Entrepreneurship Initiative Approved Projects: Virginia

PROJECT: Appalachian Sustainable Development Alliance
GRANTEE: Appalachian Sustainable Development

Purpose: This activity will support the efforts of the applicant to provide assistance to entrepreneurs focusing on high value organic and other sustainable agriculture products.

Funding:

ARC:	$50,340
Other Federal:	$18,800
State:	$63,815
Local:	$0
Total:	$132,955

Description: Appalachian Sustainable Development (formerly Clinch-Powell Sustainable Development Initiative) undertook a series of activities to support entrepreneurs focusing on high value organic and other sustainable agriculture products. During the grant period, the grantee involved 15–20 tobacco farmers and 12–20 other growers in a grower's network to sell fresh produce, mostly organic fruits and vegetables, to mid-sized regional grocery chains. The grantee held several outreach meetings and technical assistance workshops to encourage farmer participation, leveraging the support of Cooperative Extension and Virginia Tech. Sales contracts have been established with Ukrops, a chain of 28 stores in the Richmond Market, and Whole Foods DC regional stores, the largest natural foods chain in the nation. The grantee has also developed and marketed products under the Appalachian Harvest brand. An Appalachian Harvest Growers manual was produced and other point-of-purchase materials supporting the Appalachian Harvest brand are being introduced. Farmer interest in business planning activities and training courses has been limited.

PROJECT: Appalachian Sustainable Wood Products Processing Center
GRANTEE: Appalachian Sustainable Development

Purpose: To support the development of value-added wood product businesses in Appalachian Virginia.

Funding:

ARC:	$47,500
Other Federal:	$147,000
State:	$0
Local:	$149,500
Total:	$344,000

Description: ARC funds were used to develop a primary processing center for sustainable wood products in southwest Virginia. The processing of lumber harvested through sustainable methods enables local wood product entrepreneurs to expand their businesses and produce sustainable, harvested products. The grantee completed land-owner forest stewardship plans for three landowners, and purchased 70,000 bd. ft. of sustainably harvested logs, which was delivered to the primary processing site. Dry kiln construction is underway. The grantee contracted with a lumber broker to develop a database of 53 wood products manufacturers in the region; potential customers for the dried lumber. And the grantee adopted Standards of Sustainable Forest Management, which will be used to develop a harvesting certification system for landowners. Two new jobs and one new business were created as a result of these activities.

PROJECT: Appalachian Sustainable Development Market Development Program
GRANTEE: Appalachian Sustainable Development

Purpose: To continue the Sustainable Woods Initiative, a multi-phase wood products program dedicated to develop eco-friendly, value-added firms.

Funding:

ARC:	$29,200
Other Federal:	$35,000
State:	$20,000
Local:	$68,100
Total:	$152,300

Description: Appalachian Sustainable Development (ASD) will continue its multi-phase program to develop eco-friendly, value-added, wood product firms in the target region through the Sustainable Woods initiative. The current project is designed to build a market presence for Sustainable Woods products in two or three targeted communities. The major activities planned to accomplish this goal are: 1) Complete an analysis of potential target communities. 2) Conduct a series of presentations and seminars to stimulate interest in and demand for sustainably sourced wood products. 3) Construct and install sample product displays in targeted communities. 4) Secure business partners for manufacturing, sales and utilization of Sustainable Woods. 5) Complete 2 major demonstration projects utilizing Sustainable Woods. 6) Conduct market analysis and test marketing for "natural landscape" materials, utilizing chips, bark, and locust or cedar wood products. Projected outcomes include the involvement of 120 participants, the creation of 2 new businesses, and the creation of 10 new jobs. Additionally, the grantee will serve 47 businesses.

PROJECT: Appalachian Sustainable Wood Products Processing Center, Phase II
GRANTEE: Appalachian Sustainable Development (ASD)

Purpose: To expand and create entrepreneurial opportunities in the eco-friendly value-added wood products sector.

Funding:

ARC:	$60,000
Other Federal:	$0
State:	$o
Local:	$27,100
Total:	$87,100

Description: The grantee will continue its five-part program to develop eco-friendly value-added woods products firms in the target region. In year one activities, ASD produced 20,000 board feet of sustainably harvested and processed lumber, identified over 30 landowners interested in using sustainable forestry principles on their timberland, involved over 150 people in a series of 5 workshops and demonstrations. The current project will provide additional lumber from local sources to local value added producers, and expand the use of sustainable timber harvesting practices. A set of Standards for Sustainable Forestry Management will be implemented and tested on the ground. The Primary Processing Center (sawmill and dry kiln) will be completed and research and development of markets for sustainably harvested lumber will continue. Projected outcomes include the expansion of the pool of environmentally sustainable logging firms in the region from two to four, the creation of at least one full time job.

PROJECT: Appalachian Value Added Marketing Project
GRANTEE: Appalachian Sustainable Development

Purpose: To support the development of value added agricultural businesses in Southwest Virginia and Northeast Tennessee.

Funding:

ARC:	$36,000
Other Federal:	$12,670
State:	$0
Local:	$25,137
Total:	$73,807

Description: The Clinch Powell Sustainable Development Initiative (CPSDI), in partnership with community based organizations and Virginia Cooperative Extension, identifies and develops markets for high value agricultural products produced in the region. In order to create viable alternatives for tobacco, beef, and traditional agricultural crops, small farmers must have not only profitable crops, but also strong market linkages and a physical and institutional infrastructure to support growing alternative crops and value added processing. The grantee currently: gathers market information about high-value opportunities for Appalachian products, develops links to commercial and institutional buyers interested in sustainably raised products, identifies value-added processing needs and purchases needed equipment, and educates and trains entrepreneurs in equipment and regulatory issues related to value added food production.

