Ministries of Social Entrepreneurship

Ministries of Social Entrepreneurship

THIS MEANS BUSINESS: Homegirl Cafe in downtown Los Angeles is a successful model of social entrepreneurship. Staffed by female gang members trying to leave their past behind, it’s part of Homeboy Industries.

America’s economic woes have made grassroots urban ministers open to new ways of doing things. Fundraising has always been a challenge, and now more so. Common conversation topics in urban ministry circles include cutting positions, scaling back programs, and working more efficiently.

One topic stands out. The idea of starting a business to fund an urban ministry is not just hallway conversation or Facebook chat fodder. People really want to know. Even people who are critics of Big Business or Capitalism are hungry to make private enterprise work for their cause.

If you are thinking about launching a business to supplement your ministry’s bottom line, it’s important to understand both the concept of social entrepreneurship and the management capacity of the typical grassroots urban minister.

Social Entrepreneurship

The mash-up of urban ministry and business can best be engaged through the world of social entrepreneurship.

Social entrepreneurship is a term with a variety of definitions. One prominent description is that of Muhammad Yunus, the Nobel Peace Prize-winning founder of Grameen Bank, a pioneer in microfinance.

In his book, Building Social Business:The New Kind of Capitalism That Serves Humanity’s Most Pressing Needs, Yunus writes:

Social entrepreneurship relates to a person. It describes an initiative of social consequences for a social purpose. This initiative may be a non-economic initiative, a charity initiative, or a business initiative with or without personal profit. Some social entrepreneurs house their projects within traditional nongovernmental organizations while others are involved in for-profit activities.

Take Yunus’s definition, add the desire to see people come to faith and life in Jesus Christ, and you have a grassroots urban minister. To illustrate this, three groups stand out.

Belay Enterprises, a faith-based nonprofit in Denver, creates businesses to employ and job train individuals rebuilding lives from addiction, homelessness, and prison. Last year 75 people worked in Belay’s businesses that include Bud’s Warehouse, a home improvement thrift store. While structured as a nonprofit, Belay realized over half a million dollars in revenue from sales, with very little by way of donor cash contributions. Jim Reiner, executive director of Belay, says they are growing a fund for new businesses that will increase the number of people employed or job trained per year. (Full disclosure: Partners Worldwide, the organization for which I work, co-hosted an event with Belay last month.)

Central Detroit Christian (CDC) created Peaches and Greens as a way to provide fresh produce to neighbors living in a vast urban food desert. The Peaches and Greens operation has both a storefront location and a mobile truck that sell fresh goodness throughout the community. Lisa Johanon, executive director of CDC and an incarnated resident, told NPR’s Michel Martin that prior to the creation of Peaches and Greens she had to drive ten miles for produce.

SOCIAL ENTREPRENEURSHIP IN ACTION: Through Homeboy Industries, ex-gangbangers like these women at Homegirl Cafe receive job training and employment opportunities, in addition to a new start spiritually.

Homeboy Industries in Los Angeles, founded by Jesuit priest Father Greg Boyle, addresses the issue of street gangs through job training and business opportunities. Homeboy made news when it was forced to lay off more than 75% of its staff — 300 people, many in the target outreach group — because of budget cuts. Remarkably, the 60 people who were not laid off worked in Homeboy’s bakery, which was profitable and self-sustaining, and therefore capable of weathering the cuts. Since that desperate time, with the help of some compassionate and deep-pocketed friends, Homeboy Industries has rebounded and continues to provide job training and employment opportunities for ex-gangbangers in the L.A. community. (It should be noted that while Catholic faith is at the core of Boyle’s motivation, Homeboy itself does not publicly emphasize its faith roots. It is, however, an appropriate example of social entrepreneurship in my estimation.)

Most urban ministries I know — certainly those involved with groups like the Christian Community Development Association — operate and achieve as Belay, Central Detroit, and Homeboy do. If you have only seen yourself as a pastor or minister, you should recognize that you are already a type of entrepreneur that the world desperately needs.

