2014 ANNUAL REPORT
25 Years of Growing Businesses & Strengthening Communities
OUR CLIENTS IN 2014: 59% WOMEN 67% LOW-TO-MODERATE INCOME 84% SELF-IDENTIFIED MINORITY
“Taking the Entrepreneur Works classes made me realize it was definitely possible to open my own business.” Shelly Salamon (on cover) Owner of Fairmount Bicycles and Brewerytown Bicycles
Since we opened our doors 25 years ago we’ve been guided by one overarching goal: creating opportunities. From our start supporting Philadelphia’s ecosystem of community development corporations to our current work with small businesses and entrepreneurs, we’ve always been committed to meeting the needs of underserved communities in the Greater Philadelphia region. Here at Entrepreneur Works, we offer a spectrum of services that create opportunities for entrepreneurs to build strong, sustainable businesses. From providing small business loans to offering business training and guidance, we equip entrepreneurs with the tools they need to succeed.
SINCE INCEPTION, WE’VE MADE 400 LOANS, TOTALING $1.2 MILLION
Our Mission & Approach Entrepreneur Works creates pathways of opportunity for talented entrepreneurs. Across the Philadelphia region, our clients start and grow small businesses, create jobs for themselves and their neighbors, and strengthen the local economy. Entrepreneur Works is a nonprofit organization that offers access to microloans, business training, and one-onone guidance to hundreds of entrepreneurs each year, empowering small business owners from all walks of life to prosper and build sustainable communities.
Nearly 400 aspiring and established entrepreneurs benefited from these services in Fiscal Year 2014. Throughout the years, we’ve served more than 4,000 entrepreneurs, including women, people of color, immigrants, millennials, creative professionals, and low- to moderate-income individuals. Fueled by inspiration and grit, these entrepreneurs have chosen to invest in their neighborhoods and are helping to re-imagine entire communities as a result. All of the services and loans we offer are based on one simple idea: Entrepreneurship creates jobs and strengthens communities. And we have the numbers to back it up. A 2013 survey shows that our clients created 105 local jobs in 2012. Two Entrepreneur Works clients who seized the opportunity to create jobs are Shelly Salamon, owner of Fairmount Bicycles and Brewerytown Bicycles, and Latasha Sampson, owner of Chocolate City Hair Studio & Day Spa in Southwest Philadelphia. Shelly and Latasha employ a combined total of 15 people, while also offering much-needed services in their neighborhoods. Our success in creating economic opportunities throughout the last 25 years wouldn’t be possible without our founding members, including Frederick Heldring, who passed away last year. Fred’s dedication to creating a more just Philadelphia inspires me every day. It’s his legacy that continues to inspire many others to contribute their time, resources, and expertise to strengthen Entrepreneur Works and expand our reach. Our supporters have played a pivotal role in our growth and success, and for that we are extremely grateful. But there is still much more to be done. I encourage you to become a part of our vibrant legacy by helping Entrepreneur Works to empower talented entrepreneurs for another quarter-century and beyond. Sincerely,
HIGHLIGHTS & NEW INITIATIVES 2013-2014 “PITCH AND BREW” AT IMPACT HUB Entrepreneur Works launched a partnership with Impact Hub, a business accelerator and co-working space, to offer weekly “Pitch and Brew” sessions, where entrepreneurs receive guidance to tackle their business challenges. WELLS FARGO REGIONAL FOUNDATION INVESTMENT The Wells Fargo Regional Community Development Corporation made a $50,000 program-related investment in Entrepreneur Works’ loan fund. This investment promotes economic opportunities for lowincome individuals and strengthens the partnership between Wells Fargo and Entrepreneur Works.
”What makes ‘Pitch and Brew’ unique is the opportunity to share your business challenges, questions, and ideas with a diverse group of local entrepreneurs. Each gathering brings together a different mix of skills and expertise in a relaxed and supportive atmosphere.”