Completed outcomes of the project for the grant period include an entrepreneurial assessment was completed which identified 300 individuals with an expressed interest in producing value-added food products and a more focused group of approximately 60 entrepreneurs who had high potential for developing commercial food products. Additionally, a commercial kitchen was established and certified and a 10,000 household food preference survey was completed which indicates a significant interest in locally produced organic and sustainable agriculture products in the region. In addition, an Appalachian Harvest label and marketing promotion program was initiated, and locally produced products were distributed in 7 grocery stores, with plans for expanding to 10 stores in the fall. Finally, 17 farmers obtained organic certification for their land, and 108 persons attended 4 sustainable production and marketing workshops.

PROJECT: Assessment/Strategic Planning Study of Microenterprise in Appalachia
GRANTEE: Association for Enterprise Opportunity

Purpose: This activity will provide recommendations to support development finance entities throughout Appalachia

Funding:

ARC:	$24,762
Other Federal:	$0
State:	$0
Local:	$0
Total:	$24,762

Description: The contractor will undertake a stake holder analysis through a series of roundtable discussions, focus groups, and mailed surveys with microenterprise practitioners in Appalachia to determine ways to support these important local service providers. The project will help lay the groundwork for the development of effective regional microenterprise organizations in Appalachia, and identify regional leveraging opportunities with public, private and non-profit partners. A strategic vision for regional microenterprise organizations will be developed, in partnership with Appalachian constituents, to improve the performance and stability of local service providers. Projected outputs include the participation of 15 people in four focus groups, for a total of 60 participants, in addition the preparation of a strategy document.

PROJECT: Building Microenterprise Capacity in Distressed Appalachian Counties
GRANTEE: Association for Enterprise Opportunity

Purpose: To build microenterprise capacity in distressed Appalachian counties.

Funding:

ARC:	$40,000
Other Federal:	$0
State:	$0
Local:	$33,168
Total:	$73,168

Description: The grantee helped create new state microenterprise associations in AL, WV, and MS. The Alabama Microenterprise Network (AMEN) was formed and has held four meetings over the grant period, has incorporated, formed a board of directors, and adopted by-laws. AMEN has 12 member organizations. The WV Microenterprise Development Association (WV MEDA) has held three organizational meetings, approved bylaws, nominated board members, and held one training workshop. MEDA has 15 participating organizations. The Mississippi Micro Enterprise Association Network (MMEAN) has held five meetings including one founding training conference, set membership fees, and established a fiscal agent. MMEAN has 18 members. All of these state associations have received matching local financial support for their efforts. In Kentucky, the existing Kentucky Association of Micro Enterprise Practitioners (KAMEP) strengthened their organization by selecting a new lead organization to manage the association and is developing a new membership application and fee structure.

PROJECT: Business Assistance for Small Business Entrepreneurs
GRANTEE: Town of Narrows, Virginia

Purpose: To increase the number of small businesses that operate within the community and to create jobs in the community.

Funding:

ARC:	$36,575
Other Federal:	$0
State:	$0
Local:	$36,159
Total:	$72,734

Description: The Giles Business Incubator (GBI) provides training and technical assistance to entrepreneurs and existing businesses, covering a range of topics, including: financing; marketing; management; and business plan preparation. A business plan for the incubator, the GBI has been developed by the Town of Narrows as a tool for expanding and diversifying the economy of Giles County. To better serve its mission and move towards sustainability GBI offers its services to entrepreneurs outside of the incubator facility.

Completed outcomes of the project for the grant period include the graduation of one incubator tenant. Additionally, the incubator has completed a business plan that indicates that the facility can not become self-sustaining, and is approaching the county for continuing funding. Seven training seminars were held involving 31 participants. Classes covered a range of topics including business basics and stress management and were co-sponsored by the local Small Business Development Center. 38 entrepreneurs were provided with direct technical assistance by incubator staff, including help with business planning, marketing, and financial structuring. Of these, 10 were existing entrepreneurs and 28 were considering starting businesses. Of the latter group, 11 became business owners. Finally, 13 new jobs and 11 new businesses were created as a result of these activities.

PROJECT: Carroll County Public School Springboard Award
GRANTEE: Carroll County Public School

Purpose: To recognize outstanding youth entrepreneurship education programs.

Funding:

ARC:	$2,000
Other Federal:	$0
State:	$0
Local:	$0
Total:	$2,000

Description: The Appalachian Regional Commission (ARC), in partnership with the U.S. Department of Education, developed the Appalachian Youth Entrepreneurship Education 'springboard" Awards competition to recognize outstanding youth entrepreneurship education programs. Youth education programs -- targeted to rural areas -- often serve as a 'springboard" for Appalachian residents to launch their own businesses, creating jobs in their communities, and further diversifying and strengthening the Region's economy. Six awards were provided to the best youth entrepreneurship education programs in Appalachia. Finalists have been recommended by an independent review panel, and were selected by ARC to each receive a $2,000 grant award. The grant awards will enable the winning teachers to support continued work in youth entrepreneurship, and the school or parent organization has received a commemorative plaque. A teacher and a selected student from each finalist received these awards in Washington, DC at the March 17, 2003 Annual Meeting of the Development Districts Association of Appalachia.

