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 2011 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 26.80% in 2011, compared to 2.9% for Virginia businesses in general.
Virginia SBDC clients create jobs. Employment growth for SBDC clients was 10.10% compared to 1.10% of Virginia businesses in general.
Virginia SBDC clients generate more revenue than they cost. Virginia SBDC clients generate $1.07 in new tax revenues for every $1 spent on the SBDC program.
The Virginia SBDC counseled 959 long-term clients in 2011. Of these, 520 were established businesses and 439 were pre-ventures. Approximately 91% of the survey respondents said that the services received were beneficial. The long-term clients generated $72.7 million in incremental sales and 947 new jobs because of SBDC counseling assistance. The report estimates that an additional $44.5 million in sales and 738 jobs were saved due to the counseling.
The incremental performance of established business clients yielded $2.51 million in tax revenues; another $3.37 million in tax revenues were gained from pre-venture clients who started new businesses. The total amounted to almost $5.88 million in tax revenues, of which approximately $3.3 million went to the state and $2.55 million went to the federal government.
An estimated $48.6 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 $8.84 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 the Virginia SBDC Network of 29 business assistance centers in the Commonwealth, headed by the Mason Enterprise Center at George Mason University, and funded by the U.S. Small Business Administration and premier local hosts. The SBDC of Hampton Roads 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, the SBDC has provided services to more than 10,000 clients, which has helped to create and save 8,196 jobs, resulting in $350.6 million in direct economic impact to Hampton Roads.
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