It Doesn’t Take a Rocket Scientist:
To Understand & Use Social Security Work Incentives
Self-Employment Through the Implementation of Social Security Work
Incentives
Self-employment is a particularly viable work outcome in rural
communities. Partnerships, ownership of business resources, limited
partnerships, and small business proprietorships are progressive,
beneficial tools for enhancing both the lives of people with
disabilities and the economic development of their communities.
Goods and services are scarce in rural communities and residents
may have to patronize services and shop in more urban communities
many miles away. However, the economic development of any
community depends on attracting money from outside sources.
New businesses
must start and existing businesses must expand in order
to ensure a community's stability and growth.
Entrepreneurs with disabilities can make significant financial
and social contributions to the health and well-being of their
rural communities. Many can access funds through Social Security
Work Incentives to start small businesses or invest in established
enterprises. In 1996, a Government Accounting Office report showed
that of 10,000 PASS plans in operation, 34.2% had set aside funds
for self-employment. Participants had purchased real estate,
business equipment, tools, computers, vehicles, clothing, livestock,
and other goods and services that would help them work and contribute
to their communities. If the PASS funding also allowed leverage
of other resources (such as loans from banks, credit unions,
or the Small Business Administration), the businesses had a great
probability of success.
PASS plans are an excellent, workable funding mix that allows
consumers to be involved in making choices that lead to employment
success
Starting a Business With a PASS
If a person is submitting a PASS with the work goal of self-employment
in a small business, he/she must include a detailed business
plan. Applicants can use assistance from vocational counselors,
Small Business Administration personnel, Small Business Development
advisers, local banks, and Chambers of Commerce. There are also
many websites on writing business plans. If need be, Vocational
Rehabilitation can pay for someone to write a plan.
The following business plan components are critical
• Business name, address, owner
• Business type/form (e.g. sale proprietorship, partnership, etc.)
• Description
of the principle activity of the business, including a description
of the product and/or service to be provided
• Explanation
of specific objectives of the business along with timetables for
establishing the business and attaining the
stated objectives
• Explanation as to why the business should succeed and its unique features
• A description of the target market and demographics
• A description of the mechanism for the pricing of the product/service
• A financial plan
• Advertising/marketing plan
• A list of personnel and their roles/qualifications
A business plan is necessary if a PASS is written to establish
limited partnerships (through the purchase of equipment and/or
other assets), or to establish an independent enterprise in
conjunction with a pre-existing business where work will be
out-sourced.
Other Work Incentives
• Impairment Related Work Expenses (IRWE)
• Subsidy
• Blind Work Expenses (BWE)
• Student Earned Income Exclusion (SEIE)
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