2017 INTERIM REPORT JANUARY 1, 2017 - JUNE 30, 2017
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
2017 INTERIM REPORT JANUARY 1, 2017 – JUNE 30, 2017
Submitted by the University of Pennsylvania under Cooperative Agreement SBAHQ-17-B-0057
7/28/2017
TABLE OF CONTENTS
MISSION ........................................................................................................................................ 1 PENNSYLVANIA SBDC LOCATIONS....................................................................................... 1 IMPACT ......................................................................................................................................... 2 2017 GOALS v. ACTUALS ........................................................................................................... 2 SUMMARY OF SBDC SERVICES .............................................................................................. 2 100 CAPITAL FORMATION ........................................................................................................ 4 200 INNOVATION, TECHNOLOGY TRANSFER, AND TECHNOLOGY ASSISTANCE ..... 5 300 INTERNATIONAL TRADE ................................................................................................... 6 400 PROCUREMENT .................................................................................................................... 8 500 MANUFACTURING ............................................................................................................ 10 600 SPECIAL EMPHASIS GROUPS .......................................................................................... 10 Energy Industry ......................................................................................................................... 10 Cybersecurity ............................................................................................................................ 11 700 MINORITY BUSINESS DEVELOPMENT ......................................................................... 12 800 WOMEN’S BUSINESS DEVELOPMENT .......................................................................... 13 900 VETERANS, RESERVISTS, SERVICE-DISABLED VETERAN-OWNED BUSINESSES AND ALL OTHER MEMBERS OF THE U.S. MILITARY ....................................................... 14 1000 RURAL ASSISTANCE ....................................................................................................... 14 1100 ECONOMIC DEVELOPMENT, FAITH BASED AND COMMUNITY INITIATIVES . 15 1200 RESEARCH......................................................................................................................... 16 1300 ONLINE ACTIVITY ........................................................................................................... 17 1400 OTHER ACTIVITY ............................................................................................................ 17 1500 SUCCESS STORIES ........................................................................................................... 18 1600 ADVOCACY ....................................................................................................................... 19 1700 RESOURCE DEVELOPMENT .......................................................................................... 20 1800 COLLABORATING AND LEVERAGING ....................................................................... 20 1900 UNPLANNED TRAVEL .................................................................................................... 20 2000 KEY PERSONNEL CHANGES ......................................................................................... 21 2100 PROBLEMS ........................................................................................................................ 21 2200 BUDGET TO ACTUAL COMPARISON........................................................................... 21 2300 ECONOMIC IMPACT ........................................................................................................ 21 2400 ENVIRONMENTAL MANAGEMENT ASSISTANCE PROGRAM (EMAP) ................ 21
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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. The SBDC utilizes a staff of experienced professionals to serve their customers in both traditional business assistance as well as offering specialized consulting. So far in 2017, the SBDC delivered 36,453 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, 3,503 individuals and firms benefited directly from 236 educational programs. MISSION The mission of the network of Pennsylvania SBDC is to provide entrepreneurs and small business owners with the knowledge needed to make smart decisions and prosper. 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
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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 the first half of 2017, the Pennsylvania SBDC network reported the following outcomes: • • • •
Bought/Started a Business Jobs Created + Retained Increased Sales (domestic) Increased Sales (int’l)
• • •
192 759 $6,209,692 $21,437,687
SBA Loans (15) Non-SBA Loans (121) Equity Capital (108)
$18,840,800 $37,791,560 $17,770,826
2017 GOALS v. ACTUALS
Long-term Clients New Business Starts Capital Infusion
GOAL 2,233 528 $162,420,000
ACTUAL 1,822 249 $75,041,726
SUMMARY OF SBDC SERVICES
Consulting In the first half of 2017, the Pennsylvania SBDC served 3,951 entrepreneurs and small business owners through a total of 36,453 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 Marketing/Sales Managing a Business Start-Up Assistance Financing/Capital Buy/Sell Business Engineering R&D International Trade Business Accounting/Budget Social Media Human Resources/Employee Mgt. Legal Issues Cash Flow Management Exporting Technology/Computers eCommerce Govt Contracting 0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
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Education The Pennsylvania SBDC network collectively educated 3,503 individuals in 236 seminars and workshops in the first six months of 2017. JANUARY – JUNE 2017 | Interim Report | Page 2
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Demographics Individuals assisted by the Pennsylvania SBDC in the first half of 2017 represented Pennsylvania’s diverse populace. 70 percent of clients assisted were woman- and jointly-owned firms and 16 percent identified as minorities. Clients also represent a variety of industries as shown.
Business Ownership No Response 3%
Both (Male/Female) 49%
Client Ethnicity
No Response 17% Female 21%
Hispanic 4%
Non-Hispanic 79%
Male 27%
Industry Sector
Service 35%
No Response 32%
Wholesale 2% Construction 3%
Retail 11% Not in Business / Other 6%
Veteran Clients
ServiceDisabled Veterans 1%
Manufacturing 11%
Native American <1% Asian 3%
Veterans 5%
No Response 45%
Client Native Hawaiian No Response <1% 13%
Racial Diversity
African American 13%
Non-Veteran 49%
White 70%
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100 CAPITAL FORMATION For the first six months of 2017, entrepreneurs attempting to raise capital have continued to receive a welcome response from banks and lenders. Banks, Credit Unions, and community lenders continue to seek good projects to finance. Borrowers continue to face challenges when seeking capital, however. It is common for bankers to disqualify certain businesses for financing, whether due to the start-up nature of a new business or weak financial picture of an existing business. Small business owners are utilizing online lending platforms now more than ever. While easier to obtain, and more accessible, online marketplace lending platforms continue to increase in popularity. However, these platforms often present business owners with unconventional options that may be confusing than traditional debt. It is important that clients understand interest rates and payback terms. Businesses that have taken on expensive debt often run into cash flow issues, followed by difficulty refinancing debt due to the absence of collateral or equity. Calls for action have been made in order to protect business owners, including clearly stated interest rates. Consumer/business protection in this area is limited. Examples of client success stories relating to capital formation can be found in Appendix B. So far this reporting period, 15 SBA-guaranteed loans were approved, totaling $18,840,800. As for non-SBA loans, 121 were approved for a total of $37,791,560. Examples of other capital formation activities include: •
The Clarion University SBDC continues its work with lenders through an initiative to form closer relations with the region’s financial institutions. To date, presentations have been made to financial institution representatives from 15 of the 22 banks and credit unions in the Clarion University SBDC’s 10 county region. These representatives included branch managers, business bankers, mortgage specialists, and business services specialists. All Clarion University SBDC business consultants participated in giving these presentations, which included an overview of the SBDC services, resources and tools as well as a few success stories. A sample client portfolio was created and distributed to each representative to showcase the resources available through the SBDC and how valuable they are to both start up and existing businesses. Following each presentation, the SBDC fielded many questions from the bankers and then engaged them in a discussion to discover how the SBDC can help the bankers serve their clients better. The goal of this initiative was to identify how the SBDC could enhance their work with clients to strengthen their relationships with the bank representatives and show them how the SBDC services go beyond the business plan. See event photo above.
