A YEAR AGO, Ren Monllor, a single father in Lakeland, Fla., was supporting his family solely with his $1,000-a-month disability payment. "We couldn't buy hot dogs," says 54-year-old Monllor, who suffers from post-traumatic stress disorder and depression. As his finances deteriorated, Monllor decided he'd try to turn his hobby of handcrafting bamboo fly-fishing rods into a business.

Like any entrepreneur, Monllor was concerned about turning profits and winning customers. But unlike most other small-business owners, he had something else to worry about: Would his self-employment income wipe out his government benefits, including health insurance? And would the stress of running a business further hamper his mental health?

People with disabilities or chronic conditions face unique challenges when they embark on the path to entrepreneurship. The good news is that a growing number of resources are now opening doors once previously closed to this group. Technology, too, has made it possible for many disabled entrepreneurs to work from home or even a medical center should the need arise.

While it’s unclear how many disabled entrepreneurs currently run small businesses, government data suggests that the group has a higher rate of self-employment than people without disabilities. The Labor Department's Office of Disability Employment Policy reports that people with disabilities often want to work for themselves because their conditions — whether physical, emotional or developmental — can make it difficult to work for other people.

As a result, there's chronic underemployment among people with disabilities. Only about one in three people with disabilities are employed, compared to eight out of 10 without disabilities, according to Cornell Univerity's 2007 Disability Status report.

"People want to work — it's the number one thing that people with disabilities ask for," says Cary Griffin, co-founder of Griffin-Hammis Associates, a Florence, Mont., consulting firm that focuses on disability and employment. Yet, it's difficult to secure jobs. Potential employers may be reluctant to hire a person with physical or mental limitations. And a person with disabilities may lack skills and confidence. As a result, self-employment is often the best option, he says, as it offers flexibility and independence.

Here are some common hurdles people with disabilities often face while starting their own business:

Hanging onto Government Aid

In the past decade, a number of legislative changes (such as the Rehabilitation Act Amendments of 1998) have made it possible for people with disabilities to essentially try out self-employment without losing public aid, such as Supplemental Security Income and Medicaid. (Typically, disability payments are contingent upon a person being unemployed). Under current federal and state laws, people with disabilities typically lose those benefits if their assets exceed $2,000. An exception, however, exists for those who want to become self-employed. The Labor Department's Small Business Self Employment Service provides information on how a disabled individual can add to their income while staying within public-aid program requirements.

The potential loss of Medicaid is probably the biggest fear disabled entrepreneurs have, says Griffin. "I know a lot of people who would die if they lost their health insurance — and there is no insurer (obtained privately) that will cover their condition," he says.

Financing the Business

Another big concern — like it is for any entrepreneur — is how to finance the business, says Griffin. Many small business owners don't realize they can apply to the Social Security Administration for a Plan for Achieving Self Support, or PASS, which allows those with an approved business plan to set aside money to pay for work-related items or services (without losing aid). People with disabilities can also seek grants though state vocational rehabilitation programs. To find out how vocational rehabilitation counselors determine self-employment funding, click here.

Handling the Stress of Running a Business

On most days, Betsy Rich, a former ABC News producer who now runs two video-production companies, Strategic Video and Blue Horse Digital, is feeling well enough to meet with clients, travel to meetings or work alongside her business partner and five employees at their Croton-on-Hudson, N.Y., office. But other days, Rich, 50, who has multiple sclerosis, suffers from dizziness, numbness and ear pain. (Rich isn't covered by Medicaid, but rather her husband's health-insurance plan.)

On bad days, Rich sometimes takes naps or rests — then works from home on a laptop that she's set up as a portable office. She even brings the laptop with her when she gets her once-a-month intravenous therapy at a medical center. "I work in the infusion suite, while I am getting crap dripped into my arm," she says. "Technology has changed everything."

Rich encourages other start-up entrepreneurs to be similarly practical when they try out self-employment. "If you want to start your own business knowing you have a chronic illness or physical challenges, it's important to choose a business that allows you to work, regardless of what your condition is," she says.

For his part, Monllor, who makes the fly-fishing rods, advises people with disabilities who want to start a business to "really think about it, because it's not a cakewalk." To date, he's only sold five rods — although at $1,500 each, that amounts to $8,000 over the past eight months. Before starting up, he was able to secure $18,000 from his state's vocational rehabilitation center to purchase tools and materials. Eventually, he hopes to make $40,000 in annual revenues and become self-sustaining so he doesn't have to rely on public aid.

Entrepreneurs with disabilities need to be realistic about their condition while also being business-savvy, Monllor says. "If you become stressed easily, you really need a strong team of people behind you," he recommends. "Have faith that you can do it — and then research the hell out of the market."

("Work & Life," a regular column written by Colleen DeBaise for smSmallBiz.com, advises entrepreneurs on how to better balance their lives. Write to her at cdebaise@smartmoney.com.)

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