
One of the most common and critical difficulties facing new entrepreneurs is how to broadly market their products or services. Recognizing that, the Charles Stewart Mott Foundation funded a multi-site demonstration, called Access to Markets (ATM), from 1998-2001 to test innovative ways to help low-income entrepreneurs link their goods and services to new markets. FIELD was funded to conduct a learning assessment.
Key Findings
The ATM grant cluster produced a rich body of lessons and best practices for other organizations that may operate or are marketing a market-access program. The final report on the cluster, Connectors and Conduits: Reaching Competitive Markets from the Ground Up, offers an in-depth look at best practices, implementation challenges and cost-recovery issues associated with ATM strategies developed by programs participating in the demonstration. Some of the general lessons that emerged are:
- “Market readiness” is an important and enormous hurdle for microbusinesses – one that all of the ATM programs needed to address in one form or another. Therefore, ATM projects should include a strong product/service development component, as well as a mechanism for facilitating entrepreneurs’ connections to potential consumers in order to facilitate market readiness.
- Successful ATM projects use multiple strategies that represent a broker or “door-opener” for microbusinesses in order to connect them to new markets. In other words, one of the ways that ATM projects typically differ from general microenterprise assistance programs is that they have crafted an intentional strategy for connecting microbusinesses to potential buyers.
- ATM projects should start by choosing to assist businesses within the same or similar industry sectors, rather than attempting to assist businesses that are operating in a range of industry sectors. Picking an industry and sticking with it seems to be the most effective course of action.
- Individualized one-on-one technical assistance is an essential component of an effective ATM project. In particular, industry-specific technical assistance is in demand.
- ATM projects need to be anchored by the strong support of the entire nonprofit organization, including the leadership at the board level. While staff turnover represents an inevitable challenge for every nonprofit institution, it creates a formidable barrier to the success of ATM strategies, because so much of the market connection is based on the relationships that staff makes with industry players. Because zero turnover is rarely the reality for these nonprofit projects, it is important that special attention is paid to developing institutional capacity, rather than depending on one or two individuals.
Follow-on Projects
Building upon the lessons from the ATM demonstration, FIELD created MicroMentor, a project offering emerging entrepreneurs an on-line mentoring opportunity and offering microenterprise practitioners a hard-to-manage, but critically needed, technical assistance service. In July 2006, FIELD signed an agreement to transfer operation of MicroMentor to Mercy Corps, the international humanitarian relief and development agency, effective October 1, 2006. To learn more about that spin-off, click here.
Publications
FIELD produced several publications and products during the course of the Access to Markets demonstration. These include:
Connectors and Conduits: Reaching Competitive Markets from the Ground Up
Beginning in 1998, researchers at FIELD undertook an extensive examination of how several innovative microenterprise programs in the U.S. were helping clients place their products in more lucrative markets as part of the Access to Markets demonstration project. This publication contains findings from that research, funded by the Charles Stewart Mott Foundation. The authors gleaned highlights from the strategies undertaken by all of the programs participating in the demonstration and present in this 45-page volume: best practices, implementation challenges, cost-recovery issues and lessons learned. Geared to those interested in implementing an access to market strategy — or simply learning more about the thorny issue of how microbusinesses can best access more lucrative markets — this publication tackles such topics as: which strategies work best (and under which circumstances), and what ingredients are the most critical when trying to create a successful ATM program. Published: July 2002/Download PDF for Free or Order Printed Copy $5 per copy.
Making the Connection: People, Incorporated of Southwest Virginia/Appalmade
The third and final publication in the Access to Markets Case Study Series, this publication explores three strategies used by Appalmade to help home-based crafters in the Appalachian region market their products. Appalmade's strategies — operating a retail outlet, promoting wholesale sales and capturing church-based sales — are designed to create new markets and focus on products that can be produced at home with minimal skills and equipment, while bringing cash to crafters and their families. The report describes Appalmade's clients, programs, accomplishments and challenges. It concludes by highlighting some of the important lessons Appalmade has learned. Published: December 2001/Order Printed Copy $10 per copy.
Making the Connection: Neighborhood Development Center
The second case study in the Access to Markets series, this publication explores the methods used by NDC to help low-income entrepreneurs gain access to lucrative or previously inaccessible markets. Documented here are the experiences and lessons learned by NDC's in-house marketing team. Located in Minneapolis/St. Paul, Minn., NDC used three distinct marketing strategies: market-based clusters, one-on-one marketing consulting and promotion of a retail business incubator housing 43 Latino-owned businesses. NDC's approach, including achievements and challenges faced, are explored in detail. Published: August 2001/Order Printed Copy $10 per copy.
Making the Connection: Appalachian Center for Economic Networks (ACEnet)
This publication, the first in the case study series, takes an in-depth look at how one program — ACEnet — is helping clients break into the rapidly growing specialty and natural food sectors. The case study includes an exploration of the challenges and opportunities facing microentrepreneurs who enter these sectors, and an examination of the strategies used and lessons gleaned from ACEnet's efforts to help businesses. Published: September 2000/Order Printed Copy $10 per copy.
Learning Cluster Members
The nine programs selected for this demonstration, and descriptions of their proposed innovation are briefly described.
Learning Evaluation
The learning evaluation for this grant cluster attempted to identify the most promising models developed by the grantees, and indicate how business sales were impacted by the interventions. Details about the learning evaluation are provided here.