Press Release

Investment to Help Small Businesses Returns Tenfold, Analysis Finds

More than $10 in New Taxes Returned to Treasury for Every $1 Invested in the Small Business Development Centers Program

PHILADELPHIA (July 3, 2007) – Benjamin Franklin, called “America’s original entrepreneur” by some, once said that an investment in knowledge pays the best interest. Franklin’s words ring true today: providing Pennsylvania’s entrepreneurs with the knowledge they require to run successful businesses is, in fact, a proven and cost-effective economic development strategy.

According to recent independent research, help from the statewide network of 18 Small Business Development Centers (SBDC) proves a profitable investment of public tax dollars. In addition to boosting the economy through the creation of businesses and jobs, entrepreneurs aided by the SBDCs reported over $1.3 million in new sales and added more than $106 million in new taxes to the state and federal treasuries. The investment in the Pennsylvania SBDC program, which helps small firms start and grow, returns $10.61 in new tax revenue for every $1 invested.

In total, SBDC services resulted in small businesses generating more than $71 million in new state sales and income taxes. These clients also contributed nearly $35 million in income taxes to the federal treasury. The annual, independent analysis, conducted by Dr. James J. Chrisman of Mississippi State University, shows an increased return for the most recent data: the previous year’s study found a return amounting to $8.33 for every $1 invested. 

The SBDCs link federal, state, local and private resources to assist small businesses with a range of topics to help them succeed.  No-cost, confidential one-on-one consulting emphasizes education and guidance in finding practical solutions to business problems.

“Continued investment in the SBDC program is a cost-effective way to grow the economy, enhance competitiveness and fulfill the American dream of owning and operating a business,” said Gregory L. Higgins, Jr., state director of the Pennsylvania SBDC program.

The SBDCs work to ensure that resources and services are broadly available for all industries and populations throughout Pennsylvania’s rural, suburban and urban communities. State investment enabled the network to add centers at Shippensburg and Widener Universities, which opened in January of this year to better serve the small firms across the commonwealth.

For more information, visit www.pasbdc.org/impact.

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