
You are passionate about building your microbusiness ecosystem and are ready to launch programs or bring in outside resources to help. There's just one problem - funding.
You are not alone. One of the biggest challenges community leaders face is funding your projects and initiatives. This week, Leigh Ann Brown, SmartStart Director of Next Steps, shares three creative funding models that she has seen work in her experience as a Main Street Director, EDC CEO, and Chamber of Commerce Director. These can help you provide valuable microbusiness resources while keeping your budget manageable.
Member-Based Funding (The “Dollar-a-Week” Model)
This model is ideal for organizations with a membership base. Small contributions can add up quickly and allow members to directly invest in the local entrepreneurial ecosystem.
How It Works: Ask each member to contribute a small monthly fee, such as $4 per month (just $1 per week).
Example: If you have 100 members, this would generate $4,800 annually, which could be used to fund programs like SmartStart.
Benefits: This method keeps the contribution minimal for each member while collectively providing substantial support for entrepreneurial initiatives.
Workshop Sponsorship
Our SmartStart monthly workshops provide hands-on, practical education for entrepreneurs. We have found that local businesses are often willing to sponsor these types of events to gain exposure and support their community.
How It Works: Secure sponsorship from local businesses for each workshop you host. Feature that sponsor in social media and print related to the workshop. You can even create a "workshop sponsor" section on your webpage.
Example: Hosting 10 workshops a year at $200 per event from local sponsors would raise $2,000.
Benefits: Businesses benefit from increased visibility and engagement with entrepreneurs, while the community gains access to valuable educational resources.
Leveraging Local Businesses for Support
Many local businesses and corporations, from financial institutions to utility companies, are eager to invest in community development, especially when they can serve as a lead sponsor for impactful programs.
How It Works: Approach local businesses to become lead sponsors or top-tier members in your entrepreneurial initiatives. Financial institutions, major employers, and utility companies often have community development budgets available.
Example: A single lead sponsor can fund half or even the entirety of a program like SmartStart, in exchange for visibility, branding opportunities, and the chance to support local business growth.
Benefits: This model allows you to tap into existing business resources, ensuring sustainability while building stronger ties between local entrepreneurs and established businesses.
The need to support microbusinesses in your community is clear, but finding the budget shouldn’t be a roadblock. These creative funding models are practical, community-focused solutions that can make a significant impact without overwhelming your financial resources.
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