Virginia Enterprise Initiative
Entrepreneurship Assistance

Announcement: The Virginia Enterprise Initiative is now accepting grant proposals for Innovation and Planning Grants.

Planning Grants are for Micro-Enterprise Development Organizations looking to expand their services. The maximum funds available for a Planning Grant are $10,000.

Innovation Grants are for Micro-Enterprise Development Organizations that are or will be providing innovative services, such as:

Reaching new clients.
Providing service with a method that is new to Virginia
Leveraging innovative partnerships
Providing service to areas not currently part of the VEI network
Developing market specific strategies

The maximum Innovation Grant amount is $5,250. For both grants, this cover sheet must be included. Innovation grants must also complete Section II. Planning Grant applicants should attach a short (no more than three pages) letter to the cover sheet.

Both grants will evaluated independently on their merit. Grant funds will be available until exhausted.

Application Cover Sheet >> DOC
VEI Innovation Announcement 2009 >> PDF

Mission: The Virginia Enterprise Initiative provides an opportunity for underserved entrepreneurs to start and expand businesses through increased access to micro-business training and credit.
The Virginia Enterprise Initiative (VEI) started in 1995 to provide economic opportunity to individuals in Virginia who have a desire for entrepreneurship but have not typically had access to entrepreneurial resources such as credit, capital, training and technical support.  These individuals often have limited income streams.  VEI supports nonprofit organizations that specialize in providing this direct service to these Virginians.

Nationally, micro-enterprise assistance has taken an ever increasing role in economic and community development strategies.  This growth is due to the realization that the skills and potential contributions of many disadvantaged businesspeople have been overlooked. Barriers to entry for these potential entrepreneurs have included lack of access to appropriate training, assistance, and credit.

As part of the Virginia Department of Housing and Community Development (DHCD), VEI assists the larger community and economic development strategies of supporting entrepreneurship and facilitating asset-based development.

VEI promotes “economic gardening” as a strategy for community economic development that focuses on fostering growth from within the community.  This strategy to foster entrepreneurship is meant as a complement to larger industrial and business development, as it is not possible for all localities to attract industry.  Even in those areas that are able to attract larger industry, many potential entrepreneurs possess talents that are better suited to micro-business and innovation, as is especially often seen in individuals who are recent arrivals from countries that may have smaller industrial bases but have strong entrepreneurial traditions.

The process of economic gardening assists local entrepreneurs while diversifying the local economy.  This diversification builds a wider base of economic activity, leaving the overall community economic climate less vulnerable to sector based downturns.

For more information contact Jeff Sadler at: (804) 371-7040 or jeff.sadler@dhcd.virginia.gov.

VEI for Entrepreneurs:
The VEI program promotes microbusiness development by providing an opportunity for low-income individuals, women and minority entrepreneurs to gain business skills training and access to credit. VEI supports Virginia’s microbusiness entrepreneurs by funding nine sites across the commonwealth that offer:

• Training (Business Plan Development Training and Business Skills Training)
  The VEI site will assess the needs of a client and will direct him/her toward appropriate training (business skills training or business plan development training). Training is customized for each individual and must be affordable for disadvantaged populations.
• Business Plan Development Training
  Through multi-day sessions, business principles are covered by qualified trainers with expertise in microenterprise development. Entrepreneurs are provided with a foundation of the skills needed to operate a business through a series of sessions covering a range of topics including bookkeeping, marketing, finance, insurance and staffing.  At the conclusion of the scheduled courses, the entrepreneur will have a completed business plan, will be ready for additional technical assistance, and/or will be prepared to request a microloan.
• Business Skills Training
  Single-session group trainings are offered to entrepreneurs covering specific topics such as marketing, finance, or personnel development. This training assists an entrepreneur who may be in the nascent stage of a business idea, and may only be interested in a specific topic, or an entrepreneur who may have a business plan in place but needs additional exposure to a particular topic.
• One-on-One Technical Assistance
  Once instruction is completed, participants will need to evaluate their business concept. This is done with counseling from the microenterprise program that guides the entrepreneur through the business planning process. If the concept proves to be feasible, the entrepreneur will be assisted in preparing documents to package a loan proposal.
• Microloans
  Microloans are provided to participants in a microenterprise program to finance their business. The amount of an individual microloan cannot exceed $35,000. Typically, microloans range from $3,000 to $10,000. Loan approval and repayment terms are decided by each VEI site’s loan review committee, which includes program staff, bank partners, and interested citizens from the community.
• Follow-up Assistance
  There are many challenges that face microbusinesses, especially those just starting. Microenterprise programs must continue assistance to its participants once they are in business. Follow-up assistance must be conducted on a regular basis and be responsive to the immediate needs of the entrepreneur.

For more information, contact VEI at (804) 371-7030 or find a VEI program site in your area. 

Related Links

• VEI Sites
• VEI 2008 Program Design

Forms