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**Preface**

The Job Accommodation Network (JAN) is a service of the Office of Disability Employment Policy of the U.S. Department of Labor. JAN makes documents available with the understanding that the information be used solely for educational purposes. The information is not intended to be legal or medical advice. If legal or medical advice is needed, appropriate legal or medical services should be contacted. 

JAN does not endorse or recommend any products or services mentioned in this publication. Although every effort is made to update resources, JAN encourages contacting product manufacturers/vendors and service providers directly to ensure that they meet the intended purposes. This guarantees that the most up-to-date information is obtained. 

The following document is not copyrighted and reproduction is encouraged. Section 

105 of the Copyright Law provides that no copyright protection is available for works created by the U.S. Government. Therefore, all works created by JAN fall under this provision. While individuals may use such work with impunity, individuals may not 

claim copyright in the original government work, only in the original material added. Individuals may access the full text of the law from the U.S. Copyright Office  http://www.loc.gov/copyright. Please note that specific information cited by JAN may be copyrighted from other sources. Citing secondary sources from a JAN publication may violate another organization's or individual's copyright. Permission must be obtained from these sources on a case-by-case basis. When using JAN materials, JAN asks that the materials not be reproduced for profit, that the tone and substance of the information are not altered, and that proper credit is given to JAN as the source of the information. For further information regarding this or any other document provided by JAN, please contact JAN.

Authored by Kim Cordingly, Ph.D. Updated 6/18/10.

**INTRODUCTION**

The Job Accommodation Network (JAN) is one of several services provided by the U.S. Department of Labor's Office of Disability Employment Policy (ODEP). Its development has been achieved through the collaborative efforts of ODEP, West Virginia University, and private industry throughout North America. JAN provides individualized technical assistance, consulting, and mentoring services to individuals with disabilities, family members, and service providers.  JAN consultants handle each inquiry on a case-by-case basis offering self-employment and small business development expertise and referrals regarding business planning, financing strategies, marketing research, disability-specific programs, income supports and benefits planning, e-commerce, independent contracting, home-based business options, and small business initiatives for disabled veterans. 

**1.   What range of services does JAN offer?**

JAN is the leading source of free, expert, and confidential guidance on workplace accommodations and disability employment issues. Working toward practical solutions that benefit both employer and employee, JAN helps people with disabilities enhance their employability, and shows employers how to capitalize on the value and talent that people with disabilities add to the workplace.

JAN’s trusted consultants offer one-on-one guidance on workplace accommodations, the Americans with Disabilities Act (ADA) and related legislation, and self-employment and entrepreneurship options for people with disabilities. Assistance is available both over the phone and online. Those who can benefit from JAN’s services include private employers of all sizes, government agencies, employee representatives, and service providers, as well as people with disabilities and their families.

JAN represents the most comprehensive job accommodation resource available. From Fortune 500 companies to entrepreneurs, JAN has served customers across the United States and around the world for more than 25 years. Its consultants are thought leaders and innovators on disability employment issues, and all have earned at least one Master's degree in their specialized fields, ranging from rehabilitation counseling to education and engineering. 

**2.   What can JAN do to help me start a small business or become self-employed?**

Each customer can expect to receive an individualized packet of materials to support his or her entrepreneurial goals. This typically includes information about business planning, financing programs, marketing strategies, Social Security benefits planning, assessing a business idea, locating a business mentor, health insurance questions, starting a home-based business, and programs specifically for entrepreneurs with disabilities.  

**3.  What are the differences between self-employment, a small business,**

**entrepreneurship, and a microenterprise?**

These terms are often used interchangeably, but there are distinct differences between them.**Self-Employment:** People are typically considered to be self-employed if they operate a business as a sole proprietor, consultant, independent contractor, partner in a partnership, or work for themselves and not for an employer. They are generally in charge of the “hands on” operation of the business, bear the risks and responsibilities of its success or failure, and are responsible for their own livelihood. The Internal Revenue Service (IRS) for tax purposes defines a person as being self-employed if (a) you carry on a trade or business as a sole proprietor, or (b) you are a member of a partnership or limited liability company that files a Form 1065, U.S. Return of Partnership, that carries on a trade or business.For additional information see:IRS – Small Business and Self-Employed Tax Centerhttp://www.irs.gov/businesses/small/index.html **Small Business:**According to the U.S. Small Business Administration’s (SBA) Office of Advocacy, a small business is defined for research purposes as, “an independent business having fewer than 500 employees. Firms wishing to be designated small businesses for government programs such as contracting must meet size standards specified by the SBA Office of Size Standards.”For additional information see:http://www.sba.gov/advo/

