What does the SBA do?
Our office is one of 68 offices around the country, serving the counties of Ventura, Santa Barbara, and Los Angeles. We also happen to be the largest office in the country. We have three main functions: We provide financing to businesses to the tune of about $5.6 billion per year; we link government buyers with small business sellers through a procurement program; and we do a lot entrepreneurial training for those starting their own small businesses.

Why the focus on training?
Most people who start small businesses are good technicians – they know how to make the widget because they’ve been doing it their entire lives. What they may have problems with though, and one of the main reasons businesses fail, are management issues. Things like marketing, managing staff, and handling office logistics aren’t as second nature so that’s where we can help.

It seems a lot of your programs are focused specifically on helping women and minorities get small businesses up and running. Why?
We are always looking for places and communities that need additional help; cities that need some additional economic development help. It just so happens that women and minorities are the two fastest growing business enclaves in the country.

How much are they growing?
Women are forming businesses at two times the national average and minorities are forming them at three times the average. It’s what people are calling “emerging markets.”

It sounds like you’re not big on that term, “emerging markets.” Is it a misnomer?
I grew up in East Los Angeles and so I think it’s kind of funny that women and minority businesses are referred to as “emerging” because these communities have been here for a long time. What’s emerging is the realization that there’s money to be made within these communities.

So why are we seeing more and more businesses run by women and minorities?
There are a few reasons. The first is that a lot of immigrant communities are entrepreneurial by nature. People may get their start in this country by hitting the streets selling oranges, then they build a corner grocery store, and then possibly move into running a specialty food stuffs business. Another reason is that it could be the natural growth curve for some communities – it may be a bit delayed as the community has grown, but all of a sudden, you see two, three, four small businesses and it becomes contagious.

Are the communities themselves actively promoting small businesses?
That’s a third reason, the old “chicken or the egg” – did the businesses create a thriving community or did the community help the businesses thrive. Some communities are recognizing the value of small businesses so they’re outwardly promoting and recruiting small businesses and seeking government and private sector help and services to do so.

What has changed to make small businesses a viable option for cities to beef up their economic development?
Once upon a time, it was the giant corporations that were the principle job creators for an area. Now, that’s completely reversed. Businesses with 500-plus employees are growing at a much slower rate than those with one to 10 employees. That’s true here in Los Angeles, and frankly, around the world.

Does that mean you think the power of a giant corporation to help an area thrive has gone by the wayside?
No one in local government is going to turn down some huge manufacturing giant from coming to their city or county, but they are also realizing the value of small businesses because that’s where the innovations and major growth are happening. More and more, we’re working with large companies who want to tap into the power of small business markets and these communities.

Do you think this growth in minority- and women-run businesses is going to level off at some point?
We see it continuing and really skyrocketing. It’s a phenomenon we’re seeing around the country and as immigrant populations grow and more and more women look for their own careers, it’s a way for them to be involved in all facets of civic society. It’s kind of the American Way – a way for them to amass their personal wealth and get a piece of the rock.