Please enjoy this complimentary 12 – month calendar!
Thomas & Michael Brennan
6525 Ventnor Avenue
Ventnor, NJ 08406
As food critics have already pointed out, when you combine a father with thirty-plus years of experience in the hospitality industry with an award winning chef for a son, the result is Cardinal Bistro in Ventnor, “a promising new BYOB from a young talent that Shore goers are going to love.”
Thomas Brennan started his career as a busboy in Smithville. After earning his bachelor’s in Business Administration from what was then Stockton State College, he began a successful career that included managing restaurants, working in casino accounting departments, and working as the Director of Food and Beverage services. These positions allowed Tom to hone his skills in designing, planning and opening new restaurants, an endeavor he and son, Mike, decided to undertake together in 2015.
While at college in Philadelphia, Michael Brennan walked into Le Bec Fin and applied for a job, never imagining his need for employment would lead to a bourgeoning career as a chef. Determination and dedication enabled Mike to go from bussing tables to hosting at another legendary restaurant in Philadelphia’s Rittenhouse Square, where Mike gained his food prep skills and knowledge. In 2012, Mike entered The Culinary Institute of America, where he trained alongside the best chef instructors in the country. Upon graduation, Michael helped open one, before moving on to another, of this booming food town’s busiest restaurants.
Meanwhile, Tom, after a short stint in retirement, decided to open one more restaurant. A phone call later, Mike was back in Philadelphia to help create the concept. Carla, Tom’s wife, found a little corner spot with great windows in Ventnor, NJ. With a location, chef and concept, they needed a name for the restaurant and found one honoring Tom’s late mother, who was a great lover of cardinal birds.
After meeting with Carol Waties, regional director of the NJSBDC at Stockton University, Tom and Mike emerged with a business plan that they submitted to M&T Bank. Working with Carol and M&T lender, Shannon Murphy, they obtained a loan and opened in the middle of the season to rave reviews and large crowds.
Not content to rest on good reviews, or his winning entry on Food Network’s “Cooks vs. Cons” show, Michael founded For Atlantic City By Atlantic City (4ACxAC), a group of hospitality professionals who want to see Atlantic City thrive. Part of Tom’s and Mike’s plans to grow the Cardinal Bistro brand include expanding its footprint, and enhancing the dining experience by incorporating food and spirits.
Hafco Foundry and Machine, Inc.
Basil Fornaci & Billy Fornaci
301 Greenwood Avenue
Midland Park, NJ 07432
Hafco Foundry and Machine, Inc. is a distributor of metal castings and machined parts to the rail industry, and manufacturer of industrial pneumatic vacuums and dust equipment for the coal mining industry. Founded in 1969, the company is managed today by co-presidents and brothers, Basil and Billy Fornaci, who are the third generation owners. Over its many years in business, Hafco experienced steady and consistent growth, achieving over $6 million in annual sales.
In September 2015, Basil’s and Billy’s father and Chief Executive Officer, Michael Fornaci, unexpectedly passed away. With no written succession agreement in place, Michael Fornaci’s widow became the default owner, and placed her trust in a law firm which cared only for her personal gain, and not the business or its employees. Having cast the brothers’ uncle and Chief Financial Officer, William Fornaci as an adversarial party, instead of the next rightful president, the company’s future was anything but certain. Suddenly, in March 2016, William passed away before any ownership rights were transferred.
Basil and Billy took control of day-to-day operations, while also reviewing a draft of an agreement, proposed by these same lawyers, written to cover the ownership and define the future operations of the company. It was at this point that Billy reached out to the NJSBDC.
Vince Vicari, regional director of the NJSBDC at Ramapo, assigned the Hafco case to Jim Palumbo, whose experience and knowledge has been a perfect fit for the company’s immediate needs. At the very first meeting, Jim pointed out some significant flaws with the agreement, which was then re-written based on his recommendations. Basil and Billy were quick to realize that you simply cannot only take business advice from lawyers and accountants. The SBDC also later connected Hafco with a law firm that would serve more as a neutral party, drafting the formal agreements and handling the transfer of ownership.
Advice from Jim, an experienced and skilled businessperson, turned out to be invaluable for Hafco. In fact, he truly saved the company from what could have been a disastrous agreement. Over the past year and a half, Jim Palumbo has helped to transform Basil and Billy from family business employees to confident and knowledgeable business owners. Beyond day-to-day operations, they’ve learned to create a business plan, generate yearly and quarterly budgets, and forecast the company’s sales. More importantly, they’ve realized the value of implementing all of these business tools and strategies.