**Entrepreneurship:**While entrepreneurship tends to have a more nuanced 

definition, this generally refers to an individual who assumes the 

financial risk of initiating, operating, and managing a business or enterprise. However, studies in entrepreneurship generally point to personal qualities inherent in many entrepreneurs. Entrepreneur.com describes these characteristics in this way: “When most people think of entrepreneurs, a few well-known names probably come to mind, including such people as Henry Ford, Andrew Carnegie and Bill Gates. But in fact, U.S. entrepreneurs number in the millions. Of the 16 million businesses in the United States, more than 12 million are operated as sole proprietorships. And while not all these businesses can be labeled ‘entrepreneurial ventures,’ many of them are.

Just who is an entrepreneur? Anyone who has ever looked at a problem and seen it as an opportunity is a likely prospect. The same goes for anyone who feels as if his ambition is held in check by corporate red tape. But it takes more than just cleverness and frustration with the status quo to get an entrepreneurial venture off the ground.”

**Microenterprise:**A microenterprise is typically defined as a business with no more than five employees and start up costs of $35,000 or less. Accion USA, a nationwide microfinance organization, states an average loan obtained through their organization is typically in the range of $5,100. 

The Abilities Fund describes a microenterprise as, “small enough to benefit from loans under $35,000 and generally too small to access commercial banking services. Microenterprises are a subset of small businesses (which can have up to 500 employees and still be considered ‘small’). But, in the majority of microenterprises, the owner is the sole operator and worker, leading many to refer to this phenomenon as self employment.”

For additional information see:

Accion USAhttp://www.accionusa.org/

The Abilities Fundhttp://www.abilitiesfund.org/resources/what_is_microenterprise_microlending.php

**4.  How do I decide if starting a small business is the right choice for me?**

There are many factors that go into any decision about a career choice, including self-employment or starting a small business. Some of JAN’s customers state they have always preferred to be self-employed and work for themselves. Others explain that self-employment interests them due to various circumstances, which may include a recent layoff or loss of employment, the unavailability of jobs in their community, lack of accessible transportation, or the need to work from home, to name a few. The potential benefits and challenges for choosing self-employment and small business development include:

**Benefits:**

· Ability to incorporate accommodations into your small business model

· Greater flexibility in terms of the work process, location, times of work, transportation issues, and so on

· Increased autonomy and self-sufficiency that comes from being one’s own boss

· Potential for increased financial stability in that self-employment can be a viable employment option, and with careful planning, provide a valuable source of income

· Investment in one’s self through small business ownership

· Engagement in meaningful work in that self-employment can be a form of job creation where other employment options are limited

**Challenges:**

· General risks of going into business for oneself

· Financial concerns about how self-employment interacts with various benefits programs

· Availability and access to appropriate funding sources

· Credit worthiness and ability to build assets

· Health insurance coverage and cost issues

· Lack of proper social supports and agency cooperation

· Possible health challenges 

This is not a comprehensive list by any means, but merely points to some of the factors that may come into play in deciding whether self-employment is the best choice for you. Developing a support team to assist you in the decision making process is vital. This may include a vocational rehabilitation counselor, a family member, a small business development counselor, a benefits planner, a business mentor, an accountant, among others.

For additional information see:

Start-Up USA (Self-Employment Technical Assistance, Resources, and Training)

Self-Employment Q and A: Assistance Not Assessment: Getting at the Heart of Small Business Feasibilityhttp://www.start-up-usa.biz/resources/content.cfm?id=845

**5.  Can my state vocational rehabilitation program help me start a small business?**

State vocational rehabilitation (VR) programs provide a range of individualized employment related services to qualified individuals with disabilities, which can include (but are not limited to) job placement assistance, employment counseling, vocational evaluation and assessment, education and training, assistive technology and accommodation supports, and diagnostic services.  In addition to VR, some states have separate agencies serving individuals who are blind and visually impaired. 

