Arkansas economic development pushes initiatives to support small businesses – KTLO

Report on Arkansas Small Business Support Initiatives and Alignment with Sustainable Development Goals

1.0 Executive Summary

A recent meeting of the Arkansas Economic Development Commission’s (AEDC) small business subcommittee addressed significant economic challenges facing the state’s entrepreneurs, including inflation and federal government shutdowns. The commission outlined strategic programs designed to bolster the small business sector, which constitutes the majority of businesses in Arkansas. These initiatives directly align with several United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 10 (Reduced Inequalities).

2.0 Economic Challenges and Impact on SDG 8

The operational environment for small businesses in Arkansas has been compromised by macroeconomic pressures and federal policy disruptions. These challenges create significant barriers to achieving SDG 8, which promotes sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

• Federal Government Shutdown: The U.S. Small Business Administration reported a failure to approve eight small business loans, totaling over $5 million, during a single week in October. This directly impedes capital access, hindering business growth and job creation.
• Economic Instability: Ongoing inflation continues to present operational difficulties for small enterprises, threatening their sustainability and capacity to provide stable employment.

3.0 Strategic Programs for Sustainable Development

The AEDC has implemented targeted programs to mitigate these challenges and advance key SDGs. These initiatives focus on fostering innovation, ensuring inclusive growth, and building a resilient entrepreneurial ecosystem.

3.1 Fostering Innovation and Industry (SDG 9)

In alignment with SDG 9, which aims to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation, the AEDC highlighted the Arkansas Innovators Start-Ups and Entrepreneurs (ARISE) program.

1. Program Objective: To launch, grow, and scale tech-enabled startup businesses within the state.
2. Support Services: ARISE provides critical resources at no cost to entrepreneurs, including:
   • Professional coaching and mentoring
   • Specialized training
   • Access to capital

3.2 Promoting Inclusive Growth and Reducing Inequalities (SDG 10)

To address SDG 10, which calls for reducing inequality within and among countries, the AEDC is concentrating on equitable economic development across the state. The commission has hired dedicated outreach leads to stimulate small business development, with a strategic focus on historically underserved regions, specifically Northeast and South Arkansas. This action aims to ensure that entrepreneurial support and economic opportunities are distributed more evenly, reducing regional disparities.

4.0 Collaborative Frameworks and Future Outlook (SDG 17)

The subcommittee meeting itself exemplifies a commitment to SDG 17 (Partnerships for the Goals) by bringing together government representatives and economic development bodies. State Representative Tracy Steele affirmed the subcommittee’s dedication to advocating for increased collaboration and funding. This multi-stakeholder approach is essential for creating a supportive environment where Arkansas entrepreneurs can thrive, contributing to the state’s long-term sustainable economic health.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article highlights issues and initiatives related to small businesses, economic challenges, and government support, which directly connect to the following Sustainable Development Goals (SDGs):

• SDG 8: Decent Work and Economic Growth: The core theme of the article is the economic struggle of small businesses in Arkansas due to inflation and government shutdowns. The efforts by the Arkansas Economic Development Commission to support these businesses are aimed at fostering economic growth and sustaining employment. The article states, “Small businesses make up the majority of all businesses in the state, so it’s critical that we keep supporting them,” which underscores their importance for the state’s economy.
• SDG 9: Industry, Innovation, and Infrastructure: The article specifically mentions support for “tech-enabled startups” through the ARISE program. This program offers “free coaching, mentoring, training, and access to capital,” which is a direct effort to foster innovation and support the growth of small-scale, technology-driven industries.
• SDG 17: Partnerships for the Goals: The article describes a collaborative effort involving multiple stakeholders. The Arkansas Economic Development Commission, a state government body, held a “small business subcommittee meeting” which included a State Representative. They are working to address challenges created by the federal government shutdown and its impact on loans from the U.S. Small Business Administration. This multi-level government collaboration to support entrepreneurs is a clear example of partnership.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the specific actions and challenges discussed, the following targets can be identified:

1. Target 8.3: “Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.” The entire article is focused on this target. The discussion about loan approvals being halted and the creation of programs like ARISE to provide “access to capital” directly addresses the need to support small and medium-sized enterprises (SMEs) through financial services and entrepreneurship support.
2. Target 9.3: “Increase the access of small-scale industrial and other enterprises… to financial services, including affordable credit, and their integration into value chains and markets.” The article highlights a major barrier to this target: “eight small business loans totaling over $5 million were not approved during the week of October 21.” The ARISE program, which helps startups “launch, grow, and scale their business,” is a direct measure to improve access to financial services and support for small-scale enterprises, particularly innovative ones.
3. Target 17.17: “Encourage and promote effective public, public-private and civil society partnerships…” The meeting held by the Arkansas Economic Development Commission, involving State Representative Tracy Steele and Esperanza Crane, to discuss challenges and solutions for small businesses exemplifies a public partnership. Steele’s comment that the subcommittee “will continue to advocate for more collaboration and funding” reinforces the commitment to this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions and implies several indicators that can be used to measure progress:

• For Target 8.3 and 9.3: The article provides a specific, quantifiable indicator of a challenge: “eight small business loans totaling over $5 million were not approved.” This implies that a key indicator for progress would be the number and value of loans approved for small businesses. This directly relates to Indicator 9.3.2: “Proportion of small-scale industries with a loan or line of credit.” An increase in loan approvals would signify progress.
• For Target 8.3: The existence and activities of the ARISE program serve as a qualitative indicator. Progress could be measured by the number of entrepreneurs and startups receiving coaching, mentoring, and training through the program. The article mentions that outreach leads have been hired to focus on developing small businesses, suggesting that the number of businesses supported by outreach programs is another potential indicator.
• For Target 17.17: While not a formal UN indicator, the article implies progress can be measured by the amount of funding secured for small business support, as the subcommittee plans to “advocate for more collaboration and funding.” This aligns with the spirit of Indicator 17.17.1, which tracks the value of resources committed to partnerships. The frequency and outcomes of collaborative meetings, such as the one described, also serve as a qualitative indicator of partnership effectiveness.

4. Summary Table of SDGs, Targets, and Indicators

Source: ktlo.com