PROJECT: Center for Entrepreneurial Leadership
GRANTEE: The University of Virginia College at Wise

Purpose: To develop an entrepreneurship education program at the college.

Funding:

ARC:	$40,000
Other Federal:	$0
State:	$0
Local:	$49,040
Total:	$89,040

Description: The grantee develop coursework, training, and experiential education in entrepreneurship for students, as well as training programs for local businesses. The College at Wise will develop a two-year Certificate of Entrepreneurship program, which expects to enroll 12 students in the first year of activities, and develop a student run business. Technical assistance will be provided by students and faculty to 4 local businesses, and 20 business owners are projected to participate in on-going training programs at the College.

PROJECT: Clinch Valley Forest Bank
GRANTEE: The Nature Conservancy

Purpose: To support the start-up of a Forest Bank to promote sustainable forest practices and value added processing in the region.

Funding:

ARC:	$96,795
Other Federal:	$0
State:	$0
Local:	$646,230
Total:	$743,025

Description: The Clinch Valley Forest Bank provides both a source of sustainably harvested timber for value added manufacturers in the region and ensures that landowners will not be pressured by market forces to prematurely harvest or clear cut their land. The Forest Bank purchases the 'timber rights' of a property, but not the underlying land, and provides a payment to the landowner based on the projected future value of the harvestable timber. The grantee has raised operating and reserve funds in excess of $2,000,000 for the Forest Bank, opened an office in Appalachian Virginia, secured a private letter ruling from the IRS to clarify the tax consequences of Forest Bank investments to investors, completed registration with the SEC, and developed marketing materials for the program. The grantee has delivered investment prospectus on the Forest Bank to landowners representing 10,000 acres, and has signed an agreement with a private landowner to deposit the first 5,000 acres of land in the Forest Bank. The grantee has also developed an Operations Manual to govern sustainable management of Forest Bank lands in central Appalachia.

PROJECT: Clintwood Heritage & Cultural Tourism
GRANTEE: Clintwood, Town of

Purpose: To create an awards program for local development districts.

Funding:

ARC:	$30,000
Other Federal:	$0
State:	$0
Local:	$7,500
Total:	$37,500

Description: The Town of Clintwood, with the assistance of Heart of Appalachia Tourism Authority, Dickenson County and Cumberland Plateau PDC, procured the services of consultant Design Minds of Norton, VA to initiate the Exhibit Design Services for the Ralph Stanley Museum and Traditional Mountain Music Center in Jan. 2003. The consultant has advised the grantee regarding Programming, Visitors' Museum Experience, Collection & Inventory, and Next Steps for the project. The firm has completed the Concept Design Phase including the development of inventory and exhibit design for proposed museum. The completed museum is expected to result in 6-8 new jobs and an increase in tourist visitation by 5 percent per year. Projected outcomes cannot be tracked until after the museum in completed. This project focused on the planning phase.

PROJECT: Coeburn Career Center Crafts Initiative Program
GRANTEE: Wise County Redevelopment and Housing Authority

Purpose: To provide training to low- and moderate-income persons for career opportunities within the growing crafts industry.

Funding:

ARC:	$45,000
Other Federal:	$0
State:	$0
Local:	$77,500
Total:	$122,500

Description: The grantee will provide training to 15 low and moderate income persons for career opportunities in the growing crafts industry. The Coeburn Crafts Initiative will recruit participants for a year-round training program that will focus on the production of high-quality, hand-made craft products. Program participants will learn to create, price and market a variety of items from accomplished crafters. Instruction will also focus on becoming an independent craft entrepreneur. The finished products will be distributed to shows, galleries, craft stores and gift shops in the region. Income from sales will be used to extend and expand the training program.

PROJECT: Computer Assembly and Repair Program
GRANTEE: Wise Skills Center/Wise County School Board

Purpose: To establish a computer repair and assembly program that will prepare people to become computer technicians and prepare them to develop entrepreneurial skills in the information systems field.

Funding:

ARC:	$50,000
Other Federal:	$0
State:	$0
Local:	$13,212
Total:	$63,212

Description: The program offers courses in repair methods, ethics and technician etiquette, computer engineering, and software. Students of the program also receive entrepreneurial training to help them develop their own businesses. The program acts as a vendor to sell both units built by the students and student-provided computer repair services. All program graduates receive program support in obtaining employment in the surrounding area. During the grant period, 21 students were enrolled in the program and 7 graduated. 300 computer units were refurbished or upgraded and a retail sales unit, Light House Computers, was established to provide service to local public agencies.

PROJECT: Creative Marketing Strategies for Food Product Entrepreneurs
GRANTEE: Virginia Polytechnic Institute & State University

Purpose: To assist small food product businesses with product development, design consultation, and marketing expertise that would make it possible for several of them to have products in the Foodways Market of the 2003 Smithsonian Folklife Festival.

