Economic Impact of NYS SBDC: 2004

As some of you might know, Dr. James Chrisman (from Mississippi State University) frequently conducts impact studies on behalf of the SBDC program. Surveys were mailed from Central earlier this year to those long-term clients (i.e., those with a minimum of 5 hours of contact time) seen during 2004.

This, from the report:
"In 2004 the New York SBDC provided long-term consulting assistance to 14,984 clients. Of these, 4,226 owned established small businesses and 10,758 were seeking to start new businesses (pre-ventures). A mail questionnaire was sent to the 9,368 long-term clients for whom the SBDC still had valid mailing addresses in 2006. A total of 1,405 clients returned questionnaires. This represented a 15.0 percent response rate."

From these responses, Dr. Chrisman was able to compile his analysis of the New York program's performance for 2004. It's a detailed report, but here are some of the highlights:

Aggregate sales impact:
Established Firms = $354,294,300
Pre-Ventures = $2,611,246,300
Total = $2,965,540,600

Aggregate employment impact:
Established = 2183 new jobs
Pre-Ventures = 12,162
Total = 14,345

Existing jobs saved = 8,579

Benefit-to-cost ratio (entire NY SBDC operation):
Established = $1.61/$1.00
Pre-Ventures = $10.50/$1.00
Total = $12.10/$1.00

Regarding that last figure, the report concludes that "the consulting provided to both established business and pre-venture clients generated $12.10 in tax revenues in one year for every $1 spent on the entire program." Per Jim King, who's been looking at these reports for nearly 20 years, these are "very strong numbers".

Good work, everyone!

There's a lot more data in this 19-page report. If you'd like to see an electronic copy of it, please email me at darrin.conroy@nyssbdc.org.

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