Business Owners Benefit from SBDC Assistance
The 2018 Economic Impact Study of the University of Georgia Small Business Development Center (UGA SBDC) provides solid evidence that entrepreneurs utilizing UGA SBDC assistance experience greater sales and employment growth than the state averages. The study found that the employment base of UGA SBDC’s existing business clients grew by 14.1 percent, while overall employment levels in Georgia increased by 1.8 percent. Also, during the same time, UGA SBDC existing business clients increased their sales by an average of 16.6 percent, while the average Georgia business experienced an increase in sales of 4.2 percent.
The tax implications of this incremental difference show that UGA SBDC clients (both existing and pre-ventures) generated nearly $9.3 million in state tax revenues and over $6.1 million in federal tax revenues beyond what they would have generated if their performance levels had been the same as that of the average Georgia business. These incremental tax revenues more than cover the entire UGA SBDC budget. Overall, satisfied, long-term business clients of the University of Georgia SBDC were responsible for the creation of an estimated 2,505 new jobs, over $264 million in incremental new sales, started 331 new businesses, and raised almost $189 million in capital for the year 2017.
Utilizing an external marketing research vendor, the University of Georgia SBDC surveyed all clients who received five or more hours of consulting in 2016 inquiring as to the benefits of the services received and actual performance results. A total of 711 clients returned usable surveys for a response rate of 37.1 percent. The survey provides an opportunity for feedback and comments. A few of the comments are included below. Reading through the comments makes it easy to understand how 96 percent of the respondents stated that they benefited from the services of the UGA SBDC.
The report was prepared by Dr. James Chrisman of Mississippi State University. Dr. Chrisman also conducts the analysis and writes the report for the national impact study for America’s SBDCs, the national association of Small Business Development Centers. Across the country, incremental performance improvements also resulted in additional tax revenues exceeding the combined costs (budgets) of all SBDC programs.
- Alisa Kirk is phenomenal, and I have referred many people to her since our first meeting. She has been instrumental in helping us grow our business and make smart decisions along the way. I cannot say enough great things about her or the SBDC. What an incredible resource – too many people are unaware of the SBDC’s existence.
- In the first quarter of 2018, we already exceeded our total revenue for 2017. We have gone from one full-time employee to five and we now have a total of eight 1099 independent contractors. A lot of this has to do with Jordan Tippett at the SBDC helping us get organized. Whenever I hear someone talking about owning a small business, I always ask them the same thing…Have you talked to the SBDC? I think every small business owner should have a relationship with the SBDC.
- I have recommended many business owners to the Gwinnett SBDC. Benny StaRomana has been an incredible mentor and has helped me and my business to stay on track and achieve outstanding growth. The level of communication and the variety of experience offered are superior, engaging, thought provoking and encouraging! I cannot express how grateful I am to have connected with both Benny and the SBDC.
- Rob Martin is excellent! He gets high praises throughout the community! He has been a positive role model and has helped the development of the economy! I’m so appreciative as he has provided a new outlook on my mission to be a successful entrepreneur!
- Becky at the Savannah SBDC has played a huge part in the success of my company. When I came in for my first session, I was in a failing partnership with an incompatible partner. She gave me the encouragement I needed to dissolve that partnership and move on. She helped walk me through the process of launching my single member LLC, growing an 8-person team, and becoming a regional powerhouse in my industry. I look forward to continuing my work with SBDC as I grow.
- Lisa Rackley was a great help. She guided us and gave us valuable information that helped us grow. Our business tripled in size from 2016-2017. Now we are on track to more than double what we did in 2017. We really appreciate the guidance, help and information that Lisa gave us. We will continue to recommend the SBDC to other businesses. Thank you very much.
- Working with Paul Wilson has been very beneficial for my business. He helped me see the bigger picture and the importance of having a solid plan in place prior to expanding. The exercises we worked on gave me the clarity to make my next steps my best steps.