2015 ANNUAL REPORT JANUARY 1, 2015 - DECEMBER 31, 2015
The Wharton School University of Pennsylvania 3819-33 Chestnut Street, Suite 325, Philadelphia, PA 19104-3238 P: (215) 898-1219 F: (215) 573-2135 info@pasbdc.org www.pasbdc.org Christian Conroy State Director
2015 ANNUAL REPORT JANUARY 1, 2015 – DECEMBER 31, 2015
Submitted by the University of Pennsylvania under Cooperative Agreement SBAHQ-15-B-0053
3/30/2016
TABLE OF CONTENTS
INTRODUCTION .......................................................................................................................... 1 MISSION ........................................................................................................................................ 1 PENNSYLVANIA SBDC LOCATIONS....................................................................................... 2 IMPACT ......................................................................................................................................... 2 SUMMARY .................................................................................................................................... 3 100 ADVOCACY ........................................................................................................................... 5 200 CAPITAL FORMATION ........................................................................................................ 7 300 INNOVATION & TECHNOLOGY TRANSFER ................................................................ 10 400 INTERNATIONAL TRADE ................................................................................................. 13 500 MINORITY BUSINESS DEVELOPMENT ......................................................................... 18 600 RESOURCE DEVELOPMENT ............................................................................................ 19 700 PROCUREMENT .................................................................................................................. 20 800 SPECIAL FOCUS ................................................................................................................. 22 900 ECONOMIC DEVELOPMENT ............................................................................................ 22 1000 RESEARCH......................................................................................................................... 26 1100 OTHER ACTIVITY ............................................................................................................ 27 Network-wide Awards & Achievements .................................................................................. 27 1200 SUCCESS STORIES ........................................................................................................... 29 1300 TRAVEL .............................................................................................................................. 30 1400 PROBLEMS ........................................................................................................................ 30 1500 FINANCE ............................................................................................................................ 30 1600 WOMEN’S BUSINESS DEVELOPMENT ........................................................................ 30 1700 ECONOMIC IMPACT ........................................................................................................ 33 1800 VETERAN BUSINESS DEVELOPMENT......................................................................... 33 1900 MANUFACTURING .......................................................................................................... 34 2000 ONLINE ACTIVITIES ........................................................................................................ 35 2100 ENVIRONMENTAL MANAGEMENT ASSISTANCE PROGRAM (EMAP) ................ 36 CONCLUSION ............................................................................................................................. 37
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INTRODUCTION Established in 1980 with a mission to grow the economy of Pennsylvania through its entrepreneurs, the Pennsylvania SBDC’s 18 university- and college-based Centers provide timely consulting, education, and information to new and existing business owners. The SBDC focuses on three core areas: no-fee confidential business consulting, educational programming, and timely, useful information. This report reviews the economic environment and SBA-funded activities of the network to support small businesses from January 1, 2015 to December 31, 2015. The SBDC utilizes a staff of experienced professionals to serve their customers in both traditional business assistance as well as offering specialized consulting. In 2015, the SBDC delivered 84,542 hours of no-fee management consulting. Consulting is confidential and provided at no charge by a staff of skilled professionals that emphasize education and guidance in finding practical solutions to business problems. Educational workshops and conferences aid entrepreneurs in articulating goals, evaluating and improving business ideas, researching and attracting needed advisors and resources, and writing business plans to build their businesses. During this reporting period, 8,401 individuals and firms benefited directly from 555 educational programs. The Pennsylvania SBDC network also responded to numerous inquiries, circulated printed materials, launched new Center websites, and continued to provide pertinent information to partners to address small business concerns. Impact resulting from these activities is evidenced by the success stories in Appendix B and described in detail throughout this report. MISSION The mission of the network of Pennsylvania Small Business Development Centers is to provide entrepreneurs and small business owners with the knowledge needed to make smart decisions and prosper.
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PENNSYLVANIA SBDC LOCATIONS
1. Bucknell University SBDC 2. Clarion University SBDC 3. Duquesne University SBDC 4. Gannon University SBDC 5. Indiana Univ. of Pennsylvania SBDC 6. Kutztown University SBDC 7. Lehigh University SBDC
8. Lock Haven University SBDC 9. Penn State University SBDC 10. Saint Francis University SBDC 11. Saint Vincent College SBDC 12. Shippensburg University SBDC 13. Temple University SBDC 14. University of Pittsburgh SBDC
15. University of Scranton SBDC 16. The Wharton School, University of Pennsylvania SBDC 17. Widener University SBDC 18. Wilkes University SBDC
IMPACT Since its inception, the Pennsylvania SBDC has provided over 3 million hours of consulting to more than 260,000 entrepreneurs and offered over 18,000 courses, workshops and seminars attended by 414,000 Pennsylvanians. SBDC services have helped small firms throughout the Commonwealth raise more than $3 billion in start-up and expansion capital, start more than 34,000 new companies, and sell $13 billion worth of Pennsylvania products and services globally. As a result, SBDC clients have created over 157,000 new jobs and generated more than $796 million in new state income tax revenue. In 2015, the Pennsylvania SBDC network reported the following outcomes: • • • •
Bought/Started a Business Jobs Created Jobs Retained Increased Sales (domestic)
588 2,284 2,309 $109,525,380
• • •
SBA Loans (37) Non-SBA Loans (385) Equity Capital (354)
$20,497,532 $89,963,721 $27,881,419
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SUMMARY
Consulting In 2015, the Pennsylvania SBDC served 6,805 entrepreneurs and small business owners through a total of 84,542 consulting hours. A detailed breakdown may be found in the deliverables section following this narrative and is described throughout this report. Consulting Hours by Topic Business Plan Start-Up Assistance Marketing/Sales Managing a Business Financing/Capital International Trade Buy/Sell Business Engineering R&D Business Accounting/Budget Human Resources/Employee Mgt. Legal Issues Technology/Computers Social Media Cash Flow Management Exporting Customer Relations eCommerce 0
2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Consulting Hours
Education The Pennsylvania SBDC network collectively educated 8,401 individuals in 555 seminars and workshops in 2015, which included topics such as “Business Transition Planning” and “Globalizing Your Digital Marketing Strategy.” A detailed breakdown may be found in the deliverables section and is described throughout this report.
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Demographics Individuals assisted by the Pennsylvania SBDC in 2015 represented Pennsylvania’s diverse populace. 61 percent of clients assisted were woman- and jointly-owned firms and 18 percent identified as minorities. Clients also represent a variety of industries as shown.
Business Ownership Both 39%
No Response 6%
Hispanic 5%
Female 23%
No Response 14%
Client Ethnicity
Non-Hispanic 81%
Male 32%
Construction 3%
Industry Sector
No Response 20%
Wholesale 3%
Service 44%
Not in Business / Other 6%
Manufacturing 12%
Veteran Clients No Response 39%
ServiceDisabled Veterans 1%
Retail 12%
Asian 3%
Veterans 4%
Native American <1%
Native Hawaiian <1% No Response 10%
Client Racial Diversity
African American 14%
Non-Veteran 56%
White 72%
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100 ADVOCACY The SBDC continues to meet with key program partners on a regular basis to keep a pulse on regional activities and share impacts of the program. For instance: •
In March, Pennsylvania SBDC state director Christian Conroy met with Senator Pat Toomey to present products from five Pennsylvania confectioners who utilized SBDC services to grow their businesses. Senator Toomey now occupies the “Candy Desk,” which he stocks with sweet treats from around the Commonwealth to share with colleagues in the Senate Chamber. It will now include candy from Bella Faccias and Nibbles and Bits of Scranton; Country Confections Chocolates of Canonsburg; Lang’s Chocolates of Williamsport; and Lux Artisan Chocolates of Pittsburgh. “These five companies represent some of the thousands of manufacturers that the SBDC has assisted over the years to start and grow,” said Pennsylvania SBDC State Director Christian Conroy. “We are proud that Senator Toomey will be highlighting these small Pennsylvania businesses in his Candy Desk,” he added. The Senate Candy Desk began in 1965 when Senator George Murphy of California originated the practice of keeping a supply of candy in his desk for the enjoyment of fellow senators. In every Congress since that time a candy desk has been located in the back row of the Republican side, on the aisle and adjacent to the Chamber's most heavily used entrance. Senator Toomey has occupied the desk since the Senate began session in January.
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In celebration of National Small Business Week May 4-8, the Bucknell University SBDC presented a series of programs to inspire and assist entrepreneurs and small business owners. Events included a First Step: Pre-business Workshop offered in partnership with State Rep. Lynda Schlegel Culver, and a seminar on Patents and Intellectual Property for Small Business in partnership with U.S. Congressman Tom Marino.
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U.S. Congressman Charlie Dent once again reached out to the Lehigh University SBDC to host a day-long event honoring Small Business Week. The SBDC worked closely with the Congressman’s office to develop the topics for the event which was held on May 26 at Northampton Community College’s Fowler Center in South Bethlehem. Representative Dent was on hand at the beginning of the program to welcome the attendees and entertain a question and answer session. The SBDC then took the reins for the programming, starting with the successful “What Business Should I Start” session that helps entrepreneurs explore potential business concepts that will both meet their financial goals and build upon their skills and personal interests. From start-up, the program moved on to “How Do I Fund It?,” addressing the basics of preparing oneself for seeking and applying for financing for a new business venture. Attendees were then able to discover the tools for global competitiveness at the “Growing Your International Business” session in which the basic terms and steps to entering the world of exporting product and services were introduced. The concluding session, “Set Up and Sell to the Government” introduced the fundamentals of selling to the government, including how to become
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a federal contractor and marketing techniques to open the door to the government as a new target market. The day was a rousing success, with a total of 78 people attending the day’s events. •
Keeping up with modern technology and social media can be overwhelming for small business owners. On November 6, Congressman Tom Marino teamed up with The University of Scranton SBDC to help the small business community by bringing a panel of experts to present “Tips from the Pros: Using Technology and Online Tools to Boost Your Small Business.” 68 people attended the program, with presenters representing Microsoft, Paypal, Google, and The University of Scranton SBDC who discussed Facebook, Yelp, and Twitter. They presented the latest updates to products and services and offered valuable tips for attendees to take back to their small businesses. Small business attendees also had the chance to network with each other and with local organizations to learn about small business resources available to help improve their businesses and grow their customer base. Partners in attendance were: The Greater Scranton Chamber of Commerce, MetroAction, Ben Franklin Technology Partners of Northeastern Pennsylvania, Northeastern Pennsylvania Alliance, NEPIRC, PennTAP, SCORE, SBA, and the Wyoming County Chamber of Commerce. Congressman Marino concluded the program by addressing the attendees and fielding questions in an effort to better serve his small business constituents.
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No longer just a great tool for marketing, social media has become a platform for customer questions, comments, and complaints. How businesses respond is critical. The University of Scranton SBDC teamed up with State Representative Marty Flynn and The Elm Street Project of United Neighborhood Centers to offer the seminar “Using Social Media for Customer Service” on June 24. Fourteen attendees learned how to develop more effective social media strategies for their businesses.
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The Temple University SBDC partnered with legislators on outreach activities to the small business community. For instance, State Representative Cherrill Parker contacted the SBDC to participate in a series of town hall meetings for residents and business owners in her district. The purpose of the town hall meetings was to provide information about services provided by local, state and federal agencies. In addition, State Representative Stephens contacted the SBDC to help revive relationships with existing businesses in his district in Montgomery County. The representative’s office had established a business advisory council that had been inactive and asked us for suggestions on a business topic that will attract businesses. The SBDC decided to do an overview of our services which would be more appealing to any business owner. The event had a good turnout and was held at the Horsham Township Community Center which was a more central location in his district.
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Paul’s Pumpkin Patch hosted a Legislative Day event at his business in Frogtown, Pennsylvania. During the event, Paul Stahlman talked about the history of his farm and how he started his business with help from various agencies. A Clarion University SBDC business consultant was recognized for being a key person in providing start-up assistance. Paul also thanked various other people that were critical in the start-up of his business. Other speakers at the event included Dave Yeaney; Yeaney’s Maple Syrup, Steve Reichard; 5 R Cattle Company, Larry Bendal; Bendal’s Berry Patch, Andrea Estadt; Clarion River Brewing and a representative from the Farm Service Agency. Legislators at the event were Donna Oberlander, Scott Hutchinson, Joe Fadden, Legislative Aide for Glenn Thompson, and the Clarion County Commissioners.
