Factors Resulting in Successes and Failures for Small Businesses in the Small Business Institute Program at Syracuse University
During the 1970s the U.S. Congress inaugurated a program of managerial assistance to meld the talents and needs of local small-business communities, nearby educational institutions of higher business learning, and the U.S. Small Business Administration. This program was known as the Small Business Institute. The authors analyzed the experience of Syracuse University with the program from 1973 to 1997 and found that some problems faced by small businesses persisted over time, although there were significant shifts in other problems as the economic environment changed. We also found that the chances for survival of our client firms varied by industry, with manufacturing, retailing, and professional and nonprofessional service firms most likely to survive.
The Impact of Sbdc Consulting Activities
The Small Business Development Center (SBDC) program was begun in 1977 by the U.S. Small Business Administration. The SBDC was initiated to fill an unmet need for consulting for small businesses. The results of two empirical studies designed to test the effectiveness of the SBCD programs in Georgia and South Carolina are reported herein.. The studies measured the contribution to tax revenues in these two states that resulted from the improvements in the performance of small businesses served by the SBDCs. Studies conducted in 1982 were based on 84 Georgia and 19 South Carolina businesses that had used the counseling services between October 1980 and Juy 1981, allowing comparison of performance before and after counseling. Data on gross sales, number of employees, and net income were gathered. Data were analyzed to calculated the average and incremental value added to Georgia and South Carolina state tax revenues (personal state income tax, taxable business income, and business income tax), as well as federal tax revenue. For Georgia, the tax-generating value of the assistance to the sample firms was $1.2 million, an excess over the $1 million dollar cost to run the program. For South Carolina, the tax revenues for the sample firms represent almost 70 percent of the cost of the program. Results offer evidence that the SBDC public sector program has been administered in a cost-effective manner in excess of the operating costs for the program; in addition, many small businesses experienced improved economic performance. (TNM)
The Importance of “Outsiders” in Small Firm Strategic Planning
The value of “outsider-based” strategic planning for small firms is empirically examined using a sample of firms engaging in outsider-based planning and two control groups. The effectiveness of sma...