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Small
Business Banking
Small businesses across the commonwealth rely on the
services of the Department of Business Assistance and
the network of Small Business Development Centers. Whether
funded by the state or by local universities or other
business entities, these organizations provide the necessary
tools for businesses of all sizes — from fledgling
entrepreneurs to top employers. As part of our focus
on small business in Virginia, Publisher Doug Forshey
sat down with the directors of each of these statewide
entities to get a better understanding of their role
in Virginia’s economic development.
Related
links:
- Q&A with Chuck Mills,
Director
of the Virginia Department of Business Assistance
- Directory of Small Business
Development Centers
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Virginia
Small Business Development Centers
Jody
Keenan
Director
Born:
Philadelphia, Pa.
Education: College of William and Mary
(biology degree); LaSalle University (MBA)
Prior job: Director Special Projects and
Outreach, Techventure Partnership
Current residence: Alexandria
Jody
Keenan is the director of the Virginia Small Business
Development Center program. The SBDC is an organization
of 29 local centers across the commonwealth, providing
professional business counseling, training and
information resources to help grow and strengthen
Virginia businesses. The network is a strategic
alliance between the U.S Small Business Administration,
George Mason University and local sponsors, which
include universities, community colleges, chambers
of commerce, economic development organizations
and private companies.
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Q:
What is the mission of the Small Business Development
Centers?
A: We like to say it’s “where business
comes to talk business.” The SBDC is a statewide
network contributing to the growth and development of
Virginia’s economy by providing management, technical
and financial assistance to small businesses. Our services
are professionally administered by seasoned business
veterans.
Q:
How has the downturn in the economy affected the centers?
A: SBDCs are go-to organizations in good times and
in bad.
When the economy is growing, new entrepreneurs are encouraged
by the market enthusiasm and confidence to launch new
ventures. Existing businesses are also encouraged and
actively seek capital to support new growth initiatives.
Businesses also look for guidance in handling the new
growth in terms of financial controls, marketing support
and growing work force issues.
When
the economy is slow, companies are struggling and come
to the SBDCs for guidance on money management. They
are looking for help in analyzing their operations and
cash flows, as well as accessing lines of credit to
sustain their business. And entrepreneurs find new opportunities
in down markets to launch great ideas.
As
the economy continues to struggle, the centers are focusing
their attention on helping companies find new opportunities.
Right now government contracting is a hot area and helping
small companies obtain research and development funds.
But these are not quick solutions to a sluggish business
climate. Serious companies make a commitment to these
paths and may not see results for months.
The
centers are critical resources for businesses in local
communities. They provide a lot of one-on-one guidance
and preparatory work that lenders, for example, do not
have the time or resources to provide to their customers.
They also support other organizations such as the Virginia
Department of Business Assistance, the Small Business
Administration, micro lenders, incubators and industrial
development authorities in providing technical assistance
and outreach to their clients.
Q:
How do you measure the SBDC’s success in the market?
A: We track a number of tangible metrics to gauge
our success. For instance, we look at the number of
clients we serve, the number of training events we hold,
our hours, our counseling. And finally we track the
ultimate successes of our clients in terms of jobs created,
capital invested and increases in sales and revenues.
We
also have some intangible measures such as the longevity
of our program. The SBDC network has been in place for
13 years in Virginia. The program began with three centers,
which are still in operation, and today there are 29,
with half of those being in existence for eight or more
years.
Sometimes
the business guidance we provide helps an aspiring entrepreneur
determine that business ownership is not for them. If
we end up saving them their investment that would also
be considered a success.
Q:
What do you consider your greatest challenges?
A: Recent state budget cuts made it necessary for
the local centers to reach back to the communities they
serve for funding. This has been very challenging, and
centers are seeing some modest increases in local support.
At the beginning of 2002 we needed to replace a $1 million
shortfall, but local businesses and educational institutions
have stepped up to keep the program funded.
We
need to tap into state funding to support providing
technical assistance and education to small business.
There are many programs already up and running within
the SBDC network, and we want to encourage the state
not to re-invent the wheel to deliver services to the
small business community.
Finally,
we need to communicate the impact and success of the
SBDC network.
Return
to Virginia Business - September 2003
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