Small Business Institute Economic Impact Evaluation

Abstract

Since the inception of the Small Business Institute (SBI) Program in 1972, the U.S. Small Business Administration (SBA) has conducted numerous client reaction and/or perceived value analysis evaluations. However, both the SBA and the Office of Management and Budget (OMB) were more interested in evaluating the objective utility and economic impact of the SBI Program. This article shares with the readers the results of the first national pilot survey of the Economic Impact of the SBI Program on client small businesses. This initial study not only examined the economic impact of the SBI Program but also introduced and tested new methodologies which might be useful in developing a generally accepted technique to collect and analyze the level of economic impact on client businesses assisted by the SBI program. The results of the study indicate that those small businesses receiving counseling assitance from the SBI Program showed more positive increases in their employment and financial profiles than comparable small businesses. Finally, the scope and depth of the SBI consultant teams recommendations directly affected the level and intensity of the positive changes.