STATEMENT
of the
Honorable Nydia M. Velázquez, Ranking Democratic Member
Subcommittee on Workforce Empowerment and Government Programs
Hearing on
"Oversight of SBA Entrepreneurial Programs and Recommendations for Change"
House Small Business Committee
March 2, 2006

Thank you Mr. Chairman. I also want to thank Congressman Lipinski for letting me sit in on this hearing. I appreciate all of the hard work you are doing on this issue.

We have heard a lot about the need for innovation and new opportunities for this nation's working people - and it is entrepreneurial development that lies at the very core of this sentiment. Not only do these programs spur technological advancement, but they also serve a vital role in boosting the U.S. economy.

In the past, when we have needed innovation - small businesses have been the ones to deliver it. In the early 1990's when our nation witnessed an extraordinary tech boom we saw a lift in the number of budding entrepreneurs. This was fueled by approximately 50 percent of the middle managers leaving larger businesses to start their own companies. Many of these entrepreneurs were successful because of the assistance that was provided to them by the very programs we are talking about today.

Whether it is helping high tech firms, manufacturers, or even a mother start her own business so she can spend more time with her children, SBA's entrepreneurial programs make the American dream a reality. In this country you can go to school to become a lawyer or doctor, and get trained to be an electrician or plumber - but no where can you go to school to be an entrepreneur.

These programs help individuals who have the bright ideas, get the business training they need to be successful. Studies have shown that individuals who start their own business with some type of entrepreneurial training are twice as likely to succeed in the end.

That is why it is so unfortunate that a number of these programs, all of which have a wealth of potential, are being under-funded, understaffed, ignored and mismanaged by the SBA. We need to ensure entrepreneurial programs are continually evolving in order to help small businesses meet the current challenges they face - including regulatory compliance, energy and disaster relief.

Democrats believe that these are the critical issues we should be examining when discussing entrepreneurial development programs. However, until the agency commits to funding these initiatives, and managing them properly - we are not going to be able to move forward.

To the groups present today - from SBDC's, WBC's and SCORE - we know very well the good job you are doing. We also know that with insufficient budgets, these programs are just getting by. But we should not be satisfied with getting by. We should be working to ensure that these programs have the resources they need in order to reach their fullest potential.

Small businesses were the primary generator of jobs and economic growth in this country during the 1990's. The administration's lack of investment in entrepreneurship has been a major cause in why the United States economy fails to prosper and experience weak growth.

I look forward to hearing the witness's testimony today, and what they have to say about their programs, their successes and their challenges.

 

 

 

 

---