Audrey Goins Brichi
Audrey Goins Brichi, Manager, Small Business Programs, Chevron Corporation, San Francisco, CA 94120, (415) 894-2583, www.chevron.com, email@example.com
Darlene L. McKinnon
Darlene L. McKinnon, Deputy District Director, U.S. Small Business Administration, San Francisco, CA 94105, (415) 744-8475, www.sba.gov / Darlene.firstname.lastname@example.org
Abstract. Drawing upon unique strengths as well as mutual needs, Chevron Corporation partnered with the U.S. Small Business Administration (SBA) to craft business development training for Chevron's small business subcontractors. Responding to the changing landscape of government and private sector procurement, the organizations brought resources to the partnership in the interest of building stronger small business enterprises.
Chevron partnered with the San Francisco District Office of the SBA in order to support the Agency's vision to strengthen economic development in communities and to support the Company's vision of stronger, more viable suppliers for its contracting needs.
Our objectives are to provide (a) background and history of the partnership (b) examples of training offered (c) measures of success (d) factors necessary to insure replication of the partnership and (e) mutual benefits received.
Background. Chevron and the SBA recognized the important contribution of small businesses to the US and global economies. America's 22 million small businesses employ more than 50 percent of the private workforce, and generate more than half of the nation's Gross Domestic Product. The two organizations were also keenly aware of the changing landscape that affects their ability to develop and partner with small business suppliers.
A May 1998 article in Purchasing Today titled, "The Future of Purchasing and Supply - Where We Are Headed" summarized a study by NAPM and the Center for Advanced Purchasing Studies (CAPS). The study described 18 initiatives that were major concerns in procurement organizations. Among the concerns were Electronic Commerce, Strategic Sourcing, Global Supplier Development, and Strategic Cost Management.
Given this environment, Chevron and SBA focused on the need to build strong small businesses by providing targeted technical assistance, including counseling and business management and technology training.
Examples of Training. SBA provides "hands on" custom-designed training in its Entrepreneur Center, a state-of-the-art training facility sponsored by the private sector Examples of training offered include:
Benefits of the Partnership. In order to accomplish its mission and add value to its services, the San Francisco District SBA office builds effective partnerships with the private sector. Chevron's Small Business Programs mission is to provide opportunities, contracts, and outreach to small, minority and women-owned businesses. Through this partnership both entities have been able to:
Replicating This Model. Representatives of Chevron and the SBA believe that this model can be replicated, thereby strengthening procurement relationships between small businesses and public/ private sector partners nationwide. The requirements focus on the willingness to be open, innovative and willing to operate within new paradigms rather than doing "business as usual". Some key steps in the replication process are detailed below. Each organization should tailor this process to meet local needs.
Partnership Replication Process:
Identify Shared Needs
Create Memorandum of Understanding
Use and Market Services
Evaluate and Refine Through Feedback
Measures of Success. This partnership has demonstrated tangible benefits for Chevron and the Small Business Administration. The success of the partnership is currently measured by the number of small businesses that have received assistance, as well as the number of new partners that have been attracted to the project. While early statistics for the partnership are unavailable, the latest figures indicate more than 10,000 small businesses have received assistance in the Entrepreneurship Center. Additional participating partners include Compaq, Microsoft, Hewlett Packard, Bay Area Association of Guaranteed Lenders, Cisco Systems, Sun Microsystems, and Fortune Small Business Magazine.
In summary, this partnership has been successful because the participants have shown commitment, teamwork, mutual support and innovation. Small business procurement will be strengthened and communities will benefit from its use and application. We look forward to continued success for this partnership and others that will follow.
Duffy, Roberta J., "The Future of Purchasing and Supply." Purchasing Today, May 1998, 23-49
Lader, Philip, U. S, Small Business Administration Profile: Who We Are & What We Do 4th edition, October 1996