Cabinet Succeeds
in Small Business Outreach in 2006
The Kentucky Cabinet for Economic Development, for many years a
friend to small business, touched more than 6,000 small businesses throughout
the commonwealth in 2006.
Some 95 percent of Kentucky's 103,614 businesses are defined as
"small businesses," with 50 or fewer employees. Kentucky's small-business
payroll, $19.4 billion, represented 38.2 percent of the $50.8 billion total in
2006, further proving the importance of small business to the state's economy.
The Cabinet's Small Business Services Division
provides a wide array of services to smaller companies. The division offers
both one-on-one counseling and group training services on such topics as
developing a business plan, financing, government contracting, and
certification.
In addition, the cabinet's Commission on Small Business
Advocacy keeps small businesses abreast of changes in the law and
helps businesses navigate the regulatory processes.
The Cabinet's services may be one reason Kentucky's small
businesses have such a positive attitude about their economic future.
A recent study from National City Corp. said Kentucky's small
businesses were more optimistic than those in most surrounding states. The bank
company rated Kentucky's Small Business Confidence Index at 70.5 percent in
December. Among the two main components of the index, 83.7 percent of Kentucky
business owners reported feeling good about the local economic outlook, while
57.3 percent were expecting to hire.
"The Cabinet is setting the stage for small business growth in
Kentucky," Economic Development Cabinet Secretary Gene Strong said. "Kentucky
is among the leaders from the surrounding states on the confidence index, our
programs are effective and being utilized, and the Cabinet is helping create a
growth environment."
Business experts around the country have also recognized
Kentucky's pro-business climate. In November, Site Selection magazine,
a leading international economic development publication, ranked Kentucky
seventh in the nation in its 2006 Annual Business Climate Rankings. The ranking
represents a jump from ninth place in 2005.
Last summer, Kentucky took eighth place for its workforce
training programs in Expansion Management magazine, its fourth
straight year in the Top 10. Kentucky had its second consecutive
fourth-place finish in Site Selection's Annual Competitiveness Award
in May 2006.
Among highlights from the Cabinet's Small Business Services
Division in 2006:
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More than 1,900 businesses received targeted government marketing leads from
the Kentucky Procurement Assistance Program, or KPAP. Registered
businesses have reported that KPAP helped them obtain nearly $103 million
in government contracts and subcontracts during 2006. Walt Meadors with John
Conti Coffee in Louisville called the program's automated government bid
notification system "an excellent service. The education and notices
provided are extremely valuable to Kentucky companies and Kentucky's future."
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Its Small & Minority Business Branch helped clients obtain more than $1.6
million in funding, and also helped 500 businesses register in the Kentucky
Business Finder, the Cabinet for Economic Development's online database of
Kentucky businesses. Elijah Herald, owner of Herald Electronics Inc. in
Winchester, said: "Without the assistance of the Small & Minority
Business Branch, obtaining the funding to expand my business would not have
been possible."
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The division co-sponsored or participated in over 40 training events covering
topics such as starting or expanding a business using the Internet/eBay, how to
bid on government contracts, developing a business plan, minority business
expo, certification, etc.
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The division piloted a series of Small Business Town Hall Forums across the
state to promote the services available to small businesses in its many facets
and to solicit feedback on important small business issues.
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The Business Information Clearinghouse Branch provided business licensing and
permitting information to more than 1,700 businesses.
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The division co-sponsored a Youth Entrepreneurship Camp at Kentucky State
University.
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The Commission on Small Business Advocacy set in place new regulatory review
systems resulting in the review of over 250 proposed regulations designed to
assess their impact on small businesses in Kentucky along with the
establishment of a new Web site to help inform small businesses of critical
regulations under review.
The Cabinet's Department of Commercialization and
Innovation works to establish and support high-tech businesses. In
2007 Kentucky will be the first state to match both Phase 1 and Phase 2 SBIR
and STTR federal awards to Kentucky-based high-tech businesses. The state will
match Phase 1 federal awards up to $100,000 and Phase 2 awards up to $500,000
in each year of the award.
"We're very proud of our track record with small business, and
we intend to keep expanding our offerings to entrepreneurs, start-ups and
established businesses that just happen to have a relatively small workforce,"
Strong said. "Because the small businesses of today are the household names of
tomorrow."
More information is available at
www.ThinkKentucky.com.
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