Management Capacity

The key to a successful social enterprise is the combination of “cause” and “good” management. The key to running a business that does good while feeding your ministry’s bottom line is the same combination.

We all have causes we are passionate about. It’s the management part of the equation that poses a challenge.

Larger urban ministries will face less of a challenge in managing a business than will grassroots groups. Sustaining a multi-million dollar operation like a rescue mission, for example, requires significant management capacity and skill. That same capacity can be redeployed or expanded to a business effort.

Smaller ministries that have survived for many years should also have some capacity to manage a new business endeavor. An outreach program with a few full-time staff has less capacity than a large nonprofit, but can still tap its network and management experience in running a business.

It’s the small grassroots groups — which are often our most innovative as well as fearless ministers — that need to truly count the cost of launching a business to fund their ministries.

I know of many effective urban ministries that are essentially one charismatic leader surrounded by a host of friends and allies. Often the leader is not paid full-time, and many times draws no salary from his work.

One man I know has a van that he uses to take aimless youth to church gatherings around his town. He uses a ministry name, but that ministry is not incorporated.

TRANSFORMING LIVES: Father Gregory Boyle, founder and director of Homeboy Industries, meets with his team. Homeboy has developed one of the largest gang-intervention programs in the nation.

Another man, an ex-gang-member, rode his bike around town, making contact with younger gangsters and talking to them about avoiding future trouble. He was connected to a number of networks and coalitions, to which he funneled many gangsters for intervention or services.

In this type of operation there is very little organizational and financial management being practiced, and therefore little on which an organization can be developed. When it does come time to grow the organization, to strengthen management and plans, the charismatic leader will either need to grow or get out of the way.

It is entirely possible for this grassroots urban minister, no matter how little formal education he or she has, to develop into a nonprofit organizational leader or business person.

But it will require a lot of hard work to get there. Even more, it will first require an act of will, a choice, to grow in an area the individual may not have a passion for.

But if you want to operate a business that functions as a business and generates a profit for use in ministry, there is no way around it: You will have to learn the management skills and discipline that any successful businessperson has.

Even if you bring on somebody to run the business you will need to learn business. How else will you know if the person you have brought on is doing a good job? Or not cheating the enterprise?

For Those Who Take the Plunge

My prayer is that great numbers of grassroots urban ministers choose to grow their business skills and launch enterprises. Take the good work you do — socially beneficial work that impacts the lives of many of the least, the last, and the lost — and combine business skills to create things like well-paying jobs and needed services for urban communities.

When it gets hard, don’t get discouraged.

For years I’ve felt like my work as an urban minister was harder than the work of an average business owner, because I had more bottom lines to attend to.

Whereas a non-performing employee in a business might quickly get fired, in a ministry setting I would give that person extra opportunity to succeed. Some businesses make this type of extra effort, but in general urban ministries are much more likely to “give a second chance” — and a third chance — than a straight business would.

Even more, our ministries often hire people that no business would hire. And yet we need to keep our doors open and maintain a basic level of financial sustainability.

You’ve trusted God in reaching out to the least, the last, and the lost. Trust Him again to help you develop the business sense and management skills you will need to grow a business that helps fund your ministry.

Motor City Mission

Motor City Mission

COMMUNITY SERVICE: Elevate Detroit staff members and volunteers serve area residents during one its CommuniD Barbecues last year at Detroit’s Robert Redmond Memorial Park.

Is Detroit coming or going?

The conventional wisdom is that the once-bustling Motor City is the epitome of a metropolis in decline, a remnant of a bygone industrial era. But for many of us who have decided to intentionally make Detroit our home, we choose to believe that the city has a future.

It’s in our nature, I guess. We love to root for the underdog, and Detroit is definitely that. As politicians, businesspeople, and sociologists ponder the city’s chances, it takes faith to see a bright future for a city that has lost so much of its luster. But over the last few years, the city’s been gaining notoriety as a business incubator (see Detroit’s Future: From Blight to Bright), a destination for good eats, and the slow (but steady) revival of America’s number one auto manufacturing center. It’s home to four professional sports teams, including the Lions who went from serving as the laughingstock of the National Football league to finishing with a 10-6 season and making their first playoff appearance since 1999. Most recently, Detroit was even rated as having one of America’s top ten best downtowns. Detroit’s full of previously unrecognized promise. It’s resilient, tenacious, and on the verge of exciting change.

