Creating Partnerships to Develop and Support Rural Businesses I. TOPIC Ohio Rural Enterprise Project II. LOCATION Ohio (Statewide) III. SUBJECT Creating Partnerships to Develop and Support Rural Businesses IV. SUMMARY In March 1995, the WSOS Community Action Agency, which serves northern Ohio, received a $1.0 million grant from the U.S. Department of Agriculture's Rural Economic and Community Development Service to establish the Ohio Rural Enterprise Project (OREP). OREP is a statewide program that will provide new and existing small businesses with technical assistance on business development, peer support groups, and information on environmental regulations. OREP will also establish targeted revolving loan funds to assist small businesses with start up and expansion costs. OREP is especially concerned with environmental protection and will offer extra help to businesses developing "green" product lines, technical assistance on environmental regulations, and revolving loan funds for compliance-related improvements. A major component of the program has been developing partnerships between and among small businesses, non-profit organizations, and the communities they serve. OREP staff will work closely with community leaders and small business owners to develop community readiness strategies to bolster their business base. Partners in the project include the Corporation for Ohio Appalachian Development (Athens, Ohio), the Enterprise Development Corporation (Athens, Ohio), Maumee Valley Planning Organization (Defiance, Ohio), the Small Business Development Center of Northwest Ohio (Defiance, Ohio), and the North Central Small Business Development Center at Terra Community College (Fremont, Ohio). V. SUCCESSFUL PRACTICE Built a broad coalition of non-profit organizations, businesses, and the communities they serve to create a small business development program to establish and expand small businesses, assist in the development of "green" product lines, and protect the environment. VI. CONTACT Donald F. Stricker, President & CEO Julie Ward, Environmental Programs Director Ben Kenny, Community & Economic Development Director WSOS Community Action Agency (A Community Action Agency) P.O. Box 590, 109 S. Front Street Fremont, Ohio 43420 1-800-334-9767 (WSOS) 419-334-8919 (FAX) VII. CASE STUDY The Problem: Rural communities throughout Ohio have been experiencing challenges with retention and expansion of small businesses. Lack of access to capital, a shortage of business development assistance, insufficient assistance with regulatory issues (especially environmental regulations), and burdensome financial compliance rules are among the reasons cited for the decline in small businesses around the state. The Approach Adopted: The WSOS Community Action Agency (WSOS) had been providing many of the needed services through its existing programs and in partnership with other service providers in the area. WSOS sought to create the Ohio Rural Enterprise Project (OREP), which would develop a comprehensive program to involve local communities in providing necessary business development and support services. How They Implemented The Approach: Financing for the community readiness studies and the actual services that OREP will provide came from a $1.0 million Rural Business Enterprise grant to WSOS from the U.S. Department of Agriculture's Rural Economic and Community Development Service (formerly the Farmer's Home Administration (FmHA)). WSOS built on its existing relationships with other community, small business, and economic development organizations to establish a statewide network of service providers. Partners in the project include the Corporation for Ohio Appalachian Development (Athens, Ohio), the Enterprise Development Corporation (Athens, Ohio), Maumee Valley Planning Organization (Defiance, Ohio), the Small Business Development Center of Northwest Ohio (Defiance, Ohio), and the North Central Small Business Development Center at Terra Community College (Fremont, Ohio). WSOS will administer the program and its funds. OREP services will include a revolving loan fund for establishing or expanding a small business (WSOS expects loans to average about $5,000), training and technical assistance on setting up and operating a small business, and peer support groups. OREP will also serve as a non-regulatory, third-party provider of information about and assistance in complying with environmental regulations. OREP will offer extra assistance in environmental matters to businesses developing "green" product lines and revolving loan funds for improvements made to comply with state and federal regulations. WSOS will conduct community readiness studies in several Ohio communities to determine particular attitudes, needs, and trends. These studies involve surveys of employees, community leaders, and small business owners, citizen attitude evaluations, and community forums. At the end of each study, WSOS produces a document detailing the information gathered. From these reports, WSOS could work with each community to determine its particular business development needs and strategies. Results: WSOS' coalition-building has brought OREP to the start-up phase and is ready to begin providing services. VIII. KEY WORDS Business Development Coalition-Building Community Action Agency Community Readiness Strategies Environment Environmental Protection Environmental Regulations "Green" Products Partnerships Revolving Loan Funds Small Business Development Small Businesses Training and Technical Assistance