Small Business

Status of SBA's 8(a) Minority Business Development Program Gao ID: T-RCED-95-122 March 6, 1995

Although the Small Business Administration (SBA) has improved some aspects of the 8(a) business development program, which provides federal contracts to small businesses owned by socially and economically disadvantaged persons, it has not yet achieved key changes mandated by Congress. Although the total dollar value of new contracts awarded competitively grew during fiscal year 1994, federal procuring agencies limit firms' opportunities for competition under the 8(a) program. The concentration of contract dollars in a few firms continued in 1994, limiting the developmental opportunities of many firms. And although SBA has approved business plans for most firms, it has not given the same attention to annually reviewing these plans to guarantee that they accurately reflect the firms' developmental goals and contract needs. Moreover, many firms nearing the end of their program terms still depend on 8(a) contracts, raising doubts about the firms' ability to succeed in the commercial marketplace.



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