VITAL SIGNS: An attractive waterfront, competitive sports teams, and fine restaurants give Detroiters reason for hope.

However, a lot is still broken. Detroit’s also been synonymous with present-day notions of urban crime, decay, and impoverishment. At the height of its powers in 1950, Detroit had 1.8 million residents and a thriving economy that helped drive the fortunes of the rest of the nation. Now, 60 years later, the population has dropped to just 700,000 and is in a desperate struggle to recapture its cultural and economical relevance.

Over the past few years, Detroit has become a case study in what ails American cities. In 2010, Time magazine set up a special outpost in the city for a year to chronicle the city’s challenges. And a new book, Detroit: A Biography, finds former Detroit News reporter Scott Martelle analyzing what led to the city’s current misfortunes. Though a sobering read, a strength of the book is that it doesn’t live in the past by romanticizing the bygone glories of the auto industry or the Motown era. Instead, Martelle drills deep into the troubling factors that contributed to Detroit’s decline. Endeavors like Time’s reporting project and Martelle’s book are important reminders of Detroit’s challenges and possibilities.

Detroit is a city begging for educational reform and financial restructuring. And though Michigan’s unemployment rate has steadily decreased over the past year, Metro Detroit’s rate remains higher than state and national averages at 9.2% as of April.

Still, we hope.

Let the Sonshine

With unemployment rounding out at over 50,000, Detroiters have begun exploring other employment options. Detroit residents have begun to reimagine how to create a more sustainable economy — one that isn’t dependent upon a single industry. Through the diversification of business endeavors, some see slow progress.

Historically, a bottom-up, micro-level approach to local economic development has proven to be the most effective. According to the World Bank in a recent report, “Local economic development is about local people working together to achieve sustainable economic growth that brings economic benefits and quality of life improvements for all in the community.”

THE ROAD AHEAD: Downtown Detroit as seen along Woodward Avenue. Strapped with the fallout of crime, poverty, and political corruption, city leaders are in a desperate search for answers. Meanwhile, a cadre of Christian visionaries hope to become part of the solution. (Photo: Rebecca Cook/Newscom)

Some Detroit entrepreneurs have even begun to use their business ventures in order to combat joblessness in their individual communities. Take, for example, Café Sonshine, a local eatery in the New Center neighborhood which employs local residents and provides a community gathering space. Or examine Wayne State University’s Tech Town, an organization that trains and equips fledgling local entrepreneurs with the tools they need to foster a successful business.

Following are the stories of three entrepreneurs who are working to address poverty and stimulate the metropolitan Detroit area through local business. Though all significantly different from each other, these individuals share the same passion and enthusiasm to eradicate poverty, share the love of Christ through community, and see Detroit become healthy and whole.

Community Elevation

GO-GETTER: Elevate Detroit’s Mike Schmitt

Mike Schmitt, director and community architect at Elevate Detroit, has a very intentional vision for his corner of Detroit. He’s firmly planted himself in the geographical area called Cass Corridor. The neighborhood — a small grid of streets located in the Midtown district — has been coined by some as “the Jungle.” It’s a high crime area rife with prostitution, drug dealing, and a strong gang presence that dates back to the early twentieth century. The St. Valentine’s Day Massacre was even partially plotted in Cass Corridor by Detroit’s Purple Gang, associates of Al Capone.

“It’s entirely likely that the same people who may have smiled at you earlier in the day have been up all night making drug runs, selling crack and heroin,” said Schmitt. “Though there are more churches per capita in Detroit than in any other city, there’s an unfed hunger here for community and love.”

