Small Business Development Center Research Articles

Bridging workforce skills gaps in rural America amid ‘the great resignation' by leveraging a triple helix collaboration

The COVID-19 pandemic dramatically impacted the job market through a surge in layoffs and the mass resignation of employees leading to the emergence of ‘The Great Resignation’. This study explores the perspectives of employers regarding skills gaps and hiring challenges with a focus on rural communities. A collaboration led by a prominent rural university department of Community and Workforce Development included industry partners, governmental agencies, a partner university, primary and secondary schools (K-12), vocational institutions, Chambers of Commerce, and Small Business Development Centers. Their objective was to examine the gap between employer needs and worker readiness. Leveraging the Triple Helix approach, a grant was awarded to fund a stackable pathway skills development program for high-demand industries in a rural five-county area. This program, the Industry Engaged Workplace Ready Program Model, is a two-phase, rapid-response approach for meeting emergent workforce needs by providing accessible training, education, networking, and mentoring to employable candidates. Findings revealed success in the program with mixed outcomes and room for program revision.

Analysis of a Small Business Development Center’s Entrepreneurial Training Program and Counseling Services for Rural and Urban Entrepreneurs in Wisconsin

Rural entrepreneurs face unique contextual factors that influence the business formation process. While urban entrepreneurship receives greater attention than new venture creation in rural settings, growing research indicates that founders in less populated regions may benefit from specialized support. Entrepreneurship education and training programs have emerged as a way to support rural entrepreneurs, though research on the impact of existing training programs is limited. Using the theory of guided preparation, this study evaluated business formation and capital acquisition following participation in an entrepreneurial training program and utilization of counseling services by the Small Business Development Center program for rural entrepreneurs in the state of Wisconsin from 2014–2021. This study found that the increased likelihood of starting a business and acquiring capital following participation in the entrepreneurial training program and utilization of counseling services is comparable for urban and rural entrepreneurs. The results imply that the guided preparation services offered by Wisconsin SBDC regional centers are effective in improving rural business startup rates and capital acquisition.

The Birth and Death of Small Businesses and Entrepreneurial Ventures: A Critical Review of Key Variables & Research Agenda

According to the United States Small Business Administration (SBA), small business owners represent 99.9% of all U.S. firms and employ 48% of the private sector employees, which accounts for over 40% of the U.S. private sector payroll. Following global suit, the focus in the United States on entrepreneurship has been on the rise over the last decade and is a major source of employment and revenue, as well as spurring new innovation (Leutner et al., 2014, America’s Small Business Development Center [ASBDC], 2020; U.S. Small Business Administration [SBA], 2020). In order to get a full picture of entrepreneurship in the United States, research and many studies have been conducted to try to understand the accountability of strategic management and the tactical reasoning of entrepreneurs (Ciavarella et al., 2004; Hurtz & Donovan, 2000; Leutner et al., 2014; Mitchell et al., 2007; Owens, 2003; Rauch & Frese, 2000; Staniewski & Awruk, 2019). While there are many definitions of entrepreneurship, a commonly accepted definition is the behavior that is tied to the generation of value in innovative tendencies, techniques, and actions. Strategic management helps an organization, small business, or new venture to get equipped with the right management tools, anticipate changes, and direct the organizational activities along the right path as part of a decision-making process. The objective of this critical review and research agenda paper is to better understand the role strategic management plays in the birth and death of small businesses and new ventures. Further, to explore if certain personality traits of individuals are responsible for promoting such actions, more than others. The Theory of Planned Behavior is considered from a theoretical background perspective to view the lens of accountability of this body of research. Specifically, as a discipline, can strategic management likely be considered accountable for the birth and death of organizations, small businesses, and new ventures? Are certain personality traits of individuals more responsible for promoting such actions than others?

Small Business Development Centers and Rural Entrepreneurial Development Strategies: Are We Doing Enough for Rural America?

Many states across the United States have significant rural populations, which typically face different sets of challenges than those closer to urban populations. This is particularly evident in the different types of opportunities that small businesses face in those rural areas. In recent years, various efforts - both at a national and local level - have been taken to increase those opportunities for rural small businesses. However, those efforts have not always produced the results that are envisioned. Utilizing information about Small Business Development Center (SBDC) strategies to serve small businesses in both rural and urban areas, we highlight the efforts that work to aid rural entrepreneurs as well as those that fall short.