ELIZABETH STREET CAPITAL Entrepreneur Works was selected as the local Community Development Financial Institution (CDFI) partner for Elizabeth Street Capital — a Tory Burch Foundation and Bank of America initiative designed to provide women entrepreneurs in the United States with access to affordable loans, mentoring support, and networking opportunities. FINANCIAL EMPOWERMENT & CREDIT COUNSELING In partnership with the City of Philadelphia and Clarifi, a nonprofit organization devoted to fostering financial literacy, Entrepreneur Works now hosts a pop-up Financial Empowerment Center. Participants receive free, confidential credit counseling to help them take control of their finances and improve their credit. BUSINESS GROWTH LOAN We piloted our new Business Growth Loan product, which is designed to meet the needs of businesses as they expand and grow. Qualified entrepreneurs will now be able to access loans of up to $50,000.
Tatiana Bacchus Owner/Founder, Teaspoon and Pound Media LLC, and “Pitch and Brew” participant
In Memoriam Frederick Heldring: A Social Justice Visionary
Entrepreneur Works wouldn’t be where it is today without the visionary leadership of one of our founding members and most generous supporters, the late Frederick Heldring, who passed away in October 2013 at the age of 89. Fred was chairman and CEO of the former Philadelphia National Bank (PNB) and was a pioneer in the fight for economic and social justice. When he was named president of PNB in 1974, he made investing in low-income neighborhoods in the Philadelphia area a
top priority. In 1989 Fred co-founded and served as chairman of the Philadelphia Development Partnership, now Entrepreneur Works. He was a remarkable individual whose efforts to serve those less fortunate spanned several decades and continents. We’re grateful that Entrepreneur Works was one of the chapters in his life’s work, and we are honored to continue his legacy.
25 YEARS OF CREATING OPPORTUNITY Entrepreneur Works is a leader in creating economic opportunity for Greater Philadelphia’s innovators and strivers, and has played a key role in rebuilding and reimagining the region’s economy throughout the past quarter-century. By helping small business owners realize their vision, we empower entrepreneurs to enhance their lives and communities through a full continuum of services designed to support and sustain them in getting their businesses off the ground.
1989 The Philadelphia Development Partnership (PDP) was established to aggregate resources and advocate for public policies and programs supporting community development — with a major focus on affordable housing. 4
STRENGTHENING OUR COMMUNITIES
ACCESS TO CAPITAL
Entrepreneurship creates jobs and bolsters neighborhoods. Though Philadelphia has one of the highest poverty rates and lowest median household incomes of any major city in America, it is clear that small business owners can spur community revitalization by moving into retail and commercial spaces and employing local residents. According to a 2011 report by the Sustainable Business Network of Greater Philadelphia, 98% of city businesses have fewer than 50 employees, and small businesses create 54% of the jobs in Philadelphia.
Entrepreneur Works creates pathways of opportunity for entrepreneurs through a variety of loan products, ranging in amount from $500 to $50,000. Our loans support entrepreneurs at every stage of their journey, from starting and expanding their businesses to creating jobs. Entrepreneur Works primarily serves business owners who are unable to access capital through mainstream financial institutions.
By offering access to capital, business training and guidance, Entrepreneur Works builds stronger families and communities by cultivating and supporting Philadelphia-area entrepreneurs as they create new employment opportunities and enliven commercial corridors.
In Fiscal Year (FY) 2014 Entrepreneur Works provided entrepreneurs with nine Peer Loans, which range in amount from $500-$5,000 and are specifically designed for start-up business owners within the context of a structured group training program. For emerging and existing businesses, Entrepreneur Works offers Small Business and Business Growth Loans, ranging in amount from $500-$50,000. In FY 2014 Entrepreneur Works advanced 13 Small Business Loans.
Launched the Peer Group Microenterprise Program, providing peer support and access to capital for aspiring entrepreneurs.
Received Community Development Financial Institution (CDFI) certification for CCW from the U.S. Department of the Treasury.
Established a lending affiliate, Community Capital Works (CCW), to house and manage loan fund.