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The director of the Indiana University of Pennsylvania SBDC was chosen to serve on the loan committee and the Board for the Regional Development Funding Corporation, one of SBA’s largest lending partners and has participated in the review and approval of over 10 million dollars in loan volume through the SBA during the first half of the year.
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In March, the Kutztown University SBDC held the Berks County Lenders Roundtable held at the Berks County Community Foundation building. A Kutztown University SBDC consultant, in conjunction with Kimberly Stout from SBA and Marie Shires from Pennsylvania Community Development and Finance Corporation planned and conducted this event to update commercial lenders in Berks County on various federal and state loan programs. See event photo at right.
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The annual 2017 Lock Haven SBDC Lender’s Roundtable was held in June to discuss current economic issues and commercial lending updates, with 28 participants in attendance including local University/Foundation officials, state legislative staff, lenders from several local banks, the Small Business Administration, Seda-COG, the City of Lock Haven and the Downtown Lock Haven/Main Street Program. Resources and organizations that were featured during the event included presentations from PennTAP and an update to lenders from the Eastern Pennsylvania District Director of the Small Business Administration regarding SBA loan activity in the region and new initiatives geared toward lender relations. The event was held at a client special event venue, the Bush House Estate, a recently renovated property built in the early 1800’s and located in Muncy, Lycoming County.
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The director and senior business consultant of the St. Francis University SBDC attended the annual Western PA Association of Small Business Guaranty Lenders “2017 Lenders Quality Circle.” The session focused on various aspects of small business lending. The director of the SBDC is part of the organization’s board of directors and assists in the planning and implementation of the event.
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The Temple University SBDC continued to increase its outreach efforts to financial institutions and participated in events designed to educate business owners about access to capital in the Philadelphia area. Most of the SBDC’s new contacts were made at networking events which were followed up by individual meetings with lenders. In each of these meetings/encounters, the SBDC made a presentation about our services and operations. The SBDC also learned about new resources, how these institutions operated and the type of projects that could be funded. The SBDC participated in April’s Meet the Lenders, which was organized by the Small Business Administration Philadelphia 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 the center’s services. The event was held in King of Prussia. The SBDC worked with the following lending institutions: Customers Bank, 504 Company, United Bank, M & T Bank, Philadelphia Federal Credit Union (PFCU), Finanta, Santander, TD Bank and DNB (previously East River Bank).
200 INNOVATION, TECHNOLOGY TRANSFER, AND TECHNOLOGY ASSISTANCE The Pennsylvania SBDC continued to offer confidential, no-fee technology services which include a fully integrated statewide service designated as a Core Service in the Strategic Plan and Key Markets and Services. In addition, the Pennsylvania SBDC is one of only 12 SBDC programs nationwide with “T” accreditation, receiving supplemental technology accreditation in 2006, 2011, and 2015. JANUARY – JUNE 2017 | Interim Report | Page 5
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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 the past six months, technology consultants provided 427 hours of consulting to 92 small firms looking to advance, protect, and commercialize their research, innovations and new technology. Examples of Center-specific technology and innovation activities include: •
The Duquesne University SBDC has a consultant certified in Technology Commercialization (CTC) having completed an accredited online course of study at the University of Texas. In May, the consultant attended the SBIR National Conference in Washington, DC and had the opportunity to meet several representatives from the various federal agencies. In the last several months the consultant has initiated consultation services with four technology based companies. Three of were referred by Carnegie Mellon University (CMU) and one from the Duquesne University School of Business. All have expressed interest in either applying for SBIR or STTR funds. In addition they have also expressed initial interest in being considered for the pre application phase as sponsored by Innovation Partnership (I-Part). The Principle Investigators (PI’s) had little knowledge of either SBIR/STTR or I-Part. The consultant was able to educate and acquaint them with these programs and will act as a liaison/resource to them as they enter into each stage of the application and submission process.
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The Temple University SBDC continued to network with various organizations that provide services to entrepreneurs with technology related businesses. The SBDC received referrals from organizations that ranged from start-up issues to identifying capital for research and development. The SBDC continued to connect entrepreneurs with available technology resources that are available within the Pennsylvania SBDC network whenever the need arose. Examples of clients serviced include: Working with two clients providing assistance in developing proposals in response to SBIR solicitations from DoE and NIH. The technologies covered the areas of wavegenerated utility-scale electrical power and an innovative approach to treating inflammatory diseases (e.g. psoriasis, rheumatoid arthritis). The SBDC assisted these clients by providing information to apply for proposal writing grants from Innovation Partnership to support their SBIR solicitation responses.
300 INTERNATIONAL TRADE The emphasis for U.S. companies to expand their international markets continues to increase, and statistics demonstrate that companies that export create jobs at a faster rate than companies that do not. Also, export related jobs pay more in benefits and wages than comparable jobs at a non-export firm. These are facts that we give out to our clients to help them better understand the importance of exporting, and the value-add for their bottom line as well as the U.S. economy. We also strive to raise awareness of the resources provided through the government and private sector to assist with exporting. Those JANUARY – JUNE 2017 | Interim Report | Page 6
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resources include the Pennsylvania Office of International Business Development resources, USDOC, the SBDC International Program, SBA Export Finance Program, EXIM Bank, Export.gov, to just name a few. From January 1, 2017 to June 30, 2017, the SBDC consulted with numerous clients on international trade issues while executing 10 export-related educational programs that were attended by 139 individuals. 13 clients reported an increase in export sales, totaling $21,437,687 during the first half of 2017. During this reporting period, 121 clients received exporting assistance. SBDCs recorded six referrals to the Pennsylvania Regional Export Network, other Federal Agencies, and the U.S. Department of Commerce. 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 19 out of 117 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 the first half of 2017): 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.
