New Jersey’s Small Business Development Centers Helped Its Clients Create and Save Jobs
February 22, 2017 (Newark, NJ) – America’s SBDC New Jersey Headquarters, located at the Rutgers Business School, issued its small business deliverables impact accountability report for 2016. The 12-center network, serving small business owners and entrepreneurs in all 21 counties, provided one-on-one management consulting for 4,228 small business owners and entrepreneurs. Fifty-seven (57) percent were established businesses in different business life cycles with varying ranges of revenue and employment. The network delivered 19,514 total counseling hours.
In addition, the network sponsored 545 training seminars and workshops at which 8,279 individuals and small business owners received training on an array of business development and growth issues, totaling 1,981 training hours; 567 NJSBDC clients started a new business.
By assisting small business owners in a comprehensive manner, the NJSBDC network helped its small business clients save and create 16,115 jobs. In addition, the regional SBDC offices and Headquarters specialty programs helped facilitate $88,320,923 in total financing for its clients.
NJSBDC clients generated an estimated $1.329 billion in sales revenues, conservatively generating $70 million in sales tax revenues to the State Treasury, notwithstanding additional business taxes paid to the state of New Jersey.
“Our program has a strong historical track record in assisting small business owners,” said Brenda Hopper, chief executive officer and state director of the NJSBDC network. “Our impact in 2016 continues that trend as the numbers indicate.”
“The Small Business Development Centers are called upon to assist entrepreneurs who have ideas and existing small businesses which want to take their operations to a higher level,” said Deborah Smarth, NJSBDC chief operating officer and associate state director. “Our network helps small business owners succeed despite the challenges along the way.”
For the second consecutive year, the New Jersey Legislature has allocated more state funding in the Appropriations Act for this program in consideration of its return on investment (ROI). The current allocation stands at $500,000. The Governor will be proposing the FY 2017-2018 state budget at the end of February. Several years ago the program was funded at $1 million until the prior administration reduced state funding for this jobs producing program.
“The network and the small business owners we assist hope that the administration will propose the same level of funding as was enacted in both FY 2016-2017 and FY 2015- 2016 state budgets,” said Smarth. “For every $1 invested, more than $4 is returned (for clients receiving 5 or more counseling hours). The average state investment in SBDCs nationally stands at approximately $1 million.”
“The added value of our program for small business health in our state contributes greatly to the state’s economic development,” Hopper said.
The NJSBDC partners with the New Jersey Business Action Center (BAC) in the New Jersey Department of State. The Small Business and Entrepreneurship Council’s 2017 release of its “Small Business Policy Index” ranks New Jersey 49th among the states in terms of policy friendliness towards small business and entrepreneurship.
State funding investment and other non-federal grants, including private sector foundation grants and sponsorships, help the NJSBDC match federal SBA funding in order to obtain its full federal funding amount on the basis of population. A dollar for dollar match is required.