Benchmarking Business Development Services -...
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Benchmarking Business Development Services February 2013
Transcript of Benchmarking Business Development Services -...
Benchmarking Business
Development Services
February 2013
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FIELD Staff
Tamra Thetford, Program Manager Elaine Edgcomb, Strategic Advisor
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Jefferson Economic Development
Institute, JEDI
Nancy Swift, Executive Director
Marian Doub, Knowledge Manager
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© FIELD - The Aspen Institute
Special thanks to
the
SBA PRIME Program
Today’s Goals
© The Aspen Institute 6
• Introduce a new tool on microTracker
that guides programs through
benchmarking BDS
• Demonstrate how MDOs can do in-depth
benchmarking and analysis using a
Premium Plus membership, and
• Show how the results can be used to
advance your organization and its goals.
What is Benchmarking?
© The Aspen Institute 7
• 17
• 88%
Why Benchmark?
© The Aspen Institute 8
• My program assisted 17 entrepreneurs in
FY2011, the industry median is 300.
• 88% of my clients are low-income,
compares well to:
– my organizational target of 85% and
– the industry median for young, rural, training
organizations; 42%.
“How-to” Benchmarking Guide
© The Aspen Institute 9
Jefferson Economic Development Institute
(JEDI)
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• Stand-alone
microenterprise
organization
• Operating since 1997
• 4.5 FTEs
• Serves far-Northern
CA, rural area
Step 1: What do we want to know?
• Where does JEDI fit in the spectrum of its peers
(rural-based, mature, and training programs)?
• What is the relationship between services
delivered to a client, outcomes achieved, and
time frames, and how does that compare to our
peers?
• What outcomes can be expected in rural areas
with deep poverty targeting?
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What JEDI looked at…
Who They Serve
Women Minorities Low-
Income Business Status
# of Individuals
Cost and Effectiveness
Graduation Rate
Cost per Individual
Served
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Targeting peer comparisons
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JEDI Industry
(median)
Rural
(median)
Mature
(median)
Training-
Led
(median)
Rural &
Mature
(median)
Rural &
Training
(median)
% Women
Served 74%
At or below
150% HHS
Federal
Poverty Level
at intake
54%
At or below
80% HUD at
intake
73%
Average TA
hours/particip
ant
Training
Completion
rate
Cost per client
Cost per
participant
Step 3: Mine microTracker
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What we learned…
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Who JEDI Serves
JEDI Clients At Entry FY2011
n=327participants
At the 15 Year Mark
N=2,196 participants
% Women Served 73% 65%
% Minorities Served 16% 16%
% Disabled Served 12% 8%
% with Poverty Level Income 43% 35%
% Low Household Income
(<80% HCD/HUD median income)
79% 72%
% Pre-Venture Businesses (n=876 businesses)
29% 20%
% Clients with Start-up Businesses 25% 33%
% Clients with On-going Businesses
46% 47%
Targeting peer comparisons
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JEDI Rural
(median)
Mature
(median)
Training-
Led
(median)
Rural &
Mature
(median)
Rural &
Training
(median)
%
Women
Served
74% 52% N=123
56% N=153
55% N=248
52% N=73
50% N=117
150%
Poverty
Income
Level
54% 52% N=80
45% N=106
52% N=168
40% N=47
50% N=74
80% HUD
at entry 73% 57%
N=4
56% N=102
57% N=158
51% N=49
54% N=75
Cost and Effectiveness peer
comparisons
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JEDI Rural
(median)
Mature
(median)
Training-Led
(median)
Avg. TA
hours per
individual
7 hours 7 hours N=3
3 hours n=20
3 hours n=21
Training
Completion
Rate
82% 82% 83%
Cost per
Individual $1,346 $1,167
N=99
$1,167 N=125
$1,153 N=204
Cost per
Client $3,014 $2,536
N=
$3,036 N=
$2,698 N=
What JEDI looked at…
•Business Operation Start and Survival Rates
•FT/PT operation at survey
•Change in FT/PT operation over time
•Revenue Change
•Employment
Outcomes
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Outcomes Comparison Types
• Rural
• Mature
• Training-Led
Peer Comparisons
• All Surveys
• 5 Year Group Time Frames
•>5% Revenue Increase
•Create 1 or more FT Jobs
•FT Businesses
•Business income improves household financial circumstances
•Business sustained for 3+ years
•Rise above poverty
Successful Clients
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Client Outcomes; relation to services
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• 77% of clients start or
strengthen a business
after receiving 10 or
more hours of JEDI
services
• 41% of all individuals
who receive any
amount of service
start or strengthen a
business
Successful Client and Business
Characteristics
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Measures of
Success
Existing
Business at
Entry
Business
Operation at
Intake
# of Years
with JEDI IYB Grad
> 5%
Revenue
Increase
(n=65)
100%
34% FT
52% PT
14% DK
Mean: 3.7
Median 3.4 61%
Create 1+ FT
Jobs
(n=22)
68%
20% FT
60% PT
20% DK
Mean: 3.1
Median: 2.9 59%
FT Businesses
(n=142) 48%
32% FT
40% PT
28% DK
Mean: 3.7
Median: 3 56%
JEDI At the Five-Year Mark
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• 88% operating their business, 84% nationally
• 93% business survival, 88% nationally
• 80% business start rate, 72% nationally
• 50% grew from part-time to full-time, 30%
nationally
• But: 67% of those FT at intake were full-time at 5
years—91% nationally
• Although 44% increased revenues, median revenues
decreased $1,194.
JEDI: All Surveys
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181 businesses
• 66% increased revenues
• Overall 56% increase in
revenues a year or more
after training--a net
increase of $6,301 annual
revenue (median).
What does this say to JEDI?
• is on track as leader in rural
BDS
• services make a difference
JEDI is deepening our
commitment to personalized
customer service and
outcomes—especially revenue
growth that leads to improved
household circumstances.
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What does this say to JEDI?
JEDI can now say to policy
makers and others:
• JEDI services provide a
proven pipeline for local
business, job, and revenue
creation
• The majority of business
owners served by JEDI sustain
their businesses for 8 or more
years
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Questions?
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microTracker Steps:
• Submit your own data
• Search the industry
directory
• Access profiles of
over 800
microenterprise
development
organizations
• Review reports on
industry-wide
performance data
• Compare your
organization’s data
with other organizations
• Create custom annual
reports for your
organizations
• Access five years of
performance reports on
the industry
• Use microTracker Client
Outcomes survey tools to
go beyond success stories
using respected survey
protocols
• Have your data reviewed
and vetted by FIELD staff
• Access consultation
services to help you
improve data collection
and management
capacities and your data
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microTracker Steps:
Jefferson Economic Development Institute
Nancy Swift: [email protected]
530-926-6670 x 12
Marian Doub: [email protected]
415-730-1873
FIELD at the Aspen Institute
http://www.fieldus.org
www.facebook.com/FIELDatAspen