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On July 17, business owners, legislators, local leaders, and Bucknell University celebrated entrepreneurs and entrepreneurial leaders as the SBDC hosted the “Celebration of Small Business,” its annual awards program. Guests such as Representatives Fred Keller, Lynda Schegel Culver, and Kurt Masser gathered to see Bucknell SBDC’s Celebration of Small Businesses in July Sheri Collins, Deputy Secretary, Office of Technology and Innovation, PA’s Department of Community & Economic Development; Bruce Smith, CEO of the Central Pennsylvania Chamber of Commerce; and Bucknell University's President, John Bravman share remarks and recognize the achievements of small business owners and community leaders.
200 CAPITAL FORMATION The Pennsylvania SBDC is a trusted source for business owners to understand their options for acquiring funding, and to receive training on how to best prepare a presentation to request funding for a business start, acquisition, or expansion. Online lending options, including crowdfunding and peer-to-peer lending are reviewed with business owners in search of financing alternatives. The recent popularity of online lending platforms has sparked an increase in interest in this evolving market. Education is often required to help businesses better understand these options, the risks, and how to be in the best position to obtain funding for a project. In order to run a successful program, SBDC consultants maintain strong relationships with local area lenders and up-to-date knowledge of local, state, and federal loan programs, as well as online lending alternatives. Local lenders are available as a resource to assist with questions regarding commercial and SBA loans. Additionally, relationships with the administrators of community loan programs, as well as state and federal programs are maintained, and play an important part in keeping current on available financing alternatives as well as incentive programs. Online lending platforms are consistently being reviewed as new options emerge. SBDC Representatives at the SBA Meet the
Examples of client success stories relating to capital Lenders event in King of Prussia formation can be found in Appendix B. A total of 37 SBAguaranteed loans were approved, totaling $20,497,532. As for non-SBA loans, 385 were approved for a total of $89,963,721.
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Examples of other activities include: •
In April, the Kutztown University SBDC supported an SBA Meet the Lenders event in King of Prussia. The Meet the Lenders is an event that focuses on assisting small businesses—existing and start-up, alike— to identify financing solutions. Area SBDCs and SCORE chapters attended the event. Two SBDC consultants staffed the event and one consultant served as a member of the planning committee and responsible for developing, updating, and maintaining the event landing page and registrations.
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The Lock Haven University SBDC held its Lender’s Roundtable on June 25 to discuss current economic issues with 31 participants in attendance, which included local University officials, federal legislative staff, and lenders from several local banks, the Small Business Administration, SEDA-COG, the Susquehanna Greenway Partnership and the Downtown Lock Haven/Main Street Program. Resources and organizations that were featured during the event included presentations from the SEDA-COG Finance Department, the executive director of the Susquehanna Greenway Partnership, and a featured update to lenders from the Director of the Eastern Pennsylvania District Office of the Small Business Administration regarding SBA loan activity in the region.
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On April 24, the Penn State SBDC hosted a Bankers’ Roundtable at the State College Borough Municipal Building. There were sixteen attendees, which included lenders, legislators, and other economic development partners. Speakers included representatives from SEDACOG Local Development District, the U.S. Small Business Administration, the TechCelerator@State College, and the Centre County IDC. The roundtable concluded with a tour of the New Leaf Initiative, a coworking space for Penn State students and community members.
Mark Protch, SBA Lender Relations Specialist speaking at the Bankers’ Roundtable at Penn State SBDC.
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The Temple University SBDC partnered with various lending institutions and participated in events designed to educate business owners about access to capital in the Philadelphia area. One such event was the annual Meet the Lenders and Counselors organized by the Small Business Administration Southeastern Pennsylvania district office. Several banks, certified development companies, micro-lenders and other technical service providers participated in the lending forum for entrepreneurs. The SBDC associate director and a business consultant represented the SBDC at the event where they disseminated information about center services. The event was held in King of Prussia and was very well attended. Other relationships developed with lending institutions included the following: Radius Bank, East River Bank, Cape Bank, MarcFunding, Finanta, Bucks County Industrial Development Authority, Bucks County Planning Commission and Montgomery County Development Corporation.
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The Temple University SBDC also participated in a similar “Meet the Lenders” Borrower Matchmaking event which was held in Center City Philadelphia. The event was hosted by SCORE Philadelphia in collaboration with the U.S. Small Business Administration’s Eastern Pennsylvania District. There were many other resource partners in attendance. The event was designed to connect entrepreneurs and small business owners directly with resource partners and lenders in a “one-stop, speed dating” format to spark lending relationships. The original idea was designed to increase outreach to the underserved small business communities in the Greater Philadelphia Metro Area. During the event entrepreneurs delivered a 15-minute pitch about their JANUARY – DECEMBER 2015 | Annual Report | Page 8
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business with a variety of lenders in one-on-one meetings. The SBDC staff at the event worked with business owners to refine their pitch and provided advice on how to improve their business plan. Overall, it was a successful outreach event designed to educate entrepreneurs about financing. •
The University of Pittsburgh SBDC partnered with Clearview Federal Credit Union to hold a program on October 7, titled “Financial Success for Boomer Business Owners.” A growing number of people age 50-plus are turning interests, hobbies or skills into a small business. Whether aspiring business owners are interested in starting a small business right away, or are intending to wait until after retirement, now is the time to explore the possibilities.
•
This year marked the 20th anniversary of Saint Vincent College’s annual SBA Lenders’ Roundtable. The event held on July 30, once again had an excellent turn out with 59 in attendance from the local banking community. Each year this event is held during the summer months and coincides with the Pittsburgh Steelers Training Camp. The Steelers make Saint Vincent College campus their home for approximately five weeks and hold open practice sessions for the public. The SBDC executive director provided the opening remarks. He was followed up by the dean of the Saint Vincent College Alex G. McKenna School, Gary Quinlivan. Regina Abel, represented the Small Business Administration-Pittsburgh District Office. The featured speaker for the event was Alby Oxenreiter, Sports Anchor, WPXI-Channel 11 News. Alby’s remarks recognized the 50 year anniversary of Steelers Training Camp at Saint Vincent College.
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On November 3rd the Shippensburg University SBDC did a presentation to the business lenders of M&T Bank from York and Adams counties. Though these banking presentations are a regular part of the SBDC outreach efforts to the lending community, this one was particularly appreciated due to the way it came about. Instead of the SBDC being the initiator of the meeting, the bank reached out to the SBDC due to several business customers that had come through the bank with business plans created with SBDC assistance. The bank was very impressed with the quality of the plans and the detailed and data-based financial projections and wanted to make sure all business lenders were aware of the services the SBDC can provide to their customers.
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Starting last year, the Pennsylvania SBDC Lead Office established a $2 million club to recognize staff who have helped clients obtain at least $2 million in funding. In 2014 there were 21 consultants on this list, and in 2015 the group grew to include 30 members of the $2 million dollar club. In addition, 14 high-achieving consultants made this list for both years, which is quite impressive. These consultants were highlighted at the network’s annual Small Business Growth Forum and featured in the event’s program book.
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The Clarion University SBDC continues to build its “bank outreach” efforts by regularly meeting with bank managers and commercial bank lenders to keep them updated on the services of the SBDC. In 2015 the SBDC networked with bank representatives at numerous community and business events. One-on-one meetings were held with the following banks: PNC Bank, First Commonwealth Bank, Farmers National Bank, S & T Bank, Northwest Savings Bank, and First United National Bank. The Clarion University SBDC has established new partnerships with Farmers National Bank and Northwest Savings Bank to provide support for entrepreneurial training and student internships.
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300 INNOVATION & TECHNOLOGY TRANSFER The Pennsylvania SBDC continued to offer confidential, no-fee technology services which are: • A fully integrated statewide service designated as a Core Service in the Strategic Plan and Key Markets and Services • One of 12 programs with “T” accreditation, receiving supplemental technology accreditation in 2006, 2011, and 2015. Services provided by the Pennsylvania SBDC Technology Team and resource partners include: • Early stage product feasibility – market research, financial analysis, assessing market potential, commercialization potential • Access to resources – tools, partnerships, regional expertise & referrals • Access to financing – identification of financing sources, financial analysis, R&D grant identification and proposal reviews, pitch development & preparation for equity financing, gateway to Innovation Partnership Pennsylvania SBDC continues to be a member of Innovation Partnership, a consortium of economic development and business assistance organizations located throughout the Commonwealth of Pennsylvania. The goal of the organization is to help early-stage technology companies in Pennsylvania secure federal funding opportunities. Pre-proposal reviews and micro-grants and vouchers to assist with proposal preparation are provided to early stage technology companies. In 2015, the team had a meeting in Harrisburg in July to review all of the Innovation Partnership services and training on the SBIR/STTR program. Successful Technology Consulting The goal of the Pennsylvania SBDC technology services is to connect, enhance and support the technology and innovation ecosystems in Pennsylvania to help bridge the gap between technology development and commercialization. In the last year, technology consultants provided 661 hours of consulting to 125 small firms looking to advance, protect, and commercialize their research, innovations and new technology. Technology Training & Professional Development The SBDC Technology Team had meetings in March, April, and November 2015. The team worked together to develop the 2014-2017 Technology Plan and Core Competencies in preparation for the 2015 accreditation review which included technology re-accreditation. Highlights of the technology program were presented to the directors at a statewide meeting in March 2015. The Pennsylvania SBDC network received full technology accreditation as a result of the team’s services during its accreditation review in May 2015. Examples of Center-specific activities include: •
Clarion University was awarded with a Pennsylvania Department of Community and Economic Development (DCED), Developed in Pennsylvania and Discovered in Pennsylvania grant. The grant titled, the Northwestern Pennsylvania Innovation Support Program (NWISP), provided comprehensive support and small grants (up to $15,000) to innovative individuals and small businesses in Northwest/North Central Pennsylvania. This support included access to wet lab and clean room space and university instruments at Clarion University’s Innovation Laboratory, small business consulting services provided by Clarion University Small Business Development Center (SBDC), applied research support from Clarion’s Center for Applied Research & Intellectual Property Development (CARIPD), long-term business strategies through the Benjamin Franklin JANUARY – DECEMBER 2015 | Annual Report | Page 10
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Technology Partnership (BFTP) and access to the inventor’s local economic development council. The Innovation Laboratory is the most high-tech laboratory in northwest Pennsylvania that delivers facilities for prototype development and analysis, biotechnology, pharmaceuticals, medical devices, sterile packaging, semiconductors, and nanotechnology. As of June 30, 2015, the NWISP grant was fully funded and during the last six months of the grant, the Clarion University SBDC coordinated a product development and commercialization forum and assisted with the final funding round of the small innovative grants. The forum discussed a variety of issues surrounding product development with speakers from Ben Franklin Technology Partners, the SBDC and Clarion University CARIPD. Presentations covered topics from business and market research, applied research support and product development to feasibility analysis and intellectual property commercialization. The forum also included speakers from a start-up company, a patent attorney, and two business consultants that spoke on market research and userfirst product design. The NWISP awarded six entrepreneurs a total of $75,000, complimentary access to Clarion University's Innovation Pictured (L to R) Alex McConnell, Steve Wilson, Ronald Laboratories and professional Ehrhart, Jason Strohm and his daughters Maia and Athia, and C. Scott Gilbert. consulting support to support their innovative product development. •
The Duquesne University SBDC provided technology services to approximately nine businesses during the last half of 2015 for a total of 20 companies for the calendar year for a total of 186 counseling hours. Many of these clients were referred to the SBDC by the Technology Transfer office at Carnegie Mellon University and Innovation Works. Most specifically, these clients were interested in submitting proposals for the Small Business Innovation Research-Small Business Technology Transfer Research Programs (SBIR-STTR). Additionally, many were seeking support and grant funding from Pennsylvania Innovation Partnership.
•
In February, a business consultant from Duquesne University SBDC along with a representative from the University of Pittsburgh Innovation Center, were invited to speak at the “SBIR 101 Program” sponsored by Project Olympus and the Center for Innovation and Entrepreneurship at Carnegie Mellon University. The SBDC consultant presented on Innovation Partnership and how they assist Pennsylvania companies. In April, the SBDC consultant attended the Joint Update Meeting of the Technology Commercialization Consortium. The Consortium organized presentations on technology transfer opportunities from Duquesne University, the University of Pittsburgh, and Carnegie Mellon University. These technologies have received funding from Innovation Works. Two Duquesne University professors, who are also SBDC clients, presented.
