How do we know that we’ve made a difference?
Our small business clients tell us.
Each year we conduct a series of surveys to measure impact. Clients are asked to respond and report the difference that the Kansas SBDC has made in their business. We ask how we’ve helped them grow and retain employees, increase sales, and secure capital to grow their businesses.
Basically, we’re measuring a return on your taxes as they are used in the SBDC program.
To understand how we calculate our impact, return is measured by calculating sales and income tax on client revenue, jobs created, and jobs retained. Numbers are calculated based on self-reported and affirmed client surveys, independent scientific study, and legislative audit. And even though our return on investment is impressive, keep in mind that our impact is a conservative estimate with 43% of our clients completing survey requests in 2018.
Additionally, we compare the performance of our business clients with all of Kansas businesses. We use information from the Kansas Departments of Labor and Revenue to compare our performance. Since we started measuring this in 2002, our clients have consistently outperformed all Kansas businesses when comparing average annual sales and job growth.
Our 2018 Results
Through these surveys, we found that in 2018 (the most recent year for which we’ve collected data) for every $1 invested in the Kansas SBDC network, $30.80 was generated in new taxes at the federal and state levels.
Collectively the clients we surveyed in 2018 generated an increase of $11.9 million in tax revenue to the Kansas state economy through the help we provided them in the previous year. We’re not just using taxes, we’re assisting in the generation of new funds for the state.
In 2018, 278 respondents indicated that they started new businesses. And, as you might guess, starting a new business translates to new jobs, new sales, and new investments.
A total of 3,834 jobs were created or retained in 2018. It’s estimated that these jobs would have generated $5,421,166 individual income tax revenue for the state of Kansas and $64,640,385 individual income tax revenue for the federal government in 2018.
It is estimated that the increased sales and created and retained jobs would have generated a total of $17,337,490 sales and income taxes to the State of Kansas. The Kansas SBDC spent $718,536 from the Kansas Department of Commerce (KDOC) in 2018. The return on investment from the KDOC was 24.1 to 1, which means for every dollar that the Kansas SBDC spent from the KDOC, Kansas small businesses in the study returned $24.1 income and sales tax revenue to the state government.
The Kansas SBDC spent $1,112,200 from the Small Business Administration (SBA) in 2018. The created and retained jobs reported by the businesses in the sample would have generated $64,640,385 individual income tax revenue for the federal government. The return on investment from the SBA was 58.1 to 1, which means for every dollar that the Kansas SBDC spent from the SBA, Kansas small businesses in the study returned $58.1 income tax revenue to the federal government.
The total tax revenue generated from sales increase and job creation and retention was estimated to be $81,976,698.
The Kansas SBDC spent a total of $2,662,524 local, KDOC, and SBA funds in 2018. The return on the combined local, state and federal investment was 30.8 to 1 (In other words, for every $1 invested in the Kansas SBDC program, $30.80 made its way back to the state & federal government to help fund other programs. We are proud of that ROI to our funding partners!)
Questions? Contact Greg Panichello, Kansas SBDC State Director, 785-296-6514 or email@example.com.