Small Business Center Produces Large Economic Impact
September 1st, 2015 by Gwen Green
By providing small business owners with the tools and support they need to succeed, the Arkansas Small Business and Technology Development Center is driving economic development.
Businesses assisted by the ASBTDC network increased sales 17.8 percent more than the average Arkansas business, generated $16.2 million in tax revenues, and produced jobs at a brisk rate, an independent study found. According to the recently released 2013-2014 economic impact study, as a direct result of assistance from the Arkansas SBTDC, client businesses created 2,144 jobs, increasing employment 31.9 percent more than other businesses. The study also found that businesses assisted by the center
- Retained 725 existing jobs
- Increased sales by more than $199.9 million
- Increased sales 20.5 percent
- Generated $11 million in state tax revenues and $5.2 million in federal tax revenues
- Raised $78.6 million in capital financing
“Small businesses generate jobs and tax revenues that are critical to communities across Arkansas,” said Janet Roderick, state director. “As this study shows, businesses assisted by ASBTDC create more jobs and increase sales more than the average business, which is good news for our small business clients as well as the state and local economies.” For every dollar invested in the ASBTDC program, clients generated a return on investment (ROI) of $6.80, the study found.
Dr. James J. Chrisman, an independent consultant, conducted the annual study of ASBTDC clients’ economic impact. The study analyzed sales and employment changes, financing obtained, and tax revenues generated by a statistical sampling of established and pre-venture clients. Chrisman compared clients’ employment and sales data from the year they received assistance to the following year with the average changes for all Arkansas businesses during the same time period.
Unique among the state’s economic development organizations, ASBTDC services are available to businesses from any county in Arkansas, in any industry sector, at any stage of development. ASBTDC is a university-based program funded by University of Arkansas at Little Rock and six other state universities in partnership with the U.S. Small Business Administration.
Headquartered at the UALR College of Business, ASBTDC is marking its 35th year of service to Arkansas entrepreneurs and small businesses in 2015.