SBIR Proposal Writing Basics

SBIR Proposal Writing Basics: Job Creation

Gail & Jim Greenwood, Greenwood Consulting Group, Inc.

We all know there is plenty of verbiage coming from Washington about the importance of small companies to the American economy and to job creation. So, let’s focus this time on the value of including job creation in your SBIR/STTR proposal.

If we believe job creation is important to Washington, and we add it to the fact that this is an election year, we conclude that Congress is going to be looking for jobs under every rock and tree. We think that will translate into the SBIR/STTR agencies, and their reviewers, putting particular emphasis in the coming months on job creation in the SBIR/STTR proposals that they consider and fund. Therefore, we recommend that you include, in your commercialization portion of your Phase 1 or 2 SBIR/STTR proposals, some discussion of the implications of your project in terms of jobs. We think you should talk about jobs in several contexts:

First, will your project likely lead to the creation of jobs when the innovation/technology gets commercialized in Phase 3? If so, say so, and offer some estimate of the number of jobs. Be reasonable, and be able to explain how you came to your estimate.

Second, will your project likely lead to the retention of jobs in Phase 3? Again, if so, say so. If you don’t think job retention is important, just ask any one of the millions of Americans who have lost their jobs during this recession.

Third, will your SBIR/STTR project lead to the hiring of additional personnel in your firm, or at one of your subcontractors or consultants during the Phase 1 or 2 effort? If so, once again, you need to say so. Sure, the number of jobs will be less than what might be created in Phase 3 of your project, but the jobs you create in Phase 1 or 2 can be IMMEDIATE jobs, which is important to politicos who want to take credit for near term job creation.

A word of caution about this latter category of job creation: be careful that you are not trying to create more jobs than you can afford. Economic developers have a bad habit of encouraging you to hire a bunch of folks, when the smarter thing for your firm (and its financial health) may be to hire only a few. Personally, we think it is a lot better to hire a few folks and create long term positions for them in a financially sustainable business, than to hire a bunch of folks and then terminate them a few months later when you find out you cannot afford them all.

One other quick caution: SBIR/STTR is still about innovative solutions to important problems and needs. Commercialization is an ever-increasing area of emphasis in these programs, but agencies do not fund SBIR/STTR projects with strong commercialization potential if there is not an overarching need to conduct high risk R&D to prove technical feasibility. Put another way, you won’t win an SBIR/STTR award just because you can claim significant job creation if the project itself is not an R&D effort focused on innovation.

Finally, a word of thanks: We want to assure you that there are folks like ourselves who recognize and appreciate the contribution your small firm makes to the economy, and to the individuals who you employ. We know firsthand that it takes a lot of work to create and sustain a viable small business, so our hat is off to you. Thanks, and keep up the good work!