Today, Jim and the SBDC at Ramapo continue to advise Hafco in areas such as human resources, distribution agreements, marketing plans, customer relations, inventory management, etc. Going forward, Basil and Billy will continue to implement these new skills and knowledge, and carry on Hafco’s legacy of success.
Eric Kainer & Rasul Damji
865 Ridge Road
Princeton, NJ 08852
For the past year, NJSBDC Procurement Consultant, Andy Bennett, has been working with KDW Partners located in Princeton, New Jersey. The firm, owned by technology-savvy finance and marketing professional, Eric Kainer, and growth and transformation executive Rasul Damji, features Ambedded Technology advanced storage systems and Modulan cabinets and containment systems for large data centers and smaller computer rooms.
Upon Andy’s recommendations, KDW added the technology leading, American-made LED lights from Pennsylvania-based Independence LED Lighting. Independence LED Lighting offers the highest quality, longest-lasting, highest efficiency lights in the world. As a result of adding Independence LED Lighting to their product line, KDW has seen exploding demand, both within its data center target market, and beyond. Demand for LED lighting has emerged from the Federal government, local government, commercial businesses, and even retail environments.
In April, SBDC Procurement Specialist Andy Bennett also introduced the firm to a New Jersey-based steel-manufacturing partner that is currently producing prototypes for KDW. In the same month he introduced another NJSBDC client, The Maximum Group LLC, which is working with KDW in business promotion and marketing.
To date, Andy has assisted the firm with over $1 million in negotiation support with Tier-1 construction companies in both Pennsylvania and Colorado. These negotiations were for KDW’s modular data center cabinets and containment. Andy also worked with the firm on a proposal for LED lighting systems for municipalities in Northern New Jersey with applications spanning libraries, schools, municipal buildings, and public housing.
In August 2017, Andy assisted KDW with negotiating and landing a $900,000 commercial contract with a Colorado-based construction company for LED lighting and CPU metal cabinets. And in November, one of the northern New Jersey municipalities (noted above) awarded KDW a contract for LED lighting that resulted from RFP research and review that Andy provided to the company’s business owner, Eric Kainer.
NJSBDC’s Procurement Specialty Program, through Andy Bennett, also introduced the firm to two contacts at Rutgers University’s purchasing department, and continues to work with KDW in business development, marketing, and contract negotiations support.
NJSBDC’s support of KDW and their perseverance has resulted in great outcomes!
The Malachia Brantley Entrepreneurial Spirit Award
Nathaniel Sims, Small Business Management Consultant & Advisor
America’s SBDC New Jersey recognizes Nathaniel Sims for his solid, strong track record in supporting small business ownership and entrepreneurship in New Jersey.
The New Jersey Small Business Development Centers (NJSBDC) network lost one of its greatest contributors in assisting small business owners and entrepreneurs with the passing of Senior Business Advisor and Management Consultant Nathaniel (“Nat”) Sims this past May 2017.
Today, on behalf of America’s SBDC New Jersey, we provide this Excellence Award posthumously in remembrance of his strong dedication to assisting small business owners, veterans, and entrepreneurs in pursuit of their small business dreams.
He contributed greatly to our small business assistance program and provided guidance to countless numbers of entrepreneurs and small business owners in his various capacities over the years as Assistant Director and Director of the NJSBDC at Kean University and subsequently as Senior Consultant, specializing in veterans’ assistance, for NJSBDC Headquarters and the entire network. He helped hundreds of veterans either to start a business or expand their existing business.
Nat was a compassionate and caring person and a man of integrity. His business acumen and skills imparted great knowledge for clients of the NJSBDC program. He helped many small business clients along the road to success. He will be forever missed as one of our most giving Team members.
Through a lifetime of selfless service and dedication to the New Jersey small business community, his positive attitude and passion to help others made a difference and contributed greatly to the successful outcomes of many small businesses in our state.
Mr. Sims was posthumously awarded the Veteran Owned Small Business, Mentor of the Year Award for his tireless efforts and dedication for Veteran small business owners by The American Legion on June 8th, 2017.
He sets an example for all of us to further bolster the mission of entrepreneurship and small business ownership.
NJBIZ offers opportunities for nominations concerning an array of achievement awards ranging from Chief Financial Officer, Legal Counsel, to entrepreneurs and/or business owners of the year. This year NJBIZ rolled out another awards series called the ICON Awards for Business Leaders in their sixties. CEO/State Director of America’s SBDC New Jersey, Brenda B. Hopper, was one of several individuals who received such recognition on August 23, 2017.
NJBIZ classifies the inaugural NJBIZ ICON Honors Awardees as “business leaders who are in a class of their own: the pioneers and change-makers. Those who have made a daily impact on their local communities and unparalleled contributions to the economic excellence of our region.”
