EXECUTIVE SUMMARY
One hundred thousand dollars in sales per week … 90% net margin … 90% repeat business … On an investment banking teaser, this company profile would have generated widespread interest among the investment community—had the core product not been crack cocaine. A large percentage of inmates come to prison as seasoned entrepreneurs, having run highly successful enterprises such as drug rings and gangs.
They know how to manage others to get things done. They are passionate, intelligent and willing to take risks. Even the most unsophisticated drug dealers inherently understand business concepts such as competition, profitability, risk management and the development of proprietary sales channels. What if these influential leaders ran legitimate companies?
MISSION STATEMENT
To stimulate positive life transformation for executives and inmates, uniting them through entrepreneurial passion, education and mentoring.
The Prison Entrepreneurship Program (PEP) engages the nation’s top business and academic talent in this innovative solution by creating high-impact service opportunities. We constructively redirect inmates’ talents by equipping them with values-based entrepreneurial training—enabling them to productively re-enter society. This scalable concept was developed in May 2004 by a mission-driven team with backgrounds in venture capital and law. PEP is a 501(c)(3), Houston-based nonprofit organization, providing post-release entrepreneurial assistance to parolees in Houston, Dallas and Ft. Worth.
THE PROBLEM
One out of 15 individuals will serve time in prison during his/her lifetime. U.S. taxpayers spent $60 billion on corrections in 2002—up from $9 billion two decades earlier—making corrections the second-fastest growing government spending category after healthcare. More than 600,000 prisoners are released each year, with two-thirds returning to the criminal justice system for violating the law within two to three years.
More prisoners are released to Harris County (Houston) than any other county in Texas, and Dallas has a higher crime rate than any other city in Texas. Inmates are released with only the clothes on their backs, up to $100 and one-way bus tickets to the cities where they were convicted of their crimes. Contributing to recidivism statistics is the fact that former prisoners are repeatedly rejected by employers, public housing facilities, families and even churches.
PEP INITIATIVES
Nationwide, PEP is the only entrepreneurship program targeted at inmates/former inmates. In the first 24 months of operation, PEP’s leadership implemented a groundbreaking program which has been reported in The Wall Street Journal, The New York Times, The Washington Post, Entrepreneur Magazine, The Dallas Morning News, Houston Chronicle, Texas Monthly and, most recently, on CBS Evening News.
KEY PROGRAMS
- In-prison Business Plan Competition (BPC)
- Reintegration Services, including:
Re-entry Services
Work Readiness Program
Executive Mentoring Program
Entrepreneurship School
PROGRAM ACCOMPLISHMENTS
- Worked with more than 250 inmates in two prisons; currently conducting sixth BPC, in which inmates create comprehensive business plans and present concepts to judging panels of nationwide executives. BPCs culminate in formal cap-and-gown graduation ceremonies.
- Recruited more than 200 top-level business executives to participate in more than 20 prison events that had never before taken place behind bars, including venture capital panels.
- Established partnerships with MBA programs at Harvard, Stanford, Cal-Berkeley, University of Texas at Austin, Rice University, the University of Dallas and Texas A&M Universities to provide weekly volunteer business plan advisory services for inmates.
- Assisted two inmates in filing provisional patent applications with U.S. Patent and Trademark Office.
- Maintain participant employment rate north of 93%, typically within one month of release.
- Launched Entrepreneurship Schools in Dallas and Houston, and recruited more than 60 instructors, ranging from public company CEOs to venture capitalists.
- Recruited and trained 60+ Executive Mentors, consistently maintaining a waiting list of executives desiring to coach participants.
- Assisted 32 participants in the launch/operation of entrepreneurial businesses in industries including power washing, computer services, landscaping, catering and automotive repair.
- Maintained a participant recidivism rate of less than 3%.
RESULTS
THE OPPORTUNITY
As a businessperson, you have been gifted with the education, power, influence and financial resources to serve as a change agent in this situation. PEP’s budget for 2007 is $2,000,000, which will enable us to serve 200 new inmates (in addition to our many released participants), and expand and stabilize all program areas as we begin statewide and potential national expansion. Become part of the solution that enables those rejected by society to reach their full potential.
Please consider:
- Making a generous donation to take PEP to the next level.
- Hiring PEP participants or assisting with job leads.
- Serving as an Executive Mentor.
- Serving as an instructor at Entrepreneurship School.
- Providing introductions to other executives by hosting a PEP speaking engagement.
- Participating in prison events (e.g., BPC judge).
PEP'S 10 DRIVING VALUES
1. “Fresh Start” Outlook
PEP believes that every inmate is a human being in need of a true second chance (which for many, may actually be a legitimate first chance). We will treat every inmate with respect, regardless of background or personal history. We strive to equip human beings to achieve their full potential. We believe that people can change, dignity can be restored and that society will reap bountifully.
2. Servant-Leader Mentality
PEP believes that with leadership comes the overriding responsibility to be of service to others. We believe the contributions we make in the lives of others are far more important than our own accomplishments. We will lead by example with humility at the sacrifice of personal glory. PEP exists because of our desire to serve all those with whom we come in contact, especially our participants, executives, partners, donors, prison staff and the community at large.
3. Love
We are committed to service in love. PEP staff and leaders will be patient and kind, never envious or boastful or rude. We will not seek our own way nor be easily provoked; rather, we will bear all things and endure all things. We will rejoice in the truth and always seek out the best in others.
4. Innovation
We embrace a pioneering spirit and are constantly in the pursuit of innovation and improvement in our efforts to help others. We expect dramatic change. We are committed to seeing beyond the current perception, and even the current reality, to break stereotypes and shape new futures.
5. Accountability
We believe that without accountability, neither our participants nor the executives with whom we work will be changed by the program. We will do everything in our power to help the participants succeed in life, but we provide only opportunities and tools; participants must want to change. Consequently, PEP only commits time and resources to those who demonstrate a desire to help themselves. PEP enforces a “no wiggle room” accountability program with participants.
PEP volunteers and employees will likewise be held to a high standard of accountability, being required to take ownership of their initiatives and follow through with their commitments.
6. Integrity
We model and require complete honesty and integrity in all our relationships and endeavors. Integrity means more than simply the absence of deception; it means we are completely forthright in all our dealings. We say what needs to be said, not simply what people want to hear. And we are truthful with ourselves, listening attentively to feedback from others as they speak into our lives, correct us and reveal to us our blind spots.
7. Execution
We place an emphasis on execution—the ability to get things done. We expect to deliver outstanding and timely results. Big thoughts don't matter if they are not turned into action. Self-discipline is a core element of our organization's culture. We sweat the small stuff. We hire people with a strong track record of successful execution.
8. Fun
Work is an important part of life and it should be fun and rewarding. We seek to create a work environment that encourages laughter, imagination, fellowship and creativity. We regularly celebrate positive results and recognize those involved in the success.
9. Excellence
We are dedicated to pursuing excellence in every area, despite the difficulties which arise from setting high standards. We seek to work with and learn from the best of the best. We are dedicated to developing excellence in leadership throughout our organization—leadership of projects, ideas and the promotion of our 10 Driving Values. PEP is committed to working with people and organizations who share our values and mission.
10. Wise Stewardship
We are committed to the mentality of a steward: someone entrusted with another's wealth or property and charged with the responsibility of managing it in the owner's best interest. We will apply donors’ funds as promised. We are committed to being a lean organization, and as a staff, we are also committed to modest salary and expense levels. We use funds intelligently, efficiently, and strategically to achieve maximum benefit for all whom we serve.
