Growing Small Businesses

Jamie L. Robinson, Founder and CEO, RCSG / Corvus Link.

Small businesses are the backbone of our economy, contributing to 43.5% of GDP, yet only half survive their first five years. Surprisingly, despite having numerous federal small-business programs, we lose about 1 million small businesses annually. While product-market fit is a factor in 35% of failures, various barriers—access to resources, complexity of support systems and systemic inefficiencies—stifle growth and innovation.

This disconnect raises critical questions: Why are these programs failing to deliver meaningful impact? What can small-business owners do to advocate for their needs? In this article, I will explore the structural challenges in the small-business support ecosystem and actionable steps we can take as leaders to drive resilience and growth.

Acknowledging The Problem

In my research of this problem, I’ve had to face a stark reality: Too many small businesses fail, and the support systems in place are often slow, selective, complex and misaligned with the actual needs of these small businesses. Key systemic barriers include:

• Credit Access: 33% of our population would struggle to qualify for SBA loans due to subprime credit scores.

• Limited Reach: While programs like Small Business Development Centers (SBDCs) and the Senior Corps of Retired Executives (SCORE) exist to offer education and financial support to small businesses, they can only reach so many businesses. For example, in 2022, less than 1% of small businesses in the U.S. received support from SCORE.

• Funding Gaps: Most small-business investment capital is targeted at mature, profitable businesses, while only 15% of small businesses polled report turning a profit in their first year.

• Regional Disparities: Access to regional innovation programs varies widely and is not always available in some states.

These challenges are compounded by inefficient resource allocation. For instance, in FY 2025, the SBA’s $1.46 billion budget allocated 33.2% to operating costs, leaving about $977 million for program activities. When factoring in standard nonprofit fundraising rates (up to 35%), this could mean as little as 32% of the budget reaches small businesses directly. This inefficiency leaves many small businesses reliant on predatory lenders, which often initiate repayment within days, exacerbating financial strain.

The PPP Case Study: What Worked And What Changed?

The Paycheck Protection Program (PPP) was a turning point for small businesses during the pandemic. Reaching 85.5% more businesses than traditional SBA loans and carrying about 78% lower financial commitment per loan, PPP highlighted what an agile, well-funded program could achieve. It supported unprecedented small business growth in a time of crisis, with unicorn startups emerging every 16 hours.

Yet, post-pandemic, the SBA pivoted its focus to oversight and fraud risk mitigation instead of addressing structural barriers to access. I believe this shift indicates that the SBA’s operating practices have not evolved with the changing needs of small businesses.

Root Causes Of The Disconnect

Why does the current model fail? I have observed three major contributors:

1. Rigid Assumptions: In my experience, many SBA programs assume that small-business fundamentals—growth drivers, credit access and regulatory requirements—remain static.

2. Information Gaps: The SBA lacks key data to evaluate and address barriers to access effectively.

3. Misaligned Practices: The SBA’s mission to “help small-business owners and entrepreneurs pursue the American dream” is at odds with its current processes, leaving small-business owners navigating regulatory hurdles without sufficient support.

Actionable Solutions: Building Resilience And Growth

To empower small businesses in today’s competitive landscape, I believe we need legislative reform, stronger small-business communities and actionable best practices. Here are some ways we, as business leaders, can begin taking action.

1. Drive legislative change.

If you are a small-business owner, actively engage your legislators to redefine the outcomes government programs should support. Programs with the reach and impact of PPP—whether through direct investments, regulatory reforms or efficiency improvements—are important. Advocating for this shift en masse can help ensure small-business interests remain a priority amid political turbulence.

2. Strengthen small-business communities.

Local ecosystems can fill gaps in federal support. Seek to collaborate with regional innovation hubs, chambers of commerce and industry groups to gain and expand access to tailored resources and foster mutual growth.

3. Adopt best practices for growth.

• Build incrementally. Focus on scaling your capabilities step-by-step. For instance, prioritize minimum viable product (MVP) development over full-scale deployment to optimize resource allocation.

• Plan for the future and adjust for the present. Use tools like planning, forecasting and market analysis platforms to build robust, adaptable plans. (Full disclosure: My company offers these tools, as do others.)

• Stay agile. Regularly assess your value proposition and pivot as needed. Track your progress and identify opportunities for improvement.

• Maintain strategic alignment. During turbulent times, resist the temptation to abandon your strategy. Instead, adapt while keeping your overarching vision intact to avoid wasting resources.

Conclusion

Small businesses remain the lifeblood of our economy. However, to thrive, they need a support ecosystem that is as agile, innovative and dynamic as they are. By leveraging lessons from 2021, advocating for impactful policies and adopting resilient growth strategies, we can transform the small-business landscape.

The opportunity is clear: With the right players in the game and the right playbook, we can foster an environment where innovation flourishes and small businesses succeed. Together, we can do this.

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