THE ROMANIA CHRISTIAN BUSINESS DEVELOPMENT PROJECT: ADVANCING THE GOSPEL IN THE MARKETPLACE THROUGH INITIATING MICROBUSINESES WITH THE PURPOSE OF IMPACTING THE KINGDOM
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A Paper
Presented to
Kingdom Grant Fund Committee
Gulf Coast Baptist Association
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Explaining the history behind the need and practical implementation of
The Romanian Christian Business Development Project
Year 1 of a Five Year Project
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by
Timothy B. Lampard
IMB Virtual Project Coordinator, Romania
The Romania Christian Business Development Project: Advancing the Gospel in the Marketplace Through Initiating Microbusineses with the Purpose of Impacting the Kingdom
The Gulf Coast Baptist Association (GCBA) entered into a partnership with the Constanta Baptist Association (CBA) in Eastern Romania in 2000. The purpose of this partnership was to strengthen the churches in Eastern Romania through both teaching and financial support. Approximately seventeen churches in the GCBA began to financially support poor pastors in Eastern Romania where churches were unable to support their own pastors or attract seminary-trained leaders into the eastern area of Romania. This financial support was to be phased out over a five-year period with the churches becoming self-sufficient at the end of that period. However, by 2005, the majority of these churches were unable to financially support themselves due to the severe economic conditions in the area, the discrimination against evangelicals by the state-sponsored Romanian Orthodox Church, as well as a history of western dependency. In 2005, ten churches from the GCBA continued their support of the churches in Eastern Romania at the request of Jim Putnam, Missions Director of the GCBA, until a solution to the problem could be determined.
In 2006, persons from the GCBA began to meet with people from the Break Through to People Network (BTPN) on a project aimed at providing financial relief to the churches in Eastern Romania. BTPN had been initiating micro-businesses in the Ukraine with significant success. The businesses were able to provide jobs as well as serve as mission points in their respective communities. In late 2005 and early 2006, a loose partnership formed between BTPN, local IMB missionaries in Romania, and the GCBA. In March of 2006, Bob Crowe, the president of BTPN, met with interested people in the GCBA concerning the initiation of this project. Individuals present at this meeting included Jim Putnam, James Martin, Ernie Davis, Tim Lampard, James and Marsha Byrd, as well as others. Ernie Davis agreed to lead the project, as he had assisted previously in a BTPN project in the Ukraine and understood the process. The team formed believed that through the creation of Christian businesses, the churches in Eastern Romania could be economically stimulated and become self-sufficient over a five-year period.
Description of the Project
The goal of the project evolved over the first year and became the formation of four to eight micro-businesses per year that, through the formation of a 36-month business plan, were demonstrated to be profitable while possessing a statement for significant kingdom impact in the marketplace. The project was to be implemented in three phases each year. Phase 1 introduced any interested candidate sponsored by a local pastor of the CBA to basic Christian business principles. At the conclusion of Phase 1, each participant was given a market research project concerning their potential business idea. Any candidate that completed the Phase 1 training and returned the market research project within six weeks was eligible to receive an invitation to Phase 2. Phase 2 utilized the market research plan of each candidate to form a 36-month business plan. Additionally, the candidates developed their kingdom impact statement to determine how the proposed business would specifically support the ministry of their local church and provide penetration for the Gospel into the marketplace. Any candidate with a viable business plan and kingdom impact statement became eligible for invitation to Phase 3. Based on the amount of funds raised for start-up capital, top business candidates received invitations to Phase 3. Phase 3 provided targeted training to each of the candidates and a loan for their new business. The loans were given for a two or three-year period with the repaid funds used to start new businesses in successive years.
Timeline of Events
2000 – 2004 Five-Year Partnership between GCBA and CBA
Late 2005 Contact Initiated with BTPN
Nov. 2005 IMB contacted concerning the project
Mar. 2006 Bob Crowe meets with interested GCBA persons concerning project
Mar. – Jul. 2006 Team recruited for Phase 1 Business Training
Oct. 9-13 2006 Phase 1 Business Training in Constanta, Romania
Nov. 27, 2006 Marketing Research Plans due from Phase 1 participants
Dec. 2006 Invitations issued for Phase 2 to Phase 1 participants successfully
completing marketing research study
Nov. – Dec 2006 Team recruited for Phase 2 Business Training
Feb. 19-21 2007 Phase 2 Business Training in Constanta, Romania
Mar. 2007 Team recruited for Phase 3 Business Training
Mar. – May 2007 Fundraising for New Business Starts
May 5, 2007 Invitations issued for Phase 3 to Phase 2 participants meeting all
requirements for New Business Start
May 21-24 2007 Phase 3 Business Training in Constanta, Romania
May 24, 2007 Five new business starts initiated in the CBA with partnering churches
December 2007 IMB appoints Tim Lampard and Jim Martin as Virtual Project
Coordinators to oversee the project
February 2008 Phase 1 (Year 2) Business Training in Constanta, Romania
June 2-5, 2008 Phase 2 (Year 2) Business Training in Constanta, Romania. Six
candidates complete training.