Opened a satellite office, Chester Microenterprise Partnership (CMP), in Chester, Penn., to better serve entrepreneurs in Delaware County.
2001 Received Federal funding to launch a new business training and guidance program for local entrepreneurs.
BUSINESS TRAINING & GUIDANCE
WORKSHOPS, PARTNERSHIPS & EVENTS
Aspiring entrepreneurs are driven by vision and skill — creating memorable meals, designing clothes, and styling hair — but may lack the business acumen that would help move them from inspiration to sustainability. Entrepreneur Works offers classes, workshops, and one-onone business guidance to help bridge this gap and give entrepreneurs the tools they need.
Entrepreneur Works collaborates with community organizations in order to meet entrepreneurs where they are. We co-locate workshops with a range of partners, including: the Philadelphia Fashion Incubator at Macy’s, Free Library of Philadelphia, PhillyCAM, and Philadelphia LawWorks. In FY 2014 more than 330 people participated in these free public workshops, on topics ranging from social media marketing to preparing for financing.
For emerging entrepreneurs, Entrepreneur Works offers a multi-week Business Skills Course, which covers practical considerations for starting a business. We also offer one-on-one guidance to help entrepreneurs navigate the challenges they may encounter as they grow their businesses. In FY 2014 a total of 58 entrepreneurs participated in our Business Skills Course, and 55 small business owners received one-on-one guidance.
Entrepreneur Works’ signature networking and fundraising event, Taste of Success, features a cook-off/bake-off contest among our clients in the culinary industry. This year’s 12th annual Taste of Success brought together more than 120 supporters and friends for our most successful event thus far. With more than 30 sponsors, Entrepreneur Works raised a total of $33,000.
“Entrepreneur Works played a very big part in the creation of my business. Without Entrepreneur Works I wouldn’t be here.” Latasha Sampson Owner of Chocolate City Hair Studio & Day Spa
Started offering Small Business Loans of up to $25,000.
Reached $1 million lending milestone.
2009-2010 Made 300th loan. Awarded state accreditation as well as a $250,000 investment in our loan fund from the Pennsylvania Community Development Bank. Adopted the name “Entrepreneur Works” — bringing PDP, CCW, and CMP together under one brand, unified by a single mission.
2014 Introduced Business Growth Loans of up to $50,000, and doubled lending staff.
FINANCIAL SNAPSHOT & IMPACT LOAN DOLLARS INVESTED
(Fiscal Year 1999-2014)
FY 2014 EXPENSES BY CATEGORY
FY 2014 REVENUE SOURCES BY CATEGORY
10% Individual Donors
5% Special Events 4% Earned Income
48% Foundations (Corporate, Family & Private)
18% Management & General
AVERAGE BUSINESS SURVIVAL RATE
73% Program Services * Does not include $15,000 for grant-funded special project to build organizational capacity.
