#StartupsEverywhere Profile: Dustin Baker, Founder & CEO, Shatterbox
This profile is part of #StartupsEverywhere, an ongoing series highlighting startup leaders in ecosystems across the country. This interview has been edited for length, content, and clarity.
Bringing the apprenticeship into the 21st century
Shatterbox is on a mission to address talent shortages, promote diversity, and equip the next generation to excel in specialized industries. We talked to Founder and CEO Dustin Baker about the labor shortage, diversity in apprenticeship programs, and potential improvements to the Small Business Administration.
Tell us a little bit about yourself and what led you to create Shatterbox?
I began my career at the National Association of Government Guaranteed Lenders (NAGGL) right out of school, somewhat unintentionally. Despite graduating with an English degree, I took on various roles, from taking members to D.C. and introducing them to their congressional representatives to engaging in grassroots lobbying campaigns and writing newsletters.
After about five years I moved back to my hometown of Dallas, Texas and joined a recruiting firm. Eventually, I launched my own recruiting company which became Baker Lewis, and with my partner, we’ve been involved in talent management and recruiting in the Small Business Administration (SBA) industry since 2009. During the pandemic, we found ourselves helping businesses access Paycheck Protection Program (PPP) funds because there was a sudden need. Many business owners, especially those lacking traditional banking relationships, faced difficulties in securing the assistance they required.
This experience, combined with years of conversations about talent shortages, led me to wake up one day with the idea of creating Shatterbox. I reached out to a colleague who had trained thousands of SBA lenders during her career, and we began assembling a team to revolutionize the industry by providing accessible training, mentorship, and career opportunities for young professionals.
Tell us a little bit about Shatterbox?
Shatterbox aims to tackle a significant talent shortage problem in specialized industries, such as SBA lending. Our vision is centered on creating equity by opening up opportunities in careers that traditionally relied on insider connections. The SBA lending sector, in particular, has been homogenous and dominated by a specific demographic. Failing to address this talent shortage, not only jeopardizes SBA lenders, but also poses a threat to startups that are in desperate need of access to capital.
Our solution is a 12-month apprenticeship program that takes approximately 80-90% of the learning burden off banks. We select young talent, primarily from Generation Z, introduce them to the industry, and provide the tools they need to learn faster. Our platform allows business partners to educate this emerging workforce in a low-risk arrangement, sparing critical resources otherwise spent on internal employee training. This approach helps level the playing field for businesses in underserved markets, making access to capital easier and more favorable for them.
How does Shatterbox contribute to diversity in employment spaces, and what are some solutions to solving talent shortages?
Shatterbox is dedicated to advancing workforce diversity by opening doors to career opportunities that have historically excluded certain demographics. By introducing more diverse talent into industries like SBA lending, we aim to create a more equitable and representative workforce. We select and train candidates from various backgrounds, including underrepresented communities. While actively seeking out young talent, including women and people of color, we aim to empower them to excel in these industries and grow their careers.
As for solving talent shortages, we need multiple approaches. Simplifying regulatory and compliance processes can facilitate small companies’ access to international talent, giving startups a crucial advantage in sourcing new skills. Supportive immigration policies are essential, emphasizing skilled immigration and providing pathways for qualified individuals to contribute to the economy. Furthermore, industries need to be more open to reskilling and upskilling talent, recognizing the transferability of many skills. We also need to do a better job of informing young people about career opportunities that may not be well-known but have a significant impact on the economy.
How can the SBA perform better for founders and startups, and what are some challenges in the industry that need addressing?
The SBA can improve its support for founders and startups by continuing to simplify lending processes and adapting to changing industry needs. Facilitating access to fintech companies and streamlining the loan application and approval process is a positive step in the right direction. If lenders do not maintain compliance with SBA standards,they could lose the possibility of the loans they make being guaranteed by the government. If those standards are too onerous, especially for the smaller loans that most startups need, lenders simply will not make them, and the startup capital that founders need simply won’t be there. The challenges are magnified by shortages within the SBA workforce. An expanded SBA lender workforce would amplify engagement with communities outside traditional finance channels. Without a surplus of lenders, these historically underserved communities will continue to miss opportunities for small business funding.
One challenge in the industry is the need for more diversity and equity in lending, ensuring that businesses from all backgrounds have fair access to capital. This involves not only making funding more accessible but also fostering innovation and inclusivity in the industry.
What are your goals for Shatterbox?
In the short term, our primary focus is turning a profit. We have already initiated our platform and plan to have 50 learners onboard within the next 18 months. This will provide us with a strong foundation to continue expanding our services and creating more opportunities within the SBA lending industry.
In the long term, our goal is to bring 1,000 new people into the SBA industry within the next five years, with plans to expand our model to other sectors. Once we identify another industry suffering from a similar challenge, we hope to translate our apprenticeship workforce strategy into accelerated workforce growth. Our vision is to cultivate a thriving ecosystem that extends beyond the SBA sector to various specialized industries. We want to level the playing field to make those opportunities available to more people. I can see us having an annual multi-sector meeting of Shatterbox alumni that are dreaming about how to take the economy in all new directions. We aim to establish a network of skilled professionals who value impactful work and are prepared to lead in their respective fields. We hope to build a more equitable and diverse workforce and redefine the role of specialized industries in driving economic growth and innovation.
All of the information in this profile was accurate at the date and time of publication.
Engine works to ensure that policymakers look for insight from the startup ecosystem when they are considering programs and legislation that affect entrepreneurs. Together, our voice is louder and more effective. Many of our lawmakers do not have first-hand experience with the country's thriving startup ecosystem, so it’s our job to amplify that perspective. To nominate a person, company, or organization to be featured in our #StartupsEverywhere series, email advocacy@engine.is.
