january 1, 2015 - june 30,...
TRANSCRIPT
2015 SEMI-ANNUAL REPORTJANUARY 1, 2015 - JUNE 30, 2015
INTRODUCTION .......................................................................................................................... 1
MISSION ........................................................................................................................................ 1
PENNSYLVANIA SBDC LOCATIONS....................................................................................... 2
IMPACT ......................................................................................................................................... 2
SUMMARY .................................................................................................................................... 3
100 ADVOCACY ........................................................................................................................... 5
200 CAPITAL FORMATION ........................................................................................................ 5
300 INNOVATION & TECHNOLOGY TRANSFER .................................................................. 7
400 INTERNATIONAL TRADE ................................................................................................... 9
500 MINORITY BUSINESS DEVELOPMENT ......................................................................... 12
600 RESOURCE DEVELOPMENT ............................................................................................ 12
700 PROCUREMENT .................................................................................................................. 13
800 SPECIAL FOCUS ................................................................................................................. 13
900 ECONOMIC DEVELOPMENT ............................................................................................ 14
1000 RESEARCH ......................................................................................................................... 15
1100 OTHER ACTIVITY ............................................................................................................ 16
Network-wide Awards & Achievements .................................................................................. 16
1200 SUCCESS STORIES ........................................................................................................... 17
1300 TRAVEL .............................................................................................................................. 17
1400 PROBLEMS ........................................................................................................................ 17
1500 FINANCE ............................................................................................................................ 17
1600 WOMEN’S BUSINESS DEVELOPMENT ........................................................................ 17
1700 ECONOMIC IMPACT ........................................................................................................ 18
1800 VETERAN BUSINESS DEVELOPMENT ......................................................................... 18
1900 MANUFACTURING .......................................................................................................... 18
2000 ONLINE ACTIVITIES ........................................................................................................ 19
2100 ENVIRONMENTAL MANAGEMENT ASSISTANCE PROGRAM ............................... 19
CONCLUSION ............................................................................................................................. 20
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 June 30, 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 the first half of 2015, the SBDC
delivered 41,270 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, 4,472 individuals and firms benefited directly
from 291 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 Section 3 – APPENDICES
and described in detail throughout this report.
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.
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
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.
During the first half of 2015, the Pennsylvania SBDC network reported the following initial outcomes:
Bought/Started a Business 196
Jobs Created 553
Jobs Retained 218
Increased Sales (domestic) $11,550,738
SBA Loans (11) $6,795,176
Non-SBA Loans (127) $33,058,922
Equity Capital (142) $10,109,263
In the first half of 2015, the Pennsylvania SBDC served 4,023 entrepreneurs and small business
owners through a total of 41,270 consulting hours. A detailed breakdown may be found in SECTION 2
– DELIVERABLES and is described throughout this report.
Consulting Sessions by Topic
The Pennsylvania SBDC network collectively educated 4,472 individuals in 291 seminars and
workshops in the first half of 2015, which included topics such as “Business Transition Planning” and
“Globalizing Your Digital Marketing Strategy.” A detailed breakdown may be found in SECTION 2 –
DELIVERABLES and is described throughout this report.
0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000
Tax Planning
eCommerce
Government Contracting
Technology/Computers
Cash Flow Management
Legal Issues
Business Accounting/Budget
Human Resources/Employee Mgt.
Engineering R&D
International Trade
Buy/Sell Business
Managing a Business
Financing/Capital
Marketing/Sales
Start-Up Assistance
Business Plan
Consulting Sessions
No Response
6% Female
24%
Both
34%
Male
36%
Business Ownership
Non-Hispanic
82%
Hispanic
5%
No Response
13%
Client Ethnicity
Service
44%
Retail
12%
Manufacturing
13%
Not in
Business /
Other 6%
Construction
3% Wholesale
3%
No Response
18%
Industry Sector
Service-
Disabled
Veterans 1%
Veterans
4%
Non-Veteran
59%
No Response
36%
Veteran Clients
White
75%
African
American
12%
Asian
3%
Native
American
<1%
Native
Hawaiian
<1% No Response
9%
Client Racial
Diversity
Individuals assisted by the Pennsylvania SBDC in the first six months of 2015 represented Pennsylvania’s
diverse populace. 58 percent of clients assisted were woman- and jointly-owned firms and 16 percent
counted themselves as minorities. Clients also represent a variety of industries as shown.