Best Practices of Small Business Development Centers with Host Institutions

In 1980, the law creating Small Business Development Centers (SBDCs) was enacted. As part of the law, funding for local SBDCs comes from both the Small Business Administration (SBA) and a host institution such as a university and/or community college. The relationship between the host institution and the SBDC is not well defined except through the financial commitment. This research was an exploratory investigation to determine the extent in which SBDCs interact, if any, with their host institution. An open-ended survey was designed and distributed to over 600 SBDC Advisors as listed in America’s Small Business Development Centers’ (ASBDC) contact list. A total of 57 surveys were completed by the respondents. This research presents the summary of these questions as to the type of interaction, which students, and what activities these advisors had with the students of their host institution.

Economic impact of SMEs in the desert of Arica-Chile: an early evaluation of the business assistance provided by Sercotec's Arica Business Center program

The article analyzes under a case study methodology the first economic impact results of the Small Business Development Center program in Arica, a program financed by the Technical Cooperation Service (SERCOTEC). The preliminary conclusion of the article suggests that the first economic impact results show that the 833 enterprises assisted by the program generate more sales opportunities, jobs and investments, creating positive income and fiscal returns, despite the enormous difficulties presented by the current pandemic facing the country and especially the region. From a public policy standpoint, the CDN's contribution to the regional economy helps create new employment opportunities in growing MSMEs. For their part, maturing companies contribute to job retention thanks to the advisory processes that help reorient their businesses, and the work with entrepreneurs contributes to the generation of new businesses that strengthen the regional economy.

Here I come to save the day? Reassessing the efficacy of small business development centers in the Internet Era

PurposeThis paper assesses the efficacy of the 18 small business development centers (SBDCs) located throughout the state of Pennsylvania during 2013–2016 as a proxy for publicly funded, small business consulting services in general.Design/methodology/approachThe paper compares the sales growth of SBDC clients, as reported in postconsultation surveys, to comparable growth measures for the corresponding business population using one- and two-samplet-tests.FindingsThe results show that respondent clients with existing businesses clearly outperform the broader population following consultation, both in aggregate and when decomposed by region and industry.Research limitations/implicationsAlthough the best available data, the results are tempered by low response rates and self-reporting.Originality/valueThe paper empirically demonstrates that SBDC clients experience higher growth in sales and employment following their consultation than the broader business population. The net benefit of such services is, however, impossible to determine.

Even winners need to learn: How government entrepreneurship programs can support innovative ventures

Given the investment of public resources for supporting entrepreneurial growth, it is important to know whether such programs truly benefit innovative ventures. While prior research has indicated some benefits for growth outcomes, there is no clear consensus about the conditions for program effectiveness. We attribute this to the complex set of selection and treatment mechanisms associated with how programs navigate interlocking tradeoffs to maximize outcomes with their limited resources. To circumvent these challenges, policymakers often default to a “picking winners” approach based on past performance indicators. We develop and implement a carefully designed empirical strategy to determine whether this approach leads innovative ventures to achieve growth milestones and properly accounts for various observed and unobserved selection issues. We analyze data from the Small Business Development Center (SBDC), a government-sponsored program in the United States. Using a potential outcomes framework to investigate over 1,700 ventures that enrolled in SBDC advisory services from 2011 to 2016, we observe that treatment design is more crucial than selection for innovative firms to achieve growth. We found that treatment time and a client's willingness to learn collaboratively from their advisors are vital indicators of growth. Since treatment effectiveness is driven by support allocation, programs that desire to boost innovation outcomes must at a minimum formally prioritize innovation criteria to ensure these businesses receive sufficient support to address their growth objectives. Beyond this, we demonstrate that support effectiveness additionally depends on a willingness of participants to learn collaboratively by socializing their growth objectives with their advisors. Since even winners need to learn, programs must wrestle with the selection tradeoffs more acutely early on to ensure that the most promising clients can receive lengthier learning opportunities for growth.

