Florida

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Floridas Path to Self-Employment

• Beth Keeton
• The Center for Social Capital

GRIFFIN-HAMMIS, LLC
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Why Customized Self-Employment?
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Self-Employment A Mainstream Approach to Business

• Self-Employment rate growing at more than 20
  annually
• Micro-enterprises generated over 40 of all new
  jobs in last decade
• Small business creates more jobs in US than the
  Fortune 500

CSC
(Wehman, 2006)
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Self-Employment and Persons with Disabilities

• Historically self-employed at higher rate
• US Census, 1996
• 12.8 people with disabilities
• 7.8 general labor force
• Proven to be a viable employment outcome,
  regardless of disability type

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FL VR CBTAC Program

• Goal
• Screen customers in not out of SE
• Develop supports for all gap areas
• Statewide provider certification program
• Providers trained to support all key areas of
  business development
• Works in collaboration with existing resources
• Ongoing TA available
• Resource development

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Florida DVR CBTAC

• Provider certification standards process
• Comprehensive policy revision
• Tools, handbooks, Desktop Reference for
  Counselors
• Statewide counselor training
• Networking meetings
• Ongoing TA support

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FL DVR Progress to Date

• Over 100 Self-Employment Providers
• Online certification recertification program
• Increase in Self-Employment Referrals
• Increase in Self-Employment Outcomes
• Continuation of Capacity Building Efforts
• Coordination with other state systems
• Technical Assistance for VR Counselors
• Networking meetings throughout the state

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Trainings and Resources

• Online Resources
• CSC/VCU Online Certification Program
• Essential Learning www.essentiallearning.com
• Start-Up USA www.start-up-usa.biz
• CBTAC website (under development)
• Making Self-Employment Work for People with
  Disabilities (Griffin Hammis, 2003)

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The Myth of the Entrepreneur

• Has entrepreneurial mindset personality
• Performs all tasks, at all times
• independently
• Develops industry skills for years prior to
  launch
• Takes significant financial risk
• Works 80-100 hours/week

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How would most entrepreneurs with complex
disabilities fare against this list?
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GRIFFIN-HAMMIS ASSOCIATES, LLC
Joe KS DDC 9,000 KS VR 4,000 PASS
12,000
Gross Sales over 70,000/Year Net Income over
12,000/Year
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Benefits of Self-Employment

• Flexibility in design
• Businesses grown specifically around individual
• Planning for support is inherent part of process
• Potential for greater financial rewards
• Unique opportunities with SSA benefits
• Challenges job scarcity and tight labor
  market assumptions in ways that benefit entire
  community

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Customized Self-Employment Essential Elements

• Business Team
• Discovery
• Feasibility Assessment
• Resource Planning
• Business Plan Development

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Discovery

• Foundation for all CE outcomes
• Goal is to get to know person
• Identify skills, capacities, interests
• Learn about social networks and connection
• Not business concept development!
• If done well, will reveal the path to business
  concepts

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Hallmarks of Discovery

• Structured Process
• Action-oriented (requires verbs!)
• Skill-based and skill-driven
• Leads to identification of
• Ideal conditions for employment
• Contributions, capacities, and skills
• Support needs

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Linking Discovery to Business Concept Development

• Identify vocational themes cross themes
• Informational interviewing
• Utilization of networks and connections
• Go where the career makes sense
• Find Fish Bob

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Assessing Feasibility Foundation

• Knowledge of Market/Industry
• Based on market research
• Knowledge of individual
• Interests, skills, strengths
• Types of support needed
• Knowledge of Team
• Supports available

All must be considered in relation to each other
in order to determine if business concept is
viable
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Perks of Self-Employment

• Terri

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The Path to Self-Employment

• John DJ Smooth

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Resource Planning

• Variety of programs that can support
  self-employment
• Individual benefits assessment is critical
• Significant opportunities exist within SSA
  benefits programs

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SSI PESS

• Under a rule called Property Essential to
  Self-Support (PESS)
• A sole proprietorship or partnership can have
  unlimited wealth excluded from resource limit
• Property must be in current use
• Had been in use, and reasonably expected use will
  resume w/in 12 months of last use
• 12 month extension possible
• Consider the possibilities

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GRIFFIN-HAMMIS ASSOCIATES, LLC
Gross Sales over 80,000/Year Net Income over
30,000/Year
Glen HI VR 12,000 PASS 9,000
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SSI Medicaid

• Section 1619(b)
• Medicaid eligibility can continue even after
  reaching the break-even point if cash benefit
  lost due to earnings (other req. still apply)
• Individual thresholds may be established that
  exceed the state figure
• FL 2011 Threshold 28,753

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Plan for Achieving Self-Support (PASS)

• PASS allows individuals to
• Set aside money for a self-employment goal
• Have resources over the asset limit
• Maintain Medicaid eligibility
• Individuals contribute funds
• NOT SSI check!!!
• SSI benefits can increase to full FBR

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Self-Employment PASS

• PASS can cash-flow by paying for
• Equipment, employment supports
• Virtually any business expense (and then some!)
• Lasts a minimum of 18 months
• Requires business plan
• Financial projections for life of PASS 1 year
• www.passplan.org

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PASS Example Earned Income

• Beneficiary James
• Business Web Design
• Avg. Monthly NESE 1100
• SSI Cash Benefit 167
• (eligible for full FBR)

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PASS Calculation Earned Income
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PASS Example Unearned Income

• Beneficiary Natalia
• Business Clothing Design
• SSDI Cash Benefit 420
• SSI Cash Benefit 274
• (eligible for full FBR)

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PASS Calculation Unearned Income
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SSDI Self-Employment Work Incentives

• Unpaid Help
• Cost of unpaid help deducted from NESE
• Reduces amount of NESE that counts
• Unincurred Business Expenses
• Costs deducted from NESE
• Depreciated or full value
• Can significantly reduce countable income

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Other Programs Supporting Self-Employment

• Individual Development Accounts (IDA)
• Family Self-Sufficiency Programs
• One-Stop Centers
• Medicaid Waivers

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Business By Disability TypeBased on Sample of 76
Griffin-Hammis Associates, LLC
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Gross Income76 Business Sample
28,241
39712
4,800
130,000
Average Gross Revenue 28,241 Omitting 1
900,000 Business
Griffin-Hammis Associates, LLC
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Individual Funding Sources
99,395
737,600
474,925
59,000
394,600
347,000
33,200
Sample 76 Businesses Total Start-up Investment
2,145,000
Griffin-Hammis Associates, LLC
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Wrapping It Up

• Final Thoughts?
• Questions??