Funding:

ARC:	$15,000
Other Federal:	$0
State:	$0
Local:	$7,300
Total:	$22,300

Description: Virginia Cooperative Extension has been providing home-based and microbusiness educational program for over a decade. The proposed project is a natural extension of "Starting a Food Processing Business", a current program for the training and production of value-added food products. The current program is provided by the Virginia Cooperative Extension in partnership with the Dickenson County Career Center. The proposed project would assist small food product businesses with product development, design consultation, and marketing expertise that would make it possible for several of them to have products in the Foodways Market of the 2003 Smithsonian Folklife Festival. Each summer, the Smithsonian Institute presents this extensive festival that draws over a million visitors from around the world. Projected outcomes include the involvement of 12 participants and the creation of 12 new jobs and 7 new businesses. Additionally, the grantee will serve 10 businesses.

PROJECT: Cumberland Regional Food Products Program
GRANTEE: Virginia Polytechnic Institute and State University

Purpose: To support the development of entrepreneurs in the non-timber forest products sector

Funding:

ARC:	$50,000
Other Federal:	$0
State:	$0
Local:	$15,000
Total:	$65,000

Description: The Cumberland Regional Food Products Program will create and implement an entrepreneurial food services training program that will create 30 new businesses and 45 new jobs. The grantee is projected to produce 80 training manuals and provide classroom instruction to local high school and post-secondary entrepreneurs. Instruction will include designing and developing food products, marketing food products, sanitary storage of food products and other business related aspects needed to develop successful food entrepreneurs. The Cumberland Regional Food Products Program also includes a small storage facility for the food service products and classroom equipment.

PROJECT: Entrepreneurship Initiative Planning Grants
GRANTEE: Virginia Department of Housing and Community Development

Purpose: To help Virginia localities and non-profits develop effective entrepreneurship programs.

Funding:

ARC:	$39,856
Other Federal:	$0
State:	$0
Local:	$31,276
Total:	$71,132

Description: Six separate planning efforts for entrepreneurial activities were supported in six different communities: (1) The Wise County Redevelopment and Housing Authority undertook a series of activities to develop a business to construct manufactured homes for low-income and elderly individuals. A business plan was developed for this new product line, a prototype produced, six housing units were completed for sale, and eight persons have been employed from this start-up non-profit business. (2) The University of Virginia at Wise developed a Center for Entrepreneurship, including a curriculum for the Center and a private sector advisory council for the Center. (3) A marketing plan, training, and equipment were purchased for a non-profit glass recycling business in Hurley. (4) The Town of Narrows developed a Housing Construction Youth Training Program. (5) Community Housing Partners engaged in a preliminary process to create a new development finance entity in Southwest Virginia. (6) An action plan for Roanoke Valley Alleghany Regional Commission was completed to analyze the needs of strategic industrial clusters in the community, and to convene industry representatives to pursue an initiative with one identified sector – the packaging industry.

PROJECT: Entrepreneurship Initiative Planning Grants, Phase II
GRANTEE: Virginia Department of Housing & Community Development

Purpose: To help Wise County develop an effective entrepreneurship program.

Funding:

ARC:	$30,000
Other Federal:	$0
State:	$0
Local:	$7,500
Total:	$37,000

PROJECT: Entrepreneurship Initiative Planning Grants, Phase III
GRANTEE: Virginia Department of Housing & Community Development

Purpose: To help five organizations to undertake regional entrepreneurial activities.

Funding:

ARC:	$31,000
Other Federal:	$5,000
State:	$25,664
Local:	$61,664
Total:	$

Description: The Virginia Department of Housing and Community Development will provide planning support to five organizations to complete crucial activities/planning in preparation for implementing entrepreneurial programs in their communities. These organizations have histories of providing important benefits to the people of Appalachian Virginia through activities in support of housing, infrastructure, economic development, and education. The investment of ARC Entrepreneurship Initiative funding in planning for these five efforts will result in better future investment prospects for Entrepreneurship Initiative implementation funding.

PROJECT: Highland County Entrepreneurial Development
GRANTEE: The Highland Center

Purpose: To support the development of entrepreneurial enterprises in the region.

Funding:

ARC:	$49,998
Other Federal:	$0
State:	$0
Local:	$50,002
Total:	$100,000

Description: The Highland Country Market project entailed renovating and equipping an existing facility to become a certified commercial incubator kitchen, and improving staging areas for an existing farmer's market. These two activities were linked through a program to identify and assist local farmers and food producers in preparing and marketing their goods. During the grant period, grantee helped create two new businesses and 9 new jobs during the project period. The farmers market has seen steadily increasing sales, the upfit of the kitchen incubator is progressing effectively, and 23 persons were involved in business development workshops and trainings. Efforts have focused on knitwear, sheep and wool products, and value added food products. Additionally, a policy workshop on growing small businesses attracted 14 community leaders.

PROJECT: Highland County Entrepreneurial Development, Phase II
GRANTEE: The Highland Center

Purpose: To create an Incubator Business Work-Center that will provide new and start-up businesses with space to develop.

Funding:

ARC:	$23,902
Other Federal:	$8,540
State:	$0
Local:	$15,362
Total:	$47,804

Description: Located in Highland County, Virginia, the Highland Center has created an Incubator Business Work-Center (IBWC). The IBWC includes a resource library, workstations and a conference area that allows area entrepreneurs to receive on-site counseling by a Small Business Development Center counselor and local business persons. The IBWC also provides business workshops tailored to the requests of local entrepreneurs. The Center has helped start two new businesses and retain 5 jobs. A series of six business workshops were held, involving 79 persons. Two of these workshops focused on youth entrepreneurship. Technical assistance was provided to businesses by four different partner institutions, and the incubator completed development of its Workcenter. The Center will continue activities of the incubator with support from other funders.

