Brewing Additional Revenue for Your Farm: How Pennsylvania’s Changing Liquor Laws Open New Market Opportunities for Agricultural Producers

By: Sarah Phillips

Part of running a successful business is knowing when and how to diversify. As the agricultural market becomes more competitive and consumer-driven, farmers are becoming experts on creating niche market opportunities to meet consumer demands.

Over the last several years in Pennsylvania, the liquor laws have become more relaxed. Thanks to the passing of Act 39 by Governor Wolf, farmers have been able to expand their offerings to include farm-fresh, locally produced beer, hard cider, and wine. The new laws allow agricultural producers to not only grow, process, package, and sell their own alcoholic beverages, but they can also do all of this right on their own farms. It is not uncommon to see farms opening their own “tasting rooms” in old barns on the farm property, and now, doing so is a much easier process than obtaining a traditional liquor license.

River Bend Hop Farm and Brewery located in Newport, PA. It opened in 2017 thanks to the passing of Act 39.

getting started

Obtaining the appropriate licenses and permits can be a lengthy process, so it is best to start filing the necessary paperwork right away. A delay in receiving the required approvals could mean a delay in opening your new business, which could severely impact your cash flow and the ultimate success of the business.

Because there are several different types of licenses you can apply for, before you file, you must first decide which license is appropriate for your particular business goals. Each license comes with its own set of requirements and only allows your business to engage in certain activities.

Your first option under the new liquor laws is to apply for a Manufacturing License, known in the business as a “G” license. This license allows you to manufacture wine, beer or hard cider on your premises and sell it to consumers for both on and off-site consumption. The “G” license requires that you have at least ten seats and food available on the premises. A “G” license will also permit you to sell your alcoholic beverage in pints, growlers, and even kegs. For agricultural entrepreneurs who have limited funds, want to start small, or are not interested in managing a huge operation, a “G” license may be the best option to provide supplemental income for the farm.

A second license option for your farm is to apply for a Brew Pub License, which is known as a “GP” license. Keep in mind that your farm would need to apply for both a “G” license and a “GP” license to enjoy the perks and benefits that come with a “GP” license. Under this license, your on-farm tasting room can stay open until 2:00 a.m., but you must have seating and food for at least 30 people. Additionally, under this license, your business must apply to the Pennsylvania Department of Health for a health permit.

It is important to remember that the federal government has its own set of laws that govern the production and sale of alcohol for on-farm operations. Getting the appropriate federal approval is even more complicated and time-consuming, so it is best to start this process right away. You can apply for both federal and state approval at the same time, so there is no need to wait to receive approval from one before applying for the other. For more information on that process, check out this resource.

additional profit-making opportunities

Act 39 also changed existing law to allow farmers and agricultural producers to sell their alcoholic beverages off-site at a farmers market. Like the other types of licenses discussed above, a farmer is required to apply for and receive a special license to sell at a farmers market. There is a filing fee, and you must inform the Pennsylvania Liquor Control Board of the location of the market you want to sell at as well as the hours you expect to be there. In addition to the farmers market license, you should always check with the coordinator of the farmers market you wish to attend because most markets also require proof of insurance and inspection certificates.

Reid’s Winery is just one of many Pennsylvania vendors that attends farmers markets throughout Adams County to sell their locally produced wine and hard cider.

Act 39 provides additional incentives to create your own on-farm tasting room by making it permissible to sell beverages from other local breweries. This allows agricultural entrepreneurs to not only expand their product offerings but increases their ability to collaborate with other local agricultural entrepreneurs.

other important considerations

As an agricultural entrepreneur, expanding your business to offer your own locally produced beer, hard cider or wine can bring in additional revenue that will make your larger farm business more sustainable. Like all new entrepreneurial endeavors, you should always consult your local township’s laws to make sure you do not violate any zoning ordinances. Attending local town council meetings or consulting with a local attorney is advisable to make sure your business is operating in accordance with all applicable permits and licenses. It is also recommended that you consult with your farm insurance agency to make sure you are in compliance (or start complying) with any regulations the agency has about on-farm businesses and customers.

