Matchmaking: Activity (generally government contracting or financing  initiatives) that brings together government and private-sector  resources and small business owners. Recognition: Activity that celebrates the contributions of small  business, small business owners, or small business advocates. Determining type and subject of activity. SBA field or program  offices that originate cosponsored activities are responsible for  vetting nonprofit and governmental entities; SBA’s Office of  Strategic Alliances is responsible for vetting for-profit entities and  upon request may assist originating offices in vetting nonprofit and  government entities. After SBA’s General Counsel or their  designee determines that no conflicts of interest exist with  potential cosponsors and reviews the draft cosponsorship  agreement for legal sufficiency, SBA field and program offices— with assistance from cosponsors—will work to finalize the  agreement and develop a proposed budget for the activity that  lists the sources of income, such as cash and in-kind contributions  from cosponsors, in-kind contributions from SBA, and fees paid by  participants, and the estimated cost of conducting the  cosponsored activity. Table 1 provides  information on the budgets for cosponsorship agreements SBA  executed in fiscal year 2012. SBA officials and cosponsors also said that  cosponsored activities provided participants with convenient access to  services and resources from multiple organizations in a single location  and often included counseling and training. Focus Group Participants, SBA, and Cosponsors Generally Reported That Cosponsored Activities Benefited Small Businesses

Our focus groups participants identified benefits they received from  attending cosponsored activities and also noted that they obtained  information on topics useful to their small business (see fig. Both SBA officials and  cosponsors told us that the activities provided attendees with “one-stop  shopping,” including access to services and resources from multiple  organizations, counseling, and referrals. Some SBA District Offices Informally Collect Participant Feedback on Cosponsored Activities

Although the act specifies that SBA cosponsored activities provide  benefits to small businesses, it does not specify how SBA should identify  and measure benefits. However, SBA  officials told us that the agency did not have a formal policy requiring the  collection and use of participant feedback on cosponsored activities. SBA officials told us that obtaining participant feedback  was not a responsibility that cosponsorship agreements were required to  include. Although not required by the cosponsorship agreements,  obtaining periodic participant feedback is an integral part of the Emerging  Leaders Initiative course. Cosponsors we met with noted the importance of obtaining participant  feedback. Further, small  businesses attending focus groups that we held provided us with  feedback on ways in which the cosponsored activity could have been  improved. Standards for Internal Control in the Federal Government state that  federal agencies should have appropriate policies, procedures,  techniques, and mechanisms for each of their activities, including those to  ensure compliance with key requirements. Obtaining feedback  on cosponsored events would provide SBA with direct information from  small business participants that could be used to help ensure that events  are providing benefits to small businesses. Such information could also  provide another way for SBA to evaluate the use of its cosponsorship  authority. Recommendation for Executive Action

To ensure that SBA most effectively implements the statutory authority to  conduct cosponsored events for the benefit of small businesses and to  enhance SBA’s ability to evaluate the use of its cosponsorship authority,  the Administrator of the SBA should develop a mechanism to consistently  obtain participant feedback on cosponsored activities. Appendix I: Objectives, Scope, and Methodology

The objectives of this report are to (1) describe the roles and  responsibilities of SBA and cosponsors in planning, funding, and  conducting cosponsored activities; and (2) examine the benefits  cosponsored activities provide to small businesses. To describe the roles and responsibilities of SBA and cosponsors in  planning, funding, and conducting cosponsored activities, we reviewed  Section 4(h) of the Small Business Act, implementing regulations, and  SBA’s standard operating procedures and guidance related to the use of  cosponsorship authority. To examine the benefits cosponsored activities provide to small  businesses, we conducted eight focus groups in three cities (Atlanta, GA;  Detroit, MI; and Kalamazoo, MI) with 48 entrepreneurs that had attended  one of three SBA cosponsored activities conducted in 2012 and 2013— the Emerging Leaders Initiative, Doing Business with Federal Procuring  Agencies series, and Small Business Talk Series.
Why GAO Did This Study

Section 4(h) of the Small Business Act authorizes SBA to provide assistance for the benefit of small businesses through activities the agency cosponsors with eligible for-profit and nonprofit entities, as well as federal, state, and local government entities. Cosponsored activities can provide information on SBA programs and services or on subjects of interest to small businesses, bring together government and private sector resources and small business owners (generally for government contracting or financing initiatives), or celebrate the contributions of small business owners. GAO was asked to study SBA's use of its cosponsorship authority.
This report (1) describes the roles and responsibilities of SBA and cosponsors in planning, funding, and conducting cosponsored activities, and (2) examines the benefits cosponsored activities provide to small businesses. GAO reviewed relevant laws and regulations and SBA procedures, guidance, and official cosponsorship files. GAO conducted eight focus groups with a total of 48 small business entrepreneurs in three cities to obtain feedback on their experiences with cosponsored activities. GAO also interviewed cosponsors and SBA officials.

What GAO Found

The Small Business Administration (SBA) and cosponsors share responsibilities for planning, funding, and conducting cosponsored activities. Before cosponsored activities take place, SBA field and program offices decide on the type and subject of the activity, solicit potential cosponsors, draft an agreement, agenda and budget, and designate a cosponsor as fiscal agent to collect, manage, and disburse any funds received. SBA's General Counsel or designee is responsible for reviewing draft cosponsorship agreements for legal sufficiency and determining whether any conflicts of interest exist with potential cosponsors. GAO's analysis of the official files for 132 cosponsored agreements SBA executed in fiscal year 2012 and other related materials showed that the activities were intended to provide training on a variety of topics, such as business planning and marketing, social media, and government contracting. SBA and cosponsors are both responsible for conducting the activity in accordance with the agreement. Following cosponsored activities, SBA field and program offices must submit a final cosponsorship report to SBA's Office of Strategic Alliances, which is responsible for maintaining the official files on these activities.
SBA does not consistently collect feedback related to the benefits that cosponsored activities provide to small businesses. Participants in focus groups that GAO held commented positively on the quality of the presentations and opportunities to network, among other things, offered by cosponsored activities. Participants also noted that they obtained information on topics useful to their small businesses, including financial management and the federal contracting process. SBA officials and representatives of cosponsors told GAO that the events provided attendees with access to services and resources from multiple organizations in a single venue and often included counseling and referrals to other resources. Although the Small Business Act specifies that SBA cosponsored activities provide benefits to small businesses, it does not specify how SBA should identify and measure benefits. Some SBA district office staff told GAO that they solicited participant feedback on cosponsored events through a survey, evaluation, or questionnaire. GAO also found that obtaining periodic participant feedback is an integral part of a 7-month training initiative, called the Emerging Leaders Initiative, conducted using cosponsorship authority. However, SBA officials told us that obtaining formal feedback was not required and that the agency did not have a policy on soliciting and using it. Cosponsors GAO met with noted the importance of obtaining participant feedback and entrepreneurs GAO spoke to also identified ways in which the cosponsored activities could have been improved. Federal internal control standards state that federal agencies should have appropriate policies, procedures, techniques, and mechanisms for each of their activities, including those to ensure compliance with key requirements. Obtaining feedback on cosponsored events would provide SBA with direct information from small business participants that could be used to help ensure that events are providing benefits to small businesses. Such information could also provide another way for SBA to evaluate the use of its cosponsorship authority.

What GAO Recommends

GAO recommends that SBA develop a mechanism to consistently obtain participant feedback on cosponsored activities. SBA generally agreed with this recommendation.