The National Foundation for Teaching Entrepreneurship Then and Now

NFTE Overview Educational non-profit Educational non-profit 501(c) 3 status 501(c) 3 status Dedicated to serving underprivileged youth Dedicated to serving underprivileged youth Started by Steve Mariotti in the early 90s Started by Steve Mariotti in the early 90s Highly successful in reaching its target market Highly successful in reaching its target market Experienced serious trouble with cash flow and organizational structure in its early years Experienced serious trouble with cash flow and organizational structure in its early years

NFTE’s Structure

Then Steve held the headquarters at his apartment Steve held the headquarters at his apartment National staff was there to oversee all operations National staff was there to oversee all operations

Now 7 regional offices 7 regional offices structure of New England regional offices structure of New England regional offices set positions versus the positions that they have set positions versus the positions that they have Regions are autonomous with accountability Regions are autonomous with accountability Score card maintains accountability Score card maintains accountability National office oversees the New York area keeps the organization is sync with the mission National office oversees the New York area keeps the organization is sync with the mission

Regional Office 3 pre-determined positions 3 pre-determined positions Director Director Decide and carry out their own programs Decide and carry out their own programs

National Office Program Directors Program Directors

Communication in NFTE New England Regional New England Regional Biweekly meeting with everyone in the office Biweekly meeting with everyone in the office Nationals Nationals Monthly meeting with all the regional and with the National Office Monthly meeting with all the regional and with the National Office Good, bad, barriers, breakthroughs Good, bad, barriers, breakthroughs Solicited review Solicited review Regions submit ideas for approval Regions submit ideas for approval

Business Process The Score Card

Purpose Encourage the sharing of ideas across regions Encourage the sharing of ideas across regions Self assessment and goal- setting Self assessment and goal- setting

Implementation Representatives of each region meet once a year Representatives of each region meet once a year Each regions sets it own goals for the year and presents them to the other regions and the national office Each regions sets it own goals for the year and presents them to the other regions and the national office The national office provides directions and approve the goals The national office provides directions and approve the goals

Implementation Goals from the previous year are evaluated Goals from the previous year are evaluated Each regions is given a rating based on reaching their goals Each regions is given a rating based on reaching their goals Bonus are given based on score card Bonus are given based on score card

NFTE Finances Cash Flow in the Non-Profit World

Then and Now NFTE then NFTE then $180,000 per year budget $180,000 per year budget No endowment No endowment NFTE now NFTE now $9 million per year budget $9 million per year budget $2 million endowment $2 million endowment

Problems of the Past Relied on grants and gifts that rarely funded overhead Relied on grants and gifts that rarely funded overhead No steady or reliable cash flow No steady or reliable cash flow Not uncommon for non-profits Not uncommon for non-profits Possible Solutions: member fees, merchandise sales, annual fundraising drives Possible Solutions: member fees, merchandise sales, annual fundraising drives

The Adaptation Develop curriculum for sale to the public Develop curriculum for sale to the public Annual revenue of $450,00 a year Annual revenue of $450,00 a year Partnership with a publishing firm minimizes resource drain Partnership with a publishing firm minimizes resource drain Write overhead into the grants Write overhead into the grants Include salaries and rent in project budgets Include salaries and rent in project budgets Rely on multiple grants to fund rent and salaries Rely on multiple grants to fund rent and salaries

How is it Working? New England Regional Office Responsible for all their own fundraising Responsible for all their own fundraising 60% foundation, 20%corporate, 20%individual 60% foundation, 20%corporate, 20%individual Partnership with Babson eliminates rent Partnership with Babson eliminates rent Sees little revenue from curriculum sales Sees little revenue from curriculum sales

Possible Alternatives Government Funding Government Funding NFTE does pursue some government support NFTE does pursue some government support Widespread concern about government regulation Widespread concern about government regulation For-Profit Branch For-Profit Branch Does this undermine NFTE’s mission? Does this undermine NFTE’s mission? Requires more resources than are currently available Requires more resources than are currently available

Growth of NFTE and Other Obstacles

Steve Mariotti’s Role President Steve Mariotti still very involved: President Steve Mariotti still very involved: Fundraising Fundraising curriculum development (his pet project) curriculum development (his pet project) Dilemma: Is there a point when a founder of an organization should leave that organization, so that the organization can take on its own identity and possibly go in a new direction? Dilemma: Is there a point when a founder of an organization should leave that organization, so that the organization can take on its own identity and possibly go in a new direction?

Operating Unit Scorecards Each unit (each of the 7 regions) gets a scorecard every year Each unit (each of the 7 regions) gets a scorecard every year Each unit sets its own standards, then attempts to meet those standards Each unit sets its own standards, then attempts to meet those standards Communication between regions improves scores Communication between regions improves scores 5 scorecard criteria: 5 scorecard criteria: - teachers - students - alumni - finances - programs

Company culture How does NFTE preserve the company culture as NFTE grows? How does NFTE preserve the company culture as NFTE grows? NFTE wants an open and understanding culture. NFTE wants an open and understanding culture. Management is cooperative, not punitive. Management is cooperative, not punitive.

MCAS state standard exams Schools are focusing on getting students to pass the MCAS state standard exams. Schools are focusing on getting students to pass the MCAS state standard exams. NFTE programs aren’t as important to school administration. NFTE programs aren’t as important to school administration. NFTE is looking at ways to embody MCAS standards NFTE is looking at ways to embody MCAS standards

Bootstrap Grant Fund Provides startup money for student businesses Provides startup money for student businesses $5000 fund provides rotating credit for startup loans $5000 fund provides rotating credit for startup loans Most students only need a few hundred dollars to start their business Most students only need a few hundred dollars to start their business Enables students to pay a vendor, etc. Enables students to pay a vendor, etc.

NFTE International ArgentinaBelgium El Salvador IndiaNetherlands United Kingdom NFTE International is a program partnership, not a subunit NFTE International is a program partnership, not a subunit Language barrier: NFTE CETIs only speak English Language barrier: NFTE CETIs only speak English teachers must speak English to become certified

Recommendations Find colleges (like Babson) to host NFTE regional offices Find colleges (like Babson) to host NFTE regional offices NFTE won’t have get funds for rent (difficult) NFTE won’t have get funds for rent (difficult) donors want their money to go directly to students donors want their money to go directly to students Create a for profit section of NFTE to sell the program and teacher training to higher income students Create a for profit section of NFTE to sell the program and teacher training to higher income students more students would benefit from entrepreneurship education more students would benefit from entrepreneurship education Revenue would help students that NFTE now serves Revenue would help students that NFTE now serves Possible drawback: NFTE might stray from its mission and start focusing on profits instead of helping disadvantaged students Possible drawback: NFTE might stray from its mission and start focusing on profits instead of helping disadvantaged students

Questions?