You can stay up to date with Pennsylvania’s changing liquor laws by subscribing to the Pennsylvania Department of Agriculture’s Weekly Roundup Newsletter, which provides timely updates on laws and regulations that can affect agricultural entrepreneurs and their respective businesses.


This post was originally authored February 9, 2020, and can be found here.

Sarah Phillips, at the time of this blog post, is a third-year law student at Penn State’s Dickinson Law. She is from West Amwell, New Jersey and has interests in agricultural, land use and business transactional law. She is currently serving as an Honor Code Representative and a Law Lion Ambassador. Sarah is the Editor-in-Chief of the Dickinson Law Review.

Sources:

Click to access 003462.pdf

Click to access Winery%20and%20Farmers%20Market%20QandA.pdf

Click to access February%202017%20Presentation%20for%20PA%20Producers%20and%20Licensees.pdf

https://www.wesa.fm/post/farmers-markets-get-boozy-thanks-pas-relaxed-liquor-laws#stream/0

http://www.riverbendhopfarmandbrewery.com

https://bit.ly/2OHIgJX

Picture Sources:

https://bit.ly/2H7OCht

https://www.reidsorchardwinery.com

Take a Whisk & Start a Business from Scratch: Registering Your Kitchen as a “Limited Food Establishment” in Pennsylvania

By: Jasmine Sandhu

I frosted my carrot cake with buttercream icing. I thought to myself: “Drop out of law school; this masterpiece will make millions.” But this recipe already had made millions. Yes, I used a store-bought cake mix and icing. If the thought crossed my mind, people with actual baking skills must think about starting a business often. Unfortunately, 60% of traditional food businesses fail within their first year, and 80% fail within four years.

You may be able to test your idea without the risks associated with starting a traditional food business – “Cottage Food” state laws allow entrepreneurs to sell food produced in their kitchens. In Pennsylvania, a person may start a food business in their home as a limited food establishment (“LFE”).

I’m not the face of the next Cake Boss, but this blog makes Pennsylvania and federal rules about LFE registration digestible.

why register your kitchen as a lfe?

Selling food within friend circles or on social media without LFE registrations may be illegal. The first violation is a summary offense. Three violations within two years is a third-degree misdemeanor. Each violation can also result in a $10,000 fine.

what are the barriers to obtaining a lfe registration?

Before discussing the LFE application, you should be aware of the barriers below that could prevent you from obtaining an LFE registration. If you cannot overcome a barrier, consider: (1) contacting a nearby commercial kitchen; or (2) creating another kitchen in your home and applying for commercial status with the Department of Agriculture (“Department”).

  1. Prohibited Foods

The Department prohibits Time/Temperature Control for Safety (“TCS”) foods. Typically, foods requiring refrigeration are TCS. Rejected TCS foods include:

  • Fresh fruits/vegetables;
  • Garlic-in-oil products;
  • Meat; and
  • Desserts with cream-based fillings (no Boston crème donuts – I know, blasphemy).

What if your masterpiece is a moist cake or salsa? These foods are “questionable products.” You must submit the food to a lab to test the pH and water levels.

2. Pets/Animals
You cannot register your kitchen if you have pets in your home at any time. However, the Department may grant the registration if there is:

    • A physical barrier (e.g., door) to the kitchen making it inaccessible to pets; and
    • A separate entrance to the kitchen, so ingredients are transported through areas inaccessible to pets.

    Fish, reptiles, or other cage-confined animals aren’t considered “pets,” as long as they aren’t located near the kitchen.

    1. Private Water and Sewage System

    Water supply and sewage disposal must be approved. If you use public water and sewage system, you’re in the clear. If your source of water is private, you must submit the water to a lab to test for chemicals. Annual testing is required to maintain registration. If you have private sewage disposal, you must contact your certified Sewage Enforcement Officer to discuss if your system is appropriate for a food business.

    1. Local Requirements

    Local zoning or ordinances may prevent the use of home kitchens for businesses. Department approval doesn’t imply that the business complies with local requirements.

    Contact your municipality to ensure that a food business from your kitchen is allowed.

    how do I prepare and submit the application?