PROJECT: Highland County Entrepreneurial Development, Phase III
GRANTEE: The Highland Center

Purpose: To expand technical assistance for business formation and retention.

Funding:

ARC:	$30,750
Other Federal:	$0
State:	$0
Local:	$30,914
Total:	$61,664

Description: The Highland Center has expanded its activities by providing training workshops, technical assistance, youth entrepreneurship programming and expanding the resource center at the ARC-supported kitchen incubator. The Center also partners with the Small Business Development Center, SCORE, the Education and Training Corporation, and the Virginia Employment Commission in providing services to clients. During the grant year, the grantee provided training and counseling to 111 persons. Nine entrepreneurs utilized the kitchen incubator, and three new businesses were started creating four new jobs.

PROJECT: Lonesome Pine Youth Entrepreneurship Program
GRANTEE: Lonesome Pine Office on Youth

Purpose: To promote entrepreneurship among youth.

Funding:

ARC:	$25,000
Other Federal:	$0
State:	$0
Local:	$26,900
Total:	$51,900

Description: The Lonesome Pine Office on Youth trained teachers in REAL Enterprise curriculum and established a school-based enterprise at a 115 year-old mill in Scott County. During the grant year, youth worked to stabilize, repair and clean the dam at the mill pond and millrace. A Fall Festival was held at the mill, which featured many local crafts and products, including locally milled corn meal. Students also opened a local store at the mill on weekends prior to Christmas to sell local craft and food items, including the corn meal. Students also designed a marketing web site for the product, designed a marketing logo, and 35 youth received entrepreneurship training.

PROJECT: Lonesome Pine Youth Entrepreneurship Program, Phase II
GRANTEE: Lonesome Pine Office on Youth

Purpose: To continue to promote entrepreneurship among youth.

Funding:

ARC:	$25,000
Other Federal:	$5,000
State:	$0
Local:	$20,000
Total:	$50,000

Description: The Lonesome Pine Office on Youth, in collaboration with other organizations, will continue to develop the award winning School-Based Enterprise (SBE) at the 116-year old Bush Mill in Scott County. An active advisory board will begin taking the leadership role in maintaining, developing and sustaining this SBE and developing its potential as a major tourist destination, including tours of the mill and the country store. The Nickelsville Ruritan Club will provide oversight, coordination, collaboration and sustainability for the long-term success of the Bush Mill Project. Completed outcomes to date of this project include the certification of 2 teachers in the REAL curriculum and the participation of over 20 students in the formation and operation of the SBE. During the upcoming grant year, the grantee projects that 15 youths will be involved in the school-based enterprise and 15 youths will be employed part-time.

PROJECT: Mapping and Remote Sensing Training
GRANTEE: Wise DEVELOP - Wise County Circuit Court

Purpose: To produce a Geographic Information System (GIS), Global Positioning System (GPS), and remote sensing virtual reality database that will facilitate the easy dissemination of information to the constituents of Wise County

Funding:

ARC:	$25,000
Other Federal:	$25,000
State:	$0
Local:	$0
Total:	$50,000

Description: The project will produce a Geographic Information System (GIS), Global Positioning System (GPS), and remote sensing virtual reality database that will facilitate the easy dissemination of information to the constituents of Wise County; resulting in 1 new business and 3 new jobs. The grantee will train adults in the use of GIS and other types of software, facilitate assistance to governmental agencies in the collection and visual display of GIS and remote sensing data, and provide community outreach to encourage more wide spread use of GIS and remote sensing. ARC funds will be used to pay for the software training costs. Output measurements include 20 participants and 10 certified GIS professionals. In addition to ARC funds, NASA will provide $25,000

PROJECT: Mountain Empire Regional Business Incubator Serving LENOWISCO
GRANTEE: Mountain Empire Regional Business Incubator, Inc.

Purpose: To initiate the operation of a business incubator located in Duffield, Virginia.

Funding:

ARC:	$32,206
Other Federal:	$0
State:	$26,500
Local:	$24,500
Total:	$83,206

Description: A 46,000 sq. ft. business incubator was opened to serve a variety of industries including light manufacturing, distribution, research and development and services firms. During the grant period, 8 classes involving 115 persons were held on topics related to business development. 95 businesses were provided technical assistance by incubator staff. Three tenants have located in the incubator facility, resulting in the creation of 16 new jobs and the retention of 9 jobs. The three new businesses include a software firm, a construction firm, and a farmers market. It is estimated that 27 jobs were created outside the facility as the result of these activities. The incubator will continue its activities with state support, and is actively seeking to develop a regional incubator network to share staff and technical support services.

PROJECT: New River Valley Rural Crafters Network
GRANTEE: Beans And Rice, Inc.

Purpose: To create a regional network of crafters and to provide remote crafters with an outlet to the I-81 corridor for sale of their crafts.

Funding:

ARC:	$15,000
Other Federal:	$0
State:	$0
Local:	$15,000
Total:	$30,000

Description: The project will create a regional network of crafters and provide remote crafters with an outlet to the I-81 corridor for sale of their crafts in Floyd, Giles, Montgomery, and Pulaski Counties, resulting in 1 new business and 5 new jobs. This project will: 1) develop a location for the craft outlet; 2) develop a network of crafters and regional entrepreneurial groups who will be potential vendors; 3) develop local entrepreneurial projects in the New River Valley in conjunction with ongoing economic development activities, 4) coordinate the work of the network and the craft outlet with ongoing tourism efforts in Southwest Virginia and the Allegheny Highlands; and 5) develop a business plan and website for the craft outlet.

