Demonstrating Micro-Business Opportunities for AFDC Recipients and Other Low-Income Individuals I. TOPIC STRIDES in Child Care Demonstration Project II. LOCATION Northeastern Minnesota III. SUBJECT Demonstrating Micro-Business Opportunities for AFDC Recipients and Other Low-Income Individuals IV. SUMMARY In 1992, the U.S. Department of Health and Human Services' Office of Community Services awarded a Demonstration Partnership Project (DPP) grant to a child care training and business development program. Partners in the project were the Arrowhead Economic Opportunity Agency (a Community Action Agency in northeastern Minnesota), the Northeast Minnesota Entrepreneur Fund, the Arrowhead Community Economic Assistance Corporation, and St. Louis County Social Services. STRIDES in Child Care (STRIDES) offered skills training designed specifically to develop child care micro-businesses. The project helped seven participants leave Aid to Families with Dependent Children, three participants establish their own businesses as child care providers, one find employment at a local child care center, and another reach the final stages of the state child care licensure process while providing legal, unlicensed child care. Since the project's completion, the state legislature has passed legislation to develop child care provider training projects in four other Minnesota counties, and the counties will consult with STRIDES to develop their own training models. Local technical colleges also use elements of STRIDES to certify Child Development Associates. V. SUCCESSFUL PRACTICE Conducted a two-year demonstration project in micro-business development that led to the creation of three new child care provider businesses, the employment of two individuals by existing child care providers, and state legislature actions to replicate the project in four other counties. VI. CONTACT Harlan Tardy, Executive Director Kim Hustad, Project Director Arrowhead Economic Opportunity Agency (A Community Action Agency) 702 Third Avenue Virginia, Minnesota 55792 218-749-2912 218-749-2912, ext. 287 (FAX) VII. CASE STUDY The Problem: Recipients of Aid to Families with Dependent Children (AFDC) and other low-income individuals and families in rural, northeastern Minnesota were suffering from two separate problems: (1) insufficient job or small business opportunities; and (2) a lack of qualified, licensed child care providers. The Approach Adopted: In 1992, three public and private service providers formed a partnership to establish a low-income, micro-business, self-sufficiency project to address both of these problems. The partners in the project, St. Louis County Social Services, Northeast Minnesota Entrepreneur Fund, and Arrowhead Economic Opportunity Agency, took a different approach to micro-business development. Instead of providing general business training to entrepreneurs, they proposed a program to provide training and technical assistance designed specifically to create new, licensed child care providers. How They Implemented The Approach: In 1992, the U.S. Department of Health and Human Services' Office of Community Services awarded a two-year, $150,000 Demonstration Partnership Project (DPP) grant to the STRIDES in Child Care (STRIDES) project partners. In addition to the DPP funds and their own contributions of funds and time, the partners received in-kind support from St. Louis County, the local Head Start program, the local school district, local technical colleges, and many low-income volunteers from the community. STRIDES offered a nine-month training and assistance program to give participants all the skills and support they needed to establish a child care business. The program included three distinct training areas: (1) interpersonal skills development, (2) child development, and (3) small business development. In addition to skills training, the project had a strong case management and technical assistance component. While participants received skills training, project staff worked with them to bring their homes into compliance with state laws and regulations governing in-home child care. Staff also helped participants complete the child care licensing process. Case management services stressed the importance of the family decision-making process. Participants who sought to establish child care businesses in their own homes needed to be aware of how that would affect their home and family. Other family members had to have a voice and lend a hand for the business venture to succeed. The partners publicized the STRIDES project through their other service programs and in the community at large to recruit participants. Thirty-three AFDC and other low-income individuals signed up for STRIDES in the first year. Only five participants completed the nine-month training, however. Project staff and independent evaluators studied STRIDES' structure and first year results to find ways to reduce the dropout rate. The first change they made to the program was to develop tighter screening procedures for participants. Instead of accepting all applicants, as STRIDES had in its first year, the program would limit participation. STRIDES staff also made changes to the structure of the skills training. The three skills training areas were conducted sequentially during the first year of the project. Participants went to classes two times per week for nine months. Project staff learned from participants and their own analysis that it might be better to provide training in the three areas concurrently. During the second year, STRIDES provided training in all three skills areas concurrently, and classes met three to four times a week. Eight of the 13 people who started the program in its second year completed the revamped skills training component. One of STRIDES' overarching goals was to develop a heightened sense of professionalism among and toward child care providers. To improve their self-image as licensed professionals, STRIDES worked to develop an informal network of providers. This helped create a professional support system among providers. By developing a network, STRIDES was also able to secure internship sites for STRIDES participants. Results: All 13 of the participants who completed their training were receiving AFDC or other public assistance when they joined STRIDES. By the time they finished the program, seven had left AFDC. Three participants established their own child care businesses, one worked for a local child care center, and another was in the final stages of the state licensure process and was providing legal, unlicensed child care. As a Demonstration Partnership Project, an important measure of success for STRIDES is whether it is replicated. The Minnesota legislature passed a law to develop child care provider training projects in four other counties. Planning teams from those counties will consult with STRIDES as they develop their own program models. Local technical colleges also use elements of the STRIDES model in their certification programs for Child Development Associates. VIII. PROGRAM SPIN-OFFS While STRIDES worked to improve the professional image of child care providers and developed its network of providers, staff found a need among providers for a toy exchange program. STRIDES created a toy lending library for licensed child care providers. The library has been a valuable resource for the professional child care community and is fully operated by volunteers from the community. IX. KEY WORDS Aid to Families with Dependent Children Case Management Child Care Community Action Agency Demonstration Partnership Projects Department of Health and Human Services Family Self-Sufficiency Micro-Business Office of Community Services Small Business Training and Technical Assistance Volunteers ref: strides.L4doc