Small business administration celebrates 50 years

This summer the U. S. Small Business Administration celebrated its 50th anniversary. Officially established in July 1953, Congress created the agency to "aid, counsel, assist and protect, insofar as possible, the interests of small business concerns." This charter also stipulated that small businesses would be provided equal opportunity to bid on government contracts and sales of surplus property.

Concern for the health of small business intensified during World War II when large industries worked overtime to accommodate wartime defense contracts and small businesses were unable to compete. In order to allow smaller organizations to participate in the war effort and give them financial security, Congress created the Smaller War Plants Corp. in 1942. The SWPC provided direct loans to entrepreneurs and encouraged financial institutions to make credit available to small business interests. After the war the SWPC was dissolved and in 1952 President Dwight Eisenhower proposed the creation of a new small business agency -- the Small Business Administration.

During the past 50 years the agency has grown and changed. Today the SBA provides financial assistance through an extensive guaranty program. In addition to financial services the agency offers technical assistance to new and expanding businesses through local Small Business Development Centers. Through the extensive SBA Web site and counselors at local SBDCs, the small business owner can also access contracting assistance, special interest programs, such as information on international trade, minorities, Native American affairs, young entrepreneurs and veterans business development. The SBA also hosts the Small Business Innovation Research program that assists inventors and creators of new technology in seeking federal grant funding to test and create prototypes of their products. Perhaps one of the most important roles of the SBA is to advocate on both a national and local level for laws and regulations that benefit the small business owner.

Just last year the SBA backed more than $12.3 billion in loans to small businesses. Some may argue that big business, profiting from "economies of scale," can operate more efficiently than a small business. But small business has the ability to be more flexible, more daring than large business. They keep the "American Dream" alive for many small entrepreneurs.

There were about 22.9 million small businesses in the United States in 2002, and this number continues to grow. Since its inception in 1953 the SBA has directly, or indirectly, assisted almost 20 million small businesses. As the SBA moves forward into its next 50 years it has developed five guiding principles that direct all aspects of its services: creativity, advocacy, results, empowerment and success.