DEFINITION of 'Small Business Development Center - SBDC'

Small Business Development Centers (SBDCs) provide free marketing, financing and business-related activities to local entrepreneurs. They are found in all states, as well as Washington, D.C., Puerto Rico and U.S. territories, and exist as a partnership between the U.S. Small Business Administration (SBA) and typically a local college or university designed to help foster small businesses and jobs by providing educational resources to business owners and those looking to start a business.

SBDCs combine private-sector know-how with the educational background of colleges and universities in order to provide entrepreneurs with the resources they need to feel confident in starting a business. Less than half of a SBDC's funding comes from the SBA, with the remaining portion coming from state funding, donations, grants and corporate sponsorships.

BREAKING DOWN 'Small Business Development Center - SBDC'

Small Business Development Centers (SBDCs) provide assistance to small businesses and aspiring entrepreneurs throughout the United States and its territories, and are administered by the Small Business Administrayion (SBA). According to the SBA website, SBDCs help entrepreneurs "realize the dream of business ownership" and help existing businesses remain competitive in a complex, ever-changing global marketplace. SBDCs are hosted by leading universities and state economic development agencies, and funded in part through a partnership with SBA.

SBDC advisors provide aspiring and current small business owners a variety of free business consulting and low-cost training services including: business plan development, manufacturing assistance, financial packaging and lending assistance, exporting and importing support, disaster recovery assistance, procurement and contracting aid, market research help, 8(a) program support, and healthcare guidance. Currently, there are almost 1,000 local SBDC centers available to provide no-cost business consulting and low-cost training to new and existing businesses including in U.S. territotires such as Guam and the U.S. Virgin Islands.

SBDCs provide the knowledge, education, and expertise small businesses are often missing. Whether it’s taxes, financing, marketing, training
or networking, SBDCs are there to help their clients overcome challenges, discover new opportunities and unlock their potential so their businesses can soar to new heights. The SBDC Network includes dedicated business advisors working in partnership with universities,
economic development professionals, chambers of commerce, lenders, investors and entrepreneurs themselves.

Nationwide, small businesses employ 58 million people, nearly half of all American workers in the private sector. With deep roots in their communities, small firms and their employees are the engine driving the American economy. SBDCs provide these local businesses and
entrepreneurs with the resources they need to thrive, compete and succeed

"America's SBDC" is the association that represents America's nationwide network of Small Business Development Centers.According to its website, in the year 2017, $5.16 billion in financing was raised through its network for small businesses, which created over 96,000 jobs nationwide. In 2017, more than 192,000 small business owners and entrepreneurs utilizes the business consulting services provided by SBDCs and over 261,000 received some sort of training.

RELATED TERMS
  1. IRS Publication 334: Tax Guide ...

    The Internal Revenue Service publishes the IRS Publication 334: ...
  2. Entrepreneur

    An entrepreneur is an individual who founds and runs a small ...
  3. 8(a) Firm

    An 8(a) firm is a small business in which the owners and operating ...
  4. Business Development Bank of Canada ...

    The Business Development Bank of Canada is an institution wholly ...
  5. Small Business Lending Index - ...

    The Small Business Lending Index is an index of business lending ...
  6. Section 1202

    Section 1202 of the Internal Revenue Code provides for capital ...
Related Articles
  1. Small Business

    Are You Considered a Small Business?

    Find out what it takes to be considered a small business by the U.S. Small Business Administration and why some small businesses are fairly large.
  2. Small Business

    The Small Business Jobs Act: Make It Work For You

    Understanding how to manage business credit is the key to obtaining small business loans.
  3. Small Business

    10 Years After the Financial Crisis: The Impact on Small Business

    Small businesses were hit hard by the 2008 financial crisis. Here's what happened — and how they've fared in the decade since.
  4. Small Business

    5 Traits Of A Successful Small Business

    If you own your own company, these characteristics will be ones you want to emulate.
  5. Financial Advisor

    How to Manage Entrepreneurial Risk

    Entrepreneurs face many risks that general employees don't. Understand these entrepreneurial risks and find out how to mitigate some of them.
  6. Small Business

    3 Ways You Can Support Small Business Growth

    Discover a number of different options available to support small business growth, including crowdfunding campaigns and shopping locally.
  7. Managing Wealth

    Want to Open a Small Business? Beware of These

    While all small businesses face long odds, these four types are even less likely to succeed.
  8. Managing Wealth

    5 Reasons to Quit Corporate & Run a Small Business

    You're in a corporate job but itching to flex your entrepreneurial muscles. Here's why taking over a small business can make more sense than starting one.
  9. Small Business

    6 Ways To Fund Your Startup's First Year

    Pursue your entrepreneurial goals by picking the startup plan that's best for you.
  10. Managing Wealth

    5 Barriers Small Businesses Must Overcome

    Small businesses can be nimble and innovative. But larger companies have name recognition, can raise capital and have other advantages that are hard to beat.
RELATED FAQS
  1. How does an entrepreneur pay taxes?

    Find out what kind of impact tax policy can have on entrepreneurship in the U.S. and why all economic agents have an incentive ... Read Answer >>
  2. Who coined the term "entrepreneur"?

    Entrepreneur is a French word coined by an economist, Jean-Baptiste Say, and usually is translated as "adventurer." Read Answer >>
  3. Should entrepreneurship be considered a factor of production?

    Find out if entrepreneurship should be considered a factor of production in economic models, and whether or not entrepreneurs ... Read Answer >>
  4. What are the most common operating expenses for an online business?

    Learn about the common expenses of online businesses and find out about some of the tax implications of new business expenses ... Read Answer >>
Trading Center