•
Gannon University SBDC is partnering with Gannon’s College of Engineering and Business and Erie Technology Incubator (ETI) to present Technology Business Accelerator sessions focused on technology-enabled concepts or businesses. In 2015, four Accelerator sessions were held assisting 45 entrepreneurs with launching their idea or concept. The eight week sessions provide information on business planning, intellectual property, funding, cash flow and operations. The last session of the program is Pitch Night which provides an opportunity for the attendees to
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present their idea/concept to a panel of five judges resulting in one winning $10,000, tenancy at ETI and assistance from an IP attorney. •
In 2015, Penn State was awarded funding from the U.S. Economic Development Association (EDA) to create a long-term, sustainable innovation ecosystem for tech entrepreneurs. The backbone of this ecosystem is the TechCelerator, a unique collaboration between technology and business development partners in central Pennsylvania that includes comprehensive, systematic outreach and awareness building, education, mentoring, facilities, and financing. The primary private-public partners include: Penn State (lead), Ben Franklin Technology Partners (coapplicant), Penn State Small Business Development Center (SBDC) (co-applicant), Chamber of Business and Industry of Centre County, Pennsylvania Technical Assistance Program (PennTAP), and Innovation Park at Penn State, as well as many other private sector and public supporting partners. This project spans six rural and distressed Pennsylvania counties, but has a larger potential impact when evaluating the supply chain as well as the replicability of this project.
•
In 2015, Wilkes University unveiled its Technology Transfer program. The Wilkes SBDC is working very closely with the Engineering department and the Allan P. Kirby Center for Free Enterprise to develop this program which will be very similar to the Bucknell SBDC’s program. A student and faculty incubator opened on March 17. There are currently fifteen businesses located in the incubator. The Wilkes SBDC has been asked to serve as a regular advisor to the incubator clients as well as the Tech Transfer board. The SBDC is very excited to be a part of this truly needed service as the center has seen a gradual increase in clients with invention ideas.
•
The Wharton SBDC’s Commercialization Acceleration Program focuses on aiding life sciences start-ups, many of them based on technology developed at the University of Pennsylvania. The program was piloted 8 years ago and has been supported in large part by the University of Pennsylvania. In this program, Wharton SBDC consulting teams support formation of new businesses around some of the most promising technologies coming out of the University of Pennsylvania and other regional research institutions and innovative businesses. The program has directly contributed to the commercial evolution of over 70 early-stage (mainly life sciences) technologies since its start in 2007. This joint initiative between the Wharton SBDC and Penn’s Center for Innovation provides a unique experience for undergraduate and graduate students, while helping to move important clinical discoveries to market. CAP students act in a consultative capacity to SBDC clients, working on business challenges, and deriving recommendations and solutions that matter. CAP clients have gone on to refine their business plans, modify the focus of their development efforts, achieve significant funding from investors, or been able to redirect their efforts from non-viable programs to those with commercial potential. For clients, CAP provides a critical resource that they simply cannot access on a commercial basis, given their stage of development and available funding. In 2015, the University of Pennsylvania increased its commitment and financial support for the program and supported its expansion to include projects commercializing technologies in the physical sciences and engineering.
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The University of Scranton SBDC participated in a welcome ceremony for 11 new incubator tenants for the Greater Scranton Chamber of Commerce’s Scranton Enterprise Center and TekRidge Center. TekRidge is a location for companies looking to develop new and innovative technologies that will further enhance the economic climate of Northeastern Pennsylvania. Chamber President Bob Durkin thanked the SBDC for continued partnership in offering incubator tenants guidance in developing and growing their technology businesses.
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Staff from The University of Scranton SBDC met with Keystone College to discuss SBDC programs and services in relation to the school’s new regional Additive Manufacturing/3-D JANUARY – DECEMBER 2015 | Annual Report | Page 12
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Printing Center. The Regional Center for Excellence in 3-D Design, Innovation, Education, and Manufacturing will be located in Brooks Hall on campus and will be operated by Keystone’s School of Fine Arts. The SBDC will offer business-planning assistance to individuals interested in using the center. •
The Penn State SBDC continues to share office space in the Technology Center with the Ben Franklin Technology Partners (including Ben Franklin Venture Forum, Ben Franklin Transformation, and the Shale Gas Innovation and Commercialization Center), Penn State Office of Technology Management, Penn State Office of Sponsored Programs, and the business incubator. The Penn State SBDC’s alignment with these partners and the ongoing TechCelerator collaboration has yielded many high-quality clients which have contributed significantly to preventure impact and capital formation. An SBDC business consultant participates in each round of the TechCelerator program, offering formalized training and consultation. In 2015, there were 10 graduates of the program. SBDC business consultants are also key contributors to the Triage team, which meets with tech entrepreneurs as a ‘single point of entry’ into the various programs and offerings available through the Technology Center. The Penn State SBDC also continues to partner with the Ben Franklin Technology PArtners and the Penn State Office for Technology Management to offer a 90-minute Research to Start-up seminar which offers an introduction to the considerations inherent to commercializing research or technology. The SBDC’s reputation is growing fast with regard to technology commercialization, and many entrepreneurs express appreciation for the SBDC’s confidentiality policy, which is a benefit not offered by many other programs.
400 INTERNATIONAL TRADE The Pennsylvania SBDC continues to advance its international business offerings for small- and mediumsized businesses. The network continues to support its international trade partners including the U.S. Department of Commerce’s Commercial Service, the U.S. Trade Development Administration, and the Pennsylvania Department of Community and Economic Development. Centers continue to use SKYPE and other video conferencing platforms to communicate with overseas trade representatives and clients at little to no cost to the program. From January 1, 2015 to December 31, 2015, the SBDC consulted with hundreds of clients on international trade issues while executing 25 export-related educational programs that were attended by 375 individuals. 72 clients reported an increase in export sales, totaling $101,837,173 in 2015. During this reporting period, 289 clients received exporting assistance. SBDCs recorded fifteen referrals to the Pennsylvania Regional Export Network, other Federal Agencies, U.S. Department of Commerce, and the U.S. Export Assistance Network. Countries that SBDC clients reported exporting to include: Australia, Canada, South Korea (2), United Kingdom, El Salvador, Philippines, Mexico (2), Brazil, Argentina, Chile, Ecuador, Honduras, Colombia, Fiji, Greece, Peru, China, and the Congo. The SBDCs have been designated as a major contributor to fulfilling the goals of the National Export Initiative. To assure the network has the expertise to help more small firms sell Pennsylvania products and services around the world, staff at each Center are receiving certification in international business. The Pennsylvania SBDC is proud to work toward fulfilling this requirement and currently has 18 out of 149 full-time employees certified in international trade. The following staff members of the Pennsylvania SBDC network can be counted toward this goal (Names in bold received certification in 2015):
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Darlene Atta, Temple University SBDC, SBA/TPCC certified, 2014 Martin Brill, Kutztown University SBDC, NASBITE certified, 2006 Robin Burtner, Shippensburg University SBDC, SBA/TPCC certified, 2012 Therese Flaherty, Wharton SBDC, SBA/TPCC certified, 2014 Lindsay Gilkes, University of Pittsburgh SBDC, SBA/TPCC certified, 2012; NASBITE certified, 2013 Vickie Gyenes, Saint Vincent College SBDC, NASBITE certified, 2006 James Kunkel, St. Vincent College SBDC, NASBITE certified, 2013 Cora Landis, Lehigh University SBDC, SBA/TPCC certified, 2012 Dorothy Lane, Wilkes University SBDC, SBA/TPCC certified, 2015 Glenn McAllister, Widener University SBDC, SBA/TPCC certified, 2012 Mary McKinney, Duquesne University SBDC, SBA/TPCC certified, 2012; NASBITE certified, 2012 Miranda Mease, Clarion University SBDC, SBA/TPCC certified, 2014 Jill Newcomer, Gannon University SBDC, SBA/TPCC certified, 2013 Tony Palamone, Indiana University of Pennsylvania, SBA/TPCC certified, 2012 Brent Rondon, Duquesne University SBDC, NASBITE certified, 2007 Donna Simpson, The University of Scranton SBDC, SBA/TPCC certified, 2012; NASBITE certified, 2015 Maria Spencer, Penn State SBDC, SBA/TPCC certified, 2012 Mary Beth Zingone, Lehigh University SBDC, SBA/TPCC certified, 2012
During this year’s Small Business Growth Forum, expert presenter James Foley was brought in to run two full days of training for the international team. Mr. Foley’s curriculum covered topics such as: documents for shipping; distributors vs. agents; basics of export finance; Free Trade Agreements; intellectual property; and exporting via the internet. Overall, the training provided more than 8 hours of dedicated professional development in international trade for all attending international consultants. Reviews were very high for the session and all consultants benefitted from Mr. Foley’s teaching and experience. Examples of activities in international trade activities occurring at the Center level in 2015 include: •
The Clarion University SBDC attended the international trade event “Wanted: More U.S. Exporters” hosted by the Manufacturer and Business Association in Erie in May. The event was co-sponsored by the U.S. Commercial Service, Western Pennsylvania District Export Council, Manufacturer and Business Association, Northwest Commission, and the Pennsylvania SBDCs. The program provided information to small businesses on why exporting is beneficial, how to expand export markets, and the assistance available to companies. In addition, the SBDC cosponsored the event “Counterintelligence and Mitigating Risks in International Markets,” which was hosted by the North Central Export Program and held at the Red Fern in Kersey, Pennsylvania on April 8. Other co-sponsors included the U.S. Commercial Service and the North Central Workforce Investment Board. The event featured a presentation by Daniel Markley, special agent from the Pittsburgh field office of the FBI on cyber security, how companies can protect their information, and personal safety and awareness when traveling abroad. LeeAnne Haworth, Senior international trade specialist at the U.S. Commercial Service also presented on export compliance and mitigating risks in international markets.
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In April, the director and international business consultant of the Duquesne University SBDC attended the NASBITE national annual conference where they chaired and presented a panel workshop titled: “A Panel: Look South USDOC initiative and opportunities in the Pacific Alliance Latin American Countries.” This session introduced up to date information on a new U.S. Department of Commerce (USDOC) program initiative, Look South, market opportunities in
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one of the fastest growing world regions for U.S. exports, FTAs, MDCP partnering opportunities, and participation of a trade expert Luis Pinilla, Esq, who came from Bogota, Colombia. •
In December, the Duquesne University SBDC started the first quarter of year two for the Federal grant from the U.S. Department of Commerce. The Duquesne SBDC is the proud winner of their Market Development Cooperator Program (MDCP) grant. Their program, entitled, “Opening Doors to Manufacturing Companies for U.S. Manufacturing Companies,” will focus on increasing exports of firms in the infrastructure and construction industries to the Latin American countries that are fastest growing and members of the Pacific Alliance: Mexico, Colombia, Chile and Peru. In October 2014, they started the first quarter of this grant. Year one activities for the grant ended on September 30, 2015 and the 2nd year began on October 1. Year one activities consisted of planning for the program. Although a trade mission for Columbia/ Mexico was planned, it was cancelled due to a very high level of regional/state competition for trade missions to these countries and also U.S. Embassy other priorities that were going to limit their involvement. In the fall of 2015, year two of the grant, the SBDC organized and led businesses in the construction industry to the CONEXPO show in Santiago, Chile. Four companies attended in person and four participated in the Catalogue show.
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In April, Kutztown University SBDC consultant Martin Brill, was presented with a plaque of appreciation at the annual Department of Business Awards Banquet at Elizabethtown College. The award marked the 5th year of the Collaborative Industry Projects between the Kutztown University SBDC and the International Business Department of Elizabethtown College. The head of the International Business Department, Professor Hossein Varamini presented the award to Martin “in appreciation of your dedication, enthusiasm, cooperation and hard work” on research projects conducted by the College’s senior students for SBDC clients under the guidance of Dr. Varamini and Martin Brill.
