New York SBDC Research Network

Credit conditions for small businesses have been gradually improving, which is portrayed in Advocacy’s updated Small Business Finance: Frequently Asked Questions . You'll find answers to questions on the general small business financial borrowing, government financing, as well as policy issues on this matter. Should you need further information, please feel free to call (202) 205-6533 or email advocacy@sba.gov.

An Issue Brief published by the Office of Advocacy shows the changing makeup of America’s business owners. The composition of U.S. business owners shifted slightly between 2007 and 2012. During this five-year period, the share of minority and Hispanic business owners had a moderate increase. These changes largely reflect the growth of Hispanics and minorities in the overall U.S. population and workforce. Meanwhile, women’s business ownership rates were stable. Read Advocacy’s Issue Brief #2: Demographic Characteristics of Business Owners . For press inquiries or to speak with Advocacy’s Chief Economist Janemarie Mulvey, Ph.D., contact Elle Patout, Public Affairs and Media Manager, at (202) 205-6533 or elle.patout@sba.gov.

The December-January issue of The Small Business Advocate newsletter features new research from Advocacy, the chief counsel’s review of 2013 highlights, and the chief economist’s perspective on the important policy choices of 2014. The issue also includes reports on regulatory activities in several areas that affect small business: crowdfunding, cybersecurity, reverse auctions, and critical habitat designations. In This Issue (PDF) The Year of Innovation: The Ride to Entrepreneurial Advancement Factors Leading to Firms’ Hiring Their First Employee Positive Small Business Indicators in 2013 and the Challenge Ahead New York City Roundtable on Crowdfunding Comments Filed on Fish and Wildlife Service Proposals Congressional Testimony on GSA’s Reverse Auctions Advocacy Comments on NIST’s Preliminary Cybersecurity Infrastructure

A report published by the Office of Advocacy analyzes the impact of an internet sales tax on small business. As the popularity of online shopping has grown, states have seen their sales tax revenues drop. Federal legislation has been introduced over the past several years to authorize online sales tax collection. With small business owners on both sides of the issue, the Office of Advocacy recognized the need for objective research for small businesses and policymakers. This report analyzes the number of firms that will be affected by the small seller exemption (SSE) if current legislation passes and how much e-commerce is likely to be affected. The report, An Analysis of Internet Sales Taxation and the Small Seller Exemption , was written by Donald Bruce and William F. Fox of the University of Tennessee’s Center for Business and Economic Research.

A report published by the Office of Advocacy measures the small business benefit of federal tax expenditures. Tax expenditures are provisions in the tax law designed to benefit specific groups of taxpayers. They are similar to spending programs but generally do not involve direct federal outlays. Rather, they work through the income tax system, taking the form of special credits, exemptions, deductions, exclusions, and preferential rates. This study estimates the utilization of federal tax expenditure provisions by small and large businesses in 2013. The report, Measuring the Benefit of Federal Tax Expenditures Used by Small Business , was written by John O’Hare, Mary Schmitt, Judy Xanthopoulos of Quantria Strategies, LLC. For press inquiries or to speak with Advocacy’s Chief Economist Janemarie Mulvey, Ph.D., contact Elle Patout, Public Affairs and Media Manager, at (202) 205-6533 or elle.patout@sba.gov.

vol. 32, no. 6 The July-August edition of The Small Business Advocate [PDF] spotlights regional Advocacy: the 10 regional advocates and Chief Counsel Winslow Sargeant’s recent tour of innovation engines in Maine and Boston. It includes reports on two environmental roundtables, the new Small Business Lending Study, and introduces new Advocacy employees and interns. America’s Collaboration Headquarters Lending Study Published Regulatory News Environmental Roundtables Regional Roundup Ten Regional Advocates in Action New Faces at Advocacy

Small Business Lending in the United States is the Office of Advocacy’s annual report on bank lending to small businesses. Financing is critical for small businesses; without it, they would be hard pressed to make important contributions to the nation’s economic health and well-being. In the pages of this report, you will find the most current available information on lending to small businesses by depository institutions of various sizes in the United States. Tables in the report provide a wealth of data on the amount and number of loans made to small businesses year by year. The overall picture looks better than it did a year ago. Although lending to small businesses was still down, the decline was less than in 2010 and 2011, an indication of progress. You will be able to track the year-by-year changes in small business lending as the economy continues to improve. Readers can also learn more about what’s happening with the banks in their own states and localities. Detailed tab