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 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.
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, 2015 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
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.
The University of Pittsburgh SBDC continued its strong tradition of educating the lending
community of Western Pennsylvania. SBDC staff members regularly meet with lenders
throughout Allegheny, Washington, and Greene Counties to educate them about the resources
available to the banks and their customers through the SBDC. On May 21st, 2015 the University
of Pittsburgh SBDC hosted a meet the lenders event. This event brought together local non-bank
and alternative lenders to educate business owners on various sources of capital.
Locating an interested lender continues to be a challenge for start-up businesses. However, the SBA has
placed an emphasis on providing business owners with access to lenders. SBA LINC was released and
connects borrowers with SBA lenders through an online platform. Lenders have the ability to sign up and
view preliminary information on a borrower’s request. Business owners who use the SBA LINC are
supposed to hear from SBA lenders within two business days, according to the site.
The SBA LINC site also provides a “link” back to the SBDCs. Some Centers have already reported
referrals, as the site provides borrowers with local resources to assist with business planning and loan
packaging.
Examples of client success stories relating to capital formation can be found in Section 3 –
APPENDICES. A total of 11 SBA-guaranteed loans were approved, totaling $6,795,176. As for non-
SBA loans, 127 were approved for a total of $33,058,922.
Mark Protch, SBA Lender Relations
Specialist speaking at the Bankers’
Roundtable at Penn State SBDC.
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.
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.
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 SEDA-
COG 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 co-
working space for Penn State students and community
members.
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 of such events 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: Wells Fargo, Radius Bank, United Bank, M & T Bank, Finanta,
Marcfunding and TD Bank.
SBDC Representatives at the SBA Meet the
Lenders even in King of Prussia
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
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
Assess 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.
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 510 hours of consulting to 109 small firms looking to
advance, protect, and commercialize their research, innovations and new technology.
Technology Training & Professional Development
The SBDC Technology Team had meetings March and April 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.
Examples of Center-specific activities include:
Clarion University was awarded with a Pennsylvania Department of Commerce 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
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 user-
first product design. The NWISP awarded six entrepreneurs a total of $75,000, complimentary
access to Clarion University's Innovation Laboratories and professional consulting support to
support their innovative product development.
The Duquesne University provided technology services to approximately 12 businesses during
the first half of 2015. Many of these clients were referred to the SBDC by 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. Additionally, many were seeking support and grant funding from
Pennsylvania Innovation Partnership. Those interested in the SBIR-STTR program were
focusing mainly on the National Institutes of Health (NIH) and the National Science Foundation
(NSF) during this time period. Two clients applied for Innovation Partnership support and
funding. While both received pre-proposal reviews, one successfully received a $2,000 grant to
offset the cost of proposal preparation for the June 15th deadline at NSF. The other client did, in
fact, submit a proposal to NIH without IPart financial support. Both are still awaiting news of
their SBIR reviews. Another long-time client applied to Innovation Works for Technology
Commercialization Initiative funding and made a pitch at their Demo Day hosted at the Duquesne
University campus. She was awarded $30,000 in funding.
In February, a business consultant from Duquesne University SBDC along with a representative
from the University of Pittsburgh Innovation Center, was 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.
The Gannon University Technology Business Accelerator held two accelerator programs in the
first half of 2015. A total of 27 entrepreneurs attended the programs and each were a client of the
SBDC. This program, co-hosted by Erie Technical Institute ETI, provides a great opportunity for
the Center to service new technology start-ups efficiently.