PROJECT: People Inc. Appalachian Partnership Project
GRANTEE: People Inc. of Southwest Virginia

Purpose: To increase the number of small businesses that operate within the community and to create jobs in the community.

Funding:

ARC:	$45,000
Other Federal:	$0
State:	$0
Local:	$80,853
Total:	$125,853

Description: This project connects Appalachian craft producers with outside buyers through a network marketing strategy among faith-based communities. Marketing staff contacts networks of churches to identify organizations interested in purchasing gift and craft products. The project expands the work of Appalmade, which has been taking the work of local craft producers to wholesale markets for the past three years. Through this project, Appalachian artisans also have access to financial resources and business training through People Inc's BusinessStart loan program. They also have access to technical resources through the Appalmade program, including design and production training, marketing services and purchase order fulfillment services. During the grant period, 60 women were trained through this program, and 111 new craft products were designed. $30,000 in sales were achieved from 45 crafters who shipped products to 100 churches. 30 of these crafters were new to the program, resulting in the creation of 30 new part-time jobs/businesses. The grantee has seen sales through this market channel double over the course of the project, and will continue to pursue this strategy.

PROJECT: People Inc. Appalmade Crafter Development Project
GRANTEE: People Incorporated of Southwest Virginia

Purpose: To provide training that will expand the skills of home-based craft workers.

Funding:

ARC:	$31,613
Other Federal:	$14,481
State:	$20,528
Local:	$69,198
Total:	$135,820

Description: People Incorporated of Southwest Virginia provides training that expands the skills of home-based craft workers based in Southwest Virginia. The grantee helps crafters upgrade the overall quality of craft production, trains crafters to produce more marketable crafts and provides training in business practices for those who want to sell to wholesale distributors. Appalmade designed new products for two different wholesale seasons, and updated products for two church marketing programs. These designs included more then 80 products in the wholesale line and 30 in the church line. The designer worker with 40 crafters to train them in production techniques. Several group training sessions on specialty craft production were also held, involving 39 persons. Wholesale orders taken in 2001 were almost $50,000. In addition, Appalmade moved into a new retail showroom in Abingdon, VA. Project activities will continue with support from several private foundations.

PROJECT: People Inc. Southwest Appalachian Community Ventures
GRANTEE: Southwest VA Community Development Financing, Inc. (d/b/a People Inc.)

Purpose: To support the creation of a community development venture capital fund for Southwest Virginia.

Funding:

ARC:	$125,000
Other Federal:	$0
State:	$0
Local:	$96,361
Total:	$221,361

Description: People Inc. has an established lending history, providing over $1.6M in loans to 113 customers creating over 300 jobs in the region, upon which it will build new expertise in developmental equity investment. The grantee will establish Appalachian Community Ventures—a community development venture capital fund targeting Southwest Virginia—and plans to create a $10M fund to provide equity investment to growing firms in the region. The fund will invest in businesses that create opportunity for low-income workers. Investments will usually be structured as equity or near equity investments with a term of up to ten years. Investments will be for a minimum of $50,000 with most being $250,00 or less. Projected outcomes include the completion of a fund business plan, the hiring of a fund manager, and initiation of the capitalization process.

PROJECT: Pioneer Center/MERBI Entrepreneurship Education
GRANTEE: Pioneer Center for Business Opportunity

Purpose: To provide portable interactive training workshops.

Funding:

ARC:	$20,000
Other Federal:	$0
State:	$0
Local:	$9,000
Total:	$29,000

Description: The Pioneer Center will use a set of 10 networked laptop computers to provide a portable interactive training lab. The workshops will be offered in Lee, Scott, and Wise County and the City of Norton. The Pioneer Center will offer 10 workshops between October 2003 and September 2004, based on a series of successful workshops previously undertaken by the Pioneer Center. Trainees will learn business startup, planning for success, accounting for small businesses, QuickBooks software, hiring and firing, small business marketing techniques, Microsoft Word & Publisher software, business website basics, FrontPage software, and adding value to businesses. Projected outcomes include the involvement of 100 participants and the creation of 10 new jobs. Additionally, the grantee will serve 55 businesses.

PROJECT: REAL Rural Entrepreneurship Through Action Learning
GRANTEE: Virginia REAL

Purpose: To support entrepreneurial education efforts in the target region.

Funding:

ARC:	$42,500
Other Federal:	$0
State:	$0
Local:	$141,000
Total:	$183,500

Description: The REAL program provided support for training, student recruitment and tracking, teacher evaluation, school recruitment, and other needed services to increase the provision of entrepreneurial training in post-secondary education institutions in Appalachian Virginia. ARC funds were used to expand this program, adding 10 additional schools and 140 high school students to the REAL program. Since the creation of Virginia REAL in 1996, 16 educators have been trained and 400 students in five counties have participated in this program, with 6 businesses created. The REAL program provides hands-on learning as well as classroom experience, and helps Appalachian students to create locally owned, value-added ventures in the region.

PROJECT: Richlands Small Business Incubator Implementation
GRANTEE: Cumberland Plateau PDC

Purpose: To provide support for a small business incubator.

