10/4/2004
Pre-Venture SBDC Clients Show a 65% Survival Rate
by Laura Fine, Assistant State Director
According to research conducted by Dr. James J. Chrisman and Dr. W. Ed McMullan, start-up businesses that received counseling from a Small Business Development Center (SBDC) survive longer than those who do not receive outside assistance. Chrisman and McMullan uncovered a survival rate of 65% among pre-venture SBDC clients as compared to a 47% rate among all start-up businesses. Their study was conducted in 2001 of the Pennsylvania SBDC clients who received assistance in 1992, 1994 and 1996. In their study, 65% of the 1992 clients, 61% of the 1994 clients and 70% of the 1996 clients remained in business ghrough 2000 (an overall survival rate of 65%).
In addition, Chrisman and McMullan found that counseling positively influences the survivability of small businesses. The study, entitled "Outisder Assistance as a Knowledge Resource for New Venture Survival" was published in the July 2004 issue of the Journal of Small Business Management.
The Small Business Development Center is a national program funded in part by the U.S. Small Business Administration. In Arkansas, the University of Arkansas at Little Rock administers the SBDC program. Visit the Arkansas SBDC's website at http://asbdc.ualr.edu/ for program information, training schedules or to find the SBDC office nearest you.
Recent | 2007 | 2006 | 2005 | 2004 | 2003
Subscribe right now to our FREE
bi-monthly E-News service!
You will receive articles two full weeks before they appear on the Arkansas SBDC web site!
