A signature name in investment banking is making a big investment in Alabama’s small business culture.
Goldman Sachs today announced it is bringing its business-education program, 10,000 Small Businesses, to Alabama, with a commitment of $3 million to community development financial institutions that serve rural small businesses in the state.
An announcement is planned today at Birmingham’s Innovation Depot, with Sen. Katie Britt and Rep. Terri Sewell attending.
The New York-based investment banking house launched its rural initiative last year in North Dakota.
Alabama is the fifth state for the program, which is part of a $100 million initiative to reach rural small business owners in 20 states over five years.
The program aims to help rural entrepreneurs grow their businesses with training, access to capital and personalized support services.
To date, the program has reached approximately 15,000 small businesses around the U.S., according to Goldman Sachs.
Working with HOPE (Hope Enterprise Corp. / Hope Credit Union), Goldman Sachs will partner with Alabama-serving community development financial institutions including Communities Unlimited, a non-profit lending institution.
Small businesses account for the overwhelming majority of business activity in Alabama. But national surveys show small businesses, particularly in rural areas, face challenges recruiting and retaining employees.
In recent years, they’ve also felt the pinch from inflation, lack of access to technology, and a lack of affordable housing for employees.
Asahi Pompey, Goldman Sach’s global head of corporate engagement, said the program aims at answering these problems by providing a “mini-MBA” in business education, as well as access to capital.
“Alabama has a rich and diverse small business community, and it’s really the heartbeat; they are creating jobs, they’re driving growth, they’re moving the Alabama economy forward,” Pompey said.
“But rural small businesses don’t get the resources and access to capital to open that new shop, or update that old equipment, or to learn more how to negotiate with a counter party.”
Pompey said each state has different industries and a different business climate.
But the challenges for Alabama rural small businesses are similar to other states, such as Arkansas, Missouri and the Dakotas, where the program is already up and running.
Among the businesses that have already been selected for the program are firms in the professional services, food and beverage, technology, education, transportation, manufacturing and healthcare sectors.
Among those that have graduated, 60% of the business owners report having added jobs, 68% have increased revenues and 84% believe their business is more resilient, according to the company.
Source: al.com
