Did you know the Small Business Development Center received a $1 million grant to develop a program fostering rural entrepreneurship?

July 23, 2024

The Alaska Native Entrepreneurship Program, funded by a $1 million federal grant secured by Senator Lisa Murkowski, aims to expand the Alaska Small Business Development ��Գٱ��’s (SBDC) Rural Program by enhancing its ability to introduce and develop new tools, training, and opportunities tailored to the needs of rural Alaska and Alaska Native-owned businesses.

New Resources: The funding allows the Alaska SBDC to expand and enhance its AI-based tools and technology specifically for rural communities and economic development organizations. This means these communities, with the support of the Alaska SBDC Rural Program, can access cutting-edge technology and business development tools that might not have been available before and were created by Alaska SBDC with their specific needs in mind. Alaska SBDC Executive Director Jon Bittner hopes the program will ensure “Alaska Native entrepreneurs have access to the same level of support as their urban counterparts.”

About the Alaska SBDC: The Alaska Small Business Development Center is a statewide program hosted by the University of Alaska Anchorage (��ū�컨��A) within the Business Enterprise Institute (BEI). The Alaska SBDC provides no-cost, confidential, one-on-one business coaching, workshops, tools, and resources to help small businesses succeed throughout Alaska. With nearly 40 years of experience, the Alaska SBDC leverages extensive expertise and partnerships to support entrepreneurs at every stage of their business journey.

Overcoming Challenges: Rural Alaska Native entrepreneurs face significant challenges, including limited access to financing, internet, and transportation. This program offers alternative funding, financial literacy training, AI-based tools, and expanded training programs. The “train the trainer” model fosters a network of local experts. The program creates "Junior Business Advisors" trained to help businesses from concept through early-stage development. Once the businesses hit a certain milestone, they move on to a full Alaska SBDC Advisor for more comprehensive assistance.

Tech Partnerships: Partnerships with Amazon, Meta, and Google connect rural entrepreneurs to specialized training, e-commerce opportunities, and broader markets. The Alaska SBDC has a longstanding relationship with various tech companies, having already partnered in Google's Grow Your Business program.

��ū�컨�� System Collaboration: The Alaska Small Business Development Center collaborates closely with various University of Alaska programs, including the Center for Economic Development, the Manufacturing Extension Partnership, the Alaska Cooperative Development Center, the Procurement and Technical Assistance Center and will now be expanding into ��’s College of Health.

Specialized Training: New services and training will be developed to expand business development resources in rural areas. There have been gaps in support for these critical businesses, and the grant will address that by allowing Alaska SBDC to create and lead new training programs, tools, and materials to address rural challenges. The Rural Program's success in delivering in-person workshops to remote communities like Gambell, Savoonga, White Mountain, and Little Diomede, coupled with an additional nine workshops offered online, demonstrates a strong foundation to build on as the program strives to increase the number of workshops provided and communities supported.

Rural Advisor Ruth Wolfe teaches a workshop in a gymnasium in Little Diomede SBDC Advisor Ruth Wolfe teaches a business workshop in Little Diomede in 2023

Increased Opportunities: The Alaska SBDC Rural Program aims to generate new opportunities for rural businesses to thrive and grow. For example, this could involve linking rural businesses to previously inaccessible markets or resources. With the Rural Program's current advising, tools, resources, and training, the Alaska SBDC is prepared to advance these efforts and further support the needs of Alaska and Alaska Native-owned businesses in the state, contributing to a stronger economy.

Success Story: Quad Shot: , a drive-through coffee hut in Valdez, exemplifies the program's impact. With the support of a dedicated rural business advisor, the Selanoff family received essential assistance in accessing grant funding and successfully launched their business in September, 2023. This personalized approach ensures all entrepreneurs can access the resources they need to succeed.

the family of four poses in front of the wooden drive-through coffee hut in front of the Valdez, Alaska mountains two daughter perched in the window of the hut Quad Shot opened its doors on September 24, 2023,
with the support of the Alaska Small Business Development Center (SBDC photo)

Expected Outcomes: Over the next three years, the program aims to create hundreds of new businesses, driving job creation and new investments. With nearly $90 million in funding incentives from the Alaska Tribal State Small Business Credit Initiative program, the anticipated impact on rural economies will be transformative.

Measuring Success: Bittner says effectiveness is measured by the number of businesses advised, capital raised, workshops attended, sales growth, communities served, and trainers trained. “We believe that if you can't measure it, you probably shouldn't be doing it.”

Personal Insights: Developing this program has been profoundly rewarding for Bittner, personally. He sees it as a way to ensure opportunities are available to the next generation of Alaskans. “Stronger economies and more resilient rural communities benefit the entire state and I can't think of any organization better suited to help make that happen than the University of Alaska.”

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