For additional information see:

http://AskJAN.org/cgi-win/TypeQuery.exe?902

Under the Rehabilitation Act Amendments of 1998, self-employment, small business development, and telecommuting are considered potentially viable “employment outcomes” for clients receiving VR services. The Rehabilitation Services Administration (RSA) produced a Technical Assistance Circular outlining the portions of the Rehabilitation Act that address these issues. There are two main sections where these issues are highlighted:

“The first instance is at §7(11)(C), under the definition of an employment outcome:

The term “employment outcome” means, with respect to an individual--

(C) satisfying any other vocational outcome the Secretary may determine to be appropriate (including satisfying the vocational outcome of self-employment, telecommuting, or business ownership), in a manner consistent with the Act.

The second instance is at §103(a)(13), among the vocational services to be provided under the Act:

(13) technical assistance and other consultation services to conduct market analyses, develop business plans, and otherwise provide resources, to the extent such resources are authorized to be provided through the statewide workforce investment system, to eligible individuals who are pursuing self-employment or telecommuting or establishing a small business operation as an employment outcome.” 

For more information see:

Rehabilitation Services Administration’s Technical Assistance Circular (TAC) on Self-Employment http://www2.ed.gov/policy/speced/guid/rsa/tac-2000.html

Start-Up USAAccessing VR Serviceshttp://www.start-up-usa.biz/resources/content.cfm?id=646

6. **Where can I go for assistance with writing a business plan?**

For some, the prospect of writing a business plan can seem like an ominous undertaking. While all business start-ups do not require a plan, if you are seeking any type of financing, you are likely to need some type of plan. First, if you are working with a local program, like VR services, it is important to check with them first to see what their requirements are for writing a plan. In some cases, they may have a particular format they want for you to follow. They may also have a small business development counselor or organization they prefer you to work with. 

If you are looking for technical assistance on your own, there are a range of programs and resources that can assist you in this process. These may include the following:

· **Small Business Development Centers (SBDCs)**: Each state has a network of SBDCs that can provide assistance with starting a small business and include guidance with developing a business plan. These services can include one-on-one counseling, in person and online training, library resources, and access to business planning software. For more information see:Association of Small Business Development Centers (ASBDC)

http://207.204.22.87/index.html

· **Small Business Administration (SBA) Training Network**:****The SBA was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. The SBA Training Network offers FREE online tutorials on writing a business plan. For more information see:Small Business Training Networkhttp://www.sba.gov/training/

· **Service Corps of Retired Executives (SCORE)**: SCORE is a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow and succeed nationwide. With 12,400 volunteer counselors nationwide, each state has a network of chapters where they can seek assistance with developing a business plan. 

For more information see:SCOREhttp://www.score.org/index.html

· **Women’s Business Centers (WBCs)**: The Office of Women’s Business Ownership (OWBO) exists to establish and oversee a network of WBCs throughout the United States and its territories.  Through the management and technical assistance provided by the WBCs, entrepreneurs, especially women who are economically or socially disadvantaged, are offered comprehensive training and counseling on a vast array of topics in many languages to help them start and grow their own businesses.

For more information see:SBA – Office of Women’s Business Ownershiphttp://www.sba.gov/aboutsba/sbaprograms/onlinewbc/index.html

· The book Making Self-Employment Work for People with Disabilities (2003) by Cary Griffin & David Hammis offers excellent guidance on writing an effective business plan.

For more information see:http://www.brookespublishing.com/store/books/griffin-6520/index.htm

For additional information on business planning, a wealth of information can be found at the following Websites:

Start-up USAhttp://www.start-up-usa.biz/Business.govhttp://www.business.gov/start/Entrepreneur.comhttp://www.entrepreneur.com/BUZGate.orghttp://www.buzgate.org/NxLeveL® Education Foundationhttp://www.nxlevel.org/index.htm  

7. **I am currently receiving Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), in addition to other public benefits. Where can I go to learn more about how these benefits will be affected by starting a small business? I am also interested in how Social Security work incentives may be helpful in starting my small business.**For anyone****who is a beneficiary of Social Security and receiving SSDI, SSI, or both (as well as other public benefits), a critical part of the process in exploring self-employment is to simultaneously engage in a benefits planning process. This should be one of the first steps in considering small business development. 

