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FFFFor some ex-offenders, entrepreneurship offers newopportunities for successful reentry to the commu-nity and positive outcomes for the individuals andtheir families. Reducing recidivism and empower-

ing ex-offenders to start their own businesses is a greatstrategy that is being well received across the U.S. Entrepreneurship provides a means to create jobs for ex-offenders, empowering them to earn a living wage morethan capable of sustaining a family.

Stating the FactsIn March 2009, the Pew Center on the States released

One in 31, the Long Reach of American Corrections, whichconcluded that “the sentencing and release laws passed inthe 1980s and 1990s put so many more people behind barsthat last year the incarcerated population reached 2.3 mil-lion and, for the first time, one in 100 adults was in prisonor jail.” The report also revealed that more than 5 millionpeople are on probation or parole, up from 1.6 million 25years ago. This means that one in 45 U.S. adults is undercriminal justice supervision, and combined with those incorrectional facilities, one in every 31 adults, or 3.2 per-cent, is under some form of correctional control.

Research has documented entrepreneurship and self-employment as benefits to disadvantaged and hard-to-serve individuals. The John Jay College’s Prison ReentryInstitute (PRI) 2007 report Venturing Beyond the Gates:Facilitating Successful Reentry with Entrepreneurship summa-rized the benefits of entrepreneurship for ex-offenders,describing it as “a viable alternative to traditional employ-ment opportunities for disadvantaged and marginalizedindividuals all over the world.” The report goes on toexplain that “as more and more people return from prison... entrepreneurship may represent a means of capitalizingon an underutilized pool of human resources.”

While researchers agree that self-employment may notbe a viable option for many individuals leaving prison, themere fact of the exposure to entrepreneurship training canfactor in successful reentry to the community. PRI exam-ined opportunities arising from understanding small busi-ness operations: “A small percentage may have theresources and mindset to use entrepreneurship as the keyto their successful reintegration, either as their sole formof employment, or in addition to a traditional job. Otherswill open a business once they have achieved reentry stability through other forms of employment.”

Even with entrepreneur training received in prison orjail, the ex-offender’s first need is finding a job. Most ex-offenders do not return to a waiting job or business, butthey still face the average financial obligations, includinghousing, transportation, child support, other debts, andperhaps even tax problems, so the initial focus should beon finding a job. Self-employment and starting a businessrequires planning, networking and resources. Low-cost,low-risk start-ups, such as a cleaning, house painting orlawn-mowing business whose services can be providedafter work hours and on weekends, can be excellentoptions to supplement minimum wage or low-wage incomethat often results from lower-level skills and a criminalrecord.

CT FEATURE

Entrepreneurship: Catalyst for Successful ReentryBy Bobby Clark and Kim Potter-Blair

In its 2007 report, PRI described the empowermentpotential of self-employment in a variety of ways, some ofwhich do not necessarily lead to small business ownership.For example, since the concept of empowerment is inher-ent to entrepreneurial thinking, “exposure to entrepreneurialtraining will reshape their perspective on their role in soci-ety. These individuals may never become entrepreneursthemselves, but can use their entrepreneurship training toimprove their performance as employees and to proactivelyengage with their families and communities.” Entrepreneur-ship training teaches problem-solving, critical thinking andteamwork skills, which are highly valuable in any job.Research also suggests that many individuals with criminalrecords possess high entrepreneurial aptitude and sharecommon traits ascribed to successful entrepreneurs suchas risk taking.

One-of-a Kind Green Entrepreneur ProgramThe Green Entrepreneur Program in Kentucky is one

example of an innovative entrepreneurship training pro-gram adapted for inmates and ex-offenders. The programwas established in early 2010 by Sustainable Business Ventures, a 501(c)(3) nonprofit based in Lexington, Ky. Theeight-week program serves low-income 18- to 24-year-oldswith a combination of entrepreneur and business plantraining and work placement. Many of these at-risk youngadults had already been involved with the criminal justicesystem.

“The biggest impact of my ‘green’ training is it made merealize that especially as a mom, that I have to make this anOK world for my son,” said Green Entrepreneur participantKim Baker. Kim was 19 years old at the time of the trainingwith a three-year-old child. She is now a freshman at BereaCollege living in its Ecovillage and is planning a minor inenvironmental studies.

The Green Entrepreneur Program was funded by theBluegrass Workforce Investment Board (BGWIB) using fed-eral stimulus dollars. BGWIB manages the Central KentuckyJob Centers, which is the one-stop system for work forcesupport in the 17-county Bluegrass region.

