Transcript PPT - Canadian Evaluation Society

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
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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
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APPROACH
• Six Issues
• Steering Committee
• Consultants/ACOA Staff
• Multi-method Approach:
Qualitative/Quantitative
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FINDINGS: Outcomes
Number of Business Start-ups by Sector - March 2003
Tourism
28%
Manufacturing
54%
Business Services
14%
Other
4%
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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
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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)
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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)
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FINDINGS: Outcomes
Benefit-Cost Ratio
• GDP Impact: $7.5 for every $1
• Net benefits to taxpayer 2:1
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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)
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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
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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
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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
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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
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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
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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
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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)
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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)
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THANK YOU!
www.acoa-apeca.gc.ca
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