THANK YOU 2013-2014 SUPPORTERS OVER $100,000 Community Development Financial Institutions Fund (U.S. Department of the Treasury) City of Philadelphia Department of Commerce $50,000-$99,999 Bank of America Foundation Halloran Philanthropies Frederick Heldring* & Family $25,000-$49,999 Citi Foundation The Philadelphia Foundation Philadelphia Housing Authority Tory Burch Foundation $10,000-$24,999 William & Debbie Becker Leslie H. Benoliel Chester Economic Development Authority Citizens Bank Foundation Connelly Foundation First Niagara Bank PNC Foundation Santander Bank Foundation Sitchin Foundation Wells Fargo Foundation $5,000-$9,999 The Bancorp Jeffry Benoliel & Amy Branch Constance Benoliel Rock Peter A. Benoliel & Willo Carey East River Bank Hoxie Harrison Smith Foundation Lincoln Financial Foundation Lomax Family Foundation Robert Palmer TD Foundation $1,000-$4,999 Karen Batchelder The Beneficial Foundation Jerry Cotlov Ann DeLaura Elite MGA & Elite P&C David & Jaimie Field Fox Rothschild, LLP
Goldman Sachs 10,000 Small Businesses Anne F. Hamilton Roger Harmon Gretchen Hartling James Hartling Nadine Kolowrat & James Winsor Mark Ledger Prudential Savings Bank Ruotolo, Spewak & Co. Susquehanna Bank TechGuides Urban Partners Reed Webster $500-$999 Lee Casper Citrin Cooperman Clarifi Mark Delowery Melinda Emerson Erik Estrada Fidelity Savings Bank FX Duffy & Co. Don & Lynn Haskin Main Street Abstract Company Alan H. & Ricki Mandeloff Luis Mora Philadelphia Industrial Development Corporation Stradley Ronon Stevens & Young, LLP $250-$499 Roland & Sally Bullard II Bob & Erica Carpenter Susan Catherwood Putnam & Amy Coes Saunders Dixon David & Rochelle Eckstein James Goodrich Joseph Gordon Lloyd & Patricia Hamilton William H. Harrington Gilbert & Dorothy Heebner Thatcher Heldring Iron Stone Strategic Capital Partners JNA Capital, Inc. John E. McGovern & Associates, P.C. Kaiserman Company
LCG, Ltd. Ted LeBow Walter* & Beverly Lomax, Jr. Keith Morris Ahsan Nasratullah David Palmer & Laura Sauer Palmer Jeff & Laura Palmer William Reddish Jonathan & Eliza Seltzer Blane F. Stoddart Robert A. & Meredith Swift Weir and Partners, LLP UNDER $249 Alice Antonelli Katherine & Robert Barr Ann Batchelder Dan Betancourt Jennifer Morgan Boebel Earl Boyd Margaret Berger Bradley & David Bradley Paulette & Robert T. Carter Denise Collins Mari & Charley Connolly Regina Costa Patricia Dowden Geoffrey Ellis William & Anne Ewing Jeanne Fields Generocity Rebecca & Jeremy Gerber Eva Gladstein & Benjamin Burenstein Ann N. Greene Elinor Haider Jeffrey Harbison & Valerie Arkoosh Robert P.* & Barbara Hauptfuhrer Michael & Jennifer Henry Diana Herrmann Judith Horwitz Bruce & Jennifer Hotaling Ivey Ibrahim Jefferson Economic Development Institute Mary Keefe Don & Christine Kelly Patrick Kelly Carol Killmaster Denise Kinney & Susan Bernini
Paul & Martha Kistler Peter Lapham Shawn Lawrence Peter Lefkin Chip & Katherine Levengood Joseph Mariano Edward Marshall III & Joanna Bassert Laura B. & Samuel R. Marshall Thomas Oâ€™Rourke Elizabeth & Gary Prugh Quaker Chemical Corporation Charla Rath & Charles Henstenberg Sam Rhoads Bob & Caro Rock Dan Samartino Ronald & Elaine Sandmeyer, Sr. Michelle & Daniel Scolnick Buck Scott Warren E. Sell Marjorie K. Shiekman Laura Silverman Ernest Smith Robert & Jessica Spencer Mark & Bray Stahller Ella Torrey M. Trudy & Laird Slade James Turner Jeremiah White John White Alan Wilson Rylanda Wilson IN-KIND DONATIONS CBS 3/CW Philly 57 Free Library of Philadelphia Impact HUB Philadelphia International House Philadelphia Ian Leibovici Scott & Kristy Peters Philadelphia VIP ShopRite of Island Avenue Sustainable Business Network of Greater Philadelphia Victory Brewing Company
111 S. Independence Mall East
1350 Edgmont Avenue
The Bourse Building, Suite 528
Philadelphia, PA 19106
Chester, PA 19013
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Visit bit.ly/entrepreneur-works-donate to help support our work for another 25 years. Front cover and page 5 photography by Stephanie L. Malson about.me/slmalson Page 3 photography by Teal Orbit tealorbit.com
Annual Report 2014