Darlene Atta, Temple University SBDC (full-time), SBA/TPCC certified, 2014 Martin Brill, Kutztown University SBDC (full-time), NASBITE certified, 2006 Robin Burtner, Shippensburg University SBDC (full-time), SBA/TPCC certified, 2012 Reed Byrum, Bucknell University SBDC (full-time), SBA/TPCC certified, 2015 Lindsey Gilkes, University of Pittsburgh SBDC (full-time), SBA/TPCC certified, 2012; NASBITE certified, 2013 Vickie Gyenes, Saint Vincent College SBDC (full-time), NASBITE certified, 2006 Brenda Holdren, Lock Haven University SBDC (full-time), NASBITE certified, 2012 James Kunkel, Saint Vincent College, SBDC (full-time), NASBITE certified, 2013 Cora Landis, Lehigh University SBDC (full-time), SBA/TPCC certified, 2012 Dorothy Lane, Wilkes University SBDC (full-time), SBA/TPCC certified, 2015 Mary McKinney, Duquesne University SBDC (full-time), SBA/TPCC certified, 2012; NASBITE certified, 2013 Miranda Mease, Clarion University SBDC (full-time), SBA/TPCC certified, 2014 Jill Newcomer, Gannon University SBDC (full-time), SBA/TPCC certified, 2013 Tony Palamone, Indiana University SBDC (full-time), SBA/TPCC certified, 2012 Brent Rondon, Duquesne University SBDC (full-time), NASBITE certified, 2007 Brett Smith, Lehigh University SBDC (full-time), SBA/TPCC certified, 2016 Donna Simpson, University of Scranton SBDC (full-time), SBA/TPCC certified, 2012; NASBITE certified, 2015 Maria Spencer, Penn State University SBDC (part-time), SBA/TPCC certified, 2012 Mary Beth Zingone, Lehigh University SBDC (full-time), SBA/TPCC certified, 2012
Examples of activities in international trade activities occurring at the Center level so far in 2017 include: â&#x20AC;˘ The Duquesne SBDC is in the third year of a three year Market Development Cooperator Program (MDCP) grant from the U.S. Department of Commerce to assist small and medium sized construction and infrastructure firms to trade to the Pacific Alliance countries of Latin America (Mexico, Chile, Peru and Colombia) which are the fastest growing economies, have free trade agreements with the U.S. and score very high on the scale for liberty and economic freedom. The programs have been progressing well and the SBDC is generating the required deliverables for each of the programs. They have completed a trade mission focused on the Water Industry to Peru from May 15-19, are planning to take four firms to a trade mission in Mexico from July 1014 and are currently recruiting firms to attend a trade show for mining in Peru from September 18-22. JANUARY â&#x20AC;&#x201C; JUNE 2017 | Interim Report | Page 7
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In March the director and business consultant of the Duquesne University SBDC attended the NASBITE national annual conference where they chaired and presented a panel workshop titled “Business Growth Sectors and Trade Opportunities in Latin America: A Panel Discussion in cooperation with representatives from U.S. Department of Commerce and EXIM Bank. Also, a client of the EXIM Bank in Spokane, Washington also described his experience in trading with Latin America which a growing market. In addition, the Duquesne University SBDC director continues to serve on the NASBITE Board of Directors for a three year period.
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So far this year, the Lehigh University SBDC has been successful with two training seminars. They began in February with an Export 101 webinar and had 40 registered. They followed that up with Mike Allocca doing an Export 201, which was a nice follow-on to the basics. It was more in-depth and included a comprehensive manual. The evaluations on both were very good to excellent.
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Saint Vincent College SBDC hosted its Annual Global Growth Conference on May 9 at the Fred Rogers Conference Center. 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. Presenters included: Jim Anzalone, President of Compliance Assurance, LLC from Palm Beach, Florida; Susanne Cook, Esquire and Megan Finkelstein from Cohen & Grigsby P.C. The keynote luncheon speaker was Dominic O’Brien of the Port Authority of Philadelphia.
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In addition to conducting outreach programs for consulting referrals, the Temple University SBDC International Business department hosted events designed to educate business owners about doing business overseas. In January, the SBDC hosted a networking event attended by forty Executive MBA students from the University of Ghana at Legon. Students were employed in executive positions in banking, NGOs, energy, construction and healthcare. Ten U.S. based businesses attended. The department also provided support to the U.S.-Ghana Chamber of Commerce Partnership and Networking event. Forty business owners from Ghana attended as well as thirty U.S. business owners.
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Additionally, the Temple University SBDC International Business department held a “Going Global Series Event – Doing Business in Qatar, Saudi Arabia, and the UAE.” Special guests from Saudi Aramco and the Saudi governmental standards board were in attendance as well as thirty businesses. Evaluations continue to indicate that business owners in attendance find these events beneficial. The Going Global event was co-sponsored by Temple University CIBER, the Small Business Administration, US Export Assistance Center, Pennsylvania Department of Community and Economic Development, and BDP. In addition, the SBDC coordinated a fivehour workshop as part of the Breaking into the Trade Game Export Seminars (BITTG) series.
400 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. One of the biggest changes for clients over the last six months/year is federal agencies moving more towards GSA Schedules, Government-wide Acquisition Contracts (GWACs), multiple-award vehicles, Blanket Purchase Agreements (BPAs), etc. As GSA is making its procurement data more transparent to all agencies, there is a greater push towards removing the silos of agency procurement to streamline purchasing as well as driving down costs. Small businesses will have to focus more of their efforts on JANUARY – JUNE 2017 | Interim Report | Page 8
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market research as agencies consolidate purchasing into these contract vehicles to ensure that they are on the vehicles most relevant to their business and not missing out on valuable purchasing opportunities by only searching for RFPs. Examples of specific SBDC participation in the procurement arena during the last six months includes: •
In May, selected Kutztown University SBDC clients were invited to PTAC sponsored event in Mechanicsburg. This event was the opportunity for the Navy to speak with clients with specific areas of expertise and have them present their capabilities. Kutztown PTAC participated in a Doing Business with the Navy event in Mechanicsburg. The Navy was specifically interested in small businesses that can provide manufactured small parts/repair parts as the contraction of the manufacturing sector has created some supply issues. Navy representatives were present and there was a Roundtable discussion led by Ms. Emily Harman, Director, U.S. Navy Office of Small Businesses Programs. Ms. Harman wanted to hear the issues that small businesses have in doing government business. Two business consultants from the KU SBDC hosted the event along with their PTAC colleagues at SEDA-COG.
