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Home › News & Events › Small Business Development Center Makes Substantial Contribution to Kentucky’s Economy
Small Business Development Center Makes Substantial Contribution to Kentucky’s Economy
LEXINGTON, KY (Aug. 26, 2009) − The Kentucky Small Business Development Center (KSBDC), part of the University of Kentucky's Office for Commercialization & Economic Development, significantly contributes to Kentucky's economy and provides services beneficial to small businesses, according to an independent study conducted by James Chrisman, professor of management at Mississippi State University. The findings include:
- KSBDC clients generated $7.2 million in federal and state tax revenues
- KSBDC clients added $88.7 million in incremental sales to Kentucky's economy
- In total, clients estimated the KSBDC was responsible for retaining $64.7 million in revenues and saving 1,072 jobs
- $10.86 was returned for every dollar invested in the KSBDC counseling services
- 91% of the responding established business clients would recommend the SBDC's services
"From a public policy standpoint, the implication of this research is that the SBDC makes a contribution to the economies of Kentucky and U.S.," said Chrisman. "Because the SBDC provides assistance to small business people and would-be entrepreneurs who often cannot afford the luxury and expense of a private consultant, its contributions become even more important."
The study consisted of a questionnaire that was sent to a random sample of KSBDC clients who received five or more hours of consulting in 2007. Clients indicated whether they received financing and provided information about their changes in sales and number of employees since utilizing the KSBDC.
The economic impact of counseling activities was analyzed by comparing clients' sales and employment changes between 2007 and 2008 with the average changes for all Kentucky businesses during this time period. The growth in sales and employment in excess of statewide averages was used to calculate the incremental federal and state tax revenues generated the year after counseling assistance was provided.
About the Kentucky Smell Business Development Center
The KSBDC is a network of 17 service centers located throughout the Commonwealth that help start-up and existing businesses succeed by offering high quality, in-depth and hands-on services. These services include: no-cost confidential business consultations, affordable business workshops and seminars, research to make informed business decisions and valuable resources. For more information about the Kentucky Small Business Development Center visit www.ksbdc.org.