Model 2: Prosper Us Detroit

Model 2: Prosper Us Detroit

Over the last decade, Regionerate has worked closely with several of New Economy Initiative’s grantees in Detroit focused on micro businesses. Prosper Us is one of those programs. It provides entrepreneurship training and support programs serving underrepresented populations in Detroit. It partners with other neighborhood-focused organizations supporting residents in their community to start businesses. Prosper Us provides initial entrepreneurial training and business plan development and coaching. After completing the program, Prosper US provides post-training coaching and ongoing support services. Some of the graduates also receive microloans from local CDFIs.

Prosper Us partners with other organizations to provide accurate information about ownership of a prospective commercial space, cost to address code deficiencies, zoning regulations, consumer demand for goods and services, safety concerns, and other issues that might impact the business. They also broker other resources such as (1) financial fitness workshops; (2) legal and technical assistance workshops regarding incorporation, employment law, intellectual property, and real estate basics; and (3) workshops about how community development corporations (CDCs) can better support neighborhood businesses and how businesses can better take advantage of support from CDCs.

A significant learning from this program is the importance of providing pre- and post-loan technical assistance for new businesses. Another key finding was the importance of lines of credit for new entrepreneurs with purchase orders. Many small businesses needed to buy supplies and hire staff before starting a contracted service, and they had no cash flow.

Learn More at: www.prosperusdetroit.org