****As part of the Ticket to Work Program, the Social Security Administration (SSA) awards grants to community-based organizations as established by Section 121 of the Ticket to Work and Work Incentives Improvement Act 0f 1999, Public Law 106-170. The purpose of the Work Incentive Planning and Assistance (WIPA) project is to disseminate accurate information to SSA beneficiaries with disabilities about work incentives and employment support programs to better enable them to make informed choices about work. Each WIPA project employs Community Work Incentive Coordinators. These projects can provide individualized counseling about all work options, including self-employment and starting a small business.

For more information see:

Work Incentives Planning and Assistance (WIPA) Project Fact Sheethttp://www.ssa.gov/work/wipafactsheet.htmlStart-up USAUsing Work Incentives to Fund Micro Enterprises

Presented by David Hammishttp://start-up-usa.biz/training/online_seminars/hammis/hammis.cfm

8. **In addition to JAN, are there specific programs at the national level that can assist entrepreneurs with disabilities?**In addition to JAN, two nationwide programs stand out as providing leadership in assisting entrepreneurs with disabilities. There are also state and local programs that assist with these issues; JAN can provide more detailed information about these programs when we prepare your individualized packet.**Start-Up USA**VCU - RRTC

1314 West Main Street

Richmond, VA 23284-2011

Phone: (804)828-1851

Fax: (804)828-2193

TTY: (804)828-2494http://www.start-up-usa.biz/Self-Employment Technical Assistance, Resources, & Training (START-UP / USA) is a partnership between Virginia Commonwealth University and Griffin-Hammis and Associates, LLC. START-UP / USA is funded by a cooperative agreement #E-9-4-6-011 from the U.S. Department of Labor (DOL), Office of Disability Employment Policy (ODEP). Congress designated the cooperative agreement funds to ODEP for the further development of self-employment as an employment outcome for individuals with disabilities. ODEP's mission is to provide national leadership by developing and influencing disability-related employment policy and practice affecting the employment of people with disabilities.**The Abilities Fund**Iowa Office

307 North 13th Street

Suite 500

Centerville, IA 52544-1823

Toll Free: (888)222-8943

Direct: (641)856-2173

Fax: (641)856-3101

http://www.abilitiesfund.org/index.phpThe Abilities Fund is the first nationwide nonprofit community developer and financial institution focused exclusively on expanding entrepreneurial opportunities, including access to capital, for people with disabilities.  They do this by providing a unique combination of financial products, training, technical assistance services, and advisory supports to individuals with disabilities.

9. **Are there grant monies available to start a small business?**

One of the first questions JAN consultants often receive from customers about financing is how to locate government grants to start a small business. The reason for this question is multi-faceted and deserves a detailed response. First, a grant is not “free money” as it is often depicted in late-night TV advertisements or on many Websites. Companies selling this type of information are frequently enticing consumers into paying for information that may or may not be accurate, and in most cases, is public information and available free of charge. Having said this, it is important to understand what a grant is and is not. Grants are:

“a form of funding awarded by a private foundation, or a federal or state government department or agency. They are based on a competitive process with strict guidelines for applying and using the funds. Grant funding agencies use grants as a way to accomplish a specific goal that the organization wants to achieve. Funders’ goals can be relatively specific, such as research into a cure for a certain disease, or they can be more general, such as encouraging development of nonprofit support programs for certain segments of the population.”  For more information see:Small Business Noteshttp://www.smallbusinessnotes.com/financing/grants.htmlFederal Trade Commission (FTC) Consumer Alert‘Free Government Grants’: Don’t Take Them For Grant-edhttp://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt134.shtm

Most grants are not awarded to individuals but to non-profit organizations. It is rare for grants to be given for the development of for-profit businesses, although there are exceptions. For example, in order to promote a certain type of developing industry (e.g., alternative energy) or provide incentives for companies to locate in a particular neighborhood or community, grant monies may be available. Periodically, there may be business plan competitions, usually at the state or local level, offering capital to promote the start-up of a small business. However, as a rule, grant funding is the exception to financing options and not the rule. 

