Since the start of the economic recession in 2008, job training programs at community colleges have been in the national spotlight as a key component to getting the country back on track. But there’s another aspect to job growth that an increasing number of two-year colleges are focusing on: small businesses.

Members of the House Democratic Steering and Policy Committee—which include powerful lawmakers such as House Minority Leader Nancy Pelosi—heard about a few of those efforts during a hearing Thursday on how to help small businesses grow and create jobs. Gail Mellow, president of LaGuardia Community College (LAGCC) in New York, gave examples of several programs at her college that are geared to fostering entrepreneurs and helping them succeed.

One such effort focuses on assisting entrepreneurs and small businesses pitch competitive proposals for government contracts. Mellow noted that the government is the single largest purchaser of goods and services, but selling to a city, state or the federal government is so specialized and complex that one small business owner said it was like “learning a new language.”

Since 1999, LAGCC has received funding from the U.S. Department of Defense for its Procurement Technical Assistance Center, which helps small businesses navigate the complex rules and bidding processes. Since the center opened, it has helped 375 companies secure more than $120 million in contracts to sell everything from catering services to uniforms, Mellow said.

She cited one small business participant in the program, a veteran who started his own security company and tapped the college’s counseling and bid-matching services. Since 2003, his company has secured more than $11 million in contracts and created 237 jobs, Mellow said.

Helping businesses succeed

Although many community colleges help entrepreneurs start their own businesses, running such “business incubators” is expensive and can be risky, Mellow said.

“It’s a tough way to go,” she said. “It’s asking community colleges to be run like a small business.”

Mellow said a better approach to help small businesses succeed is to identify companies that are already operating but need advice and support services to expand. That’s the focus of an initiative by Goldman Sachs and its foundation called 10,000 Small Businesses, which works with community colleges and other community-based organizations to provide intense, short-term  counseling and one-on-one mentoring to selected small business owners.

The program was piloted at LAGCC and has expanded to New Orleans, Chicago, Houston,  Los Angeles and Long Beach, Calif.

“I was almost shocked when I talked with small business owners and learned how little they understood about the basics of running a business,” Mellow said. “They had great passion, and had often mortgaged their homes to start the business, but they were woefully lacking in basic accounting, marketing or negotiation skills.”

Through the program, LAGCC has trained 82 businesses that have created 194 new jobs, secured 15 loans totaling $3.9 million and negotiated 82 new contracts valued at $39 million.

Mellow cited a participating small business owner who inherited her father’s business and, as a result of counseling and services through the program, grew her company from 16 employees to more than 60. The company expects to earn more than $1 million in revenues this year.

“The program gave her skills in marketing, negotiating a contract and understanding her cost structure,” Mellow said. “We call it a practical MBA."