Encouraging Entrepreneurship
Whether it is in developing countries or urban America, getting people out of the informal economy and into the formal one is really about helping entrepreneurs help themselves. Instead of charity, the tools that make this happen range from legal reform to microloans to, above all else, education. Laura Novak of the New York Times reports on one example in San Francisco:
Known as a “kitchen incubator,” La Cocina (la-koh-SEE-nuh) is a shared-use space created two years ago to provide a platform for women entrepreneurs without assets. Offering a low hourly rate for access to 2,200 square feet of restaurant-quality kitchen space, the nonprofit La Cocina also provides training from high-profile mentors and technical assistance on creating business plans and building marketing programs.
“There’s an entrepreneurial gene,” said Valeria Perez Ferreiro, executive director of La Cocina. “And we are finding amazing entrepreneurs who are already cooking or have a product that is so promising that it deserves to be seen in the market and that we think has a chance for success.”
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La Cocina was created by the California Women’s Foundation in response to a survey that indicated that 90 percent of women in the Mission District said they needed adequate equipment and proper permits to run their businesses, but that commercial kitchen space in San Francisco was either unaffordable or geographically inconvenient. Many of them said they were cooking illegally out of their homes.
The foundation and government grants make up more than three-quarters of La Cocina’s $575,000 annual budget. About 17 percent of its funding comes from rent charged to six commercial tenants (including men), who pay $30 to $40 an hour, depending on the type of equipment being used. The program participants pay $8 to $10 an hour for the space, utensils and small ware.
“We are not creating a parallel nonprofit world where they are in a sheltered workshop,” Ms. Perez Ferreiro said. “The reason we charge a fee is that we want them to have a business model that is sustainable. If they don’t incorporate the cost of doing business, it’s artificial, and it’s going to crumble.”
To avoid that, Jason Rose, La Cocina’s culinary director, and Caleb Zigas, the program director, both of them bilingual, meet weekly with the women to review food costs, recipes and sales and marketing plans. Participants also pair with consultants from partner organizations who work on finances and cash flow statements.
More stories about La Cocina can be found on its website.