Funding:

ARC:	$49,596
Other Federal:	$0
State:	$50,000
Local:	$49,195
Total:	$148,791

Description: he Cumberland Plateau Planning District Commission (PDC) established and operated a business incubator to provide support to small businesses in the target region. This start-up business incubator has attracted four tenants resulting in the creation of 17 new jobs. In addition the incubator has provided technical support to four start up businesses in the community, and has requests for support from 20 additional entrepreneurs. . This incubator is the first in a planned network of incubators to serve this region.

PROJECT: Smyth Enterprise Center
GRANTEE: Smyth County Development Office

Purpose: To assist Smyth County in initiating operation of the Smyth Enterprise Center business incubator.

Funding:

ARC:	$30,965
Other Federal:	$0
State:	$0
Local:	$53,863
Total:	$84,828

Description: The Smyth Enterprise Center is a 2,500 sq ft business incubator in Marion. With the establishment of the BusinessStart program at the Center, the office now offers microenterprise loans to fledgling businesses that have participated in entrepreneurial training classes. Many businesses have contacted the Center and several have begun new businesses as a result of the training offered even though they did not locate in the Center. The Center is effectively serving as a referral center for prospective entrepreneurs. The tenant selection committee has approved two applications to date; a candy sales and distribution company with Internet sales, and a Web-based tourism promotion company. Outcomes to date include the training of 42 persons, creation of 5 new businesses, expansion of 1 existing business, and retention of 1 existing business (business was purchased from retiring owner). Additional outcomes include the creation of 8 new full-time jobs and 1 new part-time job and the retention of 1 full-time job and 3 part-time jobs.

PROJECT: Smyth Enterprise Center, Phase II
GRANTEE: Smyth Enterprise Center Inc.

Purpose: To upgrade the services of the Smyth Enterprise Center business incubator and enhance its marketability.

Funding:

ARC:	$45,000
Other Federal:	$0
State:	$21,900
Local:	$25,500
Total:	$92,400

Description: Through its E-Commerce Initiative the Smyth Enterprise Center installed high-speed wireless Internet connections, provided enhanced training for technology-based local businesses that use computers and the Internet, and provided more focused outreach and training to potential entrepreneurs, including recently displaced garment workers, high school and community college students. Five entrepreneurship classes were held by program partners at the incubator, attracting over 100 persons during the project period. Due to delays in installing the high speed internet connection and limited local financial and staff support, the incubator still has no tenants. The grantee reports three businesses created and 17 jobs created.

PROJECT: Southwest VA Heritage Music Trail Network, Clintwood
GRANTEE: Clintwood, Town of

Purpose: To hire a coordinator for the Southwest Virginia Heritage Music Trail and help create new tourism-related jobs.

Funding:

ARC:	$40,000
Other Federal:	$0
State:	$0
Local:	$12,000
Total:	$52,000

Description: The Music Trail will attract new visitors to Southwest Virginia by promoting the area's unique cultural and musical heritage, and help diversify the local economy. The Trail will begin in Floyd County and end at the Ralph Stanley Museum in Clintwood, Dickenson County. In addition to prominent venues, dozens of smaller music locales will be included. ARC funds will be used to hire a coordinator to work on developing music attractions as economic development tools for the region, create a map and web site, prepare a business plan and organize an advisory board. The trail is projected to attract 10,000 new visitors who will spend more than $18 million in the region each year. Projected outcomes include the creation of 30 new jobs.

PROJECT: Southwest VA Heritage Music Trail, Galax
GRANTEE: Galax, City of

Purpose: To search and develop a travel guide for the Southwest Virginia Heritage Music Trail and help create new tourism-related jobs.

Funding:

ARC:	$40,000
Other Federal:	$0
State:	$0
Local:	$28,965
Total:	$68,965

Description: Galax, Virginia will research and develop a travel guide for the Southwest Virginia Heritage Music Trail and help create 30 new tourism-related jobs. Professional music consultants will conduct in-depth research for a multi-format travel guide and marketing tool for the Music Trail. The Music Trail will highlight traditional Appalachian music and will follow a route from Floyd County to Galax, and travel to Clintwood in Dickenson County. The guide will invite visitors to explore the region's musical, cultural, recreational, historical and commercial resources, and will be available in book, CD, map and web format. The Music Trail and related venues will help diversify the local economy by attracting a projected 10,000 new visitors who will spend more than $18 million in the region each year. This project will result in creation of 30 new jobs.

PROJECT: Southwest VA Small Business Development
GRANTEE: Southwest VA Community Development Financing, Inc.

Purpose: To provide technical assistance and training to individuals who qualify to receive loan funds.

Funding:

ARC:	$40,000
Other Federal:	$0
State:	$40,000
Local:	$0
Total:	$80,000

Description: This project will provide technical assistance and training to individuals who qualify to receive loan funds of $35,000 to $100,000 from Southwest Virginia Community Development Financing Incorporated. This project will enable the applicant to hire additional staff to provide this service in the 17 counties and cities in Southwest Virginia. This project will also result in improved wages and new job opportunities for low- to moderate-income individuals and provide low- to moderate-income entrepreneurs with business expansion opportunities. Projected outcomes include the involvement of 25 participants, the creation of 6 new businesses, and the creation of 18 new jobs. Additionally, the grantee will serve 25 businesses.

PROJECT: Southwest VA Tourism Planning Phase
GRANTEE: People, Incorporated of Southwest VA

Purpose: To create an awards program for local development districts.