“I was pleased to receive this award,” said Brenda B. Hopper. “It’s always nice to be recognized with other business professionals who make their contributions to the business world. Small business is my passion.”
Ms. Hopper believes her biggest contribution to New Jersey’s business community is “The success of our small business clients; whether it’s increased revenues and profits, creating and retaining jobs, winning a new federal, state or municipal procurement contract, getting a new international trade deal, or receiving that much needed financing for expansion. Their success is our success.”
Hopper was also a recent recipient of the Support Award from the National Association of Women Business Owners (NAWBO) and the African-American Outstanding Achievement Award from Kappa Community Development Corporation (KCDC).
America’s SBDC Will Advocate in Congress to Promote Stable or Increased Funding
The proposed FY 2018 federal budget of the Trump administration proposes $110 million for the national SBDC program administered through the U.S. Small Business Administration. The House Financial Services appropriations subcommittee has proposed $120 million.
Representative Velazquez from New York has offered an amendment to increase that amount to $130 million. Under the congressional continuing resolution for fiscal year 2017, $117 million had been allocated to America’s SBDC, but, the 2017 Omnibus Act increased the funding level to $125 million.
The national organization – America’s SBDC – headquartered in Burke, Virginia will strongly advocate on Capitol Hill for a better budget allocation. The national program has major supporters in Congress who assist with funding support each year.
This is early in the budget process and it is expected that with the highly respected track record of the national SBDC network in creating and saving jobs and generating new businesses as well as growing established small businesses, the congressional budget process will yield better outcomes in terms of budgetary expectations.
“America’s SBDC will be working with our friends and supporters in Congress to ensure SBDC funding remains at current levels or better,” said Tee Rowe, president and chief executive officer of the national network, America’s SBDC. “In light of the natural disasters and strong supporting roles that SBDCs play, that request is only logical and we anticipate strong support.”
Each year in February or March, the national SBDC network holds the Association Winter/Spring Meeting and proceeds to have all state SBDC networks advocate with the congressional delegations from the respective states following its General Meeting.
“We have a good relationship with our congressional delegation in New Jersey,” said Deborah Smarth, chief operating officer and associate state director. “They know about our impact numbers just like our state legislators in Trenton. They understand how important this program is and they work hard to provide resources to ensure small business and entrepreneurial support.”
“We look forward to working with our counterparts in the national network as well as our national office at ensuring good funding results,” added Brenda B. Hopper, chief executive officer and state director.
SBDC Regional Director at Ramapo College of New Jersey Receives “State Star” Award
America’s SBDC “State Star” award was presented to Regional Center Director Vincent Vicari of NJSBDC at Ramapo College of New Jersey during America’s SBDC national conference in Nashville, Tennessee (September 4-8).
Each of the 50-state SBDC networks nominates their staff members who exhibit excellence in assisting entrepreneurs and small businesses, promoting greater opportunities for growth, thereby, contributing greatly to the state and national Small Business Development Center program. Vicari was recognized from New Jersey’s SBDC.
“We recognize Vincent Vicari for his strong efforts and leadership in assisting small business owners and entrepreneurs who seek help with their business operations,” said Brenda B. Hopper, NJSBDC network chief executive officer and state director. “The Center provides quality support for its business clients and also delivers specialized assistance for veterans.”
“We are grateful for Vince’s leadership at the Center,” said Anisfield School of Business Dean Ed Petkus of Ramapo College, located in Mahwah, NJ. “We are extremely proud to have our Center’s Director recognized at the national conference of America’s SBDC. His strong passion to help business owners leads to great results. He has made our Ramapo Center and its services very visible throughout Bergen County.” The Anisfield School of Business is AACSB accredited.
“Vincent Vicari’s contributions to the statewide Small Business Development Centers program are appreciated,” said Deborah Smarth, NJSBDC network chief operating officer and associate state director. “His diligence with small business owners and his strong advocacy with various public and private stakeholders in the Center’s service region add value to our program.”
“I am honored to receive this recognition,” said Vincent Vicari. “Providing advice and guidance to small businesses to help them develop and grow is rewarding. The staff of regional centers statewide and the support by NJSBDC Headquarters enhances the program’s impact. The success of our clients statewide illuminates NJSBDC’s success, also.”