Summer 2008 Meetings held with Mission leaders at Prestonwood Baptist
Church, Dallas to discuss implementing project throughout
all Romania.
Sept. 22-25, 2008 Phase 3 (Year 2) Business Training in Constanta, Romania
The Progression of the Project (Year 1)
Phase 1 (October 9th – 13th 2006)
Recruiting for Phase 1 began in March of 2006 after the initial meeting with Bob Crowe of BTPN. Phase 1 introduces any interested candidate sponsored by a local pastor of the CBA to basic Christian business principles. The training of the basic business principles occurs in small groups of four to eight persons. The training requires approximately six to eight teachers assuming a group of around 40 candidates. Though Jim Putnam loosely coordinated the overall project effort, Jim selected Ernie Davis as the team leader. By July of 2006, the team recruited consisted of the following individuals: Jim Putnam, Ernie Davis, Jim Martin, Tim Lampard, Joe Sanchez, David Humphrey, Chris Boykin, Jack Ezell, and Jesse Outlaw. Ernie Davis became unable to attend the event and Jim Putnam led the team, though did not participate in the actual small group training.
The Phase 1 conference took place at Second Baptist Church in Constanta, Romania. Daniel Fodorean, pastor of Second Baptist Church in Constanta, was the point of contact within the CBA that coordinated the logistics of the event. The conference took place on October 9th – 13th. The conference opened with 36 candidates attending as well as a number of the local pastors. The coaches divided the candidates into groups of six candidates each. This allowed for one extra coach who could float around into each group as necessary to provide additional support when needed. The small group atmosphere supported the development of personal relationships and an environment where questions could be asked and answered at a level which was specific to the various business ideas in each small group.
The start-up expenses of each potential business demanded considerable attention. The project targeted business starts less than $15,000. As the candidates brainstormed their various business ideas, the cost were initially considerably higher than this amount often in excess of $100,000. It was necessary for the coaches to work through the start-up costs with each candidate to help determine which start-up costs were necessary and which costs could be eliminated. For example, often the business desired to purchase a building as part of the start-up expenses. By eliminating this cost and replacing it with rent, the start-up cost were much lower increasing the opportunity for the project to be successful in Phase 2.
Phase 1 concluded with a large group session summarizing the training and discussion of the market research project assigned to each candidate. The market research project consisted of 33 questions that each candidate would research concerning their business idea. This research project would be submitted in the local language to an IMB in-country missionary, via mail in Bucharest by November 27, 2006. The IMB liaision had the research translated and emailed to the coaches in Texas. Finally, the business loan for the successful candidates was discussed and the reason for repayment of the loan. The purpose of the repayment was to utilize the repaid funds to start new business in years two through five. The interest rate on the loan was intended to be zero percent. This was met by enthusiasm by participants. The Phase 1 training was completed on a positive note in this manner. Thirty participants completed the five days of training in Phase 1.
Phase 2 (February 19th – 21st, 2007)
Eight participants returned marketing research projects. We were expecting approximately 50% of candidates to return projects and this number was considerably lower than expected. Daniel Fodorean told our IMB liaision that most candidates decided not to proceed into Phase 2 based on two factors: First, there was a high level of skepticism that the American team would be able to make the program work in Romania. There was a perception that there was considerable confusion and that the Americans did not accurately understand the business conditions in Romania. Second, there was a pervasive belief that a Christian business could not be run profitably and with integrity in Romania. Based on these two factors, there was a loosely organized effort not to proceed with the marketing research projects. Indeed, only the participants in the outlying cities and villages who were outside this organized effort turned in a project. Not one project was received from the participants representing the churches in Constanta, the largest group of participants in the conference.
Phase 2 was also conducted at Second Baptist Church in Constanta. The eight candidates were enthusiastic about the training, but the market research plans were notably lacking on the kingdom impact statement. Consequently, the kingdom impact statement received extra attention and focus during the session. This attention was aimed at helping the candidates to understand that the primary purpose of the business was not to accumulate wealth, but to fulfill the purpose for which God has called the owner as steward into service. Though the market research projects were lacking in certain areas, the candidates were willing to spend extra time in the evenings as necessary to gather additional information needed. The businesses proposed by the candidates in Phase 2 included the following:
Candidate Business Type City / Village Coach
Balau Laurentiu Children’s Clothing Navodari Larry Kirby
Florin Socol Carpentry / Furniture Tandarei Jim Martin
Rosu Gabriel Auto Service Corbu Tim Lampard
Barna Gigel Construction Block Corbu Marsha Byrd
Miron Razvan Auto Parts Distributor Navodari Larry Kirby
Puiu Leonora Bakery Megidia Marsha Byrd
Sava Ciprian Carpentry Shop Cernavoda Jim Martin
Gintiu Ion Car Wash Fetesti Tim Lampard
The payback of the loans became a significant issue raised in Phase 2. Daniel Fodorean met with the team to discuss concerns that he had that Romanians would not pay the loans back. This was very discouraging to the team and undermined the confidence of the team in the integrity of the candidates. Daniel presented the issue as culturally Romanian, but the team believed it was more of a spiritual issue. The payback of the loans was necessary to fund businesses in subsequent years and create a program that would be self-sufficient by year five. The team spent much time praying about the issue and made it a point to discuss personally with each candidate the necessity of paying the money back. It was also determined that no candidate would be allowed to proceed to Phase 3 without the personal recommendation of his / her pastor concerning the personal integrity of the candidate.