At the core of this entrepreneurial program is a 10-dayentrepreneur training program that starts with the basics:life skills/financial literacy; idea generation, business con-cept and elevator pitch; accounting, bookkeeping andfinancials; introduction to business operations; legal andpeople resources; and business plan development and orientation.

Participants are placed in work assignments for 12 daysto provide valuable job skills. The program has proved tobe a success, with 10 of 23 graduates getting full-time jobsand each participant receiving a scholarship for post-secondary education and training.

BGWIB, Kentucky Department of Corrections officialsand nonprofits Sustainable Business Ventures and JubileeJobs of Lexington have developed a plan and are seekingfunding to pilot an additional entrepreneur program atBlackburn Correction Complex, a minimum-security prisonin Lexington. BGWIB serves low-income, long-term unem-ployed and other target groups in the Workforce Invest-ment Act. Ex-offenders are one of the hardest to servegroups because of their criminal records.

“Training ex-offenders to be entrepreneurs is probablythe best way to prevent them from re-offending,” saidLenny Stoltz, executive director of BGWIB. “It puts them incontrol of their future.”

In August 2010, Kentucky leaders from all three branchesof government announced a new partnership with the PewCenter on the States to develop strategies for reducing recidi-vism while holding offenders accountable and controllingcorrections spending. “We are pleased to support an innova-tive program that teaches inmates and ex-offenders how tostart their own businesses in order for them to be able to besuccessful in their lives after incarceration. We expect theirsuccess will also impact their rate of recidivism in a positivemanner,” said DOC Commissioner LaDonna H. Thompson.

Prison Entrepreneurship ProgramAnother entrepreneur program outside of Houston, Texas,

provides training to inmates while in prison and supportsthem after release. Recidivism for graduates is less than 10percent. The successful Prison Entrepreneurship Program

PEP participant “John” presents his business plan for an electricaland lighting business that would provide custom and innovativedesign, installation and servicing of accent lighting and alternativepower sources during the PEP Business Plan Competition held Dec.2-3, 2010.

Volunteers Kim Potter-Blair (left) Davis Rushing (center) and PhilRundle (right) listen to business plan presentations and providefeedback during the PEP business plan competition June 10-11, 2010.

Photos courtesy Photo Studio Houston/PEP

(PEP) was started in 2004. More than 600 inmates havegraduated from the five-month, life-transforming program.Inmates are recruited to participate from more than 60Texas prisons. Approximately 100 inmates are selectedevery five months. “Our mission is to stimulate positive lifetransformation for executives and inmates, uniting themthrough entrepreneurial passion, education and mentor-ing,” said Bert Smith, CEO of PEP.

PEP combines intensive business skill development with stringent character building. The broad business cur-riculum covers professional writing; written and oral pre-sentations; accounting and financial analysis; sales andmarketing; interviewing; computer literacy; personalfinance; and business etiquette. The program’s 10 drivingvalues (including Fresh Start Attitude, Innovation, Integrityand Accountability) shape the character-building compo-nents. Each participant gains confidence and self-esteemby conceiving, writing and presenting his own businessplan.

PEP operates within the Cleveland Correctional Centernorth of Houston and maintains reentry support networksin Houston and Dallas. Twenty program staff memberswork with more than 1,300 volunteers each year and anannual budget of $1.5 million, which is all funded throughprivate donations.

One key to success is the involvement of many volun-teers including business owners, entrepreneurs and MBAstudents. Six events are held during each program leadingup to a business plan competition and graduation. Formany inmates, this is the first graduation ceremony inwhich they have participated.

“Green” business plans are not uncommon. The winningbusiness plan of Class 14 in December 2010 was submittedby “John.” His business, Aurora Electrical & Lighting, wouldprovide custom and innovative design, installation and ser-vicing of accent lighting and alternative power sources. Hetold the judges he would implement a “going green” policythat would help his clients reduce their carbon footprints— and differentiate his business. “Clint,” a Class 12 finalist,was a licensed plumber before going to prison. His PEPbusiness plan was to start an irrigation business; he wouldplant a tree in every customer’s yard as a way to give backand help the environment.

A critical part of PEP is its post-release support. Gradu-ates are met at the gate by a PEP graduate and presented aduffle bag of toiletries, clothes and other essentials. Thejust-released graduate is taken to the restaurant of hischoice for his first meal, then to a PEP-managed transition-al home. PEP also provides computer access, help withresumes, job leads, social activities and weekly classes onentrepreneurship and life skills. Many graduates choose tobe paired with mentors. Nearly 100 percent of graduatesfind jobs within 90 days of release. Since inception, gradu-ates have started 75 businesses, 50 of which are still opera-tional despite the economy.

