Wharton center helps area businesses thrive

Local entrepreneurs can get advice from student consultants at Penn. Philadelphia-based CDNow had $98 million in revenues in 1998, and the online music retailer is expecting a 40 percent increase in sales by the end of this year. And the business -- recently acquired by Time Warner Inc. -- had some help from Penn students in reaching those numbers. Thousands of local businesses like CDNow have turned to the Wharton Small Business Development Center for advice, consulting or just to throw around a few ideas. While the businesses get the help they need to compete, the consultants who are providing that help -- all students -- get the experience they will need to prepare them for careers in business. Much of what the SBDC does is in the form of one-on-one consultations, helping clients secure business loans and providing business training, according to Keith Ellison, interim director of the program. Last year the SBDC helped its clients obtain $33 million in loans and equity. But the SBDC also handles about 10,000 calls a year from clients who need advice or just have questions. These questions can range from how to find an accountant to where to find City Hall. "Our mission is to provide management consulting and training to emerging businesses in southeastern Pennsylvania," Ellison said. That can range from "helping with a business plan to internal assistance." And because the center is funded by the state and federal government, its services are free of charge to any Pennsylvania business. The SBDC currently employs 23 student consultants -- 10 of whom are undergraduates -- who work for two semesters as well as one summer. Graduate students are compensated for two-thirds of their tuition, as well as up to two summer courses. Undergrads receive an hourly wage. All consultants work 20-hour weeks during the school year and 40 hours per week during the summer. "If you want to do something entrepreneurial you have to check it out," said Lawrence Berger, a second-year MBA student. He pointed out that working for the SBDC does not entail data entry or other typical entry-level duties. "This is actually coming up with ideas," he said. "It's totally vibrant." Wharton senior Keith DiMarino said he joined the SBDC because he wanted to explore different career possibilities. He has not yet completed his consulting term and his experiences with his clients have already proven invaluable. "You learn what [the client] knows and he learns what you know," DiMarino said. While consulting is a great learning opportunity for business students, it is equally valuable to the clients, according to Craig Berkowitz, a Wharton junior and SBDC consultant. "It's a rewarding experience," he said. "[Clients] are relying on you to aid them. They actually trust you and lend you their ear." One person who has gained a great deal by working with the SBDC is Drexel University alumnus Gregg Garnick. Garnick is currently working on his fourth business venture. He consults with the SBDC regularly when starting out in business. Ravisent Technologies, the second business Garnick founded, grew to annual revenues of $35 million in only three years. And his current business, Net-Stop.com, recently inked deals with both Amtrak and Sony Corp. While the majority of consultants are business students, participation in the SBDC is not limited to those in Wharton. Senior Romana Kaleem is one of two College of Arts and Sciences students serving as SBDC consultants. "The SBDC is a really good opportunity for College students who are interested in consulting," she said.