Editor: Rebecca Krafft The May edition (Vol: 32 , No: 4) of the Small Business Advocate spotlights the chief counsel’s recent visits to Regions II and VII to meet with small businesses, learn about their operations, and hear their concerns firsthand. The Chief Counsel’s message recaps Dr. Sargeant’s testimony on Advocacy’s FY 2014 budget request. The issue also summarizes Advocacy comments on proposed FCC Aviation Communications Rules. And finally, it bids a fond farewell to Jody Wharton, director of information, on her retirement from federal service. Link to newsletter More information about the Office of Advocacy

WASHINGTON – Venture capital firms that invest in women-led businesses see positive returns, says a new report issued by the U.S. Small Business Administration (SBA) Office of Advocacy. The report, called Venture Capital, Social Capital, and the Funding of Women-led Businesses , focuses on women entrepreneurs’ access to equity funding and how social networks influence venture capital firms’ decisions to invest. In the report, the authors, Joy Godesiabois and Lawrence Plummer, find that social capital (“who you know and how you know them”) affects funding of women-led firms in different, sometimes conflicting ways. Venture capital firms tend to invest with familiar social networks that may not include women entrepreneurs. Yet this study shows that when venture capital firms do invest in women-led businesses, they generally improve their bottom line. And venture capital firms that regularly invest as a group in the same businesses tend to invest more often in businesses led by women

A dramatic drop in U.S. exports during the 2008-2009 financial crisis and Great Recession stimulated interest in investigating the relationship between trade finance and small business exports. This research examines how and why the tightening of credit affects small firm exporters. Should you need further information, please feel free to contact Dr. Jules Lichtenstein at (202) 205-6533 or advocacy@sba.gov.

Editor: Rebecca Krafft Vol: 32 , No: 2 The April edition of the Small Business Advocate spotlights the Office of Advocacy ’s innovation and entrepreneurship event which took place in March in Pittsburgh. The Chief Counsel’s message recaps the office’s legislative priorities for the 113th Congress. The issue also includes news from New Orleans/Region VI, plus economic news and a reminder about the U.S. Citizenship and Naturalization Service’s new Form I-9. In This Issue Advocacy Works with 113th Congress Pittsburgh Event on Innovation and Policy New Orleans Entrepreneur Week and Michoud Facility Small Business Recovery Businesses Required to Use New Form I-9 by May 2013

The February-March edition of the Small Business Advocate (vol. 32, no. 2 , edited by Rebecca Krafft) spotlights three new publications: the annual Report on the Regulatory Flexibility Act, which examines federal agencies’ progress in considering small businesses when making regulations; Small Business Profiles for the States and Territories, with extensive government data showing the status and importance of small business in each state; and the Small Business Economy, providing a broad statistical portrait of small business. The newsletter also reports on rules from the Environmental Protection Agency, Consumer Financial Protection Bureau, and Food and Drug Administration, plus the makeup of the Small Business Committees in the 113th Congress. In This Issue Message from the Chief Counsel Advocacy Report Shows Small Businesses at the Forefront of Economic Recovery Research Notes Small Business Profiles for the States and Territories Published Regulatory News Annual

The Office of Advocacy has released two items of lending research. The Small Business Quarterly Lending Bulletin for second quarter 2012 shows that U.S. economic activity increased in the first half of 2012 at a slower pace than at the end of 2011, and total lending to small firms inched downward. The decline was generated primarily by commercial real estate loans; in general, the climate was supportive of economic growth. A new report, How Did the Financial Crisis Affect Small Business Lending in the United States? , by Rebel Cole, uses data from numerous sources for the period 1994-2011 to analyze lending to U.S. firms. It finds that bank lending to businesses declined significantly after the crisis, and small firms were affected more than large ones. The study was written under contract to Advocacy. The author of the study, Rebel Cole, is a professor of finance in the Kellstadt College of Commerce at DePaul University in Chicago, Illinois. Please note that the report examines t

