The 2023 Economic Impact Study of the University of Georgia Small Business Development Center (UGA SBDC) provides solid evidence that entrepreneurs utilizing UGA SBDC assistance experience greater sales and employment growth than the state averages, despite the economic challenges brought on by the pandemic. The study found that the employment base of UGA SBDC’s existing business clients grew by 21.1%, while overall employment levels in Georgia grew by 4.4%. Also, during the same time, UGA SBDC’s existing business clients increased their sales by an average of 23.9% while the average Georgia business experienced an increase in sales of 10.0%.
The tax implications of this incremental difference show that UGA SBDC clients, both existing and pre-ventures, generated nearly $13.1 million in state tax revenues and nearly $9.0 million in federal tax revenues beyond what they would have generated if their performance levels had been the same as that of the average Georgia business. These incremental tax revenues more than cover the entire UGA SBDC budget.
Utilizing an external research vendor, UGA SBDC clients who received five or more hours of consulting in 2021 were surveyed as to the benefits of the services received and actual performance results.
A total of 877 clients returned usable surveys for a response rate of 38.2%. Of the respondents, 97% stated that they would recommend the services of the UGA SBDC to other entrepreneurs and small business owners.
The report was prepared by James Chrisman of Mississippi State University. Chrisman also conducts the analysis and prepares the report for the national impact study for America’s SBDCs, the national association of Small Business Development Centers. Across the country, incremental performance improvements also resulted in additional tax revenues exceeding the combined costs of all SBDC programs.
For More Information: University of Georgia SBDC | (706) 542-2762