Most businesses that start fail within a few years.
Chip Templeton, director of the Mississippi State University Small Business Development Center, said his organization is trying to help entrepreneurs see better odds of success.
“For people going into business — if you had 10 businesses start today, in five years, only five of them would be around,” he told Starkville Rotary Club members Monday at Starkville Country Club. “A few years after that, only two are around. So you see where I’m going with this — if we can give you the tools, maybe you can make fewer mistakes and maybe that will improve.
“Folks who go through us, that statistic’s only about 17 percent go out of business,” he added. “We might talk a few people from going into business that might help that percentage — I hope not — but you see, you make mistakes and you can make them before or after you get going.”
The MSU Small Business Development Center serves 10 counties — Choctaw, Clay, Kemper, Lauderdale, Lowndes, Montgomery, Monroe, Noxubee, Oktibbeha and Webster.
Templeton said the Small Business Development Center offers a range of free services, including workshops and counseling, to people who are considering a business idea, preparing to startup or even those who have an existing business already.
In Fiscal Year 2017, Templeton said, the Small Business Development Center worked with 159 total clients. Through that work, the center helped generate $8.5 million in cash infusions for businesses. Those clients started 19 new businesses, created 136 jobs and helped retain 203 existing jobs.
“A business start is when we actually help someone start their business,” he said. “That’s when they’re ready to go. Nineteen is how many we helped (last year). Right now, we’re not quite six months into this year, but I think we’ve done 11 or 12.”
Of those 19 new businesses, Templeton said, seven are classified in the North American Industry Classification System as retail trade; two are real estate, rent and leasing; two are administrative/support/waste management; two are health care and social assistance; two are art, entertainment and recreation; three are accommodation and food services; and one is other services.
He added the center has worked to increase its focus on women, minority and veteran-owned businesses, and is seeing success in that arena. Templeton said 75 percent of the $8.5 million in capital infusions in FY 2017 went to women, minority and veteran businesses, and 79 percent of the new startups were for those businesses.
Templeton said the center holds its main workshop series, called “Small Business 101” twice a month. The workshop has three parts, focused on starting a business, developing a business plan and building cash flow projections for a business plan. The center also holds quarterly two-day “Boots to Business” workshops that focus on helping veterans start businesses.
For counseling, Templeton said the center can help with things such as developing a business plan, financial projections and so on.
He noted however, in response to a question from a Rotarian, that for things such as risk assessment, he encourages potential businesses owners to do their own homework, then gives his thoughts.
“I try not to give a total opinion, but I’m not there to be the agreer or the cheerleader,” he said. “I’m there to give them an honest opinion on what I think their chances are.”
Alex Holloway was formerly a reporter with The Dispatch.
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