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International business seminars held by the Lehigh University SBDC included their Breaking Borders series that hosted two seminars with the Martin Brill receives intent of offering manufacturing and service companies in the Lehigh his award from Valley the opportunity to be educated on Free Trade Agreements, both the Elizabethtown College. current and pending, and also to train them how to navigate through the often difficult process of understanding the rules of origin and completing required paperwork when shipping to these countries. The series brought in ‘experts’ on FTAs. The first seminar offered an overview of the current and pending Agreements, with speakers from U.S. State Department and U.S. Department of Commerce; the second seminar was a full day training on the actual paperwork involved when utilizing a FTA. Rules of Origin can be very cumbersome and difficult to navigate so the second seminar was designed to give a comprehensive overview of how to identify whether or not their products complied. Both seminars proved to be well received with very good evaluations. The SBDC had 46 registered for the first seminar and 53 registered for the second.
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Since 1993, the Center for Global Competitiveness (CGC) has been an integral part of the St. Francis University SBDC. The CGC provides international trade and marketing assistance to small and medium sized businesses (primarily manufacturers) in the Saint Francis SBDC service territory. Of particular note is the development of industry clusters that work together to take advantage of international opportunities. The group that has been together the longest has been the Pennsylvania Mining Industrial Group (PAMIG). Since 1999, PAMIG has worked to provide opportunities for a group of companies related to the mining industry. Over the years, the group has been represented at mining trade shows around the world. This has included shows in the US, Canada, Mexico, Brazil, Chile, Peru, Australia, Russia, South Africa, Vietnam and Ukraine. JANUARY – DECEMBER 2015 | Annual Report | Page 15
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A number of the companies have expanded or commenced international sales as a result of these trade shows. Through the PAMIG group, the CGC has become more regional in its focus. By working with the U.S. Commercial Service, companies participating in trade events now come from across Western and Central Pennsylvania. Since there is no current dedicated funding stream for the CGC, its ability to provide services has been reduced. The SBDC will continue to provide the international trade services but will not be able to be as comprehensive with them as it has in the past. •
Saint Vincent College SBDC’s Center for Global Competitiveness once again hosted its Annual Global Growth Conference on May 12 at the Fred Rogers Conference Center, Saint Vincent College. This one-day conference was designed to ensure ongoing compliance with U.S. Export Controls and Regulations. Topics included Export Control Reforms, Changes in Foreign Trade Regulations, AES Filing Requirements, and Updated Federal Requirements. In addition to the full-day Conference, a Pre-Conference workshop was held titled Basics of Export Compliance for Beginners. This was made available for those new to export and wanting to review the basics. Presenters included: Jim Anzalone, president of Compliance Assurance, LLC from Palm Beach, Florida, Susanne Cook, Esquire and Bruce Chiu from Cohen & Grigsby P.C., and Barry Tarnef from Chubb & Son.
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The International Business (IB) department of the Temple University SBDC was actively engaged in consulting and educational event activities in their service area designed to assist businesses identify new markets overseas. The international business specialist conducted outreach in an effort to market the program and expand their client base. The IB department attracted 14 existing companies seeking to find new markets overseas through referrals from their network of economic development partners. In addition to Ghana Ambassador to the U.S. his Excellency Joseph conducting outreach, the Specialist was H. Smith and spouse. invited to participate in several international business events. The IB specialist presented the SBDC’s programs to the Greater Philadelphia Hispanic Chamber of Commerce, the U.S. Ghana Chamber of Commerce, Community College of Philadelphia, and at the U.S. Commercial Service’s South Africa Networking event. In February, the SBDC in collaboration with the Center for International Business and Educational Research (CIBER) hosted a networking event attended by 55 Executive MBA students from the University of Ghana. Twenty U.S. based businesses attended. In May the IB department hosted a roundtable with the U.S. Commercial Service’s Commercial Desk Officer in South Africa. Twenty-three businesses attended. A “Going Global Series Event – Doing Business in Ghana, Kenya, and Tanzania” was held in June. The Ghana Ambassador to the U.S. and a representative from USTDA were key speakers. Forty businesses attended. JANUARY – DECEMBER 2015 | Annual Report | Page 16
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Other 2015 events held by the Temple University SBDC included “Breaking into The Trade Game” in collaboration with the Visitors Center in Philadelphia. The event was co-sponsored by SCORE and the SBA. In December, the SBDC hosted a “Hanover-Messe” Information Session organized by the U.S. Commercial Service in Philadelphia. The event was co-sponsored by Hanover-Messe USA, World Trade Center and USEAC. The event was designed to create awareness about business opportunities for entrepreneurs and business owners interested in attending one of the largest trade show events in Germany. There were 30 businesses in attendance.
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The University of Pittsburgh works with its clients to explore exporting opportunities for their existing products and services. The SBDC collaborates with the International Business Center at the University of Pittsburgh. SBDC clients are invited to special events held by the International Business Center to discuss exporting opportunities. On July 27 an SBDC consultant participated in an event of the International Delegation from Eastern Europe. The delegation participated in a program about the University of Pittsburgh’s economic development efforts. On August 11 the staff of the Pitt SBDC participated in “Startup Global” an event held at Carnegie Mellon University in partnership with the U.S. Commercial Service. The program focused on new to export companies.
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Saint Vincent College SBDC offered the educational program: “Brazil, Mexico – Global Financing Legal Strategies & More” on September 24. This full-day program provided an overview of the current economic business climate and the cultural aspects of conducting business in Mexico and Brazil. Information was provided on the industrial bases, market opportunities, role of NAFTA and how foreign exchange and financing mechanisms impacts businesses. The program concluded with an “Ask the Expert Panel” session. This time allowed the attendees to direct specific questions to the panel that related to their business.
Expert presenters gather for a photo during St. Vincent College’s international educational program in September.
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Over the course of 2015, there was a considerable amount of interest in providing assistance to displaced miners and related small businesses in the Southern Alleghenies region, particularly Somerset County. The Saint Francis SBDC participated and was a part of a number of these activities. Related to this, the Saint Francis SBDC put together an SBA Portability Grant in conjunction with the Lead Office to assist in this area. The proposal included a significant international trade component that involved work with companies that sell to the mining sector. The proposal included an international trade component that would assist and prepare applicable companies to expand into international markets. It would also include participation in an international mining show later in 2016 in Johannesburg, South Africa.
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On October 20, the Lock Haven University SBDC partnered with SEDA-COG’s Export Development Program to host a seminar in Williamsport titled Exporting 101 for Small Businesses. There were seven attendees who were provided with the information needed to determine if exporting is a viable option for their companies. This informative session included
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topics such as globalization and how it impacts a small business, with the various speakers’ discussions focused around international market research and measuring market potential. 500 MINORITY BUSINESS DEVELOPMENT Assistance with certification programs, development of business plans, SBA 8(A) loan applications, and partnerships to increase outreach are just some of the ways the Pennsylvania SBDC supported minority business owners in 2015. This year, the SBDCs consulted with 1,219 minority clients, representing 18 percent of the total client base. In addition, 5 percent of SBDC clients counted themselves as Hispanic and 78 percent of the minority group identified themselves as African-American. Examples of activities to support Pennsylvania’s diverse population include: • The Kutztown University SBDC Latino Business Resource Center (LBRC) once again ran its Business Skills for Success for Latino Entrepreneurs course. Over eight weeks, the students learned the foundational steps of starting their own business including business planning, financing, and marketing. Spanishspeaking content experts presented Latino Business Resource Center Graduation Ceremony in May on banking products, legal structures, zoning and codes related issues, and more. In May, the LBRC class graduated 13 entrepreneurs at an event held at the Crowne Plaza Reading. As a culmination of the program, the participating entrepreneurs presented their business plans to a panel of judges. Another session of the course was held in fall 2015 in Kennett Square which graduated another 39 participants. •
The University of Pittsburgh SBDC launched its services to the Spanish speaking community of Western Pennsylvania. An SBDC consultant presented “Como Abrir Tu Negocio” a variation of the First Step: Mechanics of Starting a Small Business taught for Spanish speakers at the Dormont Public Library. The SBDC plans to market its Spanish consulting services and will offer the First and Second Step in Spanish regularly.
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On October 5, the Wharton SBDC presented in partnership with The Urban League Entrepreneurship Center as part of Philadelphia Minority Enterprise Development (MED) Week for a new educational workshop: Big Agency Web Marketing with a Small Business Budget. 30 small business owners learned the most important areas of focus for marketing their businesses on the web - considerations for different types of businesses, building a results-driven website, showing up in search engines, using paid advertising online, leveraging the right social media channels and measuring results.
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The Temple University SBDC continued to work closely with organizations that cater to minority businesses in the Philadelphia area as a strategy to increase outreach to minority entrepreneurs. The SBDC developed new relationships with the Philippine American Chamber of Commerce of Pennsylvania and Southern New Jersey, Turner Construction Company Minority Program, Hispanic Association of Contractors and Enterprises (HACE) and 900 AM Station WURD Mind Your Own Business Series.
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Staff from the Shippensburg University SBDC attended the annual Community First “Friends of the Fund” luncheon in Lancaster on October 30th where Johnny Birch, a Shippensburg SBDC client who also happens to be from a minority group, was recognized with the “Entrepreneur Award.” This award honors “an outstanding client who demonstrates leadership abilities, community involvement and is dedicated to continued business growth and success.” Johnny, with the assistance of the SBDC, launched the Carlisle Taekwondo & Fitness Academy, LLC in 2011 and has been growing the business and his reputation at a steady pace. Johnny unabashedly credits the assistance of the SBDC with his success to date and is a vocal advocate in the Carlisle community for the value of the technical assistance provided by the SBDC.
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In 2015 the Duquesne University SBDC received funding from the Pennsylvania Department of Community and Economic Development under their Neighborhood Assistance grant which funded specially focused training and consulting in the Hill District of Pittsburgh. UPMC Health Plan was the company which provided the funds and received the tax credits. The SBDC’s partners on the grant are UPMC Health Plan, working closely with their contracting department, Urban Innovation 21, and Hill District Federal Credit Union have been very pleased with the results and supported the SBDC to reapply for the grant for 2014-15. In 2014, the SBDC consulted with 12 clients through this program: 5 won grant competitions with cash prizes. Also, eight training programs were held in 2015 attended by 30 existing and potential business owners.
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Duquesne University SBDC’s Program for Immigrant Entrepreneurs (PIE) consulted with 23 clients in 2015. Because of the work the SBDC did with PIE and minority business programs, they applied for an SBA Accelerator Program award focusing on growth oriented Hispanic and minority businesses in 2014 and opened NEOLAB in Spring, 2015. NEOLAB clients now have their own designated brainstorm room for meetings, consulting and training. Again this year, the PIE program had exhibits at the Latin American Festival, University of Pittsburgh in the spring.
600 RESOURCE DEVELOPMENT Partner relations are an important aspect in getting SBDC clients the information and resources they need to realize success. SBDC assistance is done in conjunction with many public and private partners: regional and local economic development organizations, chambers of commerce, financial institutions, state and federal agencies, and local legislative offices, among others. Clients have directly benefitted from the network’s contacts and relationships with these entities. In addition, these relationships promote collaboration, avoid duplication of efforts and expand outreach and referrals. Centers continue to form stronger partnerships within their respective communities to not only serve clients, but to also support continuation of SBDC services in times of reduced State funding. As noted throughout many sections of this report, many centers are receiving additional funding through new grant programs to help serve the businesses in their communities. Examples of this in 2015 include: •
In the first half of 2015, the St. Francis University SBDC undertook its next round of fundraising through the financial institutions serving the region. This raised $15,150 for the Center and its activities. Given the changes that were going on with the banking community, the Center was pleased with the amount raised. One item that was instituted previously was to ask banks if they would be willing to commit to a level of donations for five years. A number of the banks agreed to this which will make fundraising somewhat easier in future years. Plans are being made to expand the fundraising program for the next round. This may include approaching selected institutions in addition to banks that also benefit from the services provided by the Saint Francis SBDC. The next round of fundraising will take place in the first half of 2016. The Center is working more closely with the University’s Advancement Office in this next round of funding. JANUARY – DECEMBER 2015 | Annual Report | Page 19
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This is in an effort to significantly increase the amount of funds raised given the tenuous financial situation currently at the Center. •
Each year the Pennsylvania SBDC Lead Office plans and organizes its annual Small Business Growth Forum to provide professional development and networking opportunities for all of its staff members. In 2015, the event was held in Cranberry and featured many sponsors, speakers, and attendees from other SBDC networks. 2015 marked the highest year for cash sponsorships of the event, bringing in more than $14,000 to support this annual gathering. Sponsors included GrowthWheel, First Niagara, Focal Point Business Consulting of Pennsylvania, Riviera Finance, Computer Support Services, Northwest Bank, Pennsylvania Credit Union Association, Flagship Business Plans & Consulting, Regional Development Funding Corporation, MEDFAS, and FRANNET.