The Lehigh University SBDC assisted four professors with the preparation of NSF I-Corp grants
which three won. The SBDC served as the grant ‘mentor’ on one, working closely with the
engineering product developer to patent his product, and participate in the NSF ‘boot camp’
designed to get his product out of the lab and into the market place. This effort involved
attending two, team training sessions in California and interviews with over 100 potential
customers. The SBDC also assisted a serial entrepreneur with the entire process of finding the
right SBIR/STTR resources within the NIH, SAM registration, writing his abstract, finding a
research resource and physicians to review his technology and concepts. Once all the
components were in place the SBDC helped him with the extensive work of preparing and
submitting his STTR application – under review now. This client’s anesthesia focused medical
device will revolutionize the anesthesia process if it is successful and could have significant
benefits treating traumatic brain injuries.
In the first half of 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 (co-applicant), 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 (6) rural and distressed
Pennsylvania counties, but has a larger potential impact when evaluating the supply chain as well
as the replicability of this project.
The Pennsylvania SBDC continues to make progress in strengthening its international business offerings
for small- and medium-sized 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 June 30, 2015, the SBDC consulted with hundreds of clients on international
trade issues while executing more than seven export-related educational programs that were attended
by 167 individuals. 22 clients reported an increase in export sales, totaling $64,240,785 so far in
2015. During this reporting period, 201 clients received exporting assistance.
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 21 out of
112 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):
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
Vickie Gyenes, Saint Vincent College SBDC, NASBITE certified, 2006
Ed Huttenhower, Saint Francis University SBDC, NASBITE certified, 2012
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
Miranda Mease, Clarion University SBDC, SBA/TPCC certified, 2014
Jill Newcomer, Gannon University SBDC, SBA/TPCC certified, 2013
Sofia Ozol, Pennsylvania SBDC Lead Office, NASBITE certified, 2012
Tony Palamone, Indiana University of Pennsylvania, SBA/TPCC certified, 2012
Jim Porter, Widener University SBDC, SBA/TPCC certified, 2012
Brent Rondon, Duquesne University SBDC, NASBITE certified, 2007
Donna Simpson, The University of Scranton SBDC, SBA/TPCC certified, 2012
Maria Spencer, Penn State SBDC, SBA/TPCC certified, 2012
Mary Beth Zingone, Lehigh University SBDC, SBA/TPCC certified, 2012
Examples of activities in international trade occurring 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 April, the director and international business consultant of 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 USDOC
program initiative, Look South, market opportunities in one of the fastest growing world regions
for US exports, FTAs, MDCP partnering opportunities, and
participation of a trade expert Luis Pinilla, Esq, who came from
Bogota, Colombia.
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 KUSBDC 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.
International business seminars held by the Lehigh University SBDC
included their Breaking Borders series that hosted two seminars with
the intent of offering manufacturing and service companies in the
Lehigh Valley the opportunity to be educated on Free Trade Agreements, both the 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 US State Dept. and USDOC; 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.
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
Martin Brill receives
his award from
Elizabethtown
College.
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.
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 US 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, 2015 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.
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 conducting outreach, the
Specialist was 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 Services 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
US 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 US and a representative from USTDA were key
speakers. Forty businesses attended.
Ghana Ambassador to the U.S. his Excellency Joseph
H. Smith and spouse.
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 thus far. So far this year, the SBDCs consulted with 607 minority clients,
representing 16 percent of the total client base. In addition, 5 percent of SBDC clients counted
themselves as Hispanic and 75 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 the 8 weeks, the students
learned the foundational steps of
starting their own business
including business planning,
financing, and marketing. Spanish-
speaking content experts presented
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. The three top pitches were announced at the ceremony, and the winners awarded
small cash prizes. Joel Cintrón took first place for his Child And Family First Co., a child
services counselor and contractor business for state and county agencies. Jaime Peña and Dorys
Pardo took second for Happy Feet, a bounce house and party supplies rental business. Jose
Santana took third place for his pitch to purchase and manage a local gas franchise.
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.
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 Federal and State funding.
