Small Business - The US Economic Driver

Last week the Greater Beaumont Chamber of Commerce recognized the 2014 Dr. Robert A. Swerdlow Small Business Person of the Year. The award was presented to Derek Bell of CMS IP Technologies, a local IT firm. Since 1984, CMS IP Technologies has provided exceptional service at competitive prices in the technology services industry. Since its inception, CMS has grown to become the largest solutions provider between Houston and New Orleans. CMS currently operates two brick and mortar locations in Beaumont and Lufkin and employees over 20 full time employees.

Companies like CMS are the backbone of the US economy. It has been widely reported, for a number of years now, that small businesses account for nearly 80% of the workforce, and nearly half od the GDP. According to the U.S. Small Business Administration, a small business is one that satisfies 13 CFR 12.

Most, if not all, recognize the importance of small business enterprises to the U.S. market, but it seems "we", and I use that term loosely, continue to make it more difficult for small businesses to operate efficiently. Regardless of which side of the aisle you sit, it is apparent that the Affordable Care Act has raised concern for many small enterprises. Most will show concern that it is adding to their operating costs, making it more difficult to continue to create jobs. Which, let's be honest, is the number we are all gauging the economic recovery off of. 

Then there is access to capital. While it is improving, small businesses continue to find themselves at a disadvantage when accessing capital. High equity injections, and interest rates that continue to rise, make for a sluggish lending environment for small businesses with little collateral. Businesses often times have to get creative.

But, there are resources available to assist small businesses navigate a world built around "Big Business". The U.S. Small Business Administration offers a number of low interest, fixed rate loan programs. One of the most popular, and one SETEDF services, is the Real Estate Advantage Loan program. The REAL program offers long term, fixed rate financing to for-profit businesses for the renovation and/or construction of real estate, furniture, fixtures and equipment. Additional SBA programs include, 7A, Express, and Patriot Express. Some local Economic Development Corporations (Nederaland EDC and Port Arthur EDC) offer small business loans and grants as well. 

Additionally, there are a number of organizations ready to assist small businesses.

Lamar Small Business Development Center

Lamar Small Business Development Center Port Arthur

AgriLife Extension Service

SCORE

Local Chambers of Commerce

Economic Development Corporations

Southeast Texas Regional Planning Commission

Small businesses may also take advantage of special events within the community. The Southeast Texas Economic Development Foundation's 2014 Business Development Week will take place April 8th-10th at the Holiday Inn Beaumont Plaza, and will present a number of professional and career development opportunities for businesses both large and small. Registration will open the end of February. 

Small business really is what keeps cars on the road and patrons visiting local establishments. It is an honor to be able to recognize small businesses each year for their contribution to the local economy. Congratulations again to CMS IP Technologies.