Small Business

Status of SBA's 8(a) Minority Business Development Program Gao ID: T-RCED-95-149 April 4, 1995

The 8(a) business development program undoubtedly has helped some firms owned by socially and economically disadvantaged persons to compete in the commercial marketplace. This testimony focuses on several program weaknesses that are preventing firms from obtaining experiences essential to their development. The total dollar value of new contracts awarded competitively grew during fiscal year 1994, but 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 available to many firms. And although the Small Business Administration has approved business plans for most firms, it has not devoted to same attention to annually reviewing these plans to ensure that they accurately reflect the firms' development goals and contract needs. Moreover, many firms nearing the end of their program terms still depend on 8(a) contracts, raising doubts about their chances for success in the commercial marketplace.



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