SBA launches new program - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

SBA launches new program

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A recent federal push to bolster the U.S. economy would give entrepreneurs more resources to start new businesses, but in terms of federal incentives, more is not always better.

The Small Business Administration recently launched a new program aimed at fostering new business growth.

But in a sea of similar programs, some say this latest push could be no more than a drop in the ocean.

The Self-Employment Assistance Program is intended to help states give unemployed entrepreneurs the cash they need to realize their vision.

But one local expert says despite its good intentions, this newest push is just the latest in a long line of federal incentive programs.

"With all these programs coming down from Washington, it's getting to the point where we're just awash in this stuff," says P.J. Pronger, Director of Economic Innovation at the Small Business Development Center.  "You know - once the boats are all floating, it doesn't matter how much you raise the water level; they're still just floating boats. ... it's like the law of diminishing returns: you put some resources in, you get this much effect, you put some more resources in, you get this much, some more resources - it levels off."

According to the most recent data, small business accounts for more than 99 percent of the nation's employers, and 98 percent of our state's employers.

So although it's hard to argue with the economic value of small businesses, some say throwing more money at small business creation has a limited effect.

"How many resources can one entrepreneur use?", asks Pronger. "You can provide business planning assistance, you can provide website development assistance, you can provide some sort of financial assistance, but in the end, you got to have an entrepreneur who's capable working on a business that's got the potential to make money."

Texas has not yet adopted the program, but the SBA has all kinds of resources for budding business owners, which you can find through the associated links.

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