Despite sustained lulls in the national and state economy, California Small Business Development Centers saw the first signs of economic recovery from their clients in 2010—creating nearly 3,900 new jobs and retaining an additional 2,048 jobs that were previously slated for elimination.
The California SBDC, with 35 Small Business Development Centers throughout the state, provides free consulting to more than 16,000 entrepreneurs and low-cost training to more than 38,000 of California’s 1.3 million business owners every year.
According to the annual report compiled by California SBDC, one key growth area in 2010 included a nearly 22 percent increase in new jobs created over 2009. Individual centers reported spending more than 74,000 hours assisting small businesses with business plans, loan applications, cash-flow management, government contracting and other needs.
“We are cautious but optimistic regarding the changes we are seeing in the economy. It is always good news when we see companies asking for help in growing their business as opposed to asking for help to simply survive,” said Kristin Johnson, state chair of the California SBDC. “We were also pleasantly surprised at the substantial increase in revenue SBDC clients achieved last year.”
The California Governor’s Office of Economic Development (GoED) – which has partnered with the California SBDC to deliver services to small business since GoED was formed nearly a year ago – lauded the SBDC’s accomplishments.
“The California SBDC has been a lifeline for thousands of small businesses throughout the state who have struggled through the recession for the past two years,” said GoED Director Joel Ayala. “It is wonderful to see some evidence of the changing economic tide and we are hopeful that these results from the SBDC are another signal that the state is poised for recovery.”
As a result of 2010 California SBDC services, small business clients increased sales by nearly $174 million up from $118 million the year before, and generated $1.39 in annual tax revenue for every $1 spent on the SBDC program. Equity capital invested in SBDC clients’ businesses totaled just under $130 million, and new loans to these businesses total more than $51 million. Further, clients attributed 680 new business starts to the assistance they received by the California SBDC in 2010.
Businesses assisted by the California SBDC ranged from one-person micro-enterprises up through employers with as many as 200 employees. Of the total population of consulting clients served – more than 50 percent were women and nearly 45 percent were of an ethnic minority.
Company:California SBDC Network
Company URL:http://californiasbdc.org/
