Long-term Performance of Start-up Clients

Survival

Even with the economic slowdown at the turn of the century, SBDC clients were prepped for success. In fact, 80% of SBDC-assisted start-up clients are still in business 6-8 years after receiving assistance from the Pennsylvania SBDCs. SBDC clients survive at a rate approximately 35% higher than the general population of new businesses in the US.

Year Assisted Percent Still In Business

1996 or 1998

80%


Market Scope

SBDC-assisted start-ups grow to have a large reach in a variety of different markets.

Local & Community Markets* Broad Markets**

66%

34%


* Local & Community based markets include neighborhood firms, city or metro area firms and state-wide firms.

** Broader scoped firms include those that compete in multiple states, have national reach or are international in orientation.

The Study

Clients who received five or more hours (average of 23.6) of consulting on starting a business in 1996 and 1998 were surveyed in early 2004 by Dr. James Chrisman of Mississippi State University.

A questionnaire was sent to 2,464 clients who received assistance in 1996 or 1998. Combined, a total of 304 (12.4%) were received, 46 of those were eliminated because they were not pre-ventures or early start-ups. This left an effective sample of 256 clients, including 107 from 1996 and 149 from 1998, for this study.Statistical analysis indicated that the respondents were representative of the initial samples and comparisons of early and late respondents found no reason to suspect bias on any of the variables analyzed in the study.

4 out of 5 clients from the survey found value in SBDC services. In fact, 62% of these clients indicated that the SBDC was a major factor in the growth and success of their business.

Download a PDF of the Long Term Performance of SBDC-assisted start-ups or download a PDF of Dr. Chrisman’s article “The Influence of Guided Preparation on the Long-Term Performance of New Ventures” (Journal of Business Venturing, Volume 20, Issue 6, November 2005, Pages 769-791).