Vince Vicari is a Bergen County native who joined the NJSBDC network in 2008 as Assistant Director. He was appointed as the center’s regional director a few years later. Vicari’s successful and wide-ranging career includes positions in retail management, sales, food service, higher education and consulting. His credentials include an M.B.A. from National University in San Diego, a B.A. from William Paterson University, and an A.A.S. from Bergen Community College. Mr. Vicari continues to pursue education in specialized areas like land surveying, tax, technology and international trade. He has many years of teaching experience as an adjunct faculty member at four-year higher education colleges/universities in the area of business management and has co-authored and published academic papers in this field.
The 37th Annual America’s SBDC Conference was held September 4-8 in Nashville, Tennessee, at the Gaylord Opryland Resort. The theme of this year’s conference was “Work Smarter. Live Better.”
Every year the national conference attracts 1,300-plus SBDC professionals from all over the nation. SBDC business advisors, trainers, directors and executives came together for professional development and networking.
SBDC experts and staff attended the 140-plus workshops that overflowed into the hallways, and in the exhibit hall where they eagerly engaged with each other, sharing best practices and experiences at their individual SBDC state networks. SBDC professionals also had the opportunity to engage with tradeshow exhibitors, learning about the latest information on products and services that can ensure the success of SBDC small business clients.
At the Conference, the national association held its General Meeting of State Directors/CEOs and Associate State Directors/COOs to discuss the national strategic plan and how to face the challenges of running statewide programs, including growth initiatives and attracting financial investments.
“The exchange of ideas is always very helpful,” said Brenda B. Hopper, chief executive officer and state director of the NJSBDC network.
“Raising questions on important issues and gaining insights from other SBDC leaders across the nation is always a good learning experience,” stated Deborah Smarth, chief operating officer and associate state director of America’s SBDC New Jersey (NJSBDC).
At the Conference, Dolores Stammer, regional director at NJSBDC of Northwest Jersey (Morris, Sussex and Warren counties) made a presentation on the Business Growth Accelerator Program (B-GAP) that she has pioneered at her Center, and which is being replicated by other centers in the statewide network. The initiative is aimed at high-impact small businesses with sales of $1 million or more and/or 10-plus employees. In addition, Vincent Vicari, regional director of the NJSBDC at Ramapo College of New Jersey (Bergen County), was recognized as NJSBDC network’s “State Star” along with other award winners throughout the national America’s SBDC network.
Survival strategies that small businesses need to manage an economic slump differ from those that large companies can put in place because small businesses have limited resources in terms of human capital, money, and time. Large companies usually focus on macro-level strategic actions such as economic indicator trends and downturns. Small business strategic choices should focus on micro-level indicators that take into account small low-cost incremental strategic actions guaranteed to yield high results, impact and return on investments.
There are five strategy categories or perspectives from which a business can choose to develop their strategic actions: Management oriented strategies; Resources oriented strategies; Knowledge oriented strategies; Business Operational/Internal Systems oriented strategies; or External Environmental oriented strategies. Small businesses need to be aware of their strategic choice orientation in order to be clear about the intentions and significance of your strategic action objective, impact and outcomes or results. Focus on implementing integrated, low touch solutions. Below are some of the micro strategies to take into consideration:
1 Revenue/Cash Inflow Strategies i.e. focus on cash flow statement as an indicator for what’s currently happening to the company’s cash inflow. This allows the business to primarily focus on strategies that are cash inflow oriented because this is what’s likely to keep them in business during the course of the economic slump.
2 Revenue Diversification Strategies i.e. focused on revenue generation strategies, not revenue reallocation strategies. Revenue retrenchment works to a point, but it’s not the only way for small businesses to save their companies in an economic slump. Cutting cost is a “maintenance” strategy – a measure for recycling the same money already in the business so that you can direct it to priority areas or appropriate budgets so that you can stay in business.
3 Market/Service/Product Mix Objectives: Reassess the business objectives (maybe goals) – that would help the business adjust to the prevailing economic conditions. An example would be focusing on Market/services or product MIX strategies. There are many alternatives a business can pursue in this strategy such as:
a) Old services/products to new market;
b) New services/products to old market;
c) New services/products to new market base.
4 Strategic Alignment: Because of their small size, small businesses/companies are quick to shift and have the ability to respond to external changes like an economic slump. This is an advantage. Therefore it is very important to align the business structures, processes, performance measures and/or incentives with internal changes as well as external economic forces.
5 Structures: Internal & External Business structures: Focus on the internal and external operating structures and how they impede or enhance efficiency and effectiveness; how can the business structure be modified to align with ongoing changes without necessarily “compromising” the core business model.
6 Processes: Focus on costly processes in place that increase your cost of doing business; modify and streamline to reduce expenses. For example, what aspects of the doing business processes can be outsourced rather than be maintained in-house? Eliminate “bureaucratic” or “red tape” business processes i.e., technology mediocrity to non-value adding operational routines.
