Similar Business Assistance Programs of Two Federal Agencies Have Potential for Duplication

The university-based management and technical assistance programs administered by the Small Business Administration (SBA) and the Economic Development Administration (EDA) were reviewed. Comparisons were made of the similarities, differences, and possible duplications between the programs.

The problem-solving or counseling assistance provided under both programs is alike in many respects. The EDA program emphasizes businesses located in economically distressed areas, while the SBA program helps the small business community in general. The limited number of SBA centers precludes its program from serving many of the States and areas now served by the EDA program. However, should either program expand in scope, duplication could become a problem. Neither agency has an evaluation system that adequately addresses the quality of the management and technical assistance services provided and results achieved by the centers, or the cost effectiveness of such assistance. Both EDA and SBA are relying on results reported by centers as a means of measuring program effectiveness; however, this information is not always valid. Comparing programs is difficult because of inadequate documentation of assistance rendered, not matching staff time and expenditures to program elements such as counseling of businesses, and wide differences in organizational structure and criteria for accepting clients. Unless improved, these conditions will hinder the agencies' efforts to evaluate program effectiveness.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: No director on record Team: No team on record Phone: No phone on record