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In April the Lehigh University PTAC hosted Doing Business with the Commonwealth of Pennsylvania. This was a back to back two part program. The first topic was COSTARS (The Commonwealth’s Cooperative Purchasing Program) and Selling to the State. The speaker was Kimberely Bullivant who is the marketing manager of COSTARS at Pennsylvania Department of General Services (PADGS). Topics included the program benefits of COSTARS; bidding opportunities; how to become a supplier; marketing tips; information about the Costars website. The second part of the session was titled, Doing Business with the Commonwealth. The speaker was Audrey Smith, Procurement Liaison from the PADGS, Bureau of Diversity, Inclusion and Small Business Opportunities Procurement Compliance Section. The presentation was designed to help small diverse and small business owners understand how to do business with the Commonwealth. Topics included an overview of the PADGS Small and Small Diverse Business Program, an introduction to the state procurement process, and how to find and respond to bidding opportunities.
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A business consultant with The University of Scranton SBDC was a panelist at Tobyhanna Army Depot’s Industry Day, this year dedicated to small business. The consultant presented SBDC programs and services to over 100 attendees. Attendees also heard briefings on Tobyhanna’s capabilities, received information about upcoming contracting opportunities, public to private partnering and learned from other small businesses that have become successful at federal contracting. Mr. Tommy Marks, director of small business programs, Office of the Secretary of the Army, Pentagon, Washington, DC served as the guest speaker. Tobyhanna Army Depot is a recognized leader in providing world-class logistics support for Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) Systems across the Department of Defense (DoD).
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During the first half of the year, the Temple University SBDC’s Procurement Technical Assistance Program (PTAP) served 148 clients for a total of 697 hours. The procurement center has a great record of attracting and retaining clients due to its proven results oriented outreach strategies. The procurement specialist collaborated with agencies and economic development organizations by co-sponsoring events targeted to business owners. Examples of events include the following: Doing Business in the City, HUBZone Small Business and SEPTA’s Meet the Primes. The procurement center also conducted several training events on various topics such as: Fundamentals of Government Marketing, Finding Federal Government Procurement Opportunities, and Proposal Preparation.
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500 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 (EMAP) as needed. So far in 2017, 491 manufacturers, representing 11 percent of the total client base turned to the SBDCs for such assistance. Examples of specific assistance provided to manufacturers include: •
Manufacturing, Education & Employment Advancement (MEEA) is a non-profit organization focused on supporting the advancement of education and employment in the manufacturing sector of Elk County and the surrounding region. The driving force behind the formation of this organization is the declining and aging population of Elk County and the increasing workforce needs. Elk County must increase its available workforce by up to 10,000 persons over the next 20 years to support expected growth in manufacturing. In February, an introduction of MEEA was given to representatives from DCED, Labor and Industry, North Central PREP, K-12 education, government, and workforce. MEEA identified immediate and evolving needs to be addressed both in the short term and long term. The Clarion University SBDC will continue to participate in these discussions to appropriately plug into the needs of these manufacturing businesses.
•
Hauk Designs LLC, of Chambersburg, PA, a long-term client and supporter of the Shippensburg University SBDC, has a new reality show on the History Channel titled “Road Hauks.” Kenny Hauk, owner and lead designer of Hauk Designs, works with his crew of expert mechanics and fabricators to build ultra-powerful, one-of-a-kind vehicles that look amazing and can go anywhere. Taking inspiration from iconic styles and designs throughout American history, these beautiful machines transform America’s rich past into modern, drivable, show-stopping creations.
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The Temple University SBDC supports manufacturing by working with organizations such as the Industrial Resource Centers (IRC), Manufacturing Alliance of Philadelphia, Manufacturing Alliance of Bucks & Montgomery Counties, and Urban Industry Initiative. Examples of collaborative efforts to support manufacturing clients include the following: 1.) Participated in the TeamMontCo Business Resources Forum in Limerick, PA. This event provided information to area manufacturing firms on initiatives to develop apprenticeship programs as well as educational opportunities available through a number of programs (including the SBDC) to provide training to current and prospective employees. 2.) Referrals and joint assistance projects have been established with Bucks County Economic Development Corporation, Montgomery County Development Corporation, and Ben Franklin Technology Partners to support area manufacturers with business strategy and new product development programs.
600 SPECIAL EMPHASIS GROUPS
Energy Industry •
As part of the Pennsylvania SBDC network’s Annual Professional Development Conference in Canonsburg, PA, the network hosted a coal track of programming to learn more about the changes in the coal economy. The full day session included speakers from the Southwestern Pennsylvania region working in coal communities, representatives from local economic development organizations, and business owners. The event discussed current and proposed plans for EDA/ARC’s POWER funding opportunity and showcased what SBDCs are doing to work with small business owners in these communities. JANUARY – JUNE 2017 | Interim Report | Page 10
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To date in 2017, the Clarion University SBDC worked with at least 10 clients that are looking to capitalize on the Shale Gas supply chain activity. The Clarion University SBDC has a designated business consultant that continues to gain more in depth expertise on doing business in this industry. This business consultant attends training events and networking expos hosted by various area economic development organizations in the western Pennsylvania region to keep up-to-date with the industry.
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The University of Pittsburgh began an implementation plan for the two new training programs that would be offered in southwestern Pennsylvania: o
“Mining your Business” was training for entrepreneurs in coal-impacted communities that were considering starting their own business.
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“Planning for Profits” is a lean-based educational curriculum for main-street small business owners whose aim is to grow their business. These programs targeted the coalimpacted workers and families in Greene, and Washington counties and the surrounding communities as they have long supported the gas, Marcellus Shale and coal industries within this Appalachian region.
The intent of these programs was to assist in revitalizing the coal impacted areas through our economic development strategies, counseling and training. The curriculum is a hands-on approach to learning. The classes are designed in a non-academic classroom style with no required text book and no case study lecturing. The materials are comprehensive and customizable for the business owners. Participants will immediately be able to implement the learned resources back into their business to impact their profitability. In order to offer these training programs, the SBDC partnered with the Pennsylvania Career Link, Southwest Training Services Inc., Southwest Corner Workforce Development Board, and Small Business Administration. The curriculum for both programs was designed as a six-part seminar series and was offered at no cost to the participants. •
In 2016 the Saint Francis SBDC was awarded a Portable Assistance grant focusing on revitalizing small businesses impacted by job losses in the coal industry. The contract period continued through April of 2017. As a result of that program, two clients started their own business during the first half of the year. A third client received the funding approvals needed to start her business; which was expected to begin operations in July. The SBDC assisted another area business on an exit strategy to sell his existing business. The SBDC helped a client develop a business plan and projections to purchase the business. The client’s loan request was submitted to a local bank and was under review by the end of June. Other clients consulted under the program continue to receive counseling from SBDC staff.