7 Performance Measurement: Measuring performance is huge in eliminating redundant processes. Focus on time management, employee rate of productivity and efficiency, and the impact of business processes and procedures. Performance analytic information should always inform decision making.
8 Human Capital Incentives: Negotiate with your employees for incentives like flex-time if you cannot afford financial compensation; focus on greater role clarification; review employee resumes to identify former training, skills and experiences you can leverage and cross training of employees. Negotiate with suppliers and clients. Communication is key in human capital management.
Dr. Tendai Ndoro is the Director of the NJSBDC at Rutgers University-Newark campus.
The U.S. EPA’s grant to the NJSBDC network has allowed the network to establish and continue the Green Sustainability Specialty Program into 2017. The specialty program provides information and technical assistance for small business owners concerning how they can realize savings and bring down business costs by instituting sustainable, “green” practices into their business operations (i.e. energy conservation, waste reduction, pollution prevention, streamlined procurement and risk management). When they implement a certain threshold of sustainable practices (at least five), they become part of the NJ Sustainability Business Registry which can be accessed through NJSBDC’s website. These small businesses are enabled to market their businesses with the “Sustainable Business” seal. The NJSBDC team through this federal grant, and with the collaboration of the New Jersey Department of Environmental Protection, provides one-on-one counseling and prepares specialized audits (on request) making recommendations customized to the particular small business inquiring about sustainable practices. The NJSBDC Team will also provide informative seminars at events sponsored by business groups or initiated and sponsored by the Sustainability NJSBDC Team for NJSBDC’s current clients across the state. For more information about sustainability learning opportunities, send a message to email@example.com.
Over the past few years, Bank of America has partnered with America’s SBDC New Jersey, providing a high level of financial resources so that the NJSBDC network can continue to work with entrepreneurs and small business owners in targeted high unemployment areas across the state.
The BOA-NJSBDC collaboration focuses on providing various forms of technical assistance concerning building and repairing credit to appropriately overcome financial constraints and barriers for small, minority and women business owners. In addition, other assistance for marketing, business planning, and accounting skills has also been provided so that business owners are well equipped to meet the challenges of running a business.
Several centers of the network have been providing counseling and training under this partnership for such individuals wanting to start businesses as well as those existing businesses that want to further develop.
“We are grateful to the Bank of America for their financial support,” said Brenda B. Hopper. “ This kind of support allows us to provide small business resources in areas that confront greater economic barriers. We’ve been able to reach hundreds and hundreds of clients and our services have made a difference as a result of BOA’s generous support.”
America’s SBDC New Jersey Technology Commercialization Program sponsored a September 30th SBIR/STTR training seminar (8:30 a.m. – 1:30 p.m.) followed by one-to-one appointments at the NJ Economic Development Authority (NJEDA) North Brunswick facility. PSE&G provided support for this event and follow-on with SBDC science-technology clients and trainees. In addition, a key sponsor of these annual sessions is Eisner Amper, accountant advisors. Other sponsoring organizations included BioNJ and the Rutgers Office of New Ventures and Entrepreneurship as well as supporting organizations including Innovation NJ, the NJ Technology Council, and NJIT Enterprise Development Center.
Randy Harmon, the New Jersey Small Business Development Centers network Technology Commercialization Program Consultant, invited The National Cancer Institute, The Institute of Allergy and Infectious Diseases and the National Science Foundation’s (NSF) Smart Health and Biomedical Technologies Program to participate at this seminar.
The services of NJSBDC’s program focuses on providing guidance and assistance in pursuing Small Business Innovation Research (SBIR) and Transfer of Technology (STTR) grants; the program’s consultant coaches and provides assistance in the proposal preparation process and also specialized reviews and critiques of draft proposals with specific suggestions as to how to strengthen in order to be competitive in winning such grant awards. These latter services aim at Phase I and Phase II commercialization plans, which can be particularly challenging for many applicants. Assistance can be provided by sending an email message to firstname.lastname@example.org; call NJSBDC’s Headquarters Office located at Rutgers Business School, (973) 353-1927.
Legislature Introduces and Passes Budget with Increase for America’s SBDC New Jersey
On June 30 the Governor signed into law (P.L. 2016, Chapter 10) a state budget for fiscal year 2016-2017 which includes a restored increase for the New Jersey Small Business Development Centers program.
The Governor in his winter proposed budget would have allocated $250,000 for the NJSBDC, but, the Legislature increased that allocation to $500,000, which was the level of funding in the prior year’s budget for this program. The funds are leveraged with Small Business Administration (SBA) funding appropriated by Congress for America’s SBDC national network program. The funds are returned to the states’ SBDC networks on the basis of population and the ability to match federal funding with other financial resources, including state, non-federal grants, and private sector contributions.
