Presentation to CSU Chancellor’s Office March 15, 2010

The California SBDC Program,An Economic Development Engine within CSU

Impetus for this Meeting

Growing number of SBDCs hosted by individual CSU campuses

Increases in Federal funding

Decreases in State funding

SBDCs in the place to make strategic investments into statewide partnerships

Meeting Objectives

Provide an overview of CA SBDC Program, including current CSU/SBDC relationships

Present the concept and benefits of a statewide SBDC/CSU partnership

Identify appropriate next steps

What is the SBDC?

Small Business Development Center

Free consulting and training to emerging and existing small businesses.

The primary business education program funded by the Small Business Administration

In California, assistance to over 57,000 business owners and entrepreneurs annually.

CA SBDC Structure 6 Lead Centers

Including Humboldt State, Chico State, Cal State Fullerton

30 Service Centers Including

CSU Monterey Bay, CSU Bakersfield, Fresno State

Services in over 100 CA Communities

Statewide Leadership Council, Rotating Chair

Primary Services

In-depth business consulting/coaching Non-credit educational workshops Major training events Business Topics

Commercialization and intellectual property Equity finance and loan packaging Writing/reviewing business plans International sourcing/sales Technology Adoption Green and energy efficient business practices Government Procurement

Primary Clients

Business owners with 1-200 employees Any stage of business: startup to succession

planning Wide variety of industries Over 55% ethnic minorities Over 12% veterans / service-disabled veterans Approx 40% (guess) have not completed their

4-year undergraduate degree

Economic Impact of the CA SBDC

2009 Statewide Results: $118 million in incremental sales 2,756 new jobs 2,398 retained jobs $125 million in equity capital infusion 639 new enterprises started

Return on Investment: $1.77 in annual tax revenue for every $1.00 in program

funding $4.10 in capital raised from external sources for every $1.00

in program funding

CA SBDC Funding

Total Cash Funding: $21 million Federal funding: $12 million Cash Match funding: $ 9 million

In-Kind Match: $ 3 million

Annual Budget: $24 million

Current opportunity: As much as $5 million in unmatched Federal funding

SBDC Benefits to an Individual Campus Many opportunities for student internships

Class projects, guest lecturers

Faculty research projects, curriculum development

Online and extended education opportunities

Connection to local business community

Commercialization assistance

Benefits to an Individual Campus Increased competitiveness for economic

development grants; access to SBDCs-only grants

Student business plan competitions

New donors and corporate partners

Broad community exposure

Continual “good news” for Administration

Benefits of a CSU/SBDC Partnership

Preference for local SBDC hosting as territories come open (see benefits to a local campus)

Exposure in variety of high-profile events, speaking opportunities; platform and vehicle to enhance CSU’s connections to California economic development activities

Sharing in the concrete economic impact “good news” produced by the SBDC– helpful for Administration, in assorted grant writing endeavors, etc.

Benefits of a CSU/SBDC Partnership (continued)

Ability to leverage the SBDC infrastructure and outreach engine: easy transfer of information to/from 100+ communities and a database of several hundred thousand small businesses

Inclusion of CSU in other SBDC partnerships California Innovation-Hubs Efficient Building Systems Regional Innovation Cluster

Initiative

CSU-Exclusive SBDC Grants to existing CSU business development programs

Benefits of a CSU/SBDC Partnership (continued)

Encourage collaboration across campuses between business and economic development focused programs, institutes and centers

Partner with the CSU on industry-specific programs and projects: provide a non-credit element in coordination with for-credit workforce development

Increase federal and state economic development focused funding flowing to the CSU

What SBDC is asking for…

A signed MOU that speaks to the statewide collaboration we would be engaging in.

A point of contact for the SBDC at the Chancellor’s Office who could help make connections at local campuses.

Quarterly meetings with individuals from the Chancellor’s Office to highlight accomplishments and discuss additional opportunities.

An ability to state that the CA SBDC and the CSU Chancellor’s Office are engaged in a partnership.

Questions?