Cybersecurity •
In June, the network’s professional development conference was held in Canonsburg where a large portion of the programming was focused on Cybersecurity. Three presenters shared information on the risks that affect small companies during the following presentations: o
Daniel Eliot, Manager, Technology Business Development, Delaware SBDC: DatAssured: Helping small businesses manage the threat and impact of cyber interference
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Michelle Pirtle, Special Agent, FBI Pittsburgh: Cyber Security Resiliency for Small Businesses
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Dr. Chuck Wood, Professor, Information Systems Management, Duquesne University: Security and Small Businesses: Tales of Horror … and what small businesses can do about it.
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The Gannon University SBDC hosted and partnered with Northwest IRC and PTAC for Cybersecurity Boot Camp which was held in March. This program complements the one-on-one assistance for companies to prepare and monitor cyber presence as well as compliance with the new cybersecurity requirements for Department of Defense contractors.
700 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 so far in 2017. So far this year, the SBDCs consulted with 662 minority clients, representing 16 percent of the total client base. In addition, 4 percent of SBDC clients counted themselves as Hispanic and 13 percent of the minority group identified themselves as African-American. Examples of activities to support Pennsylvania’s diverse population include: •
The Community Action Committee of the Lehigh Valley (CACLV) is a non-profit organization based in the City of Bethlehem. In context of their mission to help the socially and economically disadvantaged individuals and families in the Lehigh Valley, CACLV created the Business and Economic Sustainability Committee to target communities in the urban core and the residents and businesses within those cores for the purpose of rebuilding economic vitality and identity. The Committee receives funding through tax credits to offer entrepreneurial education, streetscape initiatives, and specialized programs that support entrepreneurs and small business. The Lehigh University SBDC joins a diverse group of public and private sector representatives on the Committee, including CACLV, small business, Northampton Community College, large corporations (Just Born, PPL), private economic development consultants, and local government. Meeting monthly, the Committee assesses the effectiveness of their existing programming while also entertaining discussion of new initiatives that can contribute to CACLV’s efforts in economic development at the grass roots level. This year, the group has been re-vamping their business start-up classes. The latter is an intensive 24+ week commitment by prospective entrepreneurs to build their business plans. CACLV’s programming works well alongside and to supplement the SBDC’s services, as our methods of service delivery differ and CACLV focuses a different segment of the small business demographic in the Lehigh Valley. Their expanded bilingual capabilities are extremely valuable, leading to “shared” engagements with the SBDC when appropriate for the client.
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Temple University SBDC’s International Business Department (IB) continued to provide consulting services designed to assist businesses identifying new markets overseas. As part of SBDC’s outreach efforts, the international business specialist represented the Center at various international business events to market the program and expand the SBDC’s client base. The international business specialist presented at the EXIM Bank Symposium “Export Essentials” was sponsored by the Asian American Chamber of Commerce and the Asian Pacific Islander Chamber of Commerce and Entrepreneurship. The SBDC had the opportunity to market the program and expand the Center’s client base. The SBDC also attended Export 201, which was sponsored by the USEAC. The SBDC also collaborated with key partners in the international business arena such as the U.S. Export Assistance Center, Pennsylvania Department of Community and Economic Development, and the World Trade Center of Greater Philadelphia (WTC).
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800 WOMEN’S BUSINESS DEVELOPMENT The Pennsylvania SBDC continued to support women-owned businesses through targeted outreach, personalized consulting, and educational programs in 2017. 70 percent of all clients represented women- and jointly-owned businesses. Examples of outreach and successes include: •
The Bucknell University SBDC once again partnered with State Representative Lynda Schlegel Culver as a regional host for the SBA InnovateHER Innovating for Women Business Challenge. “The Bucknell SBDC does a great job of helping all our local entrepreneurs — and those who would like to start their own business — succeed,” Culver said in media coverage of the program launch “Last year, it was a great honor to recognize Mary Tiffin of RunLites for being the regional 2016 InnovateHER Challenge. I look forward to seeing all the wonderful, innovative, helpful projects this year’s applicants submit.” Through InnovateHER, the U.S. Small Business Association (SBA) seeks products or services that fill a need in the marketplace and have the potential for commercialization. As a regional host, the Bucknell SBDC held a local competition and nominated the winner to the SBA, which will then identify 10 finalists to compete for a $70,000 prize. The regional winner and two finalists were awarded at the Celebration of Small Business on July 21 at Bucknell University.
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This reporting period, the Gannon University SBDC celebrating its 10th Anniversary Women in Leadership Development (WILD) conference hosting over 300 women for a day of inspiration/motivation, networking and professional development. Programming included breakout sessions consisting of workshops, seminars and panel discussions by distinguished regional community leaders. The conference began with an inspiring session, “Ten Years, Ten Leaders, Ten Views,” with ten leaders, including Dr. Kelly Hunt, Pittsburgh SBA Director, Erie County Executive Kathy Dahlkemper, and the Gannon University SBDC Director, presenting their view of leadership and offering words of inspiration. Keynote Speaker, Atiya Abdelmalik, MSN, RN, author of “A Life Worth Saving: a nurse’s journey from sickness to healing,” provided an inspirational, motivational and dynamic presentation. Previous SBDC staff member and CoFounder of WILD, Jodie Camillo, received the Legacy Award. In addition to honoring Jodie for her contribution to WILD, her personal and professional contributions locally, regionally and statewide were celebrated.
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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. WEC student interns and SBDC staff offer business start-up information, guidance, and encouragement to lower income women, those in transition or those trying to make a better life for themselves and their families. To date in 2017: o
6 more University of Scranton students completed WEC internships, assisting with program development and presentation, business consulting, writing blog posts, and contributing articles to the Northeast PA Business Journal. A total of 35 University of Scranton students have completed WEC internships since 2009.
o
31 women have completed StartUP. Attendees learned start-up basics, marketing and social media essentials, business plan development, accounting and budget skills, and financing options and requirements. Local women business owners served as guest speakers, offering guidance and encouragement, including returning speakers Sandy Whiting Osieski of Spark New Business; Julie Jordan of Julie Jordan Photography; and Terry Wise of Wise Solutions.
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4 Coffee & Confidence sessions were held with a total of 39 women attending. Each session featured a guest mentor to share her story and offer encouragement, including Jessica Colvin, founder of Pure Suds Co.; Lisa Criscera, founder of L.C. Solutions; Michelle Pane of Fidelity Bank; and Ellen Clauss, founder of Aya Fair Trade.