Four years ago, Schmitt started Elevate Detroit and a related outreach event called CommuniD BBQs. To date, Elevate Detroit now organizes five BBQs in four different cities — Detroit, Flint, Pontiac, and Mount Clemens. Each week, people come from across the metro Detroit area to join in fellowship with people of different ethnicities and socio-economic positions. On these Saturdays, it’s a piece of God’s kingdom here on earth.

“I’ve tried to move away a couple of times now, but Detroit is my home. Once you see God moving in so many different ways, it’s impossible to leave,” he said.

SERVING THE WHOLE PERSON: Community residents wait in line for food and other resources during Elevate Detroit’s CommuniD Barbecue and mobile health clinic events.

Schmitt also is the primary visionary behind Dandelion’s Café, a new business and community outreach model in the heart of Cass Corridor. Though not officially off the ground yet, Schmitt and his team are in the process of raising capital and hope to get started soon. The hope is for Dandelion’s Café to serve the dual purpose of a coffee shop and concert venue in the building directly adjacent to the park at 2nd and Seldon in Detroit. Schmitt dreams of hosting open-mic nights, karaoke nights, local music nights, and even bring in national acts for concerts. Schmitt and his crew envision this venue becoming a center for community in the neighborhood and creating jobs for those who are in disadvantaged situations.

To complement this model, Schmitt hopes to purchase a nearby house or small apartment building for his previously homeless employees to live in with other residents — families, singles, and the elderly alike. He sees this partially as an antidote to the “No ID” problem. Without a permanent residence to reference on employment applications, it’s impossible for many transients to nail down a job. And without a source of income, the cycle of poverty repeats itself.

“I believe that by doing life together, we’ll create a support network for those who don’t have one,” said Schmitt. “The more that I came down to Detroit from my suburban home, the more I started to realize how much we all had in common and I wanted to do something to help cultivate a support network for those who didn’t have one.”

Harriet Tubman in Detroit

Similarly, Mark Wholihan of The Car Whisperers, LLC yearns for Detroit’s “second chance.” Wholihan began praying for a purpose from God immediately after he became a Christian. After praying for more than eight hours straight one day, he began to envision a new kind of auto repair service, an opportunity that would allow him to use his business to employ people in his community with a lack of resources.

VEHICLE FOR OUTREACH: In this ad for his auto shop, Mark Wholihan stands out in his red suit. He launched the business as a way to connect with people in his Detroit community while aiding the city’s restoration.

The Car Whisperers, LLC opened in February of last year in Livonia, Michigan. This mobile mechanic auto repair facility services western Wayne County. Because it’s largely connected to other cities through an infrastructure of highways, the city of Livonia is an ideal base of operations for any largely mobile organization. Additionally, with easy access to cities such as Farmington Hills, Detroit, Canton, and Allen Park, its socioeconomic range of customers is widely varied and diverse.

“When God put this business on my heart, I nicknamed it The Harriet Tubman Mission,” said Wholian. “Through using this business, I’m trusting God to help me bring people from slavery to freedom.”

Like Mike Schmitt, Wholihan envisions his auto repair service as a stepping stone to a larger organization designed to provide clients with total rehabilitation. In the case of The Car Whisperers, he has dreams of founding a residential long-term rehabilitation program in Detroit for people in need of holistic recovery. This projected program, called Second Chance at Life, will include a homeless shelter, drug and alcohol rehabilitation program, job placement services and an education center. As they continue to develop the micro-economy that will help to fund such an endeavor, Wholihan and The Car Whisperers are partnering with the YWCA community centers in order to expand how they meet the needs of their community.

“Reducing drug and alcohol abuse, unemployment, homelessness, crime, poverty and the return to previous lifestyles will make the program successful,” declares a blurb on the ministry’s website. “[It is our hope] to help Detroit and the surrounding communities to become a better, safer place for everyone.”

