Small business creation is on the rise in Alabama. Nearly 220,000 new businesses have been created across the state in the last three years.

“The combined 2020-2021 monthly averages of new business applications are up 51.12% compared to pre-2021 numbers in Alabama,” Megyn Rodriguez, Public Information Officer for Alabama’s Small Business Administration (SBA) District Office, told the Huntsville Business Journal.

The Huntsville business community had the opportunity to hear from a high-level representative from the federal Small Business Administration when Deputy Administrator Dilawar Syed traveled to Huntsville on March 21 to speak at the 37th Marshall Small Business Alliance (MSBA).

Steeped in personal experience as a successful entrepreneur, Deputy Administrator Syed now works to build connections between entrepreneurs, small business owners, and lawmakers.

Prior to joining the Biden Administration, Syed was the President and CEO of Lumiata, a California-based start-up that utilizes AI to improve healthcare outcomes for patients while simultaneously driving down costs. Before his time at Lumiata, Syed served as the president of the software company Freshworks.

Syed explained to those gathered at the MSBA meeting that the SBA coordinates government contracting for small businesses. The SBA has developed initiatives that aim to help small businesses win local, state, and federal government contracts.

“Many of you are familiar with the 7(j) program; we have revamped it to make it a little bit more tailored. It is rebranded as Empower to Grow. And what you will see is, there is going to be a lot more targeted, custom, one-on-one training and mentorship. That’s a key promise,” said Syed.

Syed emphasized that the Biden-Harris Administration is intentional in supporting small businesses, as a central component of the health of the national economy.

“The United States’ government is the world’s single largest purchaser of goods and services,” said Syed. “[It spends] $700 billion a year, that’s bigger than the GDP of many nations. And the President is committed to ensuring that a good share of that goes to small businesses.”

The Deputy Administrator noted that his work as an entrepreneur has led him to understand entrepreneurship as an “act of hope.”

Following his remarks to the MSBA, Deputy Administrator Syed sat down with the Huntsville Business Journal in a one-on-one interview to discuss the outlook for small businesses in Huntsville and North Alabama.

Syed noted that the Huntsville-area has long been known for attracting Ph.D.s and global talent. He believes this legacy makes Huntsville uniquely poised to take advantage of emerging technologies.

“I think, at this interesting moment, where there is so much transition to deep tech, to AI, Huntsville can punch above its weight,” Syed told the Business Journal.

Syed anticipates that the Huntsville business community, with government support, can play a leadership role on the national stage as these cutting-edge technologies are widely adopted.

Additionally, Syed explained that the SBA is committed to support small businesses beyond their initial founding. The Deputy Administrator noted that securing a small business application is just the first step.

“We want to make sure that while we see this uptick in small business creation, that these businesses become viable businesses,” said Syed.

The SBA has created initiatives to support small businesses as they move beyond the creation stage to becoming successful, lasting operations.

One such program is known as 8(a). This business development program seeks to provide support for small business owners who are U.S. citizens from socially and economically disadvantaged backgrounds. Among other benefits, participants in the 8(a) program have the opportunity to be mentored through the SBA Mentor-Protégé program.

The SBA is also working to streamline the administrative work of small business ownership, from speeding up processing times for small business applications to making it possible for small business owners to obtain all of their certifications in one place.

Small business owners who are interested in the ways in which the federal government can offer support are encouraged to visit sba.gov.

Cover image: Left to Right – Alabama District Office Deputy District Director L.D. Ralph, Alabama District Office District Director Thomas Todt, SBA Deputy Administrator Dilawar Syed, Mayor Tommy Battle (Huntsville), Marshall Space Flight Center Small Business Specialist David Brock, Mayor Tab Bowling (Decatur), Mayor Paul Finley (Madison), Debbie Batson, Marshall Small Business Alliance Event Coordinator.