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The Kutztown University SBDC was selected as one of 80 nationwide winners to receive a monetary award as part of the U.S. Small Business Administration’s (SBA) Growth Accelerator Fund competition. SBA announced the 80 winners of the second annual Growth Accelerator Fund Competition during the White House’s first Demo Day held on August 5. The Kutztown University SBDC and Latino Business Resource Center (LBRC) partnered with the City of Reading Economic Development Department to launch the Innovation, Development, Entrepreneurship Accelerator (IDEA) food accelerator in 2014. This program was such a success that they sought out another year of funding to serve established Latino and Black owned food manufacturing/processing firms with growth services. The IDEA program addresses the problem of the low rate of business startups from minorities and the slow rate of growth among the existing minority businesses in the city. It also serves this underserved population with a connection to larger grocery chains who help the IDEA clients obtain shelf space and new market channels. The program offers bilingual and bicultural services to minority business in Reading.
700 PROCUREMENT The Pennsylvania SBDC is host to the Southeast Pennsylvania Procurement Technical Assistance Program (PTAP), a non-SBA project that assists companies with selling products and services to federal, state and/or local government agencies. Educational programs included “Doing Business with the Government” and “Certification Made Simple” where attendees can learn more about Disadvantaged, Minority and Women’s (DBE/MBE/WBE) business enterprise certifications. Government markets are not a universal remedy for increasing revenues, and all Centers encourage companies to self-evaluate products, processes and facilities to determine if they are prepared to compete efficiently in this marketplace. In educational seminars, Centers also discuss the importance of Pennsylvania certifications, the certification requirements and benefits, how to identify state contracting opportunities, and how the state purchases goods and services. Examples of SBDC participation in this area include: •
On June 11, the Kutztown University SBDC hosted a Breaking Into Government Contracting for the Minority Entrepreneur in Reading, Pennsylvania. The event was attended by forty entrepreneurs and featured a panel of Latino small business owners, as well as three guest speakers who spoke about different entry points into government contracting. Bi-lingual translators were on site to help bi-lingual clients understand difficult terms and concepts. The event was very successful with an engaged audience and brought a lot of timely information to the minority entrepreneurs.
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The Kutztown University SBDC was also awarded a grant from the Defense Logistics Agency to extend their government services and materials to Latino bi-lingual clients. Included in the completion of the grant was a bi-lingual brochure, a quarterly bi-lingual newsletter, two online learning modules in Spanish, and the networking seminar mentioned above. With the new bilingual materials, greater access and understanding will be available to multi-cultural business owners.
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The Penn State SBDC co-sponsored a workshop called Doing Business with Penn State University. Other sponsors included the Chamber of Business and Industry of Centre County, SEDA-COG Local Development District, Innovative Manufacturers’ Center, and SAP&DC PTAC. Twenty individuals attended this session.
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The Temple University Procurement Technical Assistance Program (PTAP) organized and supported 17 events with a total of 408 attendees. Sponsored training topics included Fundamentals of Government Marketing, Finding Federal Government Procurement Opportunities, and Proposal Preparation and Submission. The non-sponsored events focused on large and small businesses with emphasis on women owned, minority owned, service disabled veterans, Hub zone, 8(a) and disadvantaged owned businesses. The purpose was to increase opportunities for these protective groups and stimulate interest in the government arena. Events included: GSA: Marketing your Business to the Private and Public Sectors; Bucks County Regional Contracting; SEPTA Rebuilding for the Future; and Doing Business in the City.
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The Lehigh University SBDC had outstanding success at their bi-annual ‘Meet the Buyers’ event at Steel Stacks. This reverse trade show, coordinated with 10 economic agencies was an opportunity for over 425 small businesses to meet with almost 50 buyers. The SBDC worked with LVEDC, Community Action, SBA, Women and Minority Business Council, Manufacturers Resources Center, and, Chambers of Commerce from Whitehall, Bath and Quakertown. The government marketing program director promoted the event and Lehigh University SBDC’s PTAC during two radio shows. Funding partners included Capital Blue Cross, First Niagara, American Bank, Wells Fargo, Embassy Bank, TD Bank, Sands Casino, Direct Energy, Lehigh University and Women’s Business Network. Clients included a who’s who of big business in the Valley along with a large number of Government and Municipal entities. Buyers included representatives from the Tobyhanna Army Depot, Cities of Bethlehem, Allentown, Buck’s, Lehigh and Northampton Counties and Easton, B. Braun, Buzzi Unicem, Martin Guitar, Capital Blue Cross, Crayola, Lutron, Mack Trucks, Olympus, PA COSTARS, PA DGS, PA Turnpike Authority, PPL, St. Luke’s Hospital Network, and the U.S. Deptartment of Labor, to name a few.
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The Kutztown Procurement Technical Assistance Center (PTAC) actively provides training on marketing to federal, state, and local governments to over 450 clients in their region. The PTAC spreads their workshops around the region, and this past 6 months focused on the Lancaster, York, and Harrisburg areas. Eight seminars were held attracting more than 182 individuals.
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On April 15 the Procurement Technical Assistance Programs of North Central and Northwest PREP regions sponsored a CoStars Connection event at Clarion University. This training featured Bruce Beardsley speaking on the CoStars program and a networking session for direct interaction JANUARY – DECEMBER 2015 | Annual Report | Page 21
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with local government agencies and regional businesses. The Clarion University SBDC cosponsored the event by securing a location and marketing the event and also participated as an exhibitor during the networking session. 800 SPECIAL FOCUS
BUSINESS CONTINUITY As part of separate grants funded through the U.S. Economic Development Administration and the U.S. Small Business Administration’s Sandy Relief Funds, the Pennsylvania SBDC continued to deliver Business Continuity and Survival Services to business owners. Originally stemming from businesses who were impacted by the floods of 2011 caused by Hurricane Irene and Tropical Storm Lee, the SBDC performed targeted outreach to businesses in the affected areas which includes the 14-county area that was hit the hardest during the storms of 2011 as well as the counties declared disaster areas during Super Storm Sandy. Education on cloud-based software, mobile-ready strategies and ways to optimize a company’s online presence are a key part of the business continuity consulting being offered by the SBDC. Businesses are also able to build web strategies from personalized consulting on search engine optimization (SEO), eCommerce and other ways to bolster their online sales to help supplement their local in-person sales. Business owners are also encouraged to develop mobile-ready strategies to work remotely and communicate with staff during an emergency situation. The SBDC is also working to better prepare businesses for future interruptions through the development of business disruption and continuity plans, advice on acquiring capital (before and after a disruption) and helping companies diversify their revenue streams through new markets. Businesses are also advised to explore their growth potential through expanding their sales online, abroad or with the government to encourage customer and supplier variation to better weather future disasters. Although grant funding for this project concluded in September, the resources and tools developed under this effort remain in effect at Centers to use in current and future consulting engagements. As an example, in May the Wharton SBDC partnered with the Wharton Risk Management and Decision Processes Center and the Travelers Institute® Small Business - Big Opportunity Initiative to present “Managing Risk: Thriving after Cyber Threats, Natural Disasters and More.” The luncheon program was highlighted by Dr. Roch Parayre’s keynote presentation, “Leadership Decision Making Under Conditions of Risk.” Dr. Parayre is a fellow with Wharton Executive Education, The Wharton School and managing director of Decision Strategies International, Inc. Joan Woodward, president with the Travelers Institute served as Moderator. The panelists were Ben Collier, research fellow, Risk Management and Decision Process Center, The Wharton School; Michael Echols, director, Joint Program Management Office, National Protection and Program Directorate, U.S. Department of Homeland Security and Matthew Gardner, regional president, AssuredPartners, Inc. The program focused on business continuity, disaster planning, small business insurance and cybersecurity. The SBDC had very positive responses from the more than 100 attendees with cybersecurity being the top issue on most minds. 900 ECONOMIC DEVELOPMENT The mission of the Pennsylvania SBDC is to grow the economy of Pennsylvania through its entrepreneurs which means participation in regional and statewide economic development initiatives. Examples of the network’s economic development activities are numerous; activities during this reporting period include: •
In March the Kutztown University SBDC hosted a luncheon with key representatives of the City of Reading. The topic was the region’s Historically Under-Utilized Business (HUB) zone designation and how to increase marketing opportunities to attract businesses to the city. An JANUARY – DECEMBER 2015 | Annual Report | Page 22
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SBDC client, Hydro Jet, has found it challenging to meet the employment requirements for this designation. SBA partner, George Murray, Lead Economic Development Specialist delivered a short presentation on the HUB zone certification and there was general discussion of how to increase marketing opportunities to attract businesses to locate within the city of Reading. •
During the past several years the Pennsylvania State System of Higher Education (PASSHE) has significantly increased the emphasis on developing entrepreneurship programming within system universities. This includes not only academic programming but also extra-curricular and outreach activities. To support this effort, the Shippensburg University SBDC assisted several students competing in the fourth annual PASSHE Student Business Plan Competition, a competition involving the fourteen universities comprising the State System of Higher Education. The SBDC provides assistance to students who are seriously pursuing a business idea by helping them research and develop business plans, and the students can become a client of the SBDC if they are pursuing the idea over the coming year. In April, the SBDC hosted the 2nd annual Shippensburg University student pitch competition – SHIP TANK. Sixteen student teams signed up for SHIP TANK. A series of three casting calls were conducted to provide feedback and support to the teams and to ultimately select the finalists to present to the judges at the main event. Six teams were selected for the competition. The judging panel was comprised of a university dean, director of the university career center, vice president of a regional bank and a local business owner/entrepreneur. Eighteen local businesses supported the event though the donation of door prizes and refreshments.
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In 2015, the Temple University SBDC business incubator had a total of 27 small businesses that participated in the program. The Incubator has a good mix of businesses in various industry sectors including professional services such as Legal, Construction, Technology, Entertainment and Health Care. A majority of the companies who participated in the incubator program are Temple University affiliates. In addition, the SBDC implemented an internship support program for participants in the program. This year the SBDC recruited 15 interns from within Temple University who staffed the initiative. The interns were assigned to individual companies for a semester to provide research assistance and administrative support. The SBDC also assisted community based businesses that needed professional space to manage their operations.
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The University of Scranton SBDC Small Business Internship Initiative continues to grow. The initiative offers small businesses the opportunity to grow their businesses with the help of local student interns, while providing students access to experiential learning opportunities near their schools. Since it was established in 2013, 25 internships have been completed; 5 are in progress or in the process of being filled; 14 total small business sites have participated; 195 applications have been received from students representing 6 of the 7 participating institutions. In 2015, Twitter Susan Mancuso, owner of Susan Faye and Facebook accounts were established for the Mancuso, LLC, a Lackawanna County initiative, the domain smallbusinessinternships.com based accounting firm, is pictured here with was purchased, and two videos were produced to her staff and Small Business Internship Initiative interns from Keystone College and share the benefits of the Small Business Internship Marywood University. Initiative with small businesses and students. The Small Business Internship Initiative is a collaboration between the Scranton SBDC, The University of Scranton Office of Community Relations, Lackawanna County Commissioners, Greater Scranton Chamber of Commerce, the JANUARY – DECEMBER 2015 | Annual Report | Page 23
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City of Scranton, and Scranton Tomorrow; and including Career Services partners of Baptist Bible College, Johnson College, Keystone College, Lackawanna College, Marywood University, Penn State University (Worthington), and The University of Scranton. •
The Widener SBDC has been working with the new head of Chester Economic Development to improve existing Chester businesses and to encourage new businesses to open in the City of Chester. The Center also has a strong working relationship with the Delaware County Chamber of Commerce, the Chester/Delaware County chapter of SCORE and the Chester Business Association. The SBDC has offered joint programs with each of these organizations.
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The Wilkes Enterprise Center opened this March, a positive development for the Wilkes University SBDC. The Enterprise Center was touted by the local media as being a “catalyst to transform the region.” The new business incubator opened by the Allan P. Kirby Center For Free Enterprise and Entrepreneurship focuses on high-tech business start-up operations. The affiliation with the Kirby Center has the potential to be a productive reciprocal opportunity for both Centers. The SBDC has also been active with efforts of communities within its region to develop incubator centers for new and emerging businesses. The Wilkes SBDC is working closely with the newly opened student/faculty incubator close to the college campus. The SBDC maintains a relationship with the Innovation Center in Wilkes-Barre, and has also been active in the development of the Can-Be Incubator Center in Hazleton. The SBDC offers on site services at the Incubator on an as needed basis.
