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BDP EVALUATION Presentation to Canadian Evaluation Society Darlene Jones Manager, Evaluation - ACOA June 2003 PRESENTATION OUTLINE • Background and Approach • Main Findings • Challenges and Opportunities • Conclusions and Lessons Learned 2 BACKGROUND • ACOA: Promotes opportunities for economic development in Atlantic Canada • BDP: ACOA’s Core Program • $814 million to 4275 clients • 75% interest-free loans to small business • 25% contribution to not for profit organizations 3 APPROACH • Six Issues • Steering Committee • Consultants/ACOA Staff • Multi-method Approach: Qualitative/Quantitative 4 FINDINGS: Outcomes Number of Business Start-ups by Sector - March 2003 Tourism 28% Manufacturing 54% Business Services 14% Other 4% 5 FINDINGS: Outcomes and Impact on SMEs Comparison Group Analysis – Statistics Canada - Growth Employment: BDP four times higher than unassisted Wages: BDP six times higher than unassisted Survival (still in business after 3 years): BDP double over unassisted 6 FINDINGS: Outcomes and Impacts on SMEs (Caveat: Projects not all complete) Performance Measurement – Employment and Wages Employment: 65% achievement Wages: 40% growth (all clients) 95% growth (innovation) 52% growth (marketing projects) 7 FINDINGS: Outcomes and Impact on SMEs (Caveat: Projects not all complete) Performance Measurement – Sales and Export Sales Sales: 34% growth Export Sales: 45% growth (all clients) 93% growth (marketing projects) 8 FINDINGS: Outcomes Benefit-Cost Ratio • GDP Impact: $7.5 for every $1 • Net benefits to taxpayer 2:1 9 FINDINGS: Access to Capital External findings Atlantic SME debt market less developed Rural bank closures Internal findings Downward trend in numbers of establishment (1995 = 33% vs. 2001 = 16%) Being used strategically (Tourism, Aquaculture) Gap in soft cost support still evident Unsecured BDP loans make projects “bankable” (leverage) 10 FINDINGS: Skills Development Very low take-up Clients satisfied with BDP Clients are growth oriented (70% exporters, 70% innovators) Awareness, promotion needed Unsecured debt/no measurables 11 FINDINGS: Business Support Projects such as Education Infrastructure, Community Development and Industry Development Leveraged nearly 60% (other investors) Outcomes: 52% Achieved; 6% Underway Outputs: 36% Achieved Need improved methods for measuring outcomes Provides affordable service to SMEs 12 FINDINGS: Strategic Priorities Innovation firms highly levered Innovation firms seeking equity financing Export firms profitable/weak cash flow Firms with >50% Export Sales highest employment generators Clients satisfied BDP responsive to needs of Innovation/Exporting 13 FINDINGS: Sectors Aquaculture: Fast growing industry with regional/species-specific strategies Tourism: Fast growing industry built on Atlantic-wide strategies and partnerships Computer Services: Emerging industry 14 CONCLUSIONS AND LESSONS LEARNED • The benefit-cost ratios for GDP and returns to the taxpayer indicate that the pay-off for the BDP investment overall is positive even if the loans are not fully repaid. • Access to Capital continues to be an important constraint to growth and competitiveness of Atlantic SMEs 15 CONCLUSIONS AND LESSONS LEARNED (continued) • Greater relative share of Innovation/Export indicates both ACOA and clients recognize importance. Opportunities exist for greater impact of Skills Development • Business support measurement and monitoring challenges made finding strong, positive results difficult 16 CONCLUSIONS AND LESSONS LEARNED (continued) • Evidence shows that Innovators/Exporters are among the Top performers of the Business Development Program • The BDP is most effective as a tool for sector development when used strategically in partnership (capital, soft cost, business support) 17 MAIN CHALLENGES AND OPPORTUNITIES Challenges • • • • • • Abundance of data Recognition of local and sectoral differences Presenting concise findings Conflicting priorities Resourcing issues based on staff turnover Time constraints related to abundance of data and resourcing Opportunities • Methods and techniques for improving efficiency • Value of evaluation within organization (policy outcome) 18 THANK YOU! www.acoa-apeca.gc.ca 19 20