Everyone who wants to sell from their kitchen must fill out a free application to register it as a LFE. Submit the application to your regional office, who will review it within 3 to 5 weeks. The application packet is 20 pages. Don’t be alarmed – the actual application starts on page 15. Here’s a checklist to help you prepare:

Click to learn more about allergensNet Wt. calculations, and licenses to collect taxes.

what should i expect after submitting the application?

If your application is rejected, the Department will issue a letter specifying reasons for the disapproval. You can resubmit applications.

If your application is approved, an inspector will examine your kitchen and collect a $35 registration fee upon a successful inspection. After this, you can sell foods produced in your kitchen. The inspection report serves as approval before you receive registration in the mail.

If the inspector finds deficiencies, you may correct them and ask for another inspection.

what rules are there to consider when running a lfe?

  • Don’t process business and personal food simultaneously. Don’t commingle ingredients between business and personal food processing.
  • Don’t allow children in the kitchen during business food processing.
  • Be wary of health claims on labels (e.g., “Gluten-Free”). These must be verified through sub-ingredients or testing.
  • Food and Drug Administration requires nutritional labeling if you sell foods across state lines. A small business exemption may apply.

final “food” for thought…

Debbi Fields, an entrepreneur, explained: “I loved making cookies, and every time I did, I made people happy. That was my business plan.” She started her business from scratch – baking cookies from her kitchen, which turned into a million-dollar company.
I’m not a baker. Yet, I felt joy from baking a store-bought cake mix. This joy must be small compared to what Ms. Fields or you may experience. Starting a food business is risky, but the risk is lower when you can use your kitchen. Register your kitchen as a LFE, so you can take that whisk, roll in the dough, and make that bread.


This post was originally authored January 30, 2020, and can be found here.

Jasmine Sandhu, at the time of this post, is a third-year law student at Penn State’s Dickinson Law. She grew up in Northern California and completed her B.S. at UC Davis. Jasmine is interested in transactional law, specifically corporate and real estate. She is also passionate about legal topics where the law intersects with race (e.g. immigration and criminal law). She currently serves as a Law Lion Ambassador and the Symposium Executive Editor of the Dickinson Law Review. After graduation, Jasmine will join a transactional practice group at Dechert LLP in Philadelphia.

Sources:

Official Website for Limited Food Establishments

PA Consolidated Statutes, Title 3, Chapter 3

Statute Language on Criminal and Civil Liability for Violations

https://forrager.com/law/pennsylvania/

https://www.pickyourown.org/CottageFoodLaws-Pennsylvania.php

Photo Sources:

https://www.vectorstock.com/royalty-free-vector/hand-hold-gavel-icon-cartoon-style-vector-23227498

https://www.countrycottagesonline.com/pet-free-cottages-uk.htm#.XkF9Qi2ZOu4

https://www.wikihow.com/Check-Zoning-Laws 

https://blog.insyncinsurance.co.uk/index.php/takeaway-insurance-tips-how-to-prepare-for-health-inspections 

https://www.amazon.com/One-Smart-Cookie-Housewifes-Multimillion-Dollar/dp/0671618385 

 

Are Your Employee Payments “Above Board” or “Under the Table”?

By: Michael Giordano

For many small businesses, payroll is not just a hassle but also an expensive operating cost. Business owners often think, “Wouldn’t it be easier to just pay in cash?” Paying employees cash under the table might seem attractive to some entrepreneurs, but beware! It may look easier and cheaper in the short-term, but in the long-term, it can land you and your business in trouble.

This post will discuss what “under the table” payments are and their associated risks.

what is an “under the table” payment?

The phrase “under the table” references off-the-books or unreported employment payments. The most common form of the under the table payments is cash as it is more difficult for a governmental agency to trace.

The main intent of “under the table” payments is tax evasion, as neither the employer nor employee report and pay taxes. With this form of payment, the business does not withhold the statutorily required payroll taxes from an employee’s paycheck. The employer also then fails to send these withholdings to appropriate tax agencies. Payroll tax deductions include the following:

  • Federal income tax withholding (see withholding tables in Publication 15).
  • Social Security tax withholding (6.2 % up to the annual maximum).
  • Medicare tax withholding (1.45 %) and Additional Medicare tax withholding for employees earning over $200,000 (0.9 %)
  • State income tax withholding.
  • Various local tax withholdings (such as city, county, school district taxes, state disability or unemployment insurance).

