Study Shows Virginia’s Small Business Development Centers Made Impressive Impact on State’s Economy
August 30, 2011
Hampton Roads, VA – Each year, the Virginia Small Business Development Centers (SBDC) Network participates in a national Economic Impact Study of clients who receive five or more hours of counseling during the year. The study of 2009 SBDC clients shows that the SBDCs contribution to Virginia’s economy had an impressive impact. The study, commissioned by the Association of Small Business Development Centers, was prepared by Dr. James Chrisman of Mississippi State University.
Virginia SBDC clients’ sales grow faster than Virginia businesses in general. Small businesses that received in-depth SBDC assistance experienced sales growth of 10.2% in 2009, compared to 3.6% for Virginia businesses in general.
Virginia SBDC clients create jobs. Job growth for SBDC clients was 3.8% compared to -0.4% of Virginia businesses in general.
Virginia SBDC clients generate more revenue than they cost. Virginia SBDC clients generate $5.11 in new tax revenues for every $1 spent on the SBDC program.
The Virginia SBDC counseled 1,014 long-term clients in 2009. Of these, 593 were established businesses and 421 were pre-ventures. Approximately 92% of the survey respondents said that the services received were beneficial. The long-term clients generated $68.4 million in incremental sales and 1,544 new jobs because of SBDC counseling assistance. The report estimates that an additional $11 million in sales and 771 jobs were saved due to the counseling.
The incremental performance of established business clients yielded $1.3 million in tax revenues; another $7.1 million in tax revenues were gained from pre-venture clients who started new businesses. The total amounted to almost $8.4 million in tax revenues, of which approximately $3.7 million went to the state and $4.7 million went to the federal government.
An estimated $33.9 million in financing was obtained by clients as a result of the counseling received. This figure suggests that every dollar expended on the SBDC operation was leveraged by approximately $6.25 in new capital raised from external sources.
“The figures from this report are impressive and help demonstrate the effectiveness of the entire SBDC Network in assisting in growing the Commonwealth’s economy,” said Jim Carroll, Executive Director of the Small Business Development Center of Hampton Roads and Vice President of Small Business for the Hampton Roads Chamber of Commerce. “These results could not have been achieved were it not for the dedication and effort of the entire SBDC counseling and support staff,” he added.
About the Small Business Development Center of Hampton Roads (www.hrsbdc.org)
The Small Business Development Center of Hampton Roads is a non-profit affiliate of the Hampton Roads Chamber of Commerce and Thomas Nelson Community College in partnership with the U.S. Small Business Administration. It is part of a statewide network of business assistance headed by the Mason Center for Business and Public Policy at George Mason University, and funded primarily by the U.S. Small Business Administration. The SBDC provides management counseling, information,technical assistance, education, and training to small businesses in the region’s 18 cities and counties. It has been serving the greater Hampton Roads region and the Eastern Shore since 1990. Since its inception it has provided services to more than 10,000 clients, which has helped to create and save 7,327 jobs, resulting in $215 million in direct economic impact to Hampton Roads.
# # #