PROSPECTS AND CHALLENGES OF ENTREPRENEURSHIP DEVELOPMENT IN THE KURDISTAN REGION OF IRAQ: AN OVERVIEW

Entrepreneurship as a driver of innovation and economic growth plays a key role in economic development and the appearance of knowledge and innovation-based economies. The most important effects of entrepreneurship development are increasing innovation, upgrading technology, increasing employment, producing technical knowledge, and generating income distribution at the community level, which can lead to increased national wealth and economic growth. At the moment, global developments are made entrepreneurship so important, and organizations need more innovation and entrepreneurship than ever before to adapt to new circumstances. In fact, in relation to entrepreneurship as the most important factor in economic development, organizations can gain more market share. The objectives of this study are to examine and overview the prospects and challenges of entrepreneurship in Iraq's Kurdistan region. In this regard, it can be said that with the human resources available and the valuable experiences available in the field of entrepreneurship around the world, it is necessary to plan for entrepreneurship development in the Kurdish Region of Iraq (KRI). It is revealed in this study Iraqi Kurdistan is determined can be one of the top entrepreneurial centers in the region with the scientific ability of specialists, and the potential of human resources, flexible structure and efficient technology. This paper recommended some strategies to reform and removing barriers to entrepreneurship development in the Kurdistan Region of Iraq by using factors such as entrepreneurship development and appropriate culture building, job training, setting up small business development centers, sponsoring entrepreneurs, establishing the legal framework for entrepreneurial activities, and providing spiritual support to entrepreneurs can lead to social, economic and industrial development and the declines of unemployment.

Prospects and Challenges of Entrepreneurship Development in the Kurdistan Region of Iraq: An Overview

Abstract Entrepreneurship as a driver of innovation and economic growth plays a key role in economic development and the appearance of knowledge and innovation-based economies. The most important effects of entrepreneurship development are increasing innovation, upgrading technology, increasing employment, producing technical knowledge, and generating income distribution at the community level, which can lead to increased national wealth and economic growth. At the moment, global developments are made entrepreneurship so important, and organizations need more innovation and entrepreneurship than ever before to adapt to new circumstances. In fact, in relation to entrepreneurship as the most important factor in economic development, organizations can gain more market share. The objectives of this study are to examine and overview the prospects and challenges of entrepreneurship in Iraq’s Kurdistan region. In this regard, it can be said that with the human resources available and the valuable experiences available in the field of entrepreneurship around the world, it is necessary to plan for entrepreneurship development in the Kurdish Region of Iraq (KRI). It is revealed in this study Iraqi Kurdistan is determined can be one of the top entrepreneurial centers in the region with the scientific ability of specialists, and the potential of human resources, flexible structure and efficient technology. This paper recommended some strategies to reform and removing barriers to entrepreneurship development in the Kurdistan Region of Iraq by using factors such as entrepreneurship development and appropriate culture building, job training, setting up small business development centers, sponsoring entrepreneurs, establishing the legal framework for entrepreneurial activities, and providing spiritual support to entrepreneurs can lead to social, economic and industrial development and the declines of unemployment.

ANALYZING CORPORATE EXPANSION TO INTERNATIONAL MARKETS: THE CASE OF GERMANY, UNITED KINGDOM, CANADA, MEXICO AND CHINA

In this study, the authors utilized the Analytic Hierarchy Process (AHP) decision-making model to select the optimal market for international expansion for ABC Corporation located in Ohio[1]. The benefits of exporting to nine different countries: Germany, the United Kingdom, Canada, Mexico, Netherlands, China, United Arab Emirates, Australia and Brazil were analyzed. For the sake of more precise and in-depth research, preliminary studies performed on these nine countries were used to determine the top five markets: China, Mexico, Canada, Germany and the United Kingdom. Preliminary research included multiple factors about these nine countries. Market size, market growth rate, market consumption capacity, market intensity, market receptivity, commercial infrastructure, trade barriers, contribution margins, country risk and the growth rate of construction were the qualitative and quantitative criteria specifically considered. The importance of each criteria and sub-criteria were determined with export market experts and company decision makers. The AHP analysis enabled the authors to determine the best possible export market for the company by evaluating the data from China, Mexico, Canada, Germany and the United Kingdom. The robustness of the results was tested using sensitivity analysis. Sensitivity analysis results were then discussed with the decision makers. The best market was selected and alternative markets were presented with degrees of preference. Managerial implications of the study and future research directions will be discussed.
 
 [1] Company name has been disguised for confidentiality reasons.
 