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Partnership continued with Scranton Area Community Foundation’s Women in Philanthropy initiative micro lending program, including sharing information with StartUP attendees, connecting participants with WIP mentors, and helping women prepare business plans. So far this year, 18 women have attended Financial Confidence, a workshop designed to give participants the tools they need to take control of their personal finances.
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Scranton client Tiddlywinks Boutique received $10,000 from Scranton Area Foundation Women in Philanthropy loan program to open a brick and mortar storefront for the existing mobile children's clothing boutique. Owner Jessica Bredbenner attended a Financial Confidence workshop and received assistance from SBDC staff and Women’s Entrepreneurship Center interns in completing a business plan and financial projections.
900 VETERANS, RESERVISTS, SERVICE-DISABLED VETERAN-OWNED BUSINESSES AND ALL OTHER MEMBERS OF THE U.S. MILITARY During this reporting period, the SBDCs supported a total of 173 veterans and 45 service-disabled veterans, and educated another 207 veterans in seminars. Many Centers continue to offer no-charge or reduced admission to veterans who attend educational programs. Examples of outreach to veterans so far this year include: •
The University of Pittsburgh SBDC is collaborating with the University of Pittsburgh Veteran Services on a new program focused on veteran businesses. The SBDC is committed to serving veterans and is working to co-host four seminars in the fall. The SBDC will provide consulting services to the veterans involved in the program.
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Three veteran success stories are highlighted in Appendix B – Success Stories.
1000 RURAL ASSISTANCE 48 out of 67 Pennsylvania counties are considered rural according to The Center for Rural Pennsylvania. The Pennsylvania SBDC provides services to all businesses, no matter their location. Examples of outreach to these counties during this reporting period can be seen throughout other sections of this report as reported by the Bucknell University, Clarion University, Duquesne University, Gannon University, Indiana University, Lock Haven University, Penn State, St. Francis University, St. Vincent College, Shippensburg University, University of Pittsburgh SBDC, The JANUARY – JUNE 2017 | Interim Report | Page 14
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University of Scranton SBDC, and the Wilkes University SBDC. •
The Shippensburg University SBDC agreed to be a partner with Ben Franklin Technology Partners of Central and Northern PA in support of their “LaunchLink” Rural Business Development Grant (RBDG) application with the U.S. Department of Agriculture. The goal of the grant application is to create a videoconferencing network hosted by up to eight rurally-based economic development organizations in a 32-county region of Central PA. The purpose is to help optimize access to technical assistance delivery to technology entrepreneurs who are launching and growing businesses in rural areas.
1100 ECONOMIC DEVELOPMENT, FAITH BASED AND COMMUNITY INITIATIVES Pennsylvania SBDC’s goal 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 Gannon University SBDC was a partner in a collaborative effort with the Shenango Valley Chamber of Commerce, PA CareerLink, and Laurel Technical Institute. There were a number of announced layoffs, closings and potential layoffs in Mercer County, so a group that included the SBDC gathered to address some areas that may support the affected individuals as they may be facing changes in their work life and life in general. The goal was to provide them as much information for their next step as possible. “Unlock Your Career Potential” was not only for those facing layoffs or closings but also for anyone looking to potentially make a change from their current job. There were six sessions being offered throughout the time and they included: Preparing for the Interview; Making Social Media Work for You; Balancing Your Bottom Line; Starting a Business: The First Step; Dressing the Part; and Fitting In- Mind and Body. Individuals came to the particular room, discussed their situations and obtained information ranging from health, to finances, to how to dress for interviews, to even thinking of starting their own businesses.
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The Lock Haven SBDC continues to participate in outreach related to providing resources to small business owners looking to attract customers related to outdoor recreation activities. Specifically in the communities of Lock Haven (Clinton County) and Jersey Shore (Lycoming County) clients have taken advantage of these resources available to them as a key element of the Center’s current USDA RBEG funding to support river town business communities located along the Susquehanna River. The Lock Haven SBDC has continued to utilize these resources locally in conjunction with the River Town initiative through the Susquehanna Greenway Partnership, located in Lewisburg, PA. The goal has been to help established companies and new businesses increase their digital marketing presence, as well as through educational program offerings in both Clinton and Lycoming Counties. The grant period ended on June 30th, however the Lock Haven SBDC will continue to collaborate with the Susquehanna Greenway Partnership to offer educational programs tailored to entrepreneurs looking for start-up or business acquisition opportunities providing products or services in the outdoor recreation and tourism arenas throughout the region.
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The Penn State SBDC has been an integral part of the Happy Valley LaunchBox since its opening in spring 2016. Since that time, twenty-five teams have participated in the LaunchBox’s accelerator, with six currently participating in the summer 2017 cohort. The SBDC has worked with many of the accelerator alumni. As of spring 2017, the LaunchBox’s program director requires all accelerator teams to become SBDC clients. After seeing the market research reports the SBDC prepared for several of the alumni teams, she realized the tremendous value this added to the accelerator experience and wants all teams to have the same benefit. JANUARY – JUNE 2017 | Interim Report | Page 15
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Work continued to further develop The University of Scranton SBDC’s Small Business Internship Initiative. 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 steps away from campus. Two additional Career Development partners have joined the initiative, increasing the total to eleven partner colleges and universities. Partnership with the Greater Scranton Chamber of Commerce expanded to include new referrals from their membership, joint client meetings, and the addition of internship initiative information to their company recruitment materials. The number of returning small business host sites increased and business owners were asked to reach out to other small businesses to recommend the initiative. In addition, some internship hosts, including Condron Media, Penn’s Northeast, and Tuxedo By Sarno offered more than one internship at a time.
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The Shippensburg University SBDC’s work on the Entrepreneurial Leadership Center (ELC) project that began in 2009 came to fruition in February 2017. The ELC is the vehicle through which the SBDC focused its student engagement efforts and built the university and alumni support needed to make the focus of the College of Business capital campaign efforts an entrepreneurship center. Thanks to the fundraising efforts of the University Foundation and the Dean of the John L Grove College of Business, and many generous donors, including a “naming gift” from Charles H. Diller, the University formally dedicated the “Charles H. Diller Center for Entrepreneurship and Innovation. The newly named Center is co-located with the SBDC.
