We often hear that small businesses are the engines of job creation in the United States. Their value and the role they play in our economy is sometimes underestimated because, they are in fact, small. But the truth is there’s nothing small about the impact they have on our economy.
According to Entrepreneur Magazine there are between 25 million and 27 million small businesses in the U.S. that account for 60 to 80 percent of all U.S. jobs. And, a recent study by Paychex, says that small businesses produce 13 times more patents that larger firms.
So, how do we ensure small businesses are getting the resources they need to grow? What can we do to not only help them succeed, but thrive in an ever changing economy? Providing the right climate for entrepreneurial firms to succeed, including access to capital and business advisors can be extremely valuable. Smart regulations and tax structures can also give small businesses a boost and better chance of survival.
The good news is there are programs and support organizations around the country trying to help small businesses gain the tools they need to be sustainable and profitable ventures.
For example, last week I attended an event to mark the launch of Goldman Sachs 10,000 Small Businesses initiative in Cleveland, Ohio the 7th city to become part of the program. The investment firm and its foundation are taking an integrated approach to help small businesses around the country create jobs and economic opportunity by providing them with greater access to business education, financial capital, and business support services. The goal is to help established small businesses get to the next level, as opposed to other programs that focus on supporting only start-ups and aspiring entrepreneurs. There is also an emphasis on diversity and selecting businesses that are representative of the communities that the program serves.
According to a Goldman Sachs spokesperson, “Small businesses play a vital role in creating jobs and growth in America’s economy. Through 10,000 Small Businesses we are providing the skills, capital and mentoring small businesses need to grow, create jobs and build more prosperous neighborhoods. This unique program is tailored to each local market by an outstanding team of local partners led be leading community colleges. Already we are seeing 10,000 Small Businesses participants increasing revenues and creating jobs.”
Goldman Sachs' $500 million program is aimed at reaching 10,000 small businesses nationwide. A $15 million investment in the City of Cleveland will help companies gain access to business classes at community colleges, like Cuyahoga Community College, as well as other opportunities for grants or loans. Cleveland-based partners in the program include the Council of Smaller Enterprises, JumpStart, Inc., the Northeast Ohio Hispanic Chamber of Commerce and Urban League of Greater Cleveland.
“Community colleges are well positioned to be a key partner in 10,000 Small Businesses initiative because of the community-based and applied approach we use to engage with small businesses,” said Dr. Jerry Sue Thornton, president of Cuyahoga County Community College. She continued, “We are seen as the ‘community’s college’, which enables us to not only create local collaborations but engage in those activities that add to economic development through business expansion and job growth.”
“The City of Cleveland was poised to take advantage of the Goldman Sachs program because we have a strong public-private partnership network,” said Cleveland Mayor Frank Jackson. He continued, “Our partnership with Tri-C and Goldman Sachs 10,000 Small Businesses program will better position Cleveland area businesses to create economic growth and put more people back to work.”
In some of the other cities where the program is in place, there are distinct success stories. Take for example, VSolvit LLC, a California-based provider of information technology and engineering services. VSolvit’s owner and founder Payal Kamdar, joined the program to develop and recruit the next layer of management, build on strong existing and future customers, form strategic partnerships with software vendors, and dive into a broader market area. Payal said, “Participation in 10,000 Small Businesses is like an executive MBA on rocket fuel and gave me the ability to ensure the dreams I have for VSolvit are backed with a solid plan for execution.”
While the banking industry has had some setbacks in recent years, it should not put a cloud around the commitment Goldman Sachs is making to these 10,000 small businesses. As I mentioned in a previous post, we need an “all hands on deck” approach to getting our economy back on track. It’s going to take innovative approaches through public private partnerships to make progress happen. It’s time to embrace those who are willing to dedicate their time, money and talents to making our economy stronger and more resilient.
