2.3: SCOGS
Significantly increase successful small business ownership within segments of society facing special competitive opportunity
gaps. (SCOGS)
Other Information:
The following outcome measures will determine success in meeting this Objective: 2.3.1 Increase the number of start-ups and
existing small businesses facing special competitive opportunity gaps (SCOGs) receiving SBA assistance. 2.3.2 By FY 2011,
small businesses facing special competitive opportunity gaps that were assisted by the SBA will exceed the average survivability
rate for comparable small businesses within the first two years of existence. 2.3.3 By FY 2011, small businesses facing special
competitive opportunity gaps that were assisted by the SBA will exceed the average rate of comparable small business job creation
within two years of that assistance. 2.3.4 By FY 2011, small businesses facing special competitive opportunity gaps that were
assisted by the SBA will exceed the average rate of comparable small business revenue growth within two years of that assistance.
Strategy: Perhaps SBA’s most challenging mission is to reach those sectors of the population currently underserved by its
programs including ever growing ethnic populations, women, veterans, Reserve Component members and both urban and rural businesses.
While online solutions may enhance our outreach capabilities, those with limited access to technology, particularly those
on the lower ends of the economic scale, will need to receive a special focus to be reached. This translates into special-focus
programs. Past studies conducted by both the National Federation of Independent Businesses (NFIB) Foundation and the Kauffman
Foundation’s National Commission on Entrepreneurship both concluded that every year eighteen million entrepreneurs contemplate
starting a new business. Of those eighteen million, approximately 25% or four million actually start a business. Of those
four million, approximately 80 percent of new starts on average are proprietorships with limited financial resources, incapable
of paying for the kind of business management assistance they need to succeed, according to the Bureau of the Census and the
IRS. Additionally, the SBA Office of Advocacy has determined that a significant 22.1% of veterans in the household population
were either purchasing or starting a new business or considering doing so, and almost 72% of new veteran entrepreneurs planned
to employ at least on individual besides themselves. The availability of resources and government programs ranked high on
the list of problems and obstacles that new veteran entrepreneurs face, with access to financing their number one problem.
Also 65.9% of new veteran entrepreneurs planned to make use of a veteran small business program in the foreseeable future.
This same research provided persuasive evidence that investment in entrepreneurship programs for veterans and disabled veterans
is economically rational Self employed small business owners who are reserve component members face unique challenges in their
dual civil role as small business owner and defender of the Constitution. In the Global War on Terrorism, Reservists can now
anticipate one year of active duty away from their business for each six years of volunteer Reserve or National Guard duty.
SBA is in a unique position to provide business counseling, training and capital assistance to help ensure the survivability
of their small business enterprise To better narrow the opportunity gap, SBA will streamline its programs through the use
of technology and client-driven, Internet-based communications. A complete transformation in the way the program conducts
business is expected over the next 5 years. Many decisions will be made at the Agency field office level, instead of being
routed to SBA headquarters. An electronic system for the annual review analysis for 8(a) program participants will be developed.
Indicator(s):
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