Funding:

ARC:	$10,000
Other Federal:	$0
State:	$0
Local:	$10,000
Total:	$20,000

Description: This grant will fund the planning phase of a project designed to facilitate tourism and support job creation and expansion activity in the region of Southwest Virginia. People Incorporated will partner with area tourism-based businesses and organizations to achieve this goal. The program coordinator and program development staff will work with an advisory committee made up of local business and community leaders knowledgeable of Southwest Virginia's tourism industry. Once completed, this planning project will result in the development of an implementation plan for bringing a tourism-based storefront to Damascus, Virginia and maintaining an online referral and reservation system. Projected outcomes include the creation of 2 new businesses and the creation of 2 new jobs.

PROJECT: Sustainable Woods Initiative
GRANTEE: Appalachian Sustainable Development

Purpose: To provide support for the development of environmentally sustainable logging and value-added wood processing in the region.

Funding:

ARC:	$25,786
Other Federal:	$32,138
State:	$0
Local:	$25,010
Total:	$82,954

Description: Appalachian Sustainable Development undertook a range of activities to develop sources of sustainably harvested lumber to support a 'green' value-added wood products industry in the target region. This project supported the development of a source of material for the Wood Processing Center and for local wood products entrepreneurs.Two landowner training workshops were held involving 68 loggers and landowners. Forest management plans and timber harvests were carried out for three landowners and a management plan was developed for a fourth. The Green Building Team has developed a marketing brochure, market leads from 15 secondary wood products manufacturers, and leads from several new building sites. A total of 24,000 board feet of lumber were sold, while 92,000 board ft were processed by the facility. Several institutional marketing partners have also been developed, which should become consistent long term customers for these products.

PROJECT: Sustainable Woods Initiative, Phase II
GRANTEE: Appalachian Sustainable Development

Purpose: Purpose: To develop sources of sustainably harvested lumber to support a 'green' value-added wood products industry in the target region.

Funding:

ARC:	$37,000
Other Federal:	$0
State:	$0
Local:	$40,000
Total:	$47,00

Description: Appalachian Sustainable Development (ASD) undertook a range of activities to continue to develop sources of sustainably harvested lumber to support a 'green' value-added wood products industry in the target region. ARC support was used to upgrade and expand the existing secondary wood products Processing Center, and to cover contractual costs associated with marketing 'green' products. A storage building was built, a debarker / chipper was purchased, and the solar kiln face was repaired. 200 marketing brochures were produced and distributed. Sales of Red oak and hickory were completed, totaling $22,877, and discussions are on-going with a range of new customers. Marketing partners now include four architectural firms, five building contractors, two retail outlets, and four wood processors. Harwood flooring samples have also been produced and distributed to floor installers and lumber retailers. ASD has also applied to become certified under the Forest Stewardship Council, and has received on-going support from EDA for this project.

PROJECT: Wild Forest Sector
GRANTEE: Total Action Against Poverty (TAP)

Purpose: To support the development of entrepreneurs in the non-timber forest products sector.

Funding:

ARC:	$27,490
Other Federal:	$0
State:	$0
Local:	$32,171
Total:	$64,451

Description: The grantee provided training and technical assistance to entrepreneurs interested in growing and selling forest grown medicinal and non-timber products. ARC funds were used to support administration costs. Five workshops were held attracting 262 persons, an internet page for Special Forest Products was developed (www.sfp.forprod.vt.edu) which has had over 500 visitors, and 10 persons were given ginseng seed to test plant for cultivation. A 5-year plan for the Wild Harvest Sector was also developed, and a draft training manual for the field was produced.

PROJECT: Highlands Center Nuturing Entrepreneurship
GRANTEE: Highland Center, The

Purpose: To provide funding for the operation of a business incubator.

Funding:

ARC:	$37,000
Other Federal:	$0
State:	$5,460
Local:	$38,648
Total:	$81,108

Description: The Highland Center will implement programs designed to assist the development of new startup businesses in Highland and Bath counties. Components of the program include educational workshops, equipment for use by small business owners and technical assistance to entrepreneurs and students. The Highland Center also will utilize a commercial kitchen available to caterers and others producing bottled products for retail consumption. The grantee projects that technical assistance and mentoring programs will be used by about 20 businesses. Operation of the Center is projected to result in the creation of two new businesses and four new jobs within two years of the start of the project. In addition, six jobs are expected to be retained by businesses receiving technical assistance. Finally, implementation of the summer program will serve approximately eight youths.

PROJECT: New River Intensive Business & Enterprise Development Program
GRANTEE: New River Valley Development Corporation

Purpose: To provide hands-on assistance to entrepreneurs in the New River Valley area by assembling a team of experts able to address weaknesses in a particular company's business plan through intensive counseling.

Funding:

ARC:	$20,000
Other Federal:	$0
State:	$0
Local:	$20,000
Total:	$40,000

Description: The grantee will offer intensive business assistance to a selected business tenant of the New River Valley Competitiveness Center (NRVCC) through a contracted arrangement with a Business Management Team (BMT). This technical assistance will address specific shortcomings of the selected business and will identify financial and employment goals, how identified weaknesses/shortcomings will be addressed and how the company will reduce its dependency on the BMT. Services will be provided for a fee based on the type of service(s) and the length of time it is provided. The applicant will seek additional sources of revenue to assist the business in its plan for growth, including known angel investor networks who may acquire up to ten percent equity in the company. The assisted business will add approximately two new jobs within two years of completion of the program.

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