Goldman Sachs’ “10,000 Small Businesses” Program Spurs Economic Growth
Stacy M. Brown | NNPA News Wire | 7/11/2016, 11:47 a.m.
More than 1,800 businesses across the United States were surveyed for the report. Most were “10,000 Small Businesses” participants, who reported that obtaining capital remains a big hurdle.
The study also found that small businesses are four times more likely to go to a bank for capital needs. Looking across all sources of capital, survey respondents apply for a median amount of $100,000, but receive only 40 percent of what they seek. Business owners say that they need more flexible loan terms.
Further, business owners find regulation both difficult and time-consuming. On average, four hours per week is spent dealing with government regulations and tax compliance, which totals over 200 hours per year.
With the launch of ”10,000 Small Businesses” at Babson College, which is the program's national cohort, business owners from all 50 states now have the opportunity to participate, Moin said.
This model of the program is delivered through a blend of online and in-person sessions and is intended for business owners located beyond the reasonable driving distance of a locally delivered program.
“The program helps to address the challenges faced by all small business owners, and our goal and the goal of all of our partners is to make them aware this resource exists and the impact it can have on their business,” Moin said. “Many small business owners say they don't have the time to dedicate to a program such as this, but we try to convince them why the return on investment is important, if they want their business to grow. It's important to step away from the business in order to work on the business.”
To date, over 6,500 small businesses have been served across 31 sites. More than 99 percent of participants graduate and more than half of the businesses reported increased revenues and expanded work forces within 18 months of graduation.
Ideal candidates are small business owners with more than $150,000 in revenue and have been in operation for at least two years. Qualifying businesses also must demonstrate that they employ four or more workers and have a scalable business model and a commitment to grow and hire locally.
The initiative has a wealth of success stories with Moin pointing out how one of the small business owners who graduated from the program saw her revenue increase by 658 percent, enabling her business to add 110 new jobs.
Another small business owner who recently graduated from the program saw a 120 percent increase in revenue, helping to add 17 new jobs.
“We're getting the results we want,” Moin said. “On average, when our alumni graduate, in six months, approximately 69 percent of them report growing revenue and 48 percent of them report that they've added jobs.”
For more information or to apply for the program, visit www.10KSBApply.com.