The results of the Phase 2 training were, for the most part, very encouraging. In some cases it became necessary for the candidates and / or coaches to make a trip to the proposed location of the new business or to a competitor to gather information. The informal atmosphere helped to foster good relationships between the candidates and coaches. In all cases the coaches worked hard to help the candidates attain and construct a 36-month business plan that would be viable and profitable. In the case of Miron Razvan’s business, the idea was lacking so much critical information that it became apparent early on that not only would it be almost impossible to construct a viable model, but the candidate’s lack of relevant experience would also be an impediment to moving forward with the business. Razvan, though, seemed to have a good attitude and heart to conduct a business that would help the church, so we believed that any investment in the candidate could yield fruit in later years. However, the issue concerning the non-payment of the loans was discouraging, as much as the lack of faith in God to overcome the business corruption in Romania had been in Phase 1. The overall belief of the team was that these were spiritual warfare issues that should be resolved through prayer and Biblical accountability. If this project was truly going to be a work of the kingdom, then we should expect resistance from the enemy.
All eight candidates completed Phase 2. On the final day, we told the candidates that advancing to Phase 3 would be contingent on several factors. First, the kingdom impact of each business would play a large role in determining if the business should be funded. Second, the business and the owner would be evaluated based on relevant experience, viability of the business, profit potential, start-up cost, etc. Finally, the available funding would also play a role in how many businesses could be funded. The candidates were encouraged to not only trust God to fund the appropriate businesses, but also to join with us in praying for the money that needed to be raised to fund the whole project. We also told the candidates that they would be contacted by early May with a decision on whether they would advance to Phase 3.
Phase 3 (May 21st through 24th, 2007)
Phase 3 was designed to provide targeted training to each of the business owners for starting the new business, as well as the information needed to secure the guaranteed loan through the bank. The training focused on six key elements: kingdom impact of the business, establishing and building relationships with customers, marketing the business, sales and service, managing money, and strategic planning. The teaching content proceeded as planned and was well received, yet the teaching was overshadowed by concerns over the loan. The initial concerns stemmed from the initial presentation of an interest-free loan in contrast to what was now approximately a 4% - 6% loan. This change really seemed to undermine the credibility of the team in the eyes of several of the new prospective business owners. Ultimately, due to challenges with Banca Transilvania, notary contracts were signed directly with each business candidate and the IMB Virtual Project Coordinator. In this way, the loans were extended at the zero percent interest rates and the candidates were able to utilize bank transfers to repay the loan.
The signing of the covenant (see attachment 1 & 2) was the final event of Phase 3. The covenant was designed to form a partnership of support between the new owner, his pastor, and the American coach who had worked with the candidate. It explained the core beliefs of the project and the nature of each person’s commitment concerning the new business owner and his call to ministry. The covenant was therefore signed by three persons: the new steward of the business, his pastor, and the candidate’s coach. The signing of the covenant was the high point of Phase 3. The new owners, called the stewards of the business, seemed to be excited and sobered about the opportunity that lay ahead. The coaches were thankful for the opportunity that God had provided for them to be a part of what He was preparing to do in the Romanian marketplace through these individuals. The pastors were not present, so the candidates agreed to have their pastors sign the document and return it via mail to our team. Several of the candidates were able to get the document signed and returned before the team departed the following day.
Conclusion
This paper provides an overview of year one activities to provide an understanding of the initial need driving the project as well as the practical implementation of the project. The Romanian Christian Business Development Project initially began as a five-year project to help local churches become self-sufficient. Though this remains part of the vision of the project, the purpose has expanded to include an emphasis on the need to take the gospel into the marketplace. In a world that is moving toward globalization, the church must find a way to evangelize a more and more industrialized and commerce-oriented society. This project endeavors to meet that need while supporting the ministry of the local church in a manner which is both indigenous and self-sustaining over time.
BIBLIOGRAPHY
Bob Crowe. "The Break Through To People Network." Btpn. www.btpn.org// (accessed March 2006).