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The University of Pittsburgh SBDC worked in collaboration with several co-sponsors to generate a business plan contest that awarded three winners from the Mon Valley. Seven entries were submitted for the contest and three finalists have been announced as the winners of the Sustainable Marketplace for Arts, Artisans, Recreational and Trending businesses (SMAART) Business Plan Contest. The three winners were awarded $10,000, each to use towards the start or growth of their Mon Valley small business. The SMAART Business Advisory Council which included two SBDC judges, reviewed applications based on the following criteria: the relevance to the economic development of River Town, the viability of the business idea, the economic impact it will have on the region, the presentation quality and the attendance at work shops. The winners included: Steel Dog Construction, owners Laura & Jason Koon of Charleroi; Full Armor Fitness, owner Samuel Sokol of Charleroi and Chaney’s Natural, owner Tanya Chaney of Monongahela. The contest was sponsored by: National Road Heritage Corridor, U.S. Small Business Administration, Pennsylvania Southwest Partners for Regional Economic Performance, University of Pittsburgh Small Business Development Center, The Mon River Valley Coalition, River Town Program and Charleroi Borough. Funding in part was through the Discovered and Developed in PA program with the Department of Community and Economic Development and the Claude Worthington Benedum Foundation.
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In Montgomery County, the Temple University SBDC collaborated with the Montgomery County Workforce Investment Board to provide training to the unemployed interested in exploring entrepreneurship as an option. The Southeast Pennsylvania region had embarked Graduates of the 2015 Jobs 1st Business Plan Workshop on developing a strategic regional collaborative held in Plymouth Meeting, PA. that coordinates and deploys the services of PREP and Workforce Investment Board partners to jointly serve job seekers and businesses. The JANUARY – DECEMBER 2015 | Annual Report | Page 24
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SBDC developed and conducted an 8 week workshop in Plymouth Meeting for qualified job seekers interested in starting a business venture. •
Since the last report, Kutztown University SBDC’s Jump Start Incubator has increased clients and expanded programs. Currently, there are seven clients’ in-house renting offices in the Incubator and two off-site clients. Two of these clients are startups that are looking for guidance on business plans, setting up accounting systems and help with marketing. Three of the new clients have been in business between 8 months and 3 years. These clients are seeking guidance in financial analysis, improved bookkeeping systems, help putting loan packages together and marketing plans. The Incubator has nine offices. With seven occupied, they will soon be at capacity in the facility. In order to expand their reach of small businesses, a new program was created for off-site clients to participate in the program. This idea germinated while attending the spring conference of NBIA in Denver, CO. Several other incubator professionals were discussing how to help more clients.
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In early 2015 the Pennsylvania Department of Labor and Industry announced its grant funding for Jobs 1st. The purpose of this funding was to increase employer engagement and develop employer-driven training programs between workforce and economic development organizations. The three PREP regions, representing the ten counties covered by the Clarion University SBDC, individually submitted proposals and these regions combined received funding totaling $981,000. Of this amount, the Clarion University SBDC received funding in the amount of $46,985 or 4.8 percent of this regional funding. This funding was used to connect with businesses in the region, pinpoint needed training and support, and develop and deliver identified training. The Northwest PREP region was awarded funding to complete three specific tracks: cross training, skills gap analysis and SBDC training classes. Cross training occurred in three different regions bringing together workforce development and economic development individuals. The Clarion University SBDC hosted the cross training sessions for individuals and organizations in Venango, Forest and Clarion counties. The workforce training included presentations on an overview of Pennsylvania CareerLink® Services, WEDnetPA, Veterans Services, Office of Vocational Rehabilitation, and Rapid Response Coordination Services, Layoff Aversion – Layoff Assistance. The economic development training included presentations on the program and services of the Northwest Regional Planning and Development Commission, Northwest Industrial Resource Center, the Small Business Development Center, the Clarion University Center for Applied Research and Intellectual Property, Clarion County Economic Development Corporation, the Oil Region Alliance, and the local SCORE chapter. The Clarion University SBDC coordinated and facilitated 20 training seminars focused on leadership development and marketing. Ten seminars were provided in both Clarion County and Venango County. The Clarion University SBDC sought out a variety of individuals to conduct these seminars. Speakers included university professors, the CEO of a business college, business owners, professional coaches, and self-taught entrepreneurs. Each of the seminars was well received with several of the participants expressing gratitude that we were able to offer these seminars at no cost. The seminar attendance for these 20 events totaled 457, or an average class size of 22. The Clarion University SBDC received a lot of positive feedback from these seminars as well as suggestions for potential seminars to hold in the future. Providing these seminars not only helped small businesses by offering pertinent information, but they also created an atmosphere for professional networking. Finally, the NWPREP region contracted with Thomas P. Miller and Associates to conduct a skills gap analysis of the region. The regional partners provided input and feedback for the analysis, assisted in identifying education and workforce assets, assisted in engaging stakeholders, and identified input session locations. The Clarion University SBDC coordinated and hosted one of the seven input sessions to identify the strengths and challenges of current workforce development efforts. An electronic survey was also conducted to compile further information from employers
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regarding workforce issues, in-demand occupations, and anticipated hiring practices. Analysis resulted in a final report presented to the NW PREP region and its stakeholders in June 2015. •
The Bucknell University Entrepreneurs Incubator (BUEI), or Startup Lewisburg, is the home for innovators in downtown Lewisburg. Members have access to SBDC consulting services, broadband internet service, and exclusive networking opportunities in the Bucknell community. The incubator is located in the Lewisburg sub-zone of the Greater Susquehanna Keystone Innovation Zone (GSKIZ), and members may be eligible for GSKIZ micro-grants and tax credits. All members of the incubator are SBDC clients, and they include tech startups from the region, members of the Bucknell faculty, and student ventures from Bucknell’s Business Pitch Competition. One of the SBDC’s consultants serves as the manager of StartupLewisburg and attended a series of professional development workshops offered by the International Business Innovation Association (InBIA), the world’s leading organization advancing business incubation and entrepreneurship. Bucknell University, the SBDC, and the BUEI have been InBIA members since 2013. The incubator is the primary location for the SBDC’s monthly entrepreneurship networking event, Tech Meetup Lewisburg. The meetup features pitches from incubator members, other SBDC clients, and external partners; serves as a key external communications tool; and has developed into a highly engaging setting for new client inquiries, prospecting, and intake.
1000 RESEARCH Market, industry, and other research provided to clients plays an important part in the Pennsylvania SBDC consulting services. In many cases, research is conducted by students with the oversight of senior consultants. This has been a mutually beneficial arrangement; clients benefit from getting in-depth research to help them make better business decisions and students are given the opportunity to participate in a real-world learning experience. Robust resources are available at host university libraries, through the Penn State Data Center, and databases provided through the Regional Export Network and the Pennsylvania SBDC Lead Office, including Hoovers Online, First Research, Fintel, CultureGrams, SBDCNet, and Alteryx. In addition, each SBDC is able to tap into the vast research resources located within its host institution as referenced below. •
In 2015, the Wilkes University SBDC performed many searches for clients utilizing internet resources and commercial online databases. Search topics ranged from basic area demographic information to specialized, in-depth industry and technical searches. The Center makes regular use of its affiliate status with the Penn State Data Center to obtain information from the Bureau of Census home page, paper sources provided by the PSDC, Bureau of Census CD-ROMs and the PSDC home page. In addition to the census data, the Wilkes SBDC consultants routinely access SBDC.Net for research information and routinely make use of the Pennsylvania SBDC’s research tools such as Hoover’s online database, First Research and other similar sources to identify competitors for clients and gather data to support sales projections for clients. Clients typically ask for research concerning competition and their sales, current marketing trends, and general industry analysis. Each project is different; one project may just need competitor data while another may be extensive and require days or weeks of research and use multiple sources for information.
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Lehigh University SBDC subscribed to ArcGIS Online, which is a mapping tool that provides the ability to create customized maps and, along with its Business Analyst Online supplement, allowed the Center to create ring analyses for startup businesses looking at potential success for JANUARY – DECEMBER 2015 | Annual Report | Page 26
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various sites. It also gives the Center access to significant demographic data to gain a more comprehensive understanding of the Center’s service territory, existing client base, and potential client base. •
The Penn State SBDC collaborates with clients to assist with a variety of research requests. This research may include industry research, product research, technical research, and demographic research as well as competitive analysis. To complete this research, the Center uses the internet, resources at the Penn State libraries both on site and the internet library system, the SBDC’s National Research Library, the SBDC’s Hoovers, Fintel and Demographics Now subscriptions, the Penn State Paterno Schreyer Business Library, and a small office library, among other sources of information. Additionally, Business Consultants subscribe to the Pennsylvania SBDC listserv and often query the network on behalf of clients. Detailed research was performed for at least five Penn State SBDC clients in 2015. Some of the topics researched included: FDA approval requirements for medical assistance devices; market data for mental health treatment services; Pennsylvania State Sales Tax on organization services; restrictions on the delivery of alcoholic beverages; and traffic counts for several state routes.
