SBA Features New Tools During National Entrepreneurship Week
by Michael Chodos, SBA Official
- Created: February 20, 2013, 7:16 pm
- Updated: February 20, 2013, 7:16 pm
In conjunction with National Entrepreneurship Week (Feb 16-23, 2013), SBA is hosting a series of online briefings to discuss “crowdfunding” strategies for entrepreneurs. The series is comprised of daily webinars Feb 19-21 and a free online briefer to showcase innovative business financing opportunities.
Hosted by the Consortium for Entrepreneurship Education, National Entrepreneurship Week celebrates the origins of American entrepreneurship and promotes education for young entrepreneurs. Hundreds of schools, mentoring organizations, municipal government entities and distinguished volunteers partner with young entrepreneurs to support their interests and pursuits throughout the year. SBA’s mentor network offers the valuable resources of SCORE, Small Business Development Centers and Women’s Business Centers as they work hand-in-hand with local communities to ‘power’ the American dream of entrepreneurship. Join us in celebrating the work of these business coaches as they empower the next generation of leaders. You can find one of our counselors and mentors in your community at www.sba.gov, along with a host of online learning and other resources to help you start and grow your business. Just enter your zip code under “Local Assistance” and get started.
What is Crowdfunding?
The Jumpstart Our Business Startups Act (JOBS Act) encourages growth opportunities such as crowdfunding to help spur startups and job creation.
Crowdfunding brings together a network of investors who pool their financial resources to fund a start-up company. While peer-to-peer lending brings individuals together for the purpose of supplying and receiving small business loans, crowdfunding aggregates the financial resources of myriad individual investors. The Internet, especially social media sites and emerging platforms, allows rapid introduction and facilitation of crowdfunding investors to pool their resources for funding a small business.
Crowdsourcing.org reported that by the end of 2012, there were more than 530 crowdfunding platforms (CFPs), up over 60 percent from the numbers posted during 2011. The four primary crowdfunding categories that comprise CFPs include donation-based, reward-base, lending-based, and equity-based. As reported by USA Today, approximately $1.5 billion was raised by crowdfunding sites in 2011.
Crowdfunding may also create a strong support network for small business owners that may need assistance in areas outside of their business expertise. For example, a young entrepreneur owner who does not have marketing experience may benefit from the advice of a crowdfunding investor who has established a successful marketing career.
SBA’s crowdfunding webinars feature expert speakers offering practical tips and suggestions for immediate use. I encourage aspiring entrepreneurs and existing business owners to dial-in for this impressive series.
Our recently redesigned Online Learning Center offers a brand new e-briefer on crowdfunding. This learning portal is becoming a destination for users that seek to educate themselves on sound business practices and emerging trends impacting the small business marketplace.
The crowdfunding e-briefer promotes three objectives:
- Define how crowdfunding helps young entrepreneurs
- Describe each crowdfunding component
- Share crowdfunding resources
So during National Entrepreneurship Week, personally thank a business mentor, participate in a webinar or our e-briefer, encourage a young entrepreneur and re-commit to supporting small businesses in your community.
About the AuthorIn his role as the Agency’s Associate Administrator for the Office of Entrepreneurial Development, Mr. Chodos is responsible for overseeing the agency’s counseling and training resources and programs for America’s entrepreneurs.
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