Strategies: Small-business centers boost entrepreneurs

One program available across the USA creates and save American jobs, one job every 7 minutes.

And this same time-tested program creates new American businesses, one new business every 20 minutes.

Not only that, but it unleashes an amazing amount of positive economic activity, generating new sales for America's small businesses at a rate of $100,000 every 7.5 minutes and new financing — investment and loans — for small businesses at a rate of $4.1 billion in new capital each year.

But wait. This program, which gets a tiny amount of money from the federal government, generates far more tax dollars than it costs.

For every dollar invested in this program, $2.24 is returned in federal and state tax revenue, according to James Chrisman, a professor at Mississippi State University who has been studying the effect of small-business development centers on the economy for more than 20 years.

In business terms, that's a hefty profit margin.

This is exactly the kind of program we should be supporting, expanding and celebrating.

It's called America's Small Business Development Center network. About 1,000 small-business development centers nationwide provide free consulting, low-cost workshops and resources to small businesses, the self-employed, and high-growth start-ups.

The centers — often at colleges, universities or state economic development agencies — help create jobs, start businesses and unleash small-business capital.

The network is great deal for America and American taxpayers. It receives a pittance in federal tax dollars and must match those dollars with money from states or other entities.

That means the centers have limited financing as need grows. And they must spend some of their time scrambling for matching money.

The president and Congress need to recognize the effective and important work of these small-business development centers and not only increase their financing, but make it easier for the centers to receive the money allocated.

I have traveled all over America — big cities, small towns. I've worked with small-business development centers in dozens of states

Without a moment's hesitation, I can say these are some of the most dedicated, capable people I've ever met. Helping entrepreneurs start, run and grow businesses is more than a job for these folks; it's a calling.

"When the BP oil spill hit (the Gulf Coast in 2010), the decision was made to immediately staff a disaster recovery center. We didn't even know where the funding was going to come from." said Carmen Sunda, director of the Greater New Orleans and Bayou Region Small Business Development Center. "On a moment's notice, SBDC consultants were ready.

"They worked with business owners, determining their initial impacts," she said. "If the business owner wasn't going to be able to make their loan payment, the consultant worked with the lender to get a deferral. It was a place for businesses to know that someone was going to get them help as quickly as they could."

"The thing to understand is that this team was battle weary," Sunda said. "This was the third time in five years that they were asked to respond. We'd been battered by (hurricanes) Katrina and Rita, Gustav and Ike. They're still reeling from all that; there's so much trauma. It's emotionally draining. But they tell me this is rewarding work. They like the SBDC system and knowing they really make a difference with the businesses they work with."

Of course, most of the work of small-business development centers isn't responding to disasters. It's helping America's economy by giving entrepreneurs and business owners the tools and support they need to start, grow and succeed.

Their help often saves business — and jobs. Keep in mind that small companies employ more than half of all Americans, and you realize how important this is.

The centers make a huge difference to small businesses — new or existing, growing or challenged, high growth or sole proprietors.

I know. I was once a client myself. At the dawn of the dot-com era, I was launching a business venture, and though I was an experienced businesswoman, I valued the help as I navigated new business issues.

So congress members, I bet your congressional district has a small-business development center — maybe more than one. They're helping your small-business constituents and the economy of your community.

It's time to show meaningful support for small businesses, and a great way to do that is by voting for more money for small business development centers.

Rhonda Abrams is president of The Planning Shop and publisher of books for entrepreneurs. Her most recent book isEntrepreneurship: A Real-World Approach. Register for Rhonda's free newsletter at PlanningShop.com. Twitter:@RhondaAbrams. Facebook: facebook.com/RhondaAbramsSmallBusiness.Copyright Rhonda Abrams 2014.