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The Indiana University of Pennsylvania SBDC has started a new strategic partnership with PowerLink, which has market positioning and a proven model for increasing sales for 2nd stage companies. The SBDC can flesh out the PowerLink model of Advisory Boards with the “hands on” ability to help these target companies address the issues that confront them. The SBDC director is now serving on one of the PowerLink Boards that has evolved from their partnership. PowerLink helped the client company in many ways, but specifically worth mentioning here is the help they provided in arranging and structuring a sales presentation to a national account. As part of the ongoing relationship with the client the SBDC saw that the client was using a cash based accounting system which made it difficult for the Board and the owner to clearly know where the business stood at any point in time. This is a simple example, but there is clearly a synergy between what SBDCs do and the PowerLink model.
1200 RESEARCH Market, industry, and other research provided to client businesses is always in high demand. 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, Industrious CFO, CultureGrams, SBDCNet, and Alteryx. Examples of research projects completed this reporting period include: •
During this reporting period, the Kutztown University’s international trade program in cooperation with Dr. Hossein Varamini, completed its seventh consecutive year of CIP (Collaborative Industry Partnerships) at Elizabethtown College with the senior capstone international business class with four projects with three clients. The research results were presented to clients in early May followed by more detailed written reports. Additionally, in cooperation with the Shippensburg SBDC, the KU SBDC began a second year of student research JANUARY – JUNE 2017 | Interim Report | Page 16
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projects with Dr. Anat Beck at Dickinson College with one KU SBDC client and two Shipppensburg clients. The KU SBDC project involved a team of six students. The projects were completed in early May with both oral and written presentations. •
Three women-owned firms, certified through the Women’s Business Enterprise National Council (WBENC) released a research-backed study for the community of growth-oriented entrepreneurs based on initial research by a Wharton SBDC team. Three Wharton undergraduate students conducted the initial research for this study within the Management 251 course which involved combing through almost 900 women-owned businesses’ websites and social media accounts and creating a ranking system. The study is now being used to provide training for WBEs who want to increase their market share while elevating their visibility across the board. The report was also presented at the national WBENC conference. One of the co-authors of the report also appeared with Wharton SBDC on the Knowledge@Wharton show in March to discuss the findings of the report.
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Business research, the cornerstone for new venture development and existing company expansion, continued to be in high demand as always. Entrepreneurs and business owners who know the value of research sought such assistance on a regular basis. The Temple University SBDC continued to strengthen its partnership with the Fox School International Business Department by providing real world business cases for its undergraduate capstone course. The five SBDC international business clients were selected to participate in the course. Five businesses provided the basis for eight country-specific projects. The international trade consultant provided guidance to the student teams. Research reports (that the clients received along with the PowerPoint summaries) covered market potential such as demand, consumer trends, suppliers, competitors, distribution channels, tariffs, shipping costs, product packaging, marketing, market entry, advertising strategies, etc. The information compiled in these market reports has been very valuable to clients in assisting them with making the decision to pursue new markets overseas.
1300 ONLINE ACTIVITY As technology continues to improve and enhancements are made to move our society to use the Internet as a primary information resource, the use of social media has increased dramatically. Historically one of the more popular forms was Facebook, but now there are numerous social media options that businesses can integrate for a more robust online marketing presence. Social media has evolved into a resource that is a tremendously valuable business tool. Today businesses are not only enhancing their integrated online marketing activities, but now businesses must be mobile compatible for this growing number of users. •
The Kutztown University SBDC continues to offer diverse training programs through its website, www.kutztownsbdc.org. The versatility of the online platform allows the SBDC to bring consulting and educational opportunities into the clients’ homes 24/7. The online course offerings regularly receive attention from bloggers that include The KU SBDC courses among the top places to access free education. In addition, the KU SBDC was featured in Forbes as one of the Seven Free Online Resources for Latino Self-Starters. The KU SBDC continues to offer an extensive library of free programs and interactive, hands-on learning through the computer. The website currently offers 65 self-paced online learning programs as well as live, interactive online workshops through WebEx software.
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1400 OTHER ACTIVITY Many Centers are deeply integrated within their host institutions, providing valuable connections with students and their local business community. •
One such example to illustrate this is at Widener University SBDC. The SBDC provides opportunities of real-world learning experiences for both Widener graduate and undergraduate students. Each year the students in MGT 451 class work with businesses and provide nearly 2,000 consulting hours. Through the senior project course, students have the unique opportunity to interact with clients, learn about the operations of a business and apply their talents and knowledge towards creating real business solutions. Student interaction via this unique experiential learning opportunity builds the community and empowers the region’s businesses. Through the Business Administration Senior Project course, students develop business, marketing, financial plans and assist clients launch or expand their businesses. MGT 451 students engage in real world, hands on learning opportunities and small business owners from the local community get access to high level research and analysis under the guidance of experienced faculty advisors to help set the strategic direction for their business.
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The Temple University SBDC continued to provide additional specialized services locally for its clientele. These services were offered through the Legal Clinic and Creative Department in collaboration with other schools within Temple University. The Legal Clinic was staffed by five second and third year law school students, under the supervision of Ms. Rosalind Plummer, Esquire. The clinic consulted with twentyfive clients during the spring semester. Photo at right: Temple SBDC Legal Clinic, Rosalind Plummer, Esq. and Legal Consultants.
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Similarly, the Temple University SBDC Creative Department offered conceptual graphic design, copywriting, marketing and public relations consulting to SBDC clients. The Creative Department utilized the design skills of Temple University interns to provide services as well. During the first half of the year, the department completed six design projects. The type of projects completed by the department, since January 2017, include logo design, letterhead, business cards, brochures, flyers, advertisements, postcards, and special projects (infographics, educational event brochures, etc.) that augment the students’ academic learning experiences.
1500 SUCCESS STORIES See Appendix B – Success Stories.
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1600 ADVOCACY
National Small Business Week •
The Pennsylvania SBDC was very proud to have four small businesses and the Bucknell University SBDC win awards from the U.S. Small Business Administration (SBA) during the 2017 National Small Business Week. In addition to the award winners, Centers hosted more than twenty events throughout the week for small business owners and entrepreneurs. o
National Exporter of the Year Award
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Eastern Pennsylvania Small Business Person of the Year Award
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Terry Weaver, President, USA Gypsum
Western Pennsylvania Young Entrepreneur of the Year Award
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Elvin Stoltzfus, President, Pik Rite
Eastern Pennsylvania Entrepreneurial Success of the Year Award
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Rose Morris, President and Inventor of The Safety Sleeper, Abram’s Bed LLC
BreAnna Liberto, Clarion Center for the Arts
Small Business Development Center Excellence and Innovation Award
Michael Unruh, Director, Shippensburg University SBDC
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Bucknell University SBDC published an Op-Ed piece “Big Ideas from Small Business” in the Daily Item newspaper announcing the center’s activities for National Small Business Week 2017. Noted is the Small Business Expo, a new development for the SBDC, developed in partnership with nearby Iron Front Cowork, a hub for serial entrepreneurs and start-ups.
