The SBDC Program Has Been Lauded For Its Cost-Effectiveness and for Its Metrics-Driven Approach

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.