Small businesses in Iowa are getting a jump-start and helping the Iowa economy as the result of an outreach program based at Iowa State.

Small Business Development Centers of Iowa, which are designed to help people starting businesses, were shown to be successful at helping Iowa’s economy grow through a national study by James Chrisman, a Mississippi State University professor of management.

“The Chrisman study shows us what we already knew,” said Jon Ryan, state director for the Small Business Development Centers. “Every dollar that is spent [to keep Small Business Development Centers open] comes back almost two-fold [to the Iowa economy].”

The study found that with every tax dollar spent on counseling and other services provided by the Iowa Small Business Development Centers, the center’s clients managed to create a return of about $2.10 in their first year after seeking out the center’s services.

“Most [Small Business Development Centers] do a really good job, although some do better than others,” Chrisman said. “Iowa has had a consistent record of high performance, and all [of my] dealings with them has suggested they are very effective.”

Chrisman conducts a biannual survey of Small Business Development Centers across the nation to determine the general effect they have on the country’s economy.

The most recent study, released this year, surveyed long-term Small Business Development Center clients from 2001. A long-term client refers to anyone who received five or more hours of counseling from the centers across Iowa, which provide services to all 99 counties.

Small Business Development Centers’ services are aimed at entrepreneurs — whether they have an established business or are just starting out — and include individual counseling, group workshops and general business information.

“[Clients] benefit from the counselor’s guidance and advice,” Chrisman said. “Because they’re working on the project themselves, they get a better understanding of what they need to be successful, rather than if they hired someone to do everything for them.”

Since much of Chrisman’s information is state-specific, he is often hired by Small Business Development Centers to evaluate data and compile an individual study for different states. This information measures effectiveness and whether money allocated from tax dollars to the centers is being returned to the state’s economy.

Chrisman is currently conducting surveys for about 35 states. During the years between the national studies, an average of 25 states will hire Chrisman to compile the data on their Small Business Development Centers and report their effectiveness.

The Iowa Small Business Development Centers publish information from the study, then present it to elected officials who determine how much money the centers will receive each year, Ryan said.

“[We want] to show that we’re not an expense, but rather an investment,” he said. “Most programs can’t say they serve people in each of the 99 counties in Iowa.”

The data is also distributed to partners at all of the state universities, the Department of Economic Development, the Software and Information Technology Group, the Iowa Bankers Association and a variety of others.

“This study proves [the Small Business Development Center program] does provide real value to business owners,” Ryan said. “We just don’t have enough resources to be doing what we could be. That’s what every program says, but we’ve shown that we more than pay for ourselves.”