10.  **What type of financing is available to start my small business?**When you contact JAN, we will put together detailed financing information based  

on a number of specific factors including your geographic location, the amount of start-up capital needed, your potential eligibility for programs (e.g., based on disability, gender, ethnicity, veteran status, etc.), and a variety of other issues. Financing can come from an assortment of sources including state VR agencies, microloan programs, asset development programs, state economic development funds, and credit unions, to name a few.  

For additional resources on funding a small business see:

Start-Up USASelf-Employment Q and A: Braiding and Blending Funding for Business Start-Up

http://www.start-up-usa.biz/resources/content.cfm?id=849Start-up USAThe Process of Approving Small Business Loans: An Interview with Teri Tosti

http://www.start-up-usa.biz/training/online_seminars/tosti/index.cfm

 National Endowment For Financial EducationThe Association for Enterprise OpportunityFinancial Planning for Your Microenterprise     

http://www.abilitiesfund.org/uploads/pdf/financialplanningforyourmicroenterprise.pdf

**RESOURCES**

**Job Accommodation Network**

West Virginia University

PO Box 6080 

Morgantown, WV 26506-6080

Toll Free: (800)526-7234

TTY: (877)781-9403

Fax: (304)293-5407

jan@askjan.org

http://AskJAN.org

The Job Accommodation Network (JAN) is a free consulting service that provides information about job accommodations, the Americans with Disabilities Act (ADA), and the employability of people with disabilities. 

**Office of Disability Employment Policy**

200 Constitution Avenue, NW, Room S-1303 

Washington, DC 20210

Direct: (202)693-7880

TTY: (877)889-5627

Fax: (202)693-7888

infoODEP@dol.gov

http://www.dol.gov/odep/

The Office of Disability Employment Policy (ODEP) is an agency within the U.S. Department of Labor. ODEP provides national leadership to increase employment opportunities for adults and youth with disabilities while striving to eliminate barriers to employment. **START-UP USA - Self-Employment Technical Assistance, Resources, & Training**

**VCU - RRTC**

1314 West Main Street

Richmond, VA 23284-2011

Direct: (804) 828-1851

TTY: (804) 828-2494

Fax: (804)828-2193

http://www.start-up-usa.biz/

Self-Employment Technical Assistance, Resources, & Training (START-UP / USA) is a partnership between Virginia Commonwealth University and Griffin-Hammis and Associates, LLC. START-UP / USA is funded by a cooperative agreement #E-9-4-6-011 from the U.S. Department of Labor (DOL), Office of Disability Employment Policy (ODEP). 

**The Abilities Fund**307 North 13th Street

Suite 500

Centerville, IA 52544-1823

Toll Free: (888)222-8943

Direct: (641)856-2173

Fax: (641)856-3101

http://www.abilitiesfund.org/index.phpThe Abilities Fund is the first nationwide nonprofit community developer and financial institution focused exclusively on expanding entrepreneurial opportunities, including access to capital, for people with disabilities.  We do this by providing a unique combination of financial products, training, technical assistance services and advisory supports to individuals with disabilities.

**U.S. Small Business Administration**

409 3rd Street, SW

Washington, DC 20416

Toll Free: (800)U-ASK-SBA or (800)827-5722

 TTY: (704)344-6640http://www.sba.gov

The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist, and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. The SBA recognizes that small business is critical to economic recovery and strength, to building America's future, and to helping the United States compete in today's global marketplace.**Association for Enterprise Opportunity**1601 North Kent Street

Suite 1101

Arlington, VA 22209

Phone:  (703)841-7760

Fax: (703)841-7748 http://www.aeoworks.org/

AEO is a national membership organization and voice of microenterprise development in the United States. For nearly two decades, AEO and its hundreds of member organizations have helped more than two million entrepreneurs support themselves and their families and contribute to their communities through business ownership.  AEO strives to foster greater understanding of the importance of strong and effective microenterprise initiatives to the U.S. economy and to increase capacity of the field to support underserved entrepreneurs in starting, stabilizing, and establishing businesses.

This document was developed by the Job Accommodation Network, funded by a contract agreement from the U.S. Department of Labor, Office of Disability Employment Policy (DOL079RP20426). The opinions expressed herein do not necessarily reflect the position or policy of the U.S. Department of Labor. Nor does mention of trade names, commercial products, or organizations imply endorsement by the U.S. Department of Labor.

Frequently Asked Questions

Entrepreneurship Series