Real-life Business
K. Michael Mathews
 Social
and economic justice, to combat poverty, and fair opportunity—just
some of the reasons why Saint Rose assistant professor of management K.
Michael Mathews got himself and his students involved in a real-life
case study. Unlike the studies that the students
in his “New Business Ventures and the Entrepreneur” class are
used to reading about in textbooks, these cases seem more complex and
are much closer to home. Perhaps that’s why this grassroots partnership
has been so rewarding.
As a volunteer with the Capital District Community Loan
Fund (CDCLF), located in Albany’s Arbor Hill neighborhood, Mathews
offers technical assistance for the microenterprise lending program,
which provides capital to low-income and disadvantaged people so they
and their communities can build economic self-sufficiency through small
business.
“Too many people make the assumption that microentrepreneur
means limited intelligence. That is not the case,” Mathews said.
In order to be considered for a microentrepreneurial loan,
the potential business owner must demonstrate adequate business knowledge
and experience. Clients often turn to the CDCLF when they are unable
to obtain credit from conventional sources such as banks. Louise McNeilly,
a resource coordinator with the CDCLF, is quick to add that clients
need not be low-income persons to qualify for a loan; they may be people
of middle income who will open a business in a low-income community
and hire low-income employees.
“The businesses that we want to succeed are businesses
that need a lot of help,” McNeilly said. “But they are businesses
that can make a big difference in a community.”
The CDCLF was founded in 1985 by citizens who were working
with neighborhood housing groups. The lending began with not-for-profit
businesses and progressed to microentrereneurs only six years ago. The
CDCLF is a federally certified community development financial institution
that runs on capital supplied by more than 250 investors. Since its inception,
the lending pool has grown to nearly $4.5 million loaned and donated by
investors who comprise one-third each individuals, faith-based groups,
and corporations and banks. Donations from investors have been as minimal
as $50 and as large as $250,000.
The CDCLF’s successful 15-year track record includes
timely repayments to investors and a 100 percent repayment rate to lenders.
In addition, more than $7.5 million has been loaned to more than 200
groups and individuals in the 11-county Capital Region leveraging more
than $35 million.
“The success of our clients shows that there is a
different kind of economy that works,” McNeilly said.
 Part
of that success can be attributed to the efforts of Mathews and his
students. With training and skills in strategic planning and entrepreneurship
and having been a successful small-business owner himself, Mathews enjoys
sharing his practical business experience with the CDCLF clients. Nearly
two years ago, Mathews began teaming up his students with individual
clients of the CDCLF as a course project wherein they offered technical
assistance to the clients by giving them guidance on their business
plans. Mathews admits that his students are sometimes overwhelmed by
the complexity of the project, but that they enjoy the challenge and
feel as though the hands-on training they receive is invaluable. According
to Paul Stewart, a loan officer for the CDCLF, the clients are grateful
for the assistance they received from Mathews’ students and they
appreciate having a sense of advocacy in the program. This year, Mathews’
“New Business Ventures” class will create business plans for
the Interfaith Partnership for the Homeless, a not-for-profit agency
located in Albany.
In addition to providing assistance from his students,
Mathews also has helped create for the CDCLF a six-week training session
on business planning for people interested in starting or expanding
a small business, as well as an intensive, one-day, hands-on course.
Offered by the CDCLF, the courses are held at The College of Saint Rose
for a small fee and with free parking and refreshments. Mathews recruits
his colleagues, including Saint Rose business faculty member Stacey
Barlow Hills, to volunteer their time and experience for potential clients
of the CDCLF.
“The faculty members who have been participating
with the program have been just tremendous,” Stewart said.
“What I like to see is someone who starts out on
a shoestring and then is able to transition to a traditional lender,”
Mathews said.
Stewart concurs, “It’s really exciting to see
someone go through the program and move through the paces to the point
where he can provide jobs for other people.”
|
