est. May, 2004

The principle measure of success for prisoner re-entry programs is the recidivism rate (the rate at which prisoners return to prison for any reason). PEP only works with Texas prisoners. While Texas has a recidivism rate of 28.3% (2001) and the U.S. has a recidivism rate of 67.5% (1994) for prisoners who left prison within a 3 year period, PEP’s is about 5% . PEP works inside prison where they are to a large degree not wanted, and have extreme accountability requirements from the prison. Here are the stats:

PEP RESULTS (AS OF JULY 1, 2008)

Total graduates: 370
Recidivism rate: less than 5% (Measured since the program’s inception for all participants who graduate PEP’s inside program, regardless of their participation in the free world.)

Employment rate: more than 97% of graduates are employed within four weeks of release
Average number of days to gain employment: 22
Average starting wage: $10.51 per hour
Number of businesses started: 43

Executive volunteers: 1,000+
MBA volunteers: 400+ from 22 MBA programs
PEP lifetime cost per head: $13K
National average annual cost for incarceration: $21K

A little more context: Another prisoner re-entry program, InnerChange achieved a rate of about 8% for prisoners released within a 2 year period. As I have done more research, almost all re-entry programs will cite statistics only for prisoners who complete their programs. It isn’t unreasonable for these programs to put a large number of prisoners through a strict interview process, and after only a percentage get in, have only 40 to 50% actually complete the program. So, most programs are not working with “lost causes”. One other point to consider is: typical protocol for releasing prisoners is not very tough to improve upon - it is atrocious. I am somewhat surprised the recidivism rate isn’t 80 or 90% nationally.

In spite of all the wrong implications one could take from the data , context and caveats - PEP outperforms almost all re-entry programs and does something that no other re-entry program does: rather than seeing inmates as a societal problem to be solved, it literally sees them as opportunities. It recognizes many prisoner’s potential to be ridiculously successful legal entrepreneurs. This isn’t as much a reformation program as it is a “reach full potential” program. This is why, this program comes out on top. Just start thinking of the added benefits: Prison entrepreneurs are much more likely to hire other prisoners from all those other workforce development prisoner re-entry programs. A reasonable venture capital model could result in PEP becoming 100% financed by PEP graduates. Etc. In fact I predict within 15 years time PEP will become self-sustaining with thousands of prisoners not only off the taxpayers’ bill but private “outside” funders’ bill as well. Former inmates funding responsible, profitable, PERMANENT re-entry - I think it can be done.

Once again, I hope you will forgive me for copy/pasting text; this time from PEP’s website: www.prisonentrepeneurship.org (Why try to write something that’s going to be worse?):

PEP’s team recognizes that prison is a storehouse of untapped potential. Many inmates come to prison as seasoned entrepreneurs who happened to run illegitimate businesses. For the truly reformed prisoners, once equipped with education and life skills training, the ROI potential for these men, their families and communities is limitless.

Advocates of Change

The driving passion of PEP manifests itself in a progressive nonprofit solution that is single-handedly changing the way private institutions and state governments view correctional facilities. This passion is based on the idea that prison inmates—especially former gang leaders, drug dealers and those with violent offenses—have a massive reservoir of untapped potential. Their latent potential once expressed itself in ill-legitimate business endeavors e.g., gang-related crime, drug dealing and violent crime. PEP seeks to redirect these men into legitimate enterprises, leveraging their proven entrepreneurial skill-sets to inspire an even deeper change.

We accomplish this mission by linking top business and academic talent with program participants through an MBA-level curriculum, mentor relationships and straight-up entrepreneurial passion. With a recidivism rate of less than 5%, our in-prison success translates into societal re-entry triumph. When reformed felons are given the opportunity, appropriate training and a shot of hope, life transformation isn’t only possible, it’s actual—and it’s happening in PEP classrooms everyday.

Reprogramming
We’ve discovered that in order to incite lasting change in the lives of our participants, a holistic approach is paramount. In addition to a rigorous in-prison business program, we teach our overachieving underdogs essential life skills like moral decision-making, the importance of spiritual discipline, how to treat women and what employers look for when hiring.
We believe empowering inmates to strive for total life transformation is the only answer for the problem of recidivism—it is the only answer period.