State created office to ‘spotlight’ small business

The creation of a new state agency for small businesses was about the message more than anything.

Existing services and operations will experience little change at the Office of Small Business and Entrepreneurship, which Gov. Mike Pence announced last week.

However, a new ombudsperson will market Indiana’s small business niche.

“This will be a spotlight on entrepreneurship,” said Jacob Schpok, the office’s director. “It’s a critical piece of our economy.”

Schpok has run the Indiana Small Business Development Center, which has provided one-on-one consultation, classes and other specialty programs as a part of the Indiana Economic Development Center. Legally, the IEDC is a private not-for-profit, but it receives so much government funding and has such close administrative ties that it is commonly referred to as a semi-public agency.

Lt. Gov. Sue Ellspermann will oversee the new small business office.

The new ombudsperson, Schpok said, will beef up marketing efforts on behalf of companies that often can’t afford to cover the expense themselves. He or she will comb the state for stories to feature in marketing material while gathering input from business leaders on what services the office needs to provide.

On top of absorbing the ISBDC, the new agency will acquire another existing semi-public not-for-profit that helps businesses find government contracts, Partners in Contracting Corp., based in Hammond.

Like the ISBDC, the group operated as part of a semi-public not-for-profit that receives government funding.

Schpok said he expects to hire both new employees by this fall, at the latest.

Funding-wise, he saw little change.

The ISBDC operates on about $2.4 million from the federal government and private supporters, with another $550,000 from the state, to operate 10 regional offices.

Partners in Contracting spends roughly $200,000 a year running three offices, IRS records show.