Look to SBDC for Real Business Rescue

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Basic Business Plan

Small Business Development Centers (SBDCs) are the hidden heroes in much of rural US. This is the agency that knocks itself out to really help small businesses.

ECONOMIC IMPACT OF SBDC SERVICES

SBDC's are required to gather reliable data on the impact of their services on the clients they serve. The data gathered includes new jobs created, existing jobs retained, new business starts, debt and equity financing obtained, and business expansions. For certain specialized SBDC's, data is gathered on government contract dollars obtained and new export sales assisted. To guarantee the accuracy of the impact, SBDC's are required to obtain a signed statement from the client attesting to the impact.

For calendar year 2008, the SBDC program produced the following economic impact nationally:

* More than one million clients served

* More than 80,000 new jobs created

* Saved more than 95,000 existing jobs

* Debt and equity financing acquired in excess of $3.5 billion

* More than 13,000 new businesses started

Additionally, SBDC clients experience more than 17 times the job growth of non-SBDC client businesses, and sales growth of 20.2% compared to 5.2% for businesses in general.

SBDC SERVICES

SBDC's work with both start up and existing businesses, providing a wide array of services. In addition to providing assistance with business plans necessary to access bank and investor capital, SBDC's give advice on low cost marketing ideas, analyze the feasibility of new business ideas, and assist with human resource management problems. Most SBDC counselors are adept at performing a very detailed analysis of a company's financial statements, identifying cash flow blockages, and providing solutions to inventory and accounts receivable management problems.

Because SBDC counselors are intimately aware of their community resources, they are often called on to provide referrals to skilled service providers on issues not handled by the SBDC. Training programs on business management topics are part of every SBDC's service delivery goals. Finally, an SBDC counselor is often the ONLY confident a business owner has. They are reluctant to share business problems with employees, competitors, their banker or CPA, and often, not even their spouse.

Some states have established specialized SBDC's that focus exclusively on government procurement, international trade assistance, and technology entrepreneurship.

SUBSTANTIAL, DOCUMENTED SUCCESS

During trying economic times, government must make sure it receives a reliable, consistent, and predictable return on the investment of taxpayer dollars. The SBDC program has historically provided a substantial long-term, proven, and documented return on tax dollars. For calendar year 2008, the SBDC program has returned $2.87 for every $1 invested by government. Some states perform much higher than the average.

The ROI numbers mentioned above are not estimated or projected figures. Each year, the national association for SBDC's (ASBDC) hires Dr. James Chrisman of Mississippi State University to perform the ROI analysis. Year after year, the SBDC program proves that it is one of the wisest and most certain investments the government can make. In light of our recent, shared learning experience about the speculative nature of investments, it is comforting to find an investment that is virtually a sure thing.

The House Small Business Subcommittee on Rural Development, Entrepreneurship and Trade is now hearing proposal for expanding the solidity and reach of SBDCs. This is an agency worth our investment. Contact your Representative and let them know how important you consider this work to be.