Correspondingly, the employee does not report the cash payments as income.

Some employers may pay cash “under the table” so they can hire workers who are unauthorized to work in the United States. Other businesses simply do not want to keep up with the records.

“Above board” vs. “under the table” cash payments

It is important to note that not all cash payments to employees are illegal! In fact, it is not uncommon for small businesses to pay employees in cash.

If your business does use cash payments, it is important to remember that businesses are required to report ALL wages to the IRS, including cash payments. If your business pays workers in cash, the business is still required to pay payroll taxes. If your business does not pay payroll taxes, whether intentional or an accidental oversight, this means the payments are illegal and “under the table.”

the government will find out!

You might be wondering, “How does the government find out about under the table payments?” It can happen in a variety of ways:

  • An employee or another person reports your business for illegal payments.
  • An employee files for unemployment and your business has not contributed.
  • An employee files for social security, receives a payment less anticipated, and the Social Security Administration investigates.
  • An employee gets injured at work and files a worker’s compensation claim which your business does not carry.

the risks of “under the table”

By now, you realize that under the table payments can bring a myriad of risks and consequences that can negatively affect your business, which include:

  • It can be a safety risk to withdraw and store a large amount of cash until you pay your worker. Additionally, if the money is lost or stolen it can economically set back your business.
  • The exchange of cash rather than check or payroll system increases the likelihood of mistakes in payroll and tax-related laws
  • Even if you make an honest mistake in payroll, you and your business can face serious penalties including fines and imprisonment that can shut your business down.
  • “Under the table” can harm your workers’ futures. While your employees may agree to cash payments, they will miss out on benefits such as social security.
  • Your employee could turn you in. IRS will reward employees up to $2,000,000 depending on the assistance provided in the prosecution of an unlawful business owner

how to be “above board” with your payments

Be accurate and organized. If your business does cash payments, it is vital to keep accurate records which would include the amount paid and on what date you paid them. This will help mitigate issues if your business is audited.

Since there is no paper trail when you pay employees in cash, managing payroll can become complex. Instead of cash payments, you might consider paying employees with direct deposit or checks with pay stubs. These options guarantee that you will have a paper trail.

Regardless of how you pay employees, you need to make sure you comply with employment laws. You must obtain a federal employer identification number (FEIN), set up state tax accounts, report new hires, and obtain workers’ compensation insurance.

When you run payroll, do not forget to withhold taxes and other deductions, like health insurance premiums, from employee wages. You will also need to contribute employer taxes, including Social Security and Medicare taxes. You also need to know when to deposit and report employment taxes to stay compliant with tax laws.

Remember, you still must pay unemployment tax and workers’ compensation insurance no matter if you pay using cash, direct deposits, or paychecks. Failure to do so will put your business in direct violation of unemployment and workers’ compensation laws.

at the end of the day, the decision is yours!

The amount of money or effort saved by not paying taxes on employee salaries is underwhelming when you consider the number of risks that you as a business owner are exposed to.

The IRS is quite capable of finding employers who try to get away with illegal activities. The IRS can find irregularities in business owners’ income and their lifestyle with various methods. Such irregularities can be the basis of an investigation, which is sure to hurt you and your business.

Chances are you’ll be caught and lose more money than you would have made from skipping out on paying taxes.


This post was originally authored February 20, 2020, and can be found here.

Michael (“Mike”) Giordano is a third year law student at the Pennsylvania State University, Dickinson School of Law. He received his Bachelor of Arts in History with a minor in Global Studies from the University of California, Los Angeles. Mike is interested in the nexus between businesses and the federal tax code. As a result he has taken Basic Federal Income Tax, Advanced Federal Income Tax, Taxation of Business Entities, Unincorporated Entities, Corporations, Operational Issues of Businesses, Accounting for Lawyers, and Information Privacy.

