Documents/SBA/2: Competitive Opportunity Gaps/2.1: Small Business Start-Ups

2.1: Small Business Start-Ups

Increase the positive impact of SBA assistance upon the number and success of small business start-ups

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The following outcome measures will determine success in meeting this objective: 2.1.1 Prospective and start-up small businesses assisted. 2.1.2 Percentage of prospective and start-ups from among those small businesses assisted. 2.1.3 The percentage of SBA assisted small business start-ups lasting at least one year will exceed the average of comparable not assisted small business start-ups, as measured by firm births, firm terminations, and change in revenue. 2.1.4 Median customer satisfaction rate Strategy: These outcomes are used because they clearly demonstrate the value of SBA’s financial, educational, counseling and training programs in increasing the capability of entrepreneurs to become a start-up business and the capacity of those start-ups to survive better than the average of a comparable group. Also, how customers view the service they receive impacts their decision to go into business or, if already in business, make management changes and decisions, which will help their companies, grow. The confidence the client has in the counselor impacts the credibility of the counseling being offered. Therefore, taking an annual reading of customer confidence is essential to SBA’s ability to offer relevant and useful programs and services. SBA believes that customer satisfaction ratings above 75 percent are key measures of whether it is offering programs with sufficient credibility to impact clients. Dun & Bradstreet (D&B) reports a staggering 80 percent business discontinuance rate for business start-ups after five years. D&B’s studies have concluded that almost 90 percent of the business discontinuances are due to lack of management expertise and knowledge. With SBA assistance, entrepreneurs and start-up businesses have a better chance of survival than a comparable group within this national average, which justifies the use of survival rate as a measurement of the programs.

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