1100 OTHER ACTIVITY
Network-wide Awards & Achievements SBA Awards The Pennsylvania SBDC had five small business clients honored with awards from the U.S. Small Business Administration (SBA) during National Small Business Week. • • •
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Western Pennsylvania Young Entrepreneur of the Year - 3E studios, Pittsburgh (Nominated by: University of Pittsburgh SBDC) Western Pennsylvania Exporter of the Year – CIMA Life Sciences Inc., Pittsburgh (Nominated by: Duquesne University SBDC) Western Pennsylvania Small Business Person of the Year - The UPS Store #5642 & #6512, State College & Altoona (Nominated by: Penn State SBDC) Eastern Pennsylvania Family-Owned Small Business of the Year – Talluto’s Authentic Italian Food, Inc., Folcroft (Nominated by: Widener University SBDC) Eastern Pennsylvania & Statewide Small Business Person of the Year - Custom Milling & Consulting, Inc. (CMC), Fleetwood (Nominated by: Kutztown University SBDC)
Talluto’s Authentic Italian Food
Custom Milling & Consulting
Governor’s ImPAct Awards During the 2015 Governor’s ImPAct Awards, the Pennsylvania SBDC was pleased to have three SBDC nominated businesses win awards recognizing their growth including job creation, export sales, and community impact. JANUARY – DECEMBER 2015 | Annual Report | Page 27
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Overall, 22 out of 50 (44 percent) businesses awarded were current or former clients of the SBDC, showing the program’s statewide reach and depth of service delivery. Nominations for each award were provided by the state’s Partnerships for Regional Economic Performance (PREP) network of which the SBDC is an active partner. A total of 214 nominations were received in 2015. Pennsylvania SBDC nominated client winners included: • • •
Central PREP Region: Jobs That Pay Award – Otto’s Pub and Brewery, State College (Nominated and assisted by the Penn State SBDC) South Central PREP Region: Entrepreneur Impact Award – Military Apparel Company, Gardners (Nominated and assisted by the Shippensburg University SBDC) Southwest PREP Region: Export Impact Award – Cima Life Sciences, Pittsburgh (Nominated and assisted by the Duquesne University SBDC)
National Accreditation In 2015, the Pennsylvania Small Business Development Centers (SBDC) were awarded full accreditation from the Association of Small Business Development Centers, the national accrediting body for Small Business Development Centers under contract from the U.S. Small Business Administration (SBA). The Pennsylvania SBDC also received supplemental accreditation for its specialized Technology Services. The Pennsylvania SBDC is one of only 12 SBDC programs in the country to earn this supplemental technology accreditation. This is the fifth time the Pennsylvania SBDC program has been awarded accreditation. In this year’s report, the Pennsylvania program received five commendations which highlighted best practices: • • • • •
Hosting Grand Openings and Ribbon Cutting events for new business start-ups Engaging undergraduate and graduate students in the work of the SBDC Development of a comprehensive Disaster/Continuity checklist for businesses as part of its Business Continuity Services Close working relationship with economic development partner organizations Encouraging program recipients to inform stakeholders of the impact of SBDC services
A four-member team composed of the leaders of SBDC programs in Virginia, Maryland, Texas, and Colorado conducted the Pennsylvania SBDC review. The team assessed several areas of the program, including leadership and organizational management, the strategic planning process, client and stakeholder focus, service delivery, and program performance. Network Staff and Center Awards The Pennsylvania SBDC honored four staff members and nine Centers for their commitment and contributions to small business during their 2015 Pennsylvania SBDC Small Business Growth Forum held in Cranberry Township. The awards given include: • SBA Nomination Award: Martin Brill, Kutztown University SBDC • Targeted Service Award: Technology Team of the Pennsylvania SBDC • Creative Funding Award: Penn State SBDC • Capital Investment Award (Number of Investments): Rob Mineo, Lehigh University SBDC • Capital Investment Award (Dollar Amount of Investments): John Snyder, Gannon University SBDC • Center Performance Award: Penn State SBDC and The University of Scranton SBDC • Happy Client Award: Multiple Centers o The awards were given to SBDCs at Bucknell University, Clarion University, Indiana University of Pennsylvania, Lock Haven University, Shippensburg University, Saint Francis University and Saint Vincent College. • Service Award: Pat Boylan, Pennsylvania SBDC Lead Office JANUARY – DECEMBER 2015 | Annual Report | Page 28
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America’s SBDC National Conference Presentations & Awards Business consultants from across the Pennsylvania SBDC network were selected to present during the 35th Annual America’s SBDC Conference held September 8-11 in San Francisco. The Pennsylvania SBDC network led six presentations during the conference alongside nationally recognized speakers and colleagues from the America’s SBDC network. America’s SBDC represents more than 1,000 SBDCs serving all U.S. states and territories; its annual conference attracts more than 1,500 small business development professionals. Pennsylvania SBDC presentations during the conference included: • • • • • •
How SBDCs Should Be Using Social Media Business Continuity & Survival Services Shale Energy Discussion Forum Engaging Students to Maximize Impact Business Incubators: Beyond Silicon Valley Discussion Forum: Submitting a Conference Presentation
During the America’s SBDC conference, Maureen Hauck, consulting manager of the Bucknell University SBDC was celebrated as Pennsylvania’s State Star. As the lead Bucknell consultant on the Pennsylvania SBDC’s U.S. EDA Business Continuity project for the past two years, Maureen was instrumental in integrating this specialty program into First Step programming, planning templates, and client consulting. Most recently, she presented at the America’s SBDC national conference as part of the network team that carried out this critical project. Furthermore, over the past three years Maureen has been instrumental in developing Bucknell University SBDC’s student entrepreneurship programming, including a customized “First Step: Starting a Business” presentation featured in several management and engineering courses at Bucknell. She also serves student clients as they compete in the annual Business Pitch Competition. In 2014, the Bucknell SBDC was recognized with a Barry R. Maxwell Award, Bucknell’s premiere institutional recognition for excellence in cross-functional collaboration, given for inspiring entrepreneurship and innovation in Bucknell students. In addition, Maureen also extends her outreach to younger aspiring entrepreneurs where she served as a Team Leader for the future Business Leaders of the Susquehanna Valley (BLSV), program for teams of high school students interested in economic and community development. She frequently speaks to groups of young entrepreneurs at Bucknell University and area high schools. Every year, one top performer from each state within the national network of SBDCs is recognized for his or her contributions to his or her SBDC program. Each top performer is awarded the “State Star” designation for his or her state at America’s SBDC Annual Conference. Employees are chosen for their exemplary performance, making a significant contribution to their state or regional SBDC program, and for showing a strong commitment to small business. Key Personnel Changes The following hires of key personnel occurred in 2015 across the Pennsylvania SBDC network: • Dorothy Lane, director of the Wilkes University SBDC • Lenin Agudo, director of the Widener University SBDC 1200 SUCCESS STORIES See Appendix B – Success Stories.
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1300 TRAVEL Out-of-State travel expenses not included in the original 2015 proposal that occurred during this reporting period include: • The associate director of the Kutztown University SBDC traveled to the National Council of University Research Administrators Annual Conference in Washington DC in August 2015. •
The director of the Latino Business Resource Center and two business consultants from the Kutztown University SBDC attended a one-day training hosted by the International Business Innovation Association (InBIA) in New Jersey in December 2015.
1400 PROBLEMS Funding uncertainty continues to be a problem for the entire Pennsylvania SBDC network. The FY 15-16 state budget was not enacted in full in 2015 leading to significant uncertainty about state matching funds. Level state funding for the past four years has made it difficult to meet the continued demand for one-onone consulting and provide the same level of programming to small business owners and aspiring entrepreneurs, especially those looking to launch a new venture. State budget turmoil has also caused increased uncertainty for staff and led to staff turnover. Many Centers report staff positions remain unfilled due to the lack of funds. Centers have also had to cut back programming, outreach locations as well as reduce marketing and promotion related to services due to funding concerns and limited staff time. Many centers report that demand for services is high but the capacity to deliver services to clients has declined thus extending the time it takes until clients can be seen by SBDC consultants. 1500 FINANCE All invoices for 2015 have been submitted for processing at the time of this report. 1600 WOMEN’S BUSINESS DEVELOPMENT The Pennsylvania SBDC continued to support women-owned businesses through targeted outreach, personalized consulting, and educational programs in 2015. 61 percent of all clients represented women- and jointly-owned businesses. Examples of outreach and successes include: •
In March, Kutztown SBDC assistant director served as the host and moderator for a panel discussion titled “Entrepreneurial Women: Insights on Women as Entrepreneurs.” The panel featured keynote speaker Jen Groover, Jump Start Incubator Director June Clougher, and SBDC client Olivia Knowles of Brain Bug magazine.
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The University of Scranton Women’s Entrepreneurship Center (WEC), a partnership between the SBDC and the Kania School of Management (KSOM) was established in 2009. The program offers women with lower incomes, those in transition or those trying to make a better life for themselves and their families, support and guidance in determining if entrepreneurship is an option for them. Highlights this year include: o
Eight University of Scranton students completed WEC internships, assisting with program development and presentation, business consulting, writing blog posts, promoting WEC on local radio and television shows, and contributing articles to the Northeast Pennsylvania Business Journal. Some of the women featured in 2015 articles include Megan Alpert of Alpert, Yanoski & Associates; Meegan Possemato, On&On Vintage Marketplace; Linn McDonald, Linn McDonald School of Dance; Katharine JANUARY – DECEMBER 2015 | Annual Report | Page 30
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Schkloven, Spirited Art; Trish Dickert, Terra Preta; Maggie Calpin Hemak, Nibbles & Bits; Nadine Bryant, Freedlove; Lisa Criscera, L.C. Solutions LLC; Donna Czarkowski, Cloe & Company; and Joan Longworth, Longworth’s Family Restaurant. o
27 women completed StartUP, an educational program series designed to give lower income women the step-by-step guidance needed to develop successful small businesses. Participants in this interactive program learned start-up basics, legal and insurance considerations, marketing and social media essentials, business plan development, accounting and budget skills, financing options and requirements, and goal setting. Local women business owners also visited the sessions to share their experiences.
Elizabeth Nagy, NBT Bank assistant VP marketing & communications and Francene Dudziec, Scranton SBDC special projects coordinator, are pictured with participants of The University of Scranton Women’s Entrepreneurship Center StartUP series.
o
WEC launched a new program, Coffee & Confidence, a free confidence boosting information session for women interested in exploring the idea of starting their own businesses. Three sessions were held with a total of 20 attendees. Each session featured a guest mentor to share her story and offer encouragement, including Mary Tellie, a local entrepreneur, coffee specialist and founder of Electric City Roasting Co. and Alison Skoff, a personal development coach.
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Staffed an information table about WEC programs and recruited mentors among the professional women attending the Greater Scranton Chamber of Commerce Women’s Conference.
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Partnered with Scranton Area Foundation Women in Philanthropy, assisting in the development of a Financial Confidence curriculum, which was offered as a module in the WEC StartUP program. Incorporated WIP into WEC educational programs to share information about their micro loan with attendees.
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The new programing initiated by the Gannon University SBDC in 2014 for its Women in Leadership Development (WILD) continued this year focusing on leadership education in three tracks: Women Business Owner/Entrepreneur, Executive Leadership and Rising Leaders. Nine sessions were held and well attended by the participants focusing on topics instrumental in career development, entrepreneurship and leadership.
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SBDC client Susan Castriota, owner of Cuchina Safe LLC, was selected as the winner of the SBA InnovateHER Business Plan Competition, from Western Pennsylvania. InnovateHER is a crosscutting prize competition created by the SBA with efforts to uncover and support innovative products and services that help impact and empower the lives of women and families. As a local host, the University of Pittsburgh SBDC received 13 applications from entrepreneurs throughout the region. The judging committee selected Susan Castriota, owner of Cuchina Safe, LLC as Western Pennsylvania’s representative to continue on to the national competition. SBDC consultants were included as judges of the contest. JANUARY – DECEMBER 2015 | Annual Report | Page 31
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In 2015, collaborations were developed with organizations that provide assistance to female entrepreneurs by the Temple University SBDC. Some of these included the following: Temple University’s League of Entrepreneurial Women, Healthy Caregiver Community Foundation, Women of Vision and Women’s Opportunity Resource Center. The SBDC collaborated with the aforementioned organizations to host events and/or disseminate information about business resources for women entrepreneurs.
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S & T Bank hosted a Women in Business seminar in Brookville, Jefferson County, at Pinecrest Country Club on April 28. This was S & T Bank's first event celebrating women in business and featured speakers and networking opportunities. The speakers gave presentations on the challenges, impact, and importance of women in business. Speakers included Becky Stapleton, chief banking officer of S & T Bank; Amy Heinl, deputy chief risk officer, S & T Bank and National Spokesperson for the American Heart Association's Go Red for Women; Amy Keth, SBDC business consultant; Julie Peer president of Penn Highlands-Brookville Hospital, and Shannon Sottile, regional financial planner, S & T Financial Services.
Left to Right: Amy Heinl, Amy Keth, Melissa Dunkel, S & T Bank Commercial Lender and event coordinator, Becky Stapleton, Julie Peer, and Shannon Sottile.
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In 2015 the Bucknell University SBDC served as a regional host for the SBA’s National InnovateHER Business Challenge. Client Mary Tiffin of Mangata was recognized as the winner in a ceremony hosted by Representative Lynda Schlegel-Culver and was nominated for the next round of this national program, with a shot at a $40,000 grand prize. A press release was distributed as part of the event garnering numerous media mentions.
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In October 2015, the Penn State SBDC participated in the sixth annual Entrepreneurial Women’s Expo held in State College, PA. The Expo was coordinated by a former client of the Penn State SBDC who is a woman. The SBDC displayed its booth and discussed SBDC services with the women business owners. At this time, it is the only all-women business Expo being offered in central Pennsylvania. In addition, 65 women, many of whom were local business owners or students with entrepreneurial aspirations, attended the second annual Women’s Entrepreneurship Day lunch during Global Entrepreneurship Week. The Wednesday of GEW is nationally declared Women’s Entrepreneurship Day and as much as possible, Penn State GEW offers women-centric events on that day with the lunch as the highlight, sponsored this year by Pennsylvania State Employees Credit Union.
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1700 ECONOMIC IMPACT For examples of the impact of the Pennsylvania SBDC network, see the deliverables section following this narrative report. 1800 VETERAN BUSINESS DEVELOPMENT During this reporting period, the SBDCs supported a total of 282 veterans and 74 service-disabled veterans, and educated another 433 veterans in seminars. Many Centers continue to offer no-charge or reduced admission to veterans who attend educational programs. In addition, the network’s Lead Office participates in the quarterly Boots to Business 2-day TAP Intensive training sessions held in Carlisle by delivering module 7: Moving Forward – Business Planning. Each session has an average of 15 attendees. Examples of outreach to veterans this year include: •
The Temple University SBDC was once again invited to participate in a special event developed for female veterans. The Healthy Caregiver Community Foundation, a local community outreach and advocacy organization that the SBDC has worked with in the past, served as the representative for the Women’s Veterans Rock initiative on the east coast. This special event targeted at female veteran entrepreneurs was designed to provide information about resources available in the Philadelphia area for starting a business. The Temple SBDC was invited to participate in this event to share information about services available to veterans. A representative from the SBDC served as a guest speaker at the event which was held in Chestnut Hill, Philadelphia. There were over 100 female veterans who attended the event. The title of the event was “Women Veterans Rock.”