Sources:

https://www.thebalancesmb.com/payroll-taxes-3193126

https://www.irs.gov/businesses/small-businesses-self-employed/understanding-employment-taxes

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

https://www.irs.gov/irm/part25/irm_25-002-002

https://www.irs.gov/statistics/soi-tax-stats-irs-data-book

https://www.patriotsoftware.com/blog/payroll/paying-employees-cash-under-table-illegal/

Photo Sources:

https://www.dreamstime.com/stock-illustration-two-businessmen-passing-money-under-table-business-corruption-concept-image59130184

https://www.patriotsoftware.com/blog/payroll/paying-employees-cash-under-table-illegal/

https://www.moneyunder30.com/finance-a-purchase-or-pay-cash

 

 

Operating Your Business During a World Health Crisis — The Coronavirus

By: Sarah Zomaya

At the time of posting, the coronavirus has surpassed SARS with a death toll of over 3,000 people.  International governments and organizations are working together to curb this outbreak, but businesses also have a duty and commercial interest to help.  Companies have the ability to impact their employees’ behavior, in addition to their high-level communications infrastructure, putting companies in a strong position to respond to an outbreak.

Business owners should not wait and hope the coronavirus doesn’t spread in the U.S., rather business owners need to prepare and figure out how to operate during a time of outbreak. “Companies that protect their assets, employees and communities will be rewarded with increased economic resilience, competitive market advantages and greater social relevance…companies that respond slowly will find themselves increasingly at odds with customers, investors and workers.”  This post will cover managing employees, maintaining a clean supply chain, and avoiding contract liability due to the disease outbreak.

In an increasingly globalized market, many companies have employees travelling or living in foreign countries.  Companies should ban or limit travel to and from China and other infected areas.  For example, Amazon has banned employee travel to and from China and is requiring any employees recently in affected regions to work from home for two weeks before returning to the office.  Apple has similarly restricted travel and is deep-cleaning stores and shutting down retail stores and corporate headquarters.  Google and Microsoft are requiring all employees in China to telecommute.  Similar to these tech giants, all companies should develop a plan to protect employees during disease outbreak.

To further prepare and protect employees, companies should compile information on the coronavirus to educate employees and help them avoid infection.  Make sure the information is from a credible source (like this CDC guide), because of the growing amount of misinformation on social media. Additional suggestions for protecting employees include giving out free masks and sanitizers and increasing the office cleaning schedule.

Next, disease outbreaks can have a significant impact on global supply chains.  And with no end in sight, companies should map out their supply chains to determine whether they are at risk.  Foxconn, the world’s largest electronics manufacturer and largest iPhone supplier, was forced to shut down production.  If Foxconn can’t assemble the iPhones, Apple can’t sell them.  Many predict Apple will report reduced sales and production, explaining, “[t]he supply chain of these high value consumer electronics products is so tight and efficient that disruptions are felt quickly, and there’s limited ability to catch up once you get in the hole.”

Additionally, companies are typically familiar with immediate suppliers, but the locations and operations of any second-tier suppliers and subcontractors may be less clear.  Understanding how disease outbreak can impact your supply chain is crucial, and that includes how the outbreak affects your customers.  While there is a very low risk of infection in the U.S., the fear of infection could reduce foot traffic, decreasing retail and entertainment sales. One more important note, you cannot catch the coronavirus when receiving packages or mail from China.

Finally, what liability will a business have if it cannot perform a contract due to the disease outbreak?  Fortunately, most boilerplate contract language includes a force majeure clause, excluding liability for events beyond a party’s reasonable control.  If a business cannot perform a contract due to the coronavirus, the force majeure clause will likely kick in and shield the business from any liability.  Most force majeure clauses likely will not specify protection in the event of a pandemic, epidemic, or disease outbreak. However, most force majeure clauses do cover natural disasters, “acts of God,” government acts, or “other circumstances beyond the parties’ control.” Such provisions would likely apply if the coronavirus causes a party to breach a contract.

If a party invokes the force majeure clause, they typically must show no alternative means of performance were available.  If a party breaches a contract because it is more expensive or less convenient due to the outbreak, the force majeure provision likely will not apply.  For example, during the SARS outbreak in 2003 some courts found the force majeure clause did not apply because the government acts only partially impacted the business and did not “directly or radically trigger the non-fulfillment.”

