Small Business Administration: History, Purpose & Resources

Instructor: LeRon Haire
In this lesson, we will take a look at the Small Business Administration including its history, purpose, and resources available to help individuals or organizations develop their small business.

The 411 on the Small Business Administration

The Small Business Administration helps entrepreneurs open their businesses.
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Have you ever wondered how and what you would need to do in order to get a small business rolling? This question can be answered with the help of the Small Business Administration (also known as SBA). The SBA is a United States agency designed to assist individuals or companies with creating and maintaining a small business. Let's take a look at the history, purpose, and resources provided by the Small Business Administration.

History of the Small Business Administration

Before its inception and founding on July 30, 1953, the SBA began to take form as early as the Great Depression. In 1932, president Herbert Hoover created the Reconstruction Finance Corporation (RFC) in an effort to help deal with the financial fallout from the Great Depression. As decades passed and The Great Depression ended in 1939, legislation did away with the Reconstruction Finance Corporation and The Small Business Administration was effectively put in its place.

The Purpose of the Small Business Administration

Although the SBA has many tasks and duties, it holds one primary objective: to support, educate, and assist individuals with starting and maintaining their own business. Since the years of the Industrial Revolution, it has been considered the American dream for individuals to own their own business. Small businesses are considered the heartbeat of the economic community. These institutions are vital in helping America evolve for centuries.

When the Great Recession started in 2008, millions of jobs were lost over a two year span. Small businesses helped carry our economy during those tough times, and it could not have been done without some type of help from The Small Business Administration.

Resources of the Small Business Administration

One of the factors that makes the SBA so productive is the vast amount of resources they make available. One of the best for beginning entrepreneurs is the SBA website (www.sba.gov). Here is a look at some of the resources available there:

Loans and Grants

The website allows entrepreneurs to see exactly what is offered in terms of loans and grants. Entrepreneurs can also check their credit, determine their financial needs for the business, and access financial tools to create a business plan.

Legal Ramifications

Many entrepreneurs overlook the legal ramifications that must be understood in order to properly proceed with starting a business. The Small Business Administration's website provides information to determine what types of business licenses and permits are needed. Issues such as workplace safety, finance law, and labor laws are topics which entrepreneurs must know before entering the marketplace.

Business Equipment

The website is also a great resource that allows entrepreneurs to get information about purchasing or leasing equipment for their small business. Does your business need an office space? How about a point-of-sale terminal for purchases? The website will assist entrepreneurs in determining what equipment needs to be purchased as well as how they can go about obtaining it.

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