For the last 25 years, Mountain Bizworks has been implementing its mission to develop small businesses and economic justice in Western North Carolina. And although the economic climate in North Carolina has left something to be desired in recent years, 2014 was a good year for Mountain BizWorks, whose lending and learning platforms create access to capital for start-ups and existing businesses and support entrepreneurialism through coaching and training.
Operating in the black for 2014, MBW made a net income of $109,309. This is a dramatic improvement over 2013’s numbers, which show MBW operating $270,000 in the red, according to Mountain BizWorks’ “2014 Year in Review.” This improvement allows MBW to continue serving clients in need in Western North Carolina.
Says Patrick Fitzsimmons, MBW executive director, “If a business survives 25 years, it is meeting a real need in the market and that is the case with Mountain BizWorks. The services we provide are just as important to our local economy today as they were in the past. The benefit of helping entrepreneurs start businesses, and ensuring economic opportunity for those often left out remains as valuable in our region as ever. What we do makes sense.”
As noted in the organization’s year-end review, the overall impact of job and business creation and retention was significant, with 312 clients coached, 320 jobs sustained and 142 jobs created. Ninety-six businesses were sustained and 45 businesses created as a result of Mountain BizWorks’ programming. In 2014, MBW distributed 61 new loans for a total of $1,100,000 in lending activity. Of these borrowers, 61 percent are low income. African-Americans constitute 12 percent of borrowers, Latinos comprise 19 percent and women receive 31 percent of funds loaned. The largest business category receiving funds from Mountain BizWorks was food and tourism with 33 percent of loans. The remaining loans were provided to manufacturing, construction, professional services, retail, healthcare and others.
The vast majority of Mountain BizWorks’ loans were made in Buncombe County, which received 115 out of 166 total loans. Coming in a distant second was Henderson County with 21 loans.
The following table illustrates Mountain BizWorks’ financial changes from 2013 to 2014:
|
Mountain BizWorks Return to Stability |
||
|
Metric |
YE 2013 |
YE 2014 |
| Self Sufficiency Ratio |
28.00% |
52.00% |
| Net Asset Ratio |
18.60% |
21.70% |
| Net Income |
$270K |
$190K |
| Portfolio Volume |
$3.2M |
$3.4M |
| Jobs Created/Sustained |
262 |
185 |
| Expenses Reduced by 42% year over year | ||
| Business Coaching Hours Up by 15% year over year | ||
| Business Training Courses resumed in September 2014 with full classes | ||
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