California's SCALE Network: Building a Unified Ecosystem for Small Business Success

What happens when you create a comprehensive support network that serves nearly 4.3 million small businesses across an entire state? In this insightful episode of "Breaking Down Barriers," host David Ponraj interviews Dr. Tara Lynn Gray, Director of the California Office of the Small Business Advocate, about the remarkable impact of California's SCALE network—a groundbreaking mesh network approach to small business support.

SCALE (Success, Capital Access and Leadership for Entrepreneurs) was created by the California Office of the Small Business Advocate (CalOSBA) to help California's diverse small businesses across the state access more resources to start up, grow, and create jobs. This innovative program transforms the traditional hub-and-spoke model into a connected mesh network that places small businesses at the center, allowing them to access support from multiple points across the network.

Dr. Gray reveals the strategic vision behind this unified ecosystem and explains how California has built the most robust small business support network in the country. The conversation explores how SCALE transitions from a traditional hub-and-spoke model to a connected mesh network, providing redundancy and resilience by allowing small businesses to access support from multiple points across the network. The episode also delves into the network's data-driven approach to measuring success, ensuring accountability, and building the case for sustained funding to serve California's 4.3 million small businesses.

Key Topics Discussed

• The philosophy behind meeting businesses "where they are"
• How California's mesh network model creates resilience by connecting all stakeholders—investors, educators, technical experts—around one goal: small business success
• The importance of unified data models for tracking real-world impact
• Breaking down barriers to capital for BIPOC-owned businesses who are denied capital at disproportionate rates
• Strategies for advocating for long-term program funding
• Building interconnected pathways rather than siloed support systems
• The $25.3 million program funded through the U.S. Treasury's State Small Business Credit Initiative (SSBCI) and American Rescue Plan Act

California's Small Business Support Network: Seven Years of Measurable Impact

The numbers tell a powerful story of entrepreneurial support across California's extensive network:

Businesses & Training

• 845,185 small businesses served
• 34,788 training events completed
• 13,900 new businesses launched

Economic Impact

• 84,437 jobs created
• 781,050 jobs retained
• 68,730 new contracts secured

Capital Access

• $2.9 billion in lending capital approved
• $3.6 billion in equity raised

Program Impact & Funding

Funding for this $25.3 million program comes from the U.S. Treasury's State Small Business Credit Initiative (SSBCI), which was created by the U.S. Congress in 2010 and reauthorized through the American Rescue Plan Act of 2021. Additionally, it will support the deployment of $1.1 billion in federal funding separately approved for capital support programs, with lenders across the state expected to leverage this into $18 billion in new loans for small businesses.

Resources & Links

SCALE Network Information: https://calosba.ca.gov/for-small-businesses-and-non-profits/small-business-centers/

California Office of the Small Business Advocate: https://calosba.ca.gov/