Repairer of Broken Walls

Like the Wholihan and Schmitt, Lisa Johanon and her non-profit ministry, the Central Detroit Christian Community Development Corporation (CDC), are targeting poverty and joblessness in Detroit through a grassroots movement. Johanon lives and works several blocks north of the burgeoning New Center district in Detroit. Located adjacent to the Midtown neighborhood and about three miles north of downtown, New Center was developed in the 1920s as a business hub that could serve as a connecting point between downtown resources and outlying factories.  Today, New Center is slowly developing into a commercial and residential success. From the summer-long event series in New Center Park to the growing headquarters of the Henry Ford Health System, New Center is making its mark on the Greater Detroit area.

FRESH VISION: Lisa Johanon (right) and her daughter Emma. (Photo: Cybelle Codish)

But blocks away in the neighborhoods north of New Center where Johanon lives, it’s another story. Though only separated by some city streets and skyscrapers, this area hasn’t been able to grasp the same commercial success that its evolving counterpart has enjoyed. Rooted in a chronic, generational poverty, these residential neighborhoods have more than just economic obstacles to overcome. The community’s struggles with drug abuse and mental illness are visibly prominent. It’s been calculated that up to 72% of the households are single-parent families. Johanon said the amount of tragedy and injustice has led residents to ask God, “Why?”

“You can’t talk about Jesus when your neighbors are hungry and don’t have a job,” said Johanon. “Long term impact happens because someone is walking beside them.”

So, that’s what Johanon made plans to do. She moved to Detroit in 1987 after helping plant a church in Chicago’s notorious Cabrini Green housing projects. During her first seven years in Detroit, Johanon established and oversaw the Urban Outreach division of Detroit Youth for Christ. From there, she went on to become the executive director of the CDC, which she co-founded more than 15 years ago. She’s been planted there ever since.

The CDC aims to be a well-rounded resource for the central Detroit area. They organize and administer educational programs, orchestrate employment training, and create opportunities to spur job growth in the area. With their outreach initiatives and organic structure, the CDC takes Isaiah 58:12 to heart — “Your people will rebuild the ancient ruins and will raise up the age-old foundations; you will be called Repairer of Broken Walls, Restorer of Streets with Dwellings.”

“The CDC is the model for economic development in our community,” said Johanon. “Walmart isn’t going to come to our neighborhood, so we have to create the job opportunities ourselves.”

Of the three Detroiters highlighted, Johanon has the most business experience to date. The CDC has launched five businesses in their community — Peaches & Greens Produce Market, Higher Ground Landscaping, Café Sonshine, CDC Property Management, and Restoration Warehouse. Each business has a twofold goal — to meet the needs of its community members and simultaneously provide them with jobs.

ON THE MOVE: Lisa Johanon (far right) and her Central Detroit Christian Development Corporation team received a May 2010 visit from First Lady Michelle Obama, who was encouraged by CDC’s Peaches & Greens venture, which provides Detroit neighborhoods with access to low-cost fruits and vegetables through a produce truck and store which are clean and safe. Mrs. Obama, whose “Let’s Move!” initiative targets the problem of childhood obesity, hailed the CDC’s efforts.

But it’s not just about providing community members with a sense of dignity that financial stability can bring. Johanon understands that there needs to be a holistic approach to the restoration of dignity – an approach that includes attention to a person’s physical, social, and spiritual needs.

“The CDC believes that education empowers our community to grow and thrive. Employment equips our community to sustain families. [And] economic development transforms our community,” said a source on their website.

It’s easiest to understand what the CDC aims to do by looking at individual stories. “When we hired people from the neighborhood to work for Higher Ground Landscaping, not a single one could pass a drug test. Now, we only have two who still fail,” said Johanon. “The minority has pressure to change their lifestyle. We want to show that we’re committed for the long term.”

And she’s right — it’s consistent commitment that’s going to change the DNA of Detroit. Each of the entrepreneurs featured in this piece have committed their time, experience, and vision to making their little corner of Detroit more sustainable. In essence, they’ve surrendered their lives to God and His mission for them. And this is something that no politician or urban developer will ever be able to replicate — God using ordinary people to bring about change and renewal. Ultimately, Detroit’s revival — and the resurgence of any ailing city — will start and end with these kind of committed efforts.