterprise development (MED) programs on low-income individuals using a case study of 140 clients of the Vermont Micro Business Development Program who participated in a statewide telephone survey. The study also examined variables that are associated with change in client reliance on public assistance.

Outcomes achieved include: access to capital, positive attitude changes, business start up and growth, job creation, increased household income, decreased reliance on public assistance, and satisfaction with services. Significant relationships were found between certain client characteristics and outcomes and decreased reliance on public assistance.

Cranwell, M., J. Kolodinsky, and B. Whitney. (2006). The impact of microenterprise training on low-income clients. Journal of Extension, 44(2).