“We are grateful to the Legislature for their continued support of this small business resource program,” said Brenda B. Hopper, NJSBDC network’s chief executive officer and state director. “They understand that the assistance we provide to entrepreneurs and small business owners translates into business retention, expansion and jobs.”
“The Legislature has been fully supportive of this jobs producing program year after year,” said Deborah Smarth, NJSBDC network’s chief operating officer and associate state director. “We’ve gone through some challenges over the past 12 years, but, we believe our crusade for proper investment in small business assistance resources is the right approach.”
Smarth, the organization’s chief advocate at the State House, indicates that New Jersey’s investment pales compared to other states’ investment in their statewide SBDCs. “According to a recent, past national network association survey, the average state investment stands at $1.1 million. In reviewing the history of the program’s state funding, Smarth points out that the Legislature has led the way from the beginning, having worked with the program to increase funding from $500,000 to $1 million several years ago. But, during the Corzine administration, there was a reduction from $1 million to $500,000, than a freeze to $250,000. When Governor Christie took office, his first budget proposed no funding, but, the Legislature restored state funding to $250,000 where it remained stable during the first term and into the second term of the Christie administration until the Legislature increased funding in fiscal year 2015-2016 to $500,000. This year’s fiscal budget (2016-2017) was enacted with the $500,000 allocation, the same as last year.
The Governor subsequently issued an executive order (following his signing of this year’s budget on June 30); the executive order led to certain legislative budget add-ons being put in reserve until the Legislature agrees to healthcare reform savings; more than $100 million in municipal transitional aid and various other programs, including certain non-profits, were also placed on this reserve list. The SBDC program was added to the reserve list despite the fact that the total $500,000 allocation for SBDC does not increase the state budget since it is drawn from the
line appropriation for the State Department division charged with business development, attraction, and economic growth. Half of the SBDC program allocation was being held in reserve, but, on October 12th those funds were released.
“That was good news,” said Smarth. “In this economy which has not recovered, small business resources are significantly important. Investment in small business technical assistance actually produces impact in terms of job retention and job creation, notwithstanding business retention, business creation and expansion.”
The entire network and the thousands of small business owners served under the program are grateful for the leadership of Assembly and Senate Budget Committee chairmen in the respective legislative chambers, Senator Paul A. Sarlo and Assemblyman Gary Schaer as well as the ranking minority budget officers, Senator Anthony R. Bucco and Assemblyman Declan O’Scanlon. Other supporters included: Assemblymen Robert Clifton, Ronald Dancer, David Rible, Assemblymen David Russo, David Wolfe and Assemblywoman Holly Schepisi; Assemblymen Craig Coughlin, Tim Eustace, Jerry Green, Assembly Majority Leader Louis Greenwald, Assemblywomen Valerie Vanieri Huttle and Pamela Lampitt, Assemblyman Paul Moriarty, Assembly Speaker Vincent Prieto, Assemblywoman Shavonda Sumter and Assemblyman John Wisniewski. Members of the Assembly Budget Committee included: Assemblymen Anthony Bucco, John Burzichelli, Gordon Johnson, John DiMaio, John McKeon, Troy Singleton, Benjie Wimberly, Assemblywomen Elizabeth Maher Muoio and Eliana Pintor Marin. Senate Budget Committee members supporting the effort included: Senators Sandra Cunningham, Linda Greenstein, Kevin O’Toole, Steve Oroho, Nellie Pou, Brian Stack, and Sam Thompson; in addition, Senators Diane Allen, Christopher (“Kip”) Bateman, Michael Doherty, Robert Gordon, Ronald Rice, and Shirley Turner; Senate Minority Leader Tom Kean, Jr. and Senate President Stephen Sweeney have supported the program over the years. Several additional legislators also joined this year’s efforts.
A recent, past Government Accountability Office (GAO) study of 52 economic development/entrepreneurial programs gave high marks to the national SBDC program. The GAO commended the national SBDC program, specifically noting SBDC’s best practices including impact metrics, accreditation practices, annual programmatic/financial audits, comprehensive local/regional/state/federal collaborations and program effectiveness.
Over the years, hundreds of millions of dollars have been paid by New Jersey to mid-size and larger companies to attract new jobs or retain existing jobs in the state through state business incentive grants and/or tax incentive programs. But oftentimes small businesses, the backbone of the economy, have been left behind. The costs of state grant and tax incentives to mid-and-large size companies are very high. A newspaper account estimates that jobs under the state business grant incentive programs since 1996 cost on average $22,044 per job.