As noted throughout many sections of this report, many centers are receiving additional funding through
new grant programs and accelerators to help serve the businesses in their communities.
Latino Business Resource Center Graduation Ceremony in May
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 information sessions with SBDC participation include:
On June 11, 2015, 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.
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 bi-
lingual materials, greater access and understanding will be available to multi-cultural business
owners.
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 (20) individuals attended this session.
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 continues to deliver
Business Continuity and Survival Services to existing business owners. Originally stemming from
businesses who were impacted by the floods of 2011 caused by Hurricane Irene and Tropical Storm
Lee, the SBDC is performing targeted outreach to businesses in the affected areas which includes the
14-county area that was hit the hardest during the storms of 2011.
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.
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 Fellow, Wharton Executive Education, The Wharton School and Managing
Director, Decision Strategies International, Inc. Joan Woodward, President, Travelers Institute served as
Moderator. The panelists were Ben Collier, Research Fellow, Risk Management and Decision Process
Center, The Wharton School, University of Pennsylvania; 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.
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
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 2014, 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.
The Temple University SBDC has a primary objective to provide assistance that contributes to
the economic development of its service area and assist the university in achieving not only its
academic mission, but also its outreach mission. Through its business development incubator, the
SBDC fulfills this objective by providing space and technical support for aspiring entrepreneurs.
During the first half of 2015, the incubator housed 20 companies.
The University of Scranton continued to further
develop the Small Business Internship Initiative
during the first half of 2015. 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 in the local community.
Since it was established in 2013, 16 internships
were completed, four are in progress or in the
process of being filled, 11 total small business sites
are involved, and more than 150 applications have
been received from students representing 5 of the 7
participating institutions. 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 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.
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 focused 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.
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 Geography Analysis
Susan Mancuso, owner of Susan Faye
Mancuso, LLC, a Lackawanna County
based accounting firm, is pictured here with
her staff and Small Business Internship
Initiative interns from Keystone College and
Marywood University.
Collection. In addition, each SBDC is able to tap into the vast research resources located within its host
institution.
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.
Western Pennsylvania Young Entrepreneur of
the Year - 3E studios, Pittsburgh, PA (Nominated
by: University of Pittsburgh SBDC)
Western Pennsylvania Exporter of the Year –
CIMA Life Sciences Inc., Pittsburgh, PA
(Nominated by: Duquesne University SBDC)
Western Pennsylvania Small Business Person of
the Year - The UPS Store #5642 & #6512, State
College, PA & Altoona, PA (Nominated by:
Penn State SBDC)
Eastern Pennsylvania Family-Owned Small
Business of the Year - Talluto's Authentic Italian
Food, Inc., Folcroft, PA (Nominated by: Widener
University SBDC)
Eastern Pennsylvania & Statewide Small
Business Person of the Year - Custom Milling &
Consulting, Inc. (CMC), Fleetwood, PA
(Nominated by: Kutztown University SBDC)
Governor’s ImPAct Awards During the 2015 Governor’s ImPAct Awards, the Pennsylvania SBDC were pleased to have three SBDC
nominated businesses win awards recognizing their growth including job creation, export sales, and
community impact.
Overall, 22 out of 50 (44 percent) of 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)
Talluto’s Authentic Italian Food
Custom Milling & Consulting
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.
See SECTION 3, APPENDIX B – SUCCESS STORIES.
Out-of-State travel expenses not included in the original 2015 proposal did not occur during this reporting
period.
Funding reductions and uncertainty continue to be a problem for the entire Pennsylvania SBDC network.
Level state funding for the past three 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 in turn has caused increased
uncertainty for staff and in some cases, staff turnover. In many cases, 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 reduced funds and limited staff time.
All invoices for 2015 have been submitted for processing at the time of this report.
The Pennsylvania SBDC continued to support women-owned businesses through targeted outreach,
personalized consulting, and educational programs in 2015. 58 percent of all clients represented
women- and jointly-owned businesses. Examples of outreach and successes include:
The Clarion University SBDC participated with S&T Bank’s Women in Business seminar in
Brookville held in April. 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.
