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EDITOR'S NOTE

The world has dramatically changed since JSBS was last published. The events of
September I In coupled with the slowdown in the U.S. economy have taken atoll on many
corporations, small businesses and individuals. The stories, their meaning and the
implications of all of this have been articulated by far more qualified people than this
editor. However, it is worth noting that these events have further underscored the

necessity of the significant contributions of those who are involved in the field of small
business and entrepreneurship including teaching, field case consulting, and applied
research (and the dissemination of this knowledge). Here are a few anecdotal examples:

Although overshadowed by the collapse of Enron and bankruptcy of K-Mart,
there are a large number of small businesses who are experiencing significant
downturns. I spoke with a client today who is having his worst winter in twenty
years and has had to lay off much of his workforce.

As you are aware, Allan Greenspan and the Federal Reserve reduced interest
rates throughout 200 I. However, many small businesses and entrepreneurshave
had difficulty accessing what would appear to be low cost capital due to fears on
the part of lenders regarding the risks associated with an economic slowdown.
At the same time, the U.S. SBA continues to expand its "LowDoc" lending
activities according to the SBA Pittsburgh District office.

Many of us also work in the area of not-for-profit organizations. The generosity
of corporations and individuals to contribute to the Red Cross and a number of
other high profile charitable/social service agencies has lefl many other smaller,
less visible not-for-profits in a difficult position as they have been lost in the
shuffle.

A large number of cutbacks in the corporate sector (including "hi tech") are
channeling larger numbers of professionals into "entrepreneurial" directions.
We are seeing this in our Self Employment Assistance Program (SEAP) where
recently unemployed persons are offered a program whereby classes, training
and counseling are provided to them to assist in starting up their own business.

I recently spoke with the Executive Director of a Community Development
Financial Institution (CDFI) on whose Board and Loan Committee I serve.
When I casually asked him how things were going, he responded, "When times

get bad, we get busy."

Let us hope that the economy turns around and our small businesses and entrepreneurs

enjoy expanded opportunities in the future.

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Stephen IK Osborne, Editor

www.JSBS. org