Overview of the MN Small Business Development Center (SBDC) Network. October 9, 2014

Transcription

1 Overview of the MN Small Business Development Center (SBDC) Network October 9, 2014

2 IMPORTANCE OF MINNESOTA SMALL BUSINESS Minnesota has about 504,100 businesses 1 : 2,586 (0.5%) are large businesses (>500 employees) 501,551 (99.5%) are small businesses (<500 employees) 114,111 with employees 387,411 without employees (Nonemployers) 1,173,793 of all MN workers (49%) are employed by small businesses 75% - 80% of all new jobs generated are in small businesses 93.3% of all new product ideas (patents filed) 1 Source - Statistics of U.S. Businesses, Dept. of Census

3 IMPORTANCE OF MINNESOTA SMALL BUSINESS Firms with fewer than 100 employees have the largest share of small business employment The 3 industries with the highest share of employment are health care & social services, manufacturing and accommodation and food service The number of people who are primarily selfemployed increased in 2012 Minnesota Employment by Size of Firm, employees 51% employees 15% employees 18% 1-19 employees 16%

4 SBDC HISTORY The Small Business Development Center (SBDC) program was established by Congress in 1980 as part of Chapter 21 of the Small Business Act [15 USC 648] The program was intended to help strengthen existing and prospective small businesses by linking them with the knowledge and resources of the academic community and with federal, state and local governments Minnesota s SBDC Network was established in 1981, the current primary host is DEED

5 63 SBDCs Nationwide Form the ASBDC 6 in CA and 4 in TX

6 MnSBDC PARTNERSHIP STRUCTURE U.S. Small Business Administration Minnesota Department of Employment and Economic Development Participating Regional Centers and Strategic Partners

7 PARTNER RESPONSIBILITIES U.S. Small * Program Structure Business * Regulatory Framework Administration * Federal Funding (41%) Dept. of Employment * Program Administration and Economic * Quality Assurance Development * State Funding (16%) Participating * Direct Service Regional * Local Presence Centers * Local Funding (43%)

8 MnSBDC MISSION The mission of the Minnesota Small Business Development Centers (MnSBDCs) is to help entrepreneurs start and grow businesses that succeed. MnSBDC VISION The MnSBDC Network will be recognized as the leading technical assistance program in Minnesota, contributing to the success of the state s small businesses and to the economy.

9 NETWORK OF SERVICE PROVIDERS Nine Regional Centers hosted by Institutions of Higher Education 23 satellite & outreach service locations More than 200 dedicated professional staff and contractors

10 MnSBDC SERVICES 1. CONSULTING One-on-one professional, confidential business consulting at no cost to the business owner or entrepreneur. CORE CONSULTING AREAS Financial Analysis and Loan Packaging (35%) Business Planning/Start-up/Acquisition (30%) Marketing/Sales (20%) Other (15%) Buying/Selling a business Succession Planning CONSULTING DELIVERY MECHANISMS Directors/Staff Consultants/Faculty Independent Professional Business Consultants Graduate Students Volunteers Partnerships/Collaborations/Referrals

11 MnSBDC SERVICES 2. TRAINING Offer professional business curriculum designed to meet the changing training needs of the small business community. Computers in Business & Technology Internet, Web design, Social Media, ecommerce Pre-Business & Business Planning Accounting, Cash Flow Management, and Tax Planning Managing a Business Marketing/Sales Gov t Procurement/Technology Managing Employees Customer Relations International Trade Legal Issues Other

12 MnSBDC SERVICES 3. LOAN PACKAGING Provide assistance to clients and lenders to access business capital Core Lending Activity SBA 7(a) 504 Export and other Community Banks Commercial loans Lines of credit Venture Capital Private Equity Investment by the client Other Lending Activity Minnesota Initiative Funds DEED/Local Economic Development Programs Many Others Micro Lenders Women s Venture Indian Business Alliance

13 MnSBDC RESULTS During a typical year we provide: 30,000 consulting hours to 3,000 clients Who go on to create: new businesses 4,000 6,000 new and retained jobs And invest $100 million in new business capital Those businesses generate $15 - $20 million in state and federal tax revenue, creating a return on investment of $5.02 for every $1 invested

14 CLIENT SURVEY RESULTS* MnSBDC clients give us high marks: 86% indicate services received contributed to some meaningful business outcome 90% were satisfied with overall counseling experience 94% would recommend the MnSBDC to another small business owner *Economic Impact of Small business Development Center Counseling Activities in Minnesota: , Dr. James Chrisman

15 Bruce H. Strong, State Director