As a practical note, parties should also confirm the notice requirements under the contract are met with regard to the force majeure clause.

Absent a force majeure clause there is no implied protection, but a party may assert the doctrine of “frustration” and avoid liability.  Frustration allows a party to set aside a contract if an unforeseen event makes the contract impossible to perform, at no fault of either party.  The standard for a frustration argument is high and requires more than a contract becoming too expensive or difficult to perform.

Notably, the China Council for the Promotion of International Trade (CCPIT) is providing “force majeure certificates” to businesses in China.  If a business in China can prove it is unable to perform a contract due to the coronavirus, the CCPIT will issue a force majeure certificate, absolving the breaching party from liability.

While we hope we never have to experience the effects of a disease outbreak, businesses cannot risk doing nothing.  The occurrence of epidemic events has been on the rise over the past 30 years and with our globalized society, that number is only expected to grow.

“Business leaders who are aware of the changing nature of commercial infectious disease threats are better able to position their organizations to avoid exposure, respond effectively and support global health security for the good of communities.”


Sarah Zomaya, at the time of this post, is a third-year law student at Penn State’s Dickinson Law. Following graduation, Sarah will practice corporate transactional law at Morris, Nichols, Arsht & Tunnell. Sarah is currently serving as Vice President of the Business Law Society and as a Comments Editor for the Dickinson Law Review.

 

 

Sources:

https://www.nytimes.com/2020/01/29/business/china-coronavirus-economy.html

https://www.clydeco.com/insight/article/novel-coronavirus-outbreak-implications-for-international-trade-shipping

https://www.businessinsider.com/wuhan-coronavirus-apple-amazon-google-close-offices-travel-china-spread-2020-1

https://thehill.com/policy/international/479950-state-department-orders-us-employees-in-wuhan-to-evacuate-due-to

https://www.cnbc.com/2020/01/27/coronavirus-prompts-automakers-to-evacuate-workers-from-china-weigh-factory-delays.html

https://www.natlawreview.com/article/managing-commercial-impact-coronavirus-outbreak-force-majeure-declarations

https://www.npr.org/sections/health-shots/2020/02/03/801620037/no-you-wont-catch-the-new-coronavirus-via-packages-or-mail-from-china?utm_term=nprnews&utm_source=facebook.com&utm_campaign=npr&utm_medium=social

https://www.natlawreview.com/article/coronavirus-and-force-majeure

https://www.china-briefing.com/news/coronavirus-in-china-applicability-of-force-majeure-in-contract-disputes/

https://www.reuters.com/article/us-china-health-trade/china-trade-agency-to-offer-firms-force-majeure-certificates-amid-coronavirus-outbreak-idUSKBN1ZU075

https://www.entrepreneur.com/article/345759

 

 

Mustafa Nuur | Entrepreneur of the Month | March 2020

By: Sarah Zomaya

I had the pleasure of interviewing Mustafa Nuur as our March Entrepreneur of the Month.  Mustafa was born and raised in Somalia as the eldest of eight siblings.  But unfortunately, Mustafa was born during Somalia’s civil war.  His family escaped to Kenya for eight years before settling in Lancaster, Pennsylvania in 2014.

When his family moved to the United States as refugees, the first thing Mustafa observed was that he “came to a very diverse country that has so many different people from so many different places,” when he was coming from “a country with one nationality and one language.” Mustafa was so excited to be in this kind of culture.  But, he immediately saw that everyone was “living in a silo”; nobody knows each other, nobody talks to each other.

One day, Mustafa was involved in an incident with someone who didn’t understand his story and was sending harassing messages.  Mustafa sat down with that person, shared where he is from, and connected with them on a personal level.  From that experience, Mustafa realized there has to be a way people can connect with one another, because that will allow people to understand each other in these very polarized times.

