Reforms needed for Small Business Administration, according to House subcommittee testimonies

Reforms to the Small Business Administration (SBA) entrepreneurial development programs could make these programs even more effective, experts said at a House Small Business Committee’s Subcommittee on Contracting and Workforce hearing last week.

“This hearing couldn’t be better timed. The new [SBA] administrator [former WWE CEO Linda McMahon] has an opportunity to assess and analyze the programs at her disposal and work with us to maximize their effectiveness,” Charles Rowe, president and CEO of America’s Small Business Development Centers, said. “We need to identify the gaps in coverage – geographic and content. Who is doing what right? Who is doing what wrong? Are the goals, metrics and data systems up to the job?”

Rowe added that the 2008 recession left holes in the economy from which some communities and counties still have yet to recover, which means that efforts need to be made to reach them and help build their small business infrastructure.

“SBA and its resource partners have an excellent arsenal of talent to bring to bear on these problems. The biggest obstacle we have is failing to listen to one another and recognize our respective strengths and weaknesses,” Rowe said.

Antonella Pianalto, the president and CEO of the Association of Women’s Business Centers, urged Congress to advance its efforts to provide the necessary investment women entrepreneurs need to succeed.

“We appreciate this Committee’s dedication to the modernization of SBA’s resource partners and your willingness to hear from the programs that are serving entrepreneurs across the country,” Pianalto said.

Joseph Sharpe, Jr., director of the National Veterans Employment and Education Division of The American Legion, said it is vital that veteran-owned and service-disabled veteran-owned businesses receive a fair and proportionate amount of federal contracts.

“The American Legion reiterates that the Small Business Administration’s Office of Veterans Business Development should be the lead agency to ensure that all veterans are provided with Entrepreneurial Development Assistance,” Sharpe said.

Subcommittee Chairman Steve Knight (R-CA) said small businesses face challenges in dealing with health care costs, regulatory compliance and the tax code.

“Frequently short on time and wearing many hats within these new start-ups, entrepreneurs need guidance and assistance. This hearing today is about exploring the resources available to entrepreneurs, startups and small businesses as they navigate a complex business ecosystem,” Knight said. “With approximately 29 million small business in the United States, the programs within the SBA must operate efficiently and swiftly as the entrepreneurs they seek to help.”