By investing in assistance for entrepreneurs and existing small businesses through NJSBDC, the costs of creating and saving jobs in New Jersey are much lower. Maintaining and enhancing our small business sector in communities across the state provides sustainability and economic growth, generating jobs for the state’s residents. That’s why the Legislature and Executive Branch should continue to increase state funding for assistance to small businesses and entrepreneurs through America’s SBDC New Jersey. Independent studies prepared on an annual basis document the lower costs associated with creating and saving jobs for clients of the NJSBDC program.
Asbury Park Press, May 6, 2013.
America’s SBDC New Jersey, also known as the New Jersey Small Business Development Centers (NJSBDC) program, has been assisting small businesses and entrepreneurs for 37 years. It was one of the first pilot projects in the nation.
NJSBDC is part of a national network of SBDCs and goes through formal national accreditation every four to five years. There are up to 1,000 offices throughout the United States promoting business development and growth and generating thousands and thousands of jobs for Americans.
NJSBDC’s 12-center network provides comprehensive assistance for small businesses in all 21 counties. The SBDC network helps entrepreneurs to start new businesses and assists existing and established businesses (at different stages) to further develop and grow, sustaining economic growth in communities across the state. The strong historical record of NJSBDC’s economic impact for New Jersey cannot be underestimated; its business experts touch the lives of countless numbers of small business owners and operators who tap the network for guidance on an array of operational issues, including but not limited to: Business planning, strategic planning, accounting, financial analysis, legal organization, taxes, recordkeeping, marketing, E-Business, International Trade (exporting), Sustainability, Procurement opportunities, Technology-Commercialization, etc. The program brings back to the state federal dollars for small business support, but, federal funding must be matched dollar for dollar. That’s why the State’s investment in SBDC matters! NJ lags behind the investment levels of other states in their statewide SBDC networks.
COLUMN: LET EMPLOYEES BAND TOGETHER TO ESTABLISH NEW BUSINESSES, CREATING AND SAVING JOBS; INVEST MORE IN TECHNICAL ASSISTANCE
The big topic these days in national news with a new presidential administration is bringing back jobs to America. Despite the administration’s diverse proposals, it’s even more simplistic!
Employees, who are being displaced due to their employer’s decisions to relocate, can do more than just wait for governmental solutions. They can take their knowledge and know-how in the industry in which they have worked for years, join together, and establish their own business in the field. They can do so with the help of the national America’s Small Business Development Centers program (America’s SBDC).
Each state has a network of SBDCs totally focused on helping established small businesses reach their next level of growth as well as assisting those individuals who want to start a business. Having workers band together to establish their own cooperative business will ensure that the jobs that would have been lost due to their employer’s closing its doors, will be saved due to their own efforts with the help of professional consultants and business advisors at SBDC. America’s SBDC New Jersey has a few great success stories based on such a model. This is the way for job creation, new businesses, and business retention in New Jersey. Why not promote that model?
According to information cited on the Ewing Marion Kauffman Foundation’s website, the way a firm organizes can very well affect innovation and creativity among its workers. According to the 2015 Kauffman blog, “Employee-owned firms are theorized to have more productive workers and less turnover than firms with traditional ownership structures.” The foundation of an employee-owned firm focuses on allowing employees to drive and navigate the firm’s mission and vision; employees hold the stocks of the enterprise and elect some of the company’s board members. The employees’ compensation is appropriately shared and works as an incentive for greater productivity and innovation at the firm. Small business and entrepreneurship is front and center! And, employee-owned small businesses are a means to save and catalyze new jobs and strengthen the middle class.
According to the most recent 2017 Small Business and Entrepreneurship Council’s “Small Business Policy Index,” New Jersey ranked 49th among the states in small business-friendly public policies. It’s time to change that ranking through innovative thinking and greater state investment in NJSBDC, part of a national network of SBDCs throughout the country. There’s no reason why New Jersey’s SBDC investment should lag the average state investment nationally. Why not invest properly in such a program with such a strong track record? The Legislature understands and has taken action. The executive branch should be just as supportive.
COLUMN: The Economy: What Next?
The biggest question since the 2008 Great Recession is “Where’s the recovery?”
On the presidential campaign trail, economic issues have the highest scored interest followed by national security/foreign policy. So, let’s take a look at the #1 issue: the economy and jobs.
According to the latest economic indicator statistics, New Jersey’s unemployment rate peaked upwards to 5.3 percent in August for the sixth consecutive month. In February, it was at a post-recession low of 4.3 percent. New Jersey’s unemployment rate now exceeds the U.S. unemployment rate at its August level.
