Through the SET planning process, the desire to create a collaborative regional strategy for small business development was outlined. In 2012, a pilot program was started with United Virginia, a nonprofit with a goal to connect aspiring entrepreneurs with the training, connections, and resources they need to grow successful businesses in Central and Southern Virginia. This initiative has evolved into leveraging of resources to continue a training program for implementation across the region. Through a partnership with VGA, the training coordinator, Cassandra Smith, has transitioned to the Longwood Small Business Development Center.
United Virginia uses Technology to Tap Local (and Not-so-Local) Capital
United Virginia was selected by Capital One Financial Corporation to be a trustee in working together to connect Kiva lenders to entrepreneurs that they know and trust in their communities. With the impending changes in securities trading allowed by the Jobs Act, the rise of crowdsourcing, and an increased emphasis on building local economies, it's no surprise that Virginia's micro-enterprise development organizations are exploring the power of the world wide web to go local.
KivaZip allows for person to person lending. While you can't currently own part of a company, you can as an individual, can go online and provide capital to entrepreneurs who you think are playing an important role in a community.
In South Hill, mortgage broker Bruce used a KivaZip loan to grow his business. Bruce tapped KivaZip after enrolling in United Virginia's entrepreneurship course. United Virginia endorsed his loan application for investment in Southside Mortgage Corporation. In addition to the partnership through a micro-enterprise development organization, an important element of KivaZip is the entrepreneur's story. This is what connects people to the aspirations of the business owner and the community benefits of the business. Here is an excerpt of Bruce's story.
An example of my desire to help customers meet their dream of home ownership is exemplified by a former customer who had rented for several years with little credit and having worked for the town for several years as a garbage collector. He so wanted to purchase a home for he and his family. He was unable to secure home financing from the local banks, but I researched the fact that he had a good rental history and had paid his bills as agreed. On good faith, I decided to approve him for a home loan. He never forgot the fact that I was willing to take a chance in lending to him when others would not and made it a point to pay his payment on time for the term of the loan and shared this experience with others he came in touch with.
Bruce received loan funding from 168 lenders from literally around the world (Mark in Australia, Szucheng in Taiwan, Merlyn in Norway) as well as right in his own back yard. He's already begun repayment and will continue with 104 weekly payments on the $5,000 loan.
To see other graduates and hear Cassandra Smith on opportunities with the entrepreneurship training program in Southern Virginia, watch this short video. http://www.youtube.com/watch?v=SnVAfB0u-SA
For more information about small business development, please contact Virginia's Growth Alliance.