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INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads | | DECEMBER 28, 2000 FINANCE The SBA's Outgoing Boss: "We Captured an Opportunity" Aida Alvarez talks about her tenure and looks forward to a Republican successor who'll continue to focus on women and minorities
At the same time, Alvarez has weathered criticism by the General Accounting Office and Senate Republicans, who say the SBA's priorities aren't always in line with what small-business owners really want. Alvarez has acknowledged some shortcomings, while citing her efforts to modernize the agency. One area where Alvarez thinks more work could be done: persuading other federal agencies to work more closely with the SBA in awarding government contracts. "We, as federal agencies, could be more effective if we worked together across agency lines," she says. Alvarez spoke recently with Business Week Online's Julie Fields about the growth of entrepreneurship in the U.S., the incoming Bush Administration, and what she thinks her successor's priorities should be. As for her own future, Alvarez, a former journalist and investment banker who grew up in Brooklyn, N.Y., is keeping her options open. Edited excerpts of their conversation follow: Q: How have things changed for entrepreneurs under the Clinton Administration? A:We've had a phenomenal economy, and small businesses have both benefited from it and contributed to it. In fact, studies have shown that the majority of the new jobs created -- 22 million jobs over the past seven or eight years -- have been created by small business. Don't forget, when you talk about high tech, you're talking mostly about small business. I think we also captured an opportunity because we really zeroed in on the fact that women and minorities were starting up businesses at a faster pace than the general population. And we worked with our lenders and with our district offices to set goals to create more lending activity. We've seen a tripling in the number of SBA loans for women, and a near-tripling of the loans for minority-owned businesses. Q: Do you think the momentum in entrepreneurship will continue under the Bush/Cheney Administration? A: I hope so. I have no reason to believe that the incoming Administration would be anything but supportive of small business. We are seeing some changes on the stock market, with the devaluation of stock for high-tech companies. But to me that's not surprising. There was a big surge of interest, and investors were competing to be the first ones to get there, which shot up the prices. And then they have a chance to reflect on what they've done and things start to sort out -- and then you start to discover the true value of what you've invested in. I don't think that's in any sense catastrophic or depressing, because I do think that there is some real solid activity out there. Q: What about loans to women- and minority-owned businesses? Are you concerned that they will not be given the same emphasis? A: If you think back to the Republican Convention, and to the effort they made to show women and minorities, to me that was an indication that what the Democrats have done has reached into the Republican consciousness. Imitation is the highest form of flattery. The question now is: Will that acknowledgement translate into policies? And that's what everyone, certainly women and minorities, are looking for. Q: If you could set the top priorities for the next SBA administrator, what would they be? A: Well, I would continue to focus on new markets, which are women, minorities, and rural communities, that have been underserved. I would finish the job of modernization, which is well under way. One of the other things I realized is that we, as federal agencies, could be even more effective if we worked together across agency lines. For example, Commerce has a focus on small business, HUD has a focus on small business, and Agriculture has a focus on small business, just to name a few. I would also very much focus on globalization. Q: What do you mean exactly? A: There are enormous opportunities for small businesses in the international arena of both exporting products and providing services. They're already doing it, but there's a lot of room for growth. Q: And what can the SBA do, specifically? A: Well, we provide financing. And under my tenure I've entered into strategic partnerships with at least a dozen countries in which we are going to exchange information, provide technical assistance, and engage in trade missions on behalf of small business. Q: What are the biggest barriers for small businesses trying to do business in other countries right now? A: One is their lack of familiarity with other countries. But you know, that's why these partnership agreements are important. When there is an official recognition on the part of another country that it's good to be welcoming and facilitate opportunity for U.S. businesses, then those small businesses don't have to fend on their own. Q: What unfinished business do you wish you could stay and finish at the SBA? A: You know, really I have no sense of unfinished business. Q: What are you planning to do after January? Have you been inspired to start a business? A: I've thought about it. Right now, I'm really just talking to people, and I'm encouraged by the people who want to talk to me. Q: Are there particular areas you're interested in? A: Well, certainly one area is small business. And I'm sort of looking at everything from my own business to helping others who have been involved with small business. You see, I really believe that you can make money and help people.  Edited by Robin J. Phillips  | | |
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