National “Green Focus” Business ModelImagine combining green entrepreneur training,

green job skills training and asset building through individ-ual development accounts (IDAs) to serve inmates,

PEP Class 13 participants listen to speakers at their graduation ceremony on June 11, 2010, and for many this is the first time they haveworn a cap and gown.

ex-offenders and families of the incarcerated. This newnational business model concept was presented at theannual Asset Learning Conference in September 2010,sponsored by the Corporation for Enterprise Development.IDAs are savings programs for low-income individuals, likemost ex-offenders and their families. There are organiza-tions that will match up to $2,000 in personal savings, with$4,000 or more that can be used for a down payment for ahome, training and education or seed money to start abusiness.

IDAs, with accompanying financial literacy training andcounseling, have emerged as valuable tools for supportingasset building among low- to moderate-income households.Small business development using entrepreneurial trainingstrategies has also demonstrated relevance to enablinglow- to moderate-income households achieve greater eco-nomic self-sufficiency. This business model would empha-size green business development, but the program wouldbe applicable to other types of businesses.

With recidivism rates continuing to escalate, the growthin consumer interest and commercial opportunities ingreen business presents ex-offenders with opportunities tochart new paths. Accordingly, this conceptual model wouldcombine elements of success from all three programmaticareas to test enhanced synergy among them. The UnitedWay of the Bluegrass was awarded $1 million for an IDAprogram that will include ex-offenders in their targetgroups to serve. The United Way will provide up to 85 individuals/families each year for five years with a $4,000match to their $2,000 in savings.

Green Job Skills TrainingThe Clean Energy Economy: Repowering Jobs, Businesses

and Investments Across America is a groundbreaking analy-sis and report issued by The Pew Charitable Trusts. TheJune 2009 report reveals that “jobs and businesses in theemerging clean energy economy have grown at a faster ratethan U.S. jobs overall.” The report gave strong support forjobs in this modern arena based upon the conclusion thatthis industry is “poised for even greater growth, driven byincreasing consumer demand, venture capital infusions byinvestors eager to capitalize on new market opportunities,and policy reforms by federal and state lawmakers seekingto spur America’s fiscal recovery, reduce our dependenceon foreign oil and protect the environment.”

According to the report, examples of low- and moderate-skilled green jobs that can be included in training inmatesand ex-offenders in green job skills are:

• Weatherization;• Building retrofit component parts;• Manufacturing;• Landscaping;• Solar panel assembly and installation;• Plumbing and electrical helpers and apprentices; and• Cleaning business using environmentally friendly

products.

The green corrections team at the University of Kentucky is working toward a pilot program that wouldinvolve a state correctional facility in Kentucky. The

proposed project would focus on designing and retrofittingstate correctional facilities in a manner that would promotesustainability-oriented advances in energy, water and agricul-ture within the prison site. This program also seeks to devel-op an offender green collar jobs training program on site thatwould allow inmates to gain green building and maintenanceskills that can be employed both during their incarcerationand upon their return to the community. The university teamincludes teachers, administrators and researchers withexpertise in passive and active solar architecture, energy effi-ciency and resource conservation, training program develop-ment and sustainable agricultural practices.

Recently, Henkels & McCoy, one of the largest privatelyheld engineering, project management, construction andtraining firms in the United States, was granted a substantialmonetary award by the Central Ohio Workforce InvestmentCorp. to design and implement the Re-entry/Universal Customer Access Center. This will allow the firm to providetraining services as well as core and intensive services to thereentry population, their families and the at-risk, dislocatedcommunity at large. The universal customer component hasthe ability to act as a diversion program for those who are on the path to incarceration, or are still facing the multiplebarriers against them as an ex-offender, by engaging, support-ing and training them to be fierce competitors in the labormarket. Sustainable Business Ventures will be working withHenkels & McCoy to roll out this program April 4, 2011, inColumbus, Ohio, and leveraging monies awarded to raiseadditional funds to implement more comprehensive in-prisonentrepreneur training programs that focus on community-based models.

In conclusion, transcending poverty through businessstart-up and development has a demonstrated success assist-ing the hard-to-employ individuals such as welfare recipients,people with disabilities, immigrants and refugees — and ex-offenders returning to their families and communities aftera term of imprisonment.

Bobby Clark is the founder and president of SustainableBusiness Ventures, a nonprofit training company. Kim Potter-Blair is the deputy commissioner of support servicesfor the Kentucky Department of Corrections.

Reprinted with permission of the American Correctional Association, Alexandria, Va.

Prison Entrepreneurship Program CEO Bert Smith (left) andBlackburn Correctional Complex (Lexington, Ky.) Warden DonBottom (right) between sessions at the Business Plan Competitionheld at the Cleveland Unit north of Houston June 10-11, 2010.