Darden Professors James Rubin, Marc Modica and Greg Fairchild, teach entrepreneurship skills to 13 convicted men at Virginia’s Dillwyn Correctional Center. The first program concluded in August 2012, and the test of real life will soon begin for the inmates when they reenter society. “Theirs will be a true test of resilience,” said Fairchild.
the Cleveland Correctional Facility in Houston, it was founded eight years ago and now receives more than 2,000 applicants each year. Approximately 800 inmates graduate from the program annually. So far, these graduates have founded 106 businesses, one of which brings in more than $1 million of revenue each year. The recidivism rate of those graduating from the Texas program is just 5 percent, versus 25 percent statewide. Fairchild and five of his Second Year Darden MBA students trekked to Texas to learn firsthand about the innovative initiative — the only one of its kind in the country. “We came back armed with that knowledge and started to design our own program,” said Fairchild. Fairchild’s program includes 22 Darden cases, four new cases written specifically for the offenders, math testing, development of a personal business plan and a final exam. Classes at Dillwyn were taught by Darden students Mark Lund (MBA ’12), Semyon Shtulberg (MBA ’12), Anders Hvelplund (MBA ’12) and Chris McCann (MBA ’12), as well as researcher Mallory Joyce and Fairchild. The team met for two hours at a time, three times per week.
“Put It in the Plan” Fairchild is relaxed but straightforward with his inmate students. That they like their professor is obvious. In one class, Demon Gunter touts the business plan for his proposed company, “Move Around Movers.” But the classroom consensus is that Gunter’s plan is too vague. His classmates note that his prices are below industry standards. Fairchild points out another problem: Although Gunter has extensive knowledge of and experience in the moving industry — having worked in the field for many years — this doesn’t show in his business plan. “Put it in the plan,” Fairchild advises Gunter. “You have to tell people what you know. That way, the reader of the plan
knows you know.” Gunter agrees with all of the suggestions. The students say they are bent on succeeding. “Everybody feels good about this,” said Fairchild. “Everybody has good feelings, from the guys in the room to the folks at the Department of Corrections in Richmond. What we don’t know is how many will pass the ultimate test.” That test is this: How many of the inmates will stay out of prison? The answer may take at least three years to materialize, according to Fairchild. Will any or most of his students be behind bars by then? For his part, Fairchild has faith that his inmate students can make it in the business world.
The Future Beyond Bars Fairchild’s Darden students agree. At the end of the class, Fairchild asked his student teachers to write about their experiences. Mark Lund, who taught finance and math-based case studies at the prison, surprised himself with his discovery. “From the time I walked into the Dillwyn facility to now, my perception of American prisons has completely changed,” he admitted. “If you had asked me whether I would have hired someone with a criminal record last year, I probably would have said ‘no.’ This experience has opened my eyes to the potential people have when they truly commit to turning their lives around.” Fairchild has high hopes for the future of the program. He plans to continue it at Dillwyn and expanded it in fall 2012 to the Fluvanna Correctional Center for Women in Fluvanna County, Virginia, which houses more than 1,200 female inmates. The first program concluded in August, and soon the test of real life will begin for many of the inmates who participated. Can the prisoners transform their lives through entrepreneurship education and human courage? Can they beat the odds stacked against them? “Theirs will be a true test of resilience,” acknowledged Fairchild.
Get an inside look at a prison business pitch.
I’m still scared. At times, I was pulling my hair out. But now I have more confidence. Now I believe I can start this business. I know I would have failed miserably without this class.” — KIRK SMITH, an inmate who will soon be released from Virginia’s Dillwyn Correctional Center
THE DARDEN REPORT | FALL/WINTER 2012
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