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8(a) grads give mixed reviews
Many graduates from the Small Business Administration’s 8(a) Business Development program have mixed feelings about the program’s value, according to a new survey.
Just over half--51%--of the 8(a) graduates surveyed said the 8(a) program on the whole was beneficial to their firms.
Only 47% would recommend 8(a) participation to others. Another 11% said they “probably” would recommend it.
Nearly 10% of those surveyed said they self-terminated from 8(a) after deciding that “the burdens of participation outweighed the benefits.”
The survey of 86 executives whose companies had graduated from the 8(a) program was conducted by Eddy Communications Corp. of Washington, DC. The survey was sent to nearly 1500 executives, and 86 chose to respond.
Most of the companies graduated the nine-year program between fall 2011 and spring 2013, while some left earlier. About two-thirds of the companies were professional services consulting firms.
The 8(a) program was created by Congress to help guide small, disadvantaged firms to growth and success. One of the tools available is federal agencies’ ability to set aside contracts for 8(a) only.
In the survey, 54% said the access to set-asides was the most valuable aspect of the 8(a) program.
Thirty percent of those surveyed said they were able to win a government contract within two years of joining the 8(a) program.
On the other hand, 35% said it took them two years or longer to win a government contract, and 35% said they were not successful in obaining any government contracts at all during their 8(a) tenure, Jennifer Eddy, chief strategist for the survey, told Set-Aside Alert.
Seven percent said SBA’s training was the most valuable aspect of 8(a); and 3% said joint venture opportunities were the most valuable.
Eighty-seven percent of those surveyed said they questioned the value of being in 8(a) at least once during the nine years.
More information:
Eddy Communications http://www.eddycommunications.com/the-8a-impact/
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