 
 -This paper received “Best Student Achievement in International Business Award for Graduate Students”, Youngstown State University, Williamson College of Business, April 18, 2018.
 -Acknowledgement: This project allowed our group to become better researchers, taught us how
 to use AHP methodology in real - life decision making and allowed us to network with colleagues around the world. This was a fantastic experience for all of us and it will not be forgotten. Being able to represent Youngstown State University at the MCDM, 2017 Conference was an honor. We learned and did things that students cannot learn in the classroom. Working alongside Dr. Karpak allowed us to have a hands - on experience with the project and she was there when questions needed addressed. We feel that our research benefitted ABC and allowed them to gain a better understanding of what market they should export to. We are beyond grateful for this experience and glad that we were selected to go to Ottawa, Canada and to now be submitting our research to the IJAHP journal. The authors also thank the export expert Mr. Mousa Kassis, CGBP, Director, Ohio Small Business Development Center (SBDC) Export Assistance Network, Williamson College of Business Administration of Youngstown State University, for identifying ABC Company and giving his expert judgments on criteria evaluations.
 
 

Hybrid organizations and the logics of entrepreneurial ecosystems

Growing evidence suggests entrepreneurial ecosystems are a potent engine for economic and community development. Prior research has identified an ecosystem’s culture as serving a critical role in its creation and functioning. However, it is not clear how the cultural forces in entrepreneurial ecosystems develop and are shaped by individuals, organizational actors, and ecosystem-level institutions. Drawing from institutional theory and theories of multiple logic organizations (i.e., hybrids), this paper combines entrepreneurship and management research to argue that entrepreneurial ecosystems are influenced by two dominant institutional logics: entrepreneurial-market and community. By combining both logics, hybrid support organizations, such as incubators, accelerators, and small business development centers, play a unique role in entrepreneurial ecosystems by exposing participants to the two guiding logics. Furthermore, it is argued that intra-ecosystem variation among hybrid support organizations in the dominance of entrepreneurial-market and community logics, will result in a diversity of entrepreneurship within an ecosystem. This theorizing contributes to the understanding of entrepreneurial ecosystems by shedding light on the role institutional logics and hybrid support organizations play in ecosystem formation, structuring, and function and by explaining the genesis of the cultural values that guide ecosystem participants.

The Role of Research Universities in U.S. College-Town Entrepreneurial Ecosystems

This project focuses on the role of research universities in U.S. college-town entrepreneurial ecosystems. Combining regression analysis and in-depth interviews, we systematically evaluate various roles that anchor research universities can play both in assisting entrepreneurs and in building regional entrepreneurial ecosystems. In the quantitative part of the project, we examine factors associated with the entrepreneurial activities of 53 U.S. college-town metropolitan statistical areas (MSAs). We find no evidence that the presence of university entrepreneurship programs such as entrepreneurship degrees or certificates, incubators, research parks, or Small Business Development Centers (SBDCs) significantly improves the startup rate of college towns. Similarly, the number of college graduates relative to the metro size and the university research and development (R&D) in science and technology fields are not significantly associated with startup activities. In the qualitative part of the project, we compare and contrast the cases of two college towns — Boulder, CO and Iowa City, IA — through information gathered from semi-structured interviews. We report both similarities and differences in the entrepreneurship efforts of the two anchor universities. We find that, facing a much less entrepreneurial environment, the University of Iowa plays a more visible role in its regional entrepreneurial ecosystem than the University of Colorado. Based on our results, the following practices emerged as desirable ways that research universities can effectively participate in an entrepreneurial ecosystem of a college town: • Cultivate the talent pipeline • Utilize nationwide resources and best practices in entrepreneurship support • Serve as brokers/connectors • Raise awareness and change mindsets by building an on-campus entrepreneurial ecosystem embedded in the regional entrepreneurial ecosystem • Market both university entrepreneurship efforts and the entire regional entrepreneurial ecosystem • Promote diversity • Remove internal barriers, such as: bureaucracy and tardiness inherent in large organizations such as public universities; the culture of risk aversion and the lack of an entrepreneurial mindset; the “silo” university structure and subsequent fragmented on-campus entrepreneurship services; tenure policies that discourage — or at least do not encourage — faculty startup activities; technology transfer agreements that do not give inventors sufficient credit or incentives.