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The Temple University SBDC’s procurement specialist also participated in an event designed to educate veterans about how to market their goods/services to the public/private sector. The event was targeted to Service-Disabled Veteran Owned Businesses as well as Veteran-Owned Small Businesses. The event was held in Philadelphia and presentations were made by representatives of the Temple SBDC, General Services Administration and the U.S. Small Business Administration. There was also a panel discussion comprised of business owners who have been very successful marketing their goods/services to federal and state agencies. The event was very well attended.
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The Kutztown University Office of Veteran Services hosted “Boots to Entrepreneurship” on August 19 at the Kutztown University campus to assist veterans and their families with starting a business. The event was sponsored by the Kutztown University SBDC, SBA, SCORE, the Northeast Berks Chamber of Commerce, FranNet Franchise Experts, the Berks County Department of Veterans Affairs, Wells Fargo SBA Lending and the Pennsylvania Community Development and Finance Corporation. Mark Rentschler represented the SBDC on the panel. Topics for the program included choosing the right type of business, utilizing free business planning resources and financing programs available for veterans.
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Duquesne University SBDC’s global business program manager was invited as a panelist for the National Veteran’s Conference which was held at the Pittsburgh Convention Center on November 18-20. The topic presented was “How Veteran Businesses can Enter the Export Market.” The Duquesne University SBDC also has an active relationship with the Veterans Business Center located in the Northside Incubator, Riverside Center for Innovation, staffed by a retired SBA employee who is a dedicated veteran who actively recruits veterans. The SBDC has ongoing JANUARY – DECEMBER 2015 | Annual Report | Page 33
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communication with him and he refers Veterans to their conferences and appropriate training programs. •
The Southeastern Pennsylvania Procurement Technical Assistance Centers which are hosted by the Pennsylvania SBDC program held its 10th Annual Veteran Business Training and Outreach Conference in October 2015. The event was held at the Delaware Community College and coorganized by the Widener University SBDC. The event attracted more than 100 veterans from the region and was focused on procurement-ready Veteran and Service-Disabled Veteran Owned Businesses.
1900 MANUFACTURING The Pennsylvania SBDC has a long history of providing assistance to manufacturers, a significant industry in Pennsylvania. The SBDCs continue to focus on marketing plans and marketing research to help manufacturers find new customers at home and abroad through international trade and government marketing. In addition, the SBDCs provided financial analysis assistance to help manufactures identify operating efficiencies and to reduce costs, and refer them to the Environmental Management Assistance Program as needed. In 2015, 781 manufacturers, representing 12 percent of the total client base turned to the SBDCs for such assistance. Examples of specific assistance provided include: •
The Temple University SBDC participated in regional manufacturing alliance initiatives established in Southeastern Pennsylvania designed to encourage Pennsylvania manufacturing companies to consider reshoring as an option for conducting business. The regional Alliance for Manufacturing Progress Team (RAMP-It-Up) held a joint forum in conjunction with Team Montco in October. The event was held in Hatboro, PA. The main topic was designed to educate manufacturing businesses about the resources offered by the RAMP-It-Up Team. The RAMP-ItUp consortium is made up of manufacturing alliances in the region, Select Greater Philadelphia and Southeast PREP.
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The Temple University SBDC also collaborated with Southeast PREP partners to promote Manufacturing Day in the Philadelphia area. As part of manufacturing day, the Delaware Valley Industrial Resource Center (DVIRC) which provides services to manufacturing companies in Southeast Pennsylvania organized a conference for manufacturers. The conference was held at the Simeone Museum in West Philadelphia. The SBDC had a resource table and shared information about the services offered by the SBDC.
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The Indiana University of Pennsylvania SBDC meets and cooperates with the Partnership for Regional Economic Performance, which was headed up by the Manufacturing Extension Partnership for the region, Catalyst Connection. In connection with this the SBDC participated in a survey of manufacturers in their service area relative to job training needs. The SBDC also supported their efforts to have its region qualified under the Investing in Manufacturing Communities Partnership (IMCP). That effort succeeded and The Greater Pittsburgh Metals Manufacturing Community was one of 12 regions nationally selected by the Department of Commerce. The 12 designated Manufacturing Communities will receive coordinated support for their strategies from eleven federal agencies with more than $1 billion available in federal economic development assistance.
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On May 7, Gannon University SBDC senior consultant attended the Ben Franklin Big Idea ceremony for their business plan contest at Knowledge Park. One of the SBDC’s clients, Mary Jo Light at Integrated Machine, won a $10,000 grant for her second place finish. The Gannon SBDC reviewed the client’s business plan before submission. The grant along with loans, will JANUARY – DECEMBER 2015 | Annual Report | Page 34
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allow the manufacturer to purchase inventory and machinery to develop safer and environmentally friendly hose couplings used in water and waste water transport. •
The University of Scranton SBDC participated in the grand opening of Carbondale Technology Transfer Center’s (CTTC) Electronics Incubator. The electronics maker space will help regional entrepreneurs fabricate circuit boards, prototypes or small runs of electronic circuit boards. The SBDC has a long partnership with CTTC, which will continue as they provide tenants of this new space with small business assistance.
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On December 4, Gannon University SBDC senior consultant attended a tour at Erie Molded Plastics, a former SBDC client. Participating in the event was Representative Mike Kelly, as well as several economic development partners. There was a ribbon cutting ceremony for the new piece of machinery the client purchased with funds from Erie Bank in 2015. Everyone was given a tour of the manufacturing facility located in Fairview, PA. The company has 21 presses, over 50 employees, and a solid reputation of high quality, on-time, and competitively priced parts to industries including housewares, electronics, pharmaceuticals, and more.
2000 ONLINE ACTIVITIES Businesses without an online presence in 2015 are at a competitive disadvantage in many ways, and the SBDC continues to educate business owners on ways to get online, improve their digital presence and deploy strategies to broaden their market base. Education and consulting on social media platforms, eCommerce, and online marketing continue to be in high demand. Marketing and sales—and social media in particular—continue to be among the most requested topics for educational programs. In addition, the Centers have concentrated on more online resources to compensate for the decrease in available consulting resources. All Centers have moved the client engagement process online by receiving Requests for Counseling and Client Confidentiality forms through eCenter and email. •
In September 2015, The University of Scranton SBDC launched its first mobile app. With options for both startup and existing small businesses, features include questions and guidance on pertinent topics, links to worksheets, handouts, online tutorials, and upcoming SBDC training events. The app is available in Google Play (17 installs) and the iTunes App Store (91 views, 49 downloads). In 2015, The University of Scranton SBDC also produced and shared eight client testimonial “Success Story” videos and two SBDC programs and services videos. These videos were shared on the SBDC’s YouTube channel and various social media throughout the year.
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Shippensburg University SBDC consulting manager, was a guest blogger with the Chambersburg Chamber of Commerce in the spring of 2015. The blog posts focused on issues that many preventure entrepreneurs will encounter and was titled, “Steps to Starting a Small Business.” In addition to sharing business information, the blog also directed folks needing technical assistance to contact the SBDC. In addition, on June 17, SBDC personnel were the guests on Shippensburg University’s Twitter hour – #AskShip. @ShipSBDC took over the account and responded to entrepreneurial and small business questions from followers. Much of the session involved inquiries about the services and programs offered by the SBDC as well as queries regarding the territory we serve. Some questions were related to the specifics of researching and planning to start a business and there were also testimonial comments from clients related to the value of the SBDC services and the appreciation for SBDC services.
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The Lock Haven SBDC is partnering with Google on their newest initiative, Let’s Put Our Cities on the Map, which is a program designed to empower communities to support their local businesses and encourage them to get online and listed on Google Maps. Let’s Put Lock Haven and Williamsport on the Map is now part of the Center’s ongoing partnership with Google’s Get JANUARY – DECEMBER 2015 | Annual Report | Page 35
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Your Business Online program and aims to bring community members, business owners, and civic leaders together to help small businesses succeed on the web. The SBDC will utilize these resources locally in conjunction with the Lock Haven River Town initiative to help established and new businesses increase their digital marketing presence, as well as through educational program offerings in both Clinton and Lycoming Counties. •
This year the Lehigh University SBDC invested in developing and regularly maintaining its web and social media presence. While the Center had a webpage and social media sites beforehand, they were not consistently managed or utilized to their fullest extent. The SBDC’s Facebook, Twitter, and LinkedIn profiles were unified so the SBDC could have seamless, consistent, multiplatform communication with their followers and stakeholders. The SBDC engaged with their followers, posting more frequently, including educational programs and other events, along with informational articles to keep clients aware of changes and trends in the small business world. This outreach has gained the SBDC messages and followers from the Secretary of the Department of Community and Economic Development, Congressman Charlie Dent, Lehigh University, and other federal and state agencies.
2100 ENVIRONMENTAL MANAGEMENT ASSISTANCE PROGRAM (EMAP) With funding from the Pennsylvania Department of Environmental Protection (DEP), the Pennsylvania SBDC is the primary provider of multi-media small business environmental and technical compliance assistance in Pennsylvania in fulfillment of the requirements of the Pennsylvania Air Pollution Control Act and section 507 of the federal Clean Air Act, and as authorized under the Pennsylvania Small Business and Household Pollution Prevention Program Act. The Environmental Management Assistance Program (EMAP) is a no-cost, confidential statewide service. During 2015 EMAP provided environmental consulting assistance to 278 small businesses. Of these businesses, 161 small business owners entered consulting engagements with the SBDC and EMAP consultants conducted on-site assessment visits at 39 of these businesses located throughout Pennsylvania. EMAP continues to be a leader in understanding and addressing small business environmental compliance issues. At the state level, the EMAP director is the vice-chair of the DEP Small Business Compliance Advisory Committee. At the national level, one of the EMAP consultants serves on the National Steering Committee. Also at the national level, the EMAP director co-chairs the Shale Energy Interest Section of the Association of Small Business Development Centers. To maximize services to clients, EMAP funding continued to be directed toward the delivery of one-onone consulting, primarily responding to calls to the EMAP hotline and other requests for EMAP services. EMAP services continue to be critical to help keep existing businesses in compliance and in business and start new companies with all necessary permits and approvals in place from the start. EMAP assisted small businesses with: •
Preparing emissions calculations and understanding which equipment may be subject or exempt from regulatory requirements.
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Understanding and preparing permit applications for air, waste, water, wastewater and storm water.
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Recordkeeping/Reporting – setting up and fine tuning recordkeeping and reporting systems to comply with permit requirements and other air emission requirements. JANUARY – DECEMBER 2015 | Annual Report | Page 36
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MACT/NESHAP area source applicability reviews and notifications – helping small businesses understand what they need to do to comply with regulatory requirements.
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Finding alternative materials or processes which may reduce the small business’s regulatory burden.
Some of the highlights during 2015 included: • With new funding from the Allegheny County Health Department, EMAP has added an additional consultant to specifically be located in and serve southwestern Pennsylvania. In addition to Allegheny County, the consultant will service an additional 10 counties in southwestern Pennsylvania. •
Continuing to assist with Act 76 of 2012 (HB 1349) small business impact reviews including providing numbers and lists of small business that may be impacted and subsequent outreach on proposed regulations so small businesses have an opportunity to comment.
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Helping small businesses better understand residual waste regulations through the development and distribution of a new EMAP brochure addressing and explaining common residual waste issues small businesses encounter. This was followed by a joint educational webinar with the NFIB and EMAP held November 9.
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Developing an informational webpage which focuses on regulatory and permitting requirements for surface coating operations.
The Pennsylvania SBDC also received a Source Reduction Grant EPA in 2014 and completed the project in 2015. EMAP staff traveled to Region 8 states to share best practices for small business sustainability in active shale regions. Educational workshops were held in Montana, Colorado and North Dakota, partnering with the SBDCs and SBO/SBEAPs in those states. Follow-up E3 site assessments were also conducted at a few local businesses active in the shale energy supply chain. CONCLUSION In 2015, the Pennsylvania SBDC continued its record of success in working with small businesses and aspiring entrepreneurs by exceeding all SBA goals.
Long-term Clients New Business Starts Capital Infusion
GOAL 2,111 450 $116,000,000
ACTUAL 2,524 (120% of Goal) 519 (115% of Goal) $145,654,932 (125% of Goal)
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