U.S. Department of Labor Initiatives for Supporting Small Business Development IACML Working Group Meetings Montevideo, Uruguay April 15-17, 2008

Two Main DOL Approaches Training opportunities Training opportunities Compliance assistance Compliance assistance

Statistics Small Businesses in the United States: Represent 99.7 percent of all employer firms; Represent 99.7 percent of all employer firms; Employ about half of all private sector employees; Employ about half of all private sector employees; Pay more than 45 percent of total private U.S. payroll; Pay more than 45 percent of total private U.S. payroll; Have generated percent of net new jobs annually over the past decade; and Have generated percent of net new jobs annually over the past decade; and Hire 40 percent of high tech workers. Hire 40 percent of high tech workers. (source: U.S. Small Business Administration) (source: U.S. Small Business Administration)

Institutions Department of Labor Department of Labor Small Business Administration Small Business Administration Department of Commerce Department of Commerce Department of Agriculture Department of Agriculture Department of Health and Human Services Department of Health and Human Services Other U.S. Government agencies Other U.S. Government agencies Non-profit organizations, for profit corporations, and community organizations Non-profit organizations, for profit corporations, and community organizations

DOL Training Programs ***

DOL Training Programs Entrepreneurial training triggers job creation on three different levels: The job created by the person starting his or her own business; The job created by the person starting his or her own business; Jobs created as a result of the establishment of the new business; and Jobs created as a result of the establishment of the new business; and Additional jobs created in the community in companies that do business with the new business and its workers. Additional jobs created in the community in companies that do business with the new business and its workers.

The Economic Dislocation and Worker Adjustment Assistance Act Job Creation Demonstration (EDWAA) July September 1993 Targeted dislocated workers Targeted dislocated workers Examined effectiveness of community development corporations (CDCs) in providing development activities and entrepreneurial training Examined effectiveness of community development corporations (CDCs) in providing development activities and entrepreneurial training

EDWAA (cont’d) Lessons Learned: Proactive screening processes are needed Proactive screening processes are needed Lack of access to capital is problematic Lack of access to capital is problematic Training for entrepreneurship is different than for traditional reemployment programs Training for entrepreneurship is different than for traditional reemployment programs

The Self Employment Assistance Program (SEA) Temporarily authorized in 1993, permanently in 1998 Allows individuals to receive training and technical assistance in self-employment Allows individuals to receive training and technical assistance in self-employment Work full-time on starting a business rather than meeting the usual Unemployment Insurance requirement of looking for a wage and salary job Work full-time on starting a business rather than meeting the usual Unemployment Insurance requirement of looking for a wage and salary job

SEA (cont’d) Lessons Learned: Partnerships with self-employment service providers are highly useful Partnerships with self-employment service providers are highly useful Linkages can provide participants with training, business counseling, and technical assistance Linkages can provide participants with training, business counseling, and technical assistance

Project GATE—Growing America Through Entrepreneurship 2002-present Experimental research demonstration Experimental research demonstration Aim: to “create a micro enterprise program that helps diverse urban and rural populations create, sustain, and expand small businesses.” Aim: to “create a micro enterprise program that helps diverse urban and rural populations create, sustain, and expand small businesses.” In partnership with SBA In partnership with SBA

Project GATE (cont’d) Three sites in Maine, one in Pennsylvania, and two in Minnesota Three sites in Maine, one in Pennsylvania, and two in Minnesota Technical assistance and training to participants, administrative costs, community outreach and marketing, and data collection and evaluation Technical assistance and training to participants, administrative costs, community outreach and marketing, and data collection and evaluation Currently in evaluation phase Currently in evaluation phase

Project GATE (cont’d) Early findings indicate: Could be replicated on a wider scale; Could be replicated on a wider scale; Self-employment programs should be flexible enough to meet participants’ diverse needs; Self-employment programs should be flexible enough to meet participants’ diverse needs; Independent assessment counselors from training providers avoids conflicts of interest; Independent assessment counselors from training providers avoids conflicts of interest; Outreach campaigns should be tailored to the individual needs of the project site; Outreach campaigns should be tailored to the individual needs of the project site; Challenges of starting a business and obtaining business financing should be made clear to participants; and Challenges of starting a business and obtaining business financing should be made clear to participants; and Credit repair and loan application assistance are important services to offer project participants. Credit repair and loan application assistance are important services to offer project participants.

Project GATE (cont’d) Best practices include: Holding meetings with community stakeholders to assess interest in entrepreneurship; Holding meetings with community stakeholders to assess interest in entrepreneurship; Conducting focus groups with local residents to assess entrepreneurship needs; Conducting focus groups with local residents to assess entrepreneurship needs; Identifying community-based organizations to partner with; Identifying community-based organizations to partner with; Soliciting feedback from and engaging multiple stakeholders; and Soliciting feedback from and engaging multiple stakeholders; and If necessary, reevaluating the program’s structure and content to enable it to meet participant and community needs. If necessary, reevaluating the program’s structure and content to enable it to meet participant and community needs.

Compliance Assistance ***

Compliance Assistance DOL defines as, “any effort, tool, or communication that helps employers and others in the regulated community understand how to comply with our labor laws and regulations.” DOL defines as, “any effort, tool, or communication that helps employers and others in the regulated community understand how to comply with our labor laws and regulations.” DOL agencies are working together to prevent accidents and injuries, discrimination, and other violations of the law, and increase voluntary compliance. DOL agencies are working together to prevent accidents and injuries, discrimination, and other violations of the law, and increase voluntary compliance. Complements enforcement; does not replace it. Complements enforcement; does not replace it.

Compliance Assistance Tools Training sessions and seminars; Training sessions and seminars; Cross-agency and statute-specific printed brochures and educational pamphlets; Cross-agency and statute-specific printed brochures and educational pamphlets; Innovative Web-based tools and online resources; Innovative Web-based tools and online resources; Telephone and on-site consultations; Telephone and on-site consultations; Incentive-based programs; and Incentive-based programs; and Community-based programs. Community-based programs.

Example: Occupational Safety and Health Administration (OSHA) On-Site Consultation Service offers free and confidential advice to small and medium-sized businesses in all states across the country, with priority given to high-hazard worksites. On-Site Consultation Service offers free and confidential advice to small and medium-sized businesses in all states across the country, with priority given to high-hazard worksites. Totally separate from enforcement and do not result in penalties and citations. Totally separate from enforcement and do not result in penalties and citations. ult ult ult ult

Example: FirstStep Employment Law Advisor Online tool that makes it easier for small businesses to comply with U.S. labor laws and regulations Online tool that makes it easier for small businesses to comply with U.S. labor laws and regulations Tool directs the user through a series of questions and provides a list of DOL labor laws that are likely to apply to his or her business Tool directs the user through a series of questions and provides a list of DOL labor laws that are likely to apply to his or her business

For more information… DOL Employment and Training Administration (ETA): DOL Employment and Training Administration (ETA): ETA Project GATE: ETA Project GATE: DOL Occupational Safety and Health Administration (OSHA) resources for small businesses: DOL Occupational Safety and Health Administration (OSHA) resources for small businesses: DOL Assistant Secretary for Policy (ASP) Office of Compliance Assistance resources for small businesses: DOL Assistant Secretary for Policy (ASP) Office of Compliance Assistance resources for small businesses: U.S. Small Business Administration (SBA): U.S. Small Business Administration (SBA): *A special thanks to Jonathan Simonetta of DOL’s ETA and my colleagues in OSHA and ASP for information sharing.*