Building Bridge

This is where Mustafa generated the original idea of having people sit down together for a meal, “but it took a couple of sleepless night to finally come up with the concept of Bridge.” If you ask him what he does for a living, Mustafa would say he’s “in the business of bringing people together.”  But more technically, through Mustafa’s business, Bridge, a local refugee can be a host and any guests who want to learn about the refugee’s culture and story can sign up online to have a meal with the refugee and eat their county’s traditional cuisine. Bridge also provides refugees the opportunity to supplement their income.

Many people travel so far to experience different culture and cuisine.  Mustafa says, “it’s available in everybody’s backyard, if they only took the time to get to know their neighbor who is from another country.”

Mustafa was working full-time at a marketing firm when he started Bridge, and he continued full-time for the first five months of operation.  One day, while working at the marketing firm, he decided he was either going to close down Bridge or walk out, so he “walked out and started to follow what I enjoy doing every day and it’s been the most exciting thing I’ve ever done in my life.”

Mustafa began by hosting meals for free to see whether people would show up, and they did.  News about Bridge spread by word of mouth, then there was a Facebook page, and before they knew it, so many people knew about Bridge and they were being covered by local press.

Today, Bridge is made up of Mustafa, one employee, and one intern.  They have so many different things to do, and everyone wears multiple hats – they joke and call each other “magicians.” Mustafa says, “No day goes by without me interacting with at least six different cultures, I switch between three languages throughout the day.” (Somali, English, Swahili, and some Arabic).

Socially Conscious Attorneys

Mustafa started using attorneys right when he began charging for Bridge experiences.  Although this was a significant cost for a brand-new  business, Mustafa recognized involving attorneys was necessary to protect his business.  Mustafa has worked with a number of attorneys and he’s observed, “there are traditional attorneys that do everything by the book, and I’ve noticed there’s a new type of attorney who is socially conscious.” They have helped him figure out the best path for this unique business.  Mustafa prefers the latter.

Lately, Mustafa has been working with attorneys to expand Bridge into different cities.   Almost every state has reached out to Bridge, wanting to have Bridge in their cities.  Bridge is considering cities all over, such as Portland, Boise, San Francisco, and Syracuse.  Because of Bridge’s unique business, there are many atypical considerations when making legal and business decisions, such as the number of refugees in a city.  Mustafa says most attorneys have to do a lot of research due to the type of business.

What makes Bridge so successful?

When asked what makes Bridge so successful, Mustafa explained that it’s all about timing.  Right now, so many people are “getting really tired of not feeling like they know their neighbors or feeling like they are part of the ‘other,’” and Bridge provides a unique opportunity to connect.  Additionally, Mustafa says, “when you’re really trying to bring good into the world, people try to support it.” And finally, Mustafa attributes Bridge’s success to upholding their values.  Although sticking to their values may have cost Bridge certain opportunities, “at the end, it made us successful.”

Advice for the Socially Conscious Entrepreneur

To the socially conscious entrepreneur, Mustafa says, “Anything that’s going to be changing the world is going to be considered weird – so swallow your heart and if something is different and nobody knows what box it fits in, it’s usually the next great invention.” He continued, saying, “Just get something started – you don’t have to wait until everything is perfect to start your business.”

How can we all help refugees?

To wrap it all up, I asked Mustafa how everyone can help refugees.  He said the best way to support refugees is to “give them a sense of belonging, because it can be extremely overwhelming to come to a new place, without knowing anybody, without knowing the culture and the best thing you can experience is something as simple as a neighborly smile or a greeting.”  Mustafa explained that just asking a refugee where they are from and hearing about their home country will have a major impact in allowing the refugee to feel welcome.

Mustafa was recently featured on NPR’s Planet Money podcast – you can listen here!

Follow Mustafa on Twitter: @RealMustafaNuur


Sarah Zomaya, at the time of this post, is a third-year law student at Penn State’s Dickinson Law. Following graduation, Sarah will practice corporate transactional law at Morris, Nichols, Arsht & Tunnell. Sarah is currently serving as Vice President of the Business Law Society and as a Comments Editor for the Dickinson Law Review.

 

 

Photo Sources:

https://www.unrefugees.org/news/meet-mustafa-this-former-refugee-is-using-food-and-conversation-to-build-community-in-lancaster-pa

experiencebridge.com