The October issue of The Small Business Advocate (vol. 31, no. 7) reports on the Office of Advocacy’s September conference in Seattle, “Small Business and Government: Maximizing Entrepreneurship, Driving Innovation.” In presentations, panels, and hands-on activities, representatives of government and research institutions came together with cutting-edge, visionary entrepreneurs, small business owners, and investors, to learn how government can most effectively promote innovation and businesses can benefit from a relationship with government. In This Issue Conference Sparks Dialog on Government and Innovation Keynote, Recognition, and Takeaways Panel 1: Small Business Innovators: The Public/Private Relationship Panel 2: Maximizing Entrepreneurship: Showcasing Innovation Accelerators Panel 3: Driving Innovation: Emerging Capital Strategies Getting It Right—How Can the Public Sector Help the Innovation Sector Thrive? 3 Delaware and Pennsylvania Get Regulatory Flexibility 2012

Startup Rates Where are the jobs created? New or existing businesses? What is the level of availability and coverage of health insurance in small firms? Do economic or industry factors affect business survival? What is the difference between self-employment nonemployer businesses and sole proprietors? Credit Card Financing and Small Business Read all about these topics HERE .

How much do you know about American small businesses? Did you know, for example, that there are 27.9 million small firms, and that about half of all new establishments survive at least five years? In keeping with its mission to examine the contributions of small businesses to the U.S. economy, the Office of Advocacy has expanded and redesigned its most requested publication, Frequently Asked Questions About Small Business (FAQ). The new edition includes twice as much data as previous versions, as well as charts and tables showing key small business statistics and trends. “Advocacy’s team of economists is constantly on the lookout for new and robust sources of statistics, while continuing to follow the trends evident in the government’s ongoing databases,” said Chief Counsel for Advocacy Winslow Sargeant. “We’re pleased to provide timely and actionable data on the key questions asked by small business people, policymakers, and the media.” Many key small business statistics remain vir

This report is an update to Advocacy’s annual publication that provides information on the lending activities of depository institutions in the United States. The U.S. economy continued to recover and improved moderately during the second half of 2011 as some economic indicators turned upward. Financial market conditions were to some extent supportive of economic growth, but the credit supply for smaller firms remained tighter than for larger firms relative to historic norms.

Volume 30, Number 6 [PDF} The July issue of The Small Business Advocate features Advocacy’s regional roundtables on women’s business ownership, the chief counsel’s listening tour of West Coast businesses plus regulatory updates and other regional news In This Issue Message from the Chief Counsel • West Coast Businesses Tell Washington: Let Us Innovate! Regional Update • Regional Roundtables Explore Women’s Business Ownership • Alabama and Florida Coasts Bounce Back from Oil Spill Research Notes • Request for New Research Forthcoming Regulatory News • Gainful Employment Rule Finalized • Ongoing SBREFA Panels

From the Office of Advocacy, Small Business Administration States looking to grow their economies must ensure that sufficient human capital exists to raise productivity, output, and incomes throughout the state. Some of these gains will stem from the creation of new enterprises, which previous research links to higher living standards. Each state experiences ebbs and flows of people moving in or out, but some states experience “brain drain” more than others. This paper explores the mobility of labor from one state to another, using data from the Baccalaureate and Beyond longitudinal survey and examining student outcomes as wage and salary and self-employed workers 10 years after graduation. A full copy of this report is available here , and the research summary can be found here . Should you need further information, please feel free to contact Chad Moutray at (202) 205-6533 or advocacy@sba.gov.

Here's a section of the business cycle that may not be well understood. The study "Entrepreneurship and the Barrier to Exit: How Does an Entrepreneur-Friendly Bankruptcy Law Affect Entrepreneurship Development at a Societal Level?" received the SBA's Office of Advocacy Best Paper Award at the 2008 Babson College Entrepreneurship Research Conference. "The authors examine the relationship between bankruptcy law and the value-creating activities associated with risk-taking behaviors by entrepreneurial firms. They argue that an entrepreneur-friendly bankruptcy law may paradoxically increase the number of corporate bankruptcies, which may be indicative of a vibrant entrepreneurial economy." A copy of the report is located here and the research summary can be found here . Should you need further information, please feel free to contact Jules Lichtenstein at (202) 205-6533 or advocacy@sba.gov.