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Once again, Congressman Charlie Dent’s office (US House, PA-15) partnered with the Lehigh University SBDC in honor of Small Business Week to host a day-long event of educational programming for small businesses. The Congressman’s office and SBDC worked in concert to develop the topics, secure the venue, and market the event that was held on May 11 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. SBA representatives also joined the audience to answer questions from and distribute program materials to attendees. The SBDC’s First Step session began the day, introducing entrepreneurs to the concepts associated with and steps to forming a small business in PA. Attendees then moved on to gaining an understanding of Financing their business venture, covering the basics of preparing oneself for seeking and applying for financing. The afternoon program consisted of a panel discussion focusing on International and Government markets. Joining SBDC staff members on the panel were Tony Ceballos, Director at the U.S. Commercial Service in Philadelphia and Rosita Carosella, Associate Director of Small Business Programs for the Defense Logistics Agency. Overviews of the International Trade and Government Marketing Programs were followed by an open question and answer session with the audience on next steps in entering or increasing presence in these markets. The Congressman’s office expressed his JANUARY – JUNE 2017 | Interim Report | Page 19
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appreciation for the SBDC’s services and development of the day’s programming. Collateral materials from Congressman Dent’s office, the SBDC, SBA, Workforce Investment Board and Lehigh Valley Economic Development Corporation were shared with all attendees. 1700 RESOURCE DEVELOPMENT 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 so far in 2017 include: •
In June, the Kutztown University SBDC successfully closed their third funding year for the WedNet PA workforce development grant program at Kutztown University. The WedNet PA grant program offers funds for employee training to Pennsylvania employers in manufacturing and technology, and is funded by the PA Department of Community and Economic Development (DCED). The Kutztown SBDC granted over $300,000 to 52 area companies in this fiscal year, since July 1st, 2016. These funds reimbursed over 260 trainings for hundreds of Pennsylvania employees.
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The Wharton SBDC’s long-standing relationship with Wells Fargo is now a featured partnership on the School’s Corporate and Foundation Relations public website. In his thank you to Wells Fargo, Wharton Dean Geoff Garrett acknowledged that Wharton’s entrepreneurial ecosystem is poised for tremendous growth — with hundreds of new startups, dedicated industry involvement, and knowledgeable faculty, students, and staff and that their gift to the Wharton SBDC, which builds on this momentum and ensures that dedicated resources are available to cultivate ideas and scale businesses. Pictured at right: Wharton SBDC Associate Director and Stephen Briggs of Wells Fargo.
1800 COLLABORATING AND LEVERAGING •
The Wilkes SBDC has noted some new opportunities for start-ups. The Carbon County Economic Development and Chamber of Commerce have developed a Hatchery Loan program that is a micro-lending tool available to start-ups in Carbon County. The Wilkes SBDC assisted the Carbon County economic Development and Chamber in developing the program and provided a checklist that potential borrowers need to complete in order to become eligible for a loan. This partnership is working well and the Wilkes SBDC has already assisted two businesses in successfully securing funds and opening. A third project is currently underway. The WilkesBarre Chamber is hoping to replicate a similar program.
1900 UNPLANNED TRAVEL Out-of-State travel expenses not included in the original 2017 proposal that occurred during this reporting period include: •
Three staff members attended the Small Business Institute Annual Conference in February held in San Diego, CA. Attendees included the associate director of the Wharton SBDC, director of the Gannon University SBDC, and the director of the Indiana University of Pennsylvania SBDC. JANUARY – JUNE 2017 | Interim Report | Page 20
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A business consultant from the Bucknell University SBDC attended the NASBITE annual conference in Spokane, WA in March.
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The IT support specialist with the Pennsylvania SBDC Lead Office attended the NIST Cybersecurity Framework Workshop in Gaithersburg, MD in May.
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The director of environmental, energy, and technology services with the Pennsylvania SBDC Lead Office attended the EIA 2017 Energy Conference in Washington DC in June.
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The IT support specialist with the Pennsylvania SBDC Lead Office attended Gateway ’17 hosted by Alibaba in Detroit, MI in June.
2000 KEY PERSONNEL CHANGES •
James Fischer was named director of the Lehigh University SBDC
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Cindy Nellis was named director of the Clarion University SBDC
2100 PROBLEMS As mentioned in previous reports, level state funding for the past five years has made it difficult to meet the continued demand for one-on-one consulting and provide the same level of programming to small business owners and aspiring entrepreneurs, especially those looking to launch a new venture. This reporting period was especially tough due to ongoing budget uncertainty at the state level. 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. Centers also 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. 2200 BUDGET TO ACTUAL COMPARISON All related financial forms have been submitted by the Pennsylvania SBDC Lead Office. 2300 ECONOMIC IMPACT All related uploads were submitted to EDMIS by the Pennsylvania SBDC Lead Office. Additionally, see Appendix A – Deliverables. 2400 ENVIRONMENTAL MANAGEMENT ASSISTANCE PROGRAM (EMAP) With funding from the Pennsylvania Department of Environmental Protection (DEP) and the Allegheny County Health Department, 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. During the first half of 2017, the SBDC’s Environmental Management Assistance Program (EMAP) provided in-depth environmental consulting assistance to 126 small businesses and conducted on-site assessment visits at 17 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 JANUARY – JUNE 2017 | Interim Report | Page 21
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Compliance Advisory Committee. At the national level, an EMAP environmental consultant serves on the National Steering Committee. The director also served on the planning committee for the annual Small Business Environmental Assistance Providers conference and training which took place in Denver, Colorado in May. 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. •
Understanding and preparing permit applications for air, waste, water, wastewater and stormwater.
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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.
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Maximum Achievable Control Technology (MACT)/National Emission Standards for Hazardous Air Pollutants (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 so far during 2017 included: •
EMAP client, Pik Rite, received the national Small Business Environmental Stewardship award at the national Small Business Environmental Assistance Providers conference in Denver, Colorado.
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EMAP continued the newly launched Sustaining Your Business Webinar Series. Webinars in the series included: Craft Breweries, Food Production, Personal Care Products and Certifications.
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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.
JANUARY – JUNE 2017 | Interim Report | Page 22