Use Your Science to Make America a Better Place

Use Your Science to Make America a Better Place

Disaster risk management and business education: the case of small and medium enterprises

It is safe to say that building disaster resilience by preparing for disasters with a business continuity plan is vital for small business to thrive in the long run. More often than not, small business owners invest large sums of money, time, and resources to make their ventures successful and yet, many of them fail to properly plan and prepare for disaster situations. With this problem in mind, Florida International University (FIU) became the house of the Small Business Development Center (SBDC) and the Extreme Events Institute (EEI). Together, both institutes have collaborated in their mission to spread disaster resilience and business continuity management knowledge and best practices in an accessible way to small businesses in South Florida and Latin America. By developing and disseminating knowledge, processes and best-practices through several activities and channels such as business consulting and business continuity plan elaboration, Pasantias (Practicums), and the Disaster Resilience Toolkit for Small-and-Medium-Sized Enterprises, both institutes truly represent FIU’s experience with SMEs and its commitment with entrepreneurship and South Florida’s community.

Letter From the Editor

Letter From the Editor

Small business development centers and libraries: a survey

Purpose – The purpose of this study is to investigate how small business development centers (SBDCs) are working with libraries and librarians to provide assistance to entrepreneurs. Design/methodology/approach – An online survey was distributed to SBDC offices in the mountain west region of the USA to discover if and how they are working with local public and academic libraries and librarians to provide information and services to entrepreneurs. Findings – Surveys were sent to 72 SBDCs with 31 responding (43 per cent). A total of 48 per cent indicated collaborating with public libraries and 36 per cent work with academic libraries. Resources and services provided by librarians and libraries are consistent with the reporting in case study literature. Responses to successes and issues with these arrangements indicate areas for improvement and consideration in collaborations. Research limitations/implications – This research was limited to findings from SBDC offices in the mountain west region. A national survey of efforts might provide more comprehensive results. Future research into whether these partnerships are worthwhile and benefit entrepreneurs and the local economy would be beneficial. Practical implications – The findings indicate areas in which improvements in collaborations could be made in communication and expectations. Social implications – This research might inform future collaborations as communities explore economic development and support of local entrepreneurs. Originality/value – This research provides the unique perspective of non-librarians about these working relationships with librarians. The findings may be useful to improving existing collaborations and in consideration of future partnerships.

Engaging with entrepreneurs in academic and public libraries

Purpose – The purpose of this paper is to explore how academic and public libraries support entrepreneurial researchers and, in doing so, demonstrate impact and share best practices. Design/methodology/approach – The authors discuss their own experiences as academic and public business librarians who support entrepreneurs. They do so by revealing the main services they provide to this unique user group and presenting examples from their own institutions. They also present what is done at other libraries by way of a literature review and an informal survey. Findings – After navigating the landscape of business librarian support of entrepreneurs, many commonalities were found among the types of support offered. Most libraries in this study collaborate with a business incubator, center for entrepreneurship, office of economic development or small business development center in some fashion. Numerous outreach and networking efforts were found that had positive effects on the local and national economies. Although public and academic libraries have different base user groups, both types of libraries serve current and potential entrepreneurs, as well as students, who are looking for similar data in the same kinds of resources. Originality/value – Although specific examples can be found in the literature, little has been published that provides an overview of the entrepreneurial services and resources provided at numerous libraries of different types as well as resulting impact. This paper fills this gap and should provide new ideas to librarians of all kinds wishing to reach entrepreneurs.

Critical Service Success Factors at Small Business Development Centers for Job Creation: Documentary Research

This article is a documentary research on the critical service-success factors at Small Business Development Centers for job creation. It is an international comparative study in the agro-business mechanical sector in the United States of America, Brazil, Chile and Mexico. Firstly the state of the art of Small Business Development Centers in each country is depicted as a direct result of small business policies in each country. Next an explanation of the rationale behind choosing the agro-business sector is presented. Lastly, a description of the common elements found in the literature review are recounted as critical success factors in jobs creation at Small Business Development Centers, namely: quality, continuation and pertinence in the services provided; the profile of business consultants; the service cost; accessibility of the center; physical spaces and marketing and promotion of the center.

Judgment Performance in Business Planning

This paper investigates factors that influence the effectiveness of entrepreneurial managers’ decisions to prepare business plans, operationalized as adequacy of financing obtained, including confidence in the managers’ financial knowledge and characteristics of the business. Data is obtained from a survey administered to clients of a small business development center to access various aspects of financing options. Regression analysis is used to develop a descriptive model that indicates the adequacy of capital resources acquired from business financing is related to the interaction of entrepreneurial manager’s decision to prepare a business plan with his/her financial self-efficacy. These findings have implications for research related to the preparation of business plans and organizational performance. Mixed results in prior studies may be attributed to failure to control for context and person factors that may influence both performance and the decision to prepare a business plan.