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.
Efforts continued to further develop programs and services offered by The University of Scranton
Women’s Entrepreneurship Center (WEC), a partnership between the SBDC and the Kania
School of Management (KSOM). 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 2015, four 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. In addition, nine aspiring woman entrepreneurs completed the StartUP
educational program series sponsored by NBT Bank. Attendees learned business basics, financial
literacy, goal setting, and other essential skills to prepare them for successful self-employment.
Local women business owners served as mentors, offering guidance and encouragement by
sharing their own experiences.
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.
For examples of the impact of the Pennsylvania SBDC network, see Section 2, DELIVERABLES.
During this reporting period, the SBDCs supported a total of 174 veterans and 40 service-disabled
veterans, and educated another 222 veterans in seminars. Many Centers continue to offer no-charge or
reduced admission to veterans who attend educational programs.
As an example, the Temple University SBDC was invited again to participate in a special event “Women
Veterans Rock” developed for female veterans. The Healthy Caregiver Community Foundation, a local
community outreach and advocacy organization that we have worked with in the past, served as the
representative for the Women’s Veterans Rock initiative on the east coast. The purpose of this special
event targeting female veteran entrepreneurs was to provide information about resources available in the
Philadelphia area for starting a business. The Temple SBDC was invited to participate in this event so that
we could share information about our services. A representative from the SBDC served as a guest speaker
at the event which was held in Chestnut Hill, Philadelphia. There were over 100 veterans who attended
the event.
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.
The Pennsylvania SBDC has a long history of providing assistance to manufacturers, still a significant
industry in Pennsylvania. The SBDCs continues to focus on marketing plans and marketing research to
help manufacturers find new customers at home and abroad through international trade. 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 the
first half of 2015, 517 manufacturers, representing 13 percent of the total client base turned to the
SBDCs for such assistance.
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 for 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
consulting hours per client and still meet Center goals. All Centers have moved the client engagement
process online by receiving Requests for Counseling and Client Confidentiality forms through eCenter
and email.
During the first half of 2015 EMAP provided in-depth environmental consulting assistance to 118 small
business owners and conducted on-site assessment visits at 20 of these businesses located throughout
Pennsylvania.
To maximize services to clients, EMAP funding continued to be directed toward the delivery of one-on-
one 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 storm
water.
Recordkeeping/Reporting - setting up and fine tuning recordkeeping and reporting systems to
comply with permit requirements and other air emission requirements.
MACT/NESHAP area source applicability reviews and notifications – helping small businesses
understand what they need to do to comply with regulatory requirements.
Finding alternative materials or processes which may reduce the small business’s regulatory
burden.
Following the successful completion of EMAP’s EPA Region 3 Source Reduction Grant project, working
with small manufacturers in the shale energy supply chain, EMAP was invited to share lessons learned
with businesses in EPA Region 8. A series of workshops were held in active shale plays in North Dakota,
Montana and Colorado in May, funded by EPA region 8, and delivered in partnership with the SBDCs in
those states.
EMAP continues to be a leader in understanding and addressing small business environmental
compliance issues. At the state level, Nancy Crickman is the vice-chair of the DEP Small Business
Compliance Advisory Committee. At the national level, Jeremy Hancher is the co-chair of the Small
Business Environmental Assistance Provider’s Technical Sub-Committee and serves on the National
Steering Committee and Conference Planning Committee. Also at the national level, Nancy Crickman
co-chairs the Shale Energy Interest Section of the Association of Small Business Development Centers.
So far in 2015, the Pennsylvania SBDC is on-track to continue its record of success in working with small
businesses and aspiring entrepreneurs, and will work to finish the year strong by meeting or exceeding its
goals.
GOAL ACTUAL (as of 6/30/15) Long-term Clients 2,111 1,955 (92% of goal)
New Business Starts 450 196 (44% of goal)
Capital Infusion $116,000,000 $57,546,889 (49% of goal)