Inside Business Sept-Oct 2005

Students Challenged by Professor to Raise $1 million for Katrina-Affected Businesses

It was on August 29 that Hurricane Katrina made its wrath known, causing Louisiana to lose almost one-third of its economy in less than 24 hours. As individuals all around the country tried to deal the devastation Katrina left in her tracks, a group of students at San Diego State University decided to take action and help a region that lost so much, so fast.

That’s when SDSU’s Katrina Aid and Relief Effort (KARE) came into being. Formed in an effort to aid small business owners affected by the hurricane, the project’s goal is to provide grants for expenses not covered by insurance to expedite the process of getting as many businesses as possible operating again.

Professor Michael Cunningham challenged his graduate business planning class to come up with ideas on how they could use their talents and resources to help in the relief efforts. Cunningham backed up his challenge with a $25,000 grant to be used as seed money to turn it into $1 million by the end of the year.

The project originated on the first day of class, which happened to occur just days after Katrina hit. For one-third of the class, students will learn how to write a business plan. The second third, they will critique it, and finally, they will develop it for actual businesses. Since its inception, they have recruited 300 undergraduate students to assist in the project. There are 10 teams involved in individual events and five functioning managers. The teams are each dedicated to a specific area, like marketing, public relations, or human resources.

KARE’s ultimate goal is two-fold. While they do hope to raise their monetary goal, the project is a true real-world learning experience for its students. Cunningham noted that when a business plan is written, the component of passion is often missing. “Any entrepreneur knows that sense of urgency is very hard to instill in a classroom environment. But this project is letting students experience it firsthand. They are helping people and the economy and it’s making them feel better about doing something that’s larger than themselves,” he said.

The students began their fundraising efforts with the giveaway of a two-year lease on a 2005 BMW Z4 Roadster. Students have set up shop on campus promoting the chance to win the car with each $20 donation and encouraging students to get involved with the relief efforts. Students also promoted their efforts at the IKEA in Mission Valley where, within eight hours, they received almost $3,000.

Special events have been one of the ways KARE has been reaching out to the community for donations. On November 17, Professor Cunningham hosted a Mardi Gras party at his home, which featured New Orleans’s acclaimed Clarinetist Evan Christopher. Additional fundraising events have been planned throughout the rest of the semester, including a golf tournament on December 5, titled the SDSU Santaluz Invitational, and a benefit concert at Canes Bar and Grill in Mission Beach on December 7, at which time the BMW winner will be announced.

Between the money received from fundraising events, private donations, and commitments, KARE has raised more than $100,000 thus far. According to Cunningham, $40,000 of the money has already been given to the Small Business Disaster Relief Fund, the support fund set up by the Louisiana Association of Business Industry (LABI) with the assistance of the Baton Rouge Area Foundation (BRAF). With weekly checks being sent out in $10,000 increments, Cunningham said he is confident that KARE will break the $500,000 mark very soon. With more than one month until the semester ends, it appears as if this challenge is fast becoming a reality. To learn more about this project, upcoming events and how you can get involved, visit www.sdsukare.org.