Small Business Resource Centers Need to Get Creative with Funding

The LA Times points to the plight of small business centers in the state of California, which offer loans, counseling and other resources to entrepreneurs. Despite the fact that they’ve been busier than ever before, cuts to state budgets have forced them lose out on matching federal funds, turn people away and in some cases, close their doors for good. And I suspect this situation isn’t specific to California either, creating a dilemma entrepreneurs and lawmakers alike.

At a time when our country’s economy is struggling to find innovation and get consumers spending again, it’s these same small businesses that we need to rely upon to provide the necessary boost. In an attempt to remain open and continue serving as a valuable community resource, many of these centers have themselves needed to innovate, diversifying their funding efforts and looking for new ways to bring corporations and banks on board.

Given that there is little to no return on investment for providing such backing, these centers have to add value to these business relationships through other means. Whether that takes the form of branded sponsorship, shared community support (in the form of volunteering etc.), opensource collaboration or some other form, I think this could present a real opportunity to rethink the role of these centers not only within the business community, but the community at large as well.

[image via wonderlane]

  • August
  • 27th, 2009
  • 11:21 am

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