The Federal Reserve Chair, Janet Yellen, in her remarks at the Jackson Hole monetary policy conference, seemed to suggest that interest rates will be raised by the end of 2016. “The historically low Federal funds rate, the central bank’s still-large balance sheet, and the U.S. economy’s failure to fully recover from the last crisis all potentially dent the firepower of conventional monetary policy tools should a recession hit the U.S. economy in the coming years.”1 Some economists say we are headed for another recession. The fact is that after eight years of creating money out of thin air via quantitative easing and very low interest rates with the intent of spurring the economy, the national economy has shown little growth. According to an August 26th press release issued by the U.S. Bureau of Economic Analysis, real gross domestic product increased at an annual rate of approximately one percent (as of the second quarter).
Income growth for the vast majority is a concern. People, particularly the middle class and poor, are hurting. According to a Pew Research Center’s May 2016 analysis, there is a shrinking middle class not only in various regions, but, in metropolitan areas throughout the country. “The share of the American adult population that lives in middle-income households has fallen since 2000.” According to PEW’s analysis, the fallout is a result of the 2001 recession and the 2007-2009 Great Recession with slow recoveries after each of these economic downturns. On the other side, some argue that more people are becoming richer to be considered middle class any longer.3
As reported recently, “The 2008 financial crisis apparently knocked U.S. entrepreneurship to the ground, and it’s having a hard time returning to its feet.”4 It was noted in a recent paper of the Federal Reserve Board that when there is a decline of business entries (i.e. new businesses) that this affects the GDP and productivity. Over the past decade, the formation of individual business establishments has remained low, yet, it is noted that new companies or businesses “hire faster and produce higher levels of productivity than firms that have been around for a while.” Thus, some economists maintain that the decline in new business start-ups since the recession is creating labor market problems.
An economist with the Bank of America Merrill Lynch alludes to “tighter credit conditions as loans become harder to secure.” And, there are other factors that add to the dilemma of job growth and productivity. A recent report by Harvard Business School references “political dysfunction” as holding back the nation’s economic performance.
Once again, though, it’s apparent that small business pumps the economy. So, state governors and legislatures need to do more for small businesses and entrepreneurs. The New Jersey Legislature has persevered in securing appropriate state investment for small business technical assistance through the New Jersey Small Business Development Centers network (America’s SBDC New Jersey). The Legislature’s efforts are appreciated and duly noted on behalf of small businesses and entrepreneurs statewide.
Entering a new year, we reflect on our network’s accomplishments in 2016. We are heartened that the NJSBDC network has achieved and surpassed its goals. This past year (2016) our SBDC network counseled and trained more than 12,000 small business owners, entrepreneurs and individuals. And, our impact improved across the board with all of our goal targets moving upward:
- 19,514 total counseling hours delivered to 4,228 small business clients;
- 567 SBDC clients started new businesses;
- 57 percent of our total clients were established businesses;
- $88.3 million in total financing facilitated for our small business clients;
- Clients generated sales at $1.329 billion value;
- Clients conservatively returned $70 million in sales tax revenues to the state, in addition to other state income tax and business tax revenues;
- 16,115 created and saved jobs by assisting our clients;
- 1,981 total training hours delivered at 545 training seminars with 8,279 trainees.
The added value of our program for small business health in our state contributes greatly to New Jersey’s economic development.
It was a great year! And, we’re looking forward to another banner year in 2017.
We’ve reached more than the half-year mark and already signs of success are in the air. Our Small Business Development Centers network, which is now focused on allocating greater resources for one-on-one management consulting and stable levels of training, has succeeded in accomplishing the following for the period covering January 1 through June 30, 2016:
- We’ve provided one-on-one counseling for 2,593 clients with a total of 9,794 counseling hours;
- 22% of the network’s clients received 5-plus hours of counseling;
- 59% of NJSBDC network’s business client portfolio consists of established small businesses;
- NJSBDC clients started 248 new businesses;
- We’ve facilitated $52,134,594 in financing for our small business clients;
- We’ve hosted 297 training events/seminars with 3,781 trainees attending;
- Approximately 10% of our small business clients had $1 million or more in sales revenues and/or 10-plus employees;
- We’ve assisted our clients to create and save 11,473 jobs.
We’re expecting to finish this year on a high note with great economic impact even though the economy seems to be weak. It’s all about “BIG IMPACT.” That’s why the state’s investment level in our program is so important to leverage with federal and private sources of funding. Our network’s business experts are there for any small business owner or entrepreneur who wants to bring their operations or business to a higher level. Visit us for a full consultation and assessment and we can help you advance your path to success.