Five programs provide government contracting assistance to  entrepreneurs, but our analysis did not identify significant overlap in the  types of assistance these programs provide or the types of entrepreneurs  they serve. Agencies often rely on intermediaries (that is,  third-party entities such as nonprofit organizations, higher education  institutions, or local governments that use federal grants to provide  eligible assistance directly to entrepreneurs) to provide specific support to  entrepreneurs, and these intermediaries vary in terms of their location  and the types of assistance they provide. Some Entrepreneurs Struggle to Navigate Technical Assistance Programs

As previously discussed, 35 programs distributed across the four  agencies provide technical assistance, including business training and  counseling. Several entrepreneurs and various technical assistance providers with  whom we spoke—including agency field offices, intermediaries, and other  local service providers—told us that the system can be confusing and that  some entrepreneurs do not know what services are available or where to  go for assistance. The agencies have taken initial steps to improve how they collaborate to  provide technical assistance to entrepreneurs by, for example, entering  into formal agreements with each other, but they have not pursued a  number of other good collaborative practices we have previously  identified, as the following examples illustrate:
USDA and SBA entered into a formal agreement in April 2010 to  coordinate their efforts aimed at supporting businesses in rural areas. However, the agencies’ business development  programs that can support start-up businesses—USDA’s Rural  Business Enterprise Grant and SBA’s Small Business Development  Centers—have yet to determine roles and responsibilities, find ways  to leverage each other’s resources, or establish compatible policies  and procedures to collaboratively support rural businesses. Further, the agencies lack  information on why some programs have failed to meet some or all of  their goals. For  example, some officials stated they do not rely on program information  with this level of detail to make decisions about their programs. Rather, an intermediary may, for example, submit data  summaries of the support they have provided during the reporting period  in a narrative format—a format that cannot be easily aggregated or  analyzed. However, without  tracking more detailed program information, such as the specific type of  support provided and the entrepreneurs served, agencies may not be  able to make informed decisions or identify risks and problem areas  within their programs based on factors such as how entrepreneurs make  use of program services or funding. These programs include Commerce’s Economic  Development/Support for Planning Organizations, HUD’s Indian  Community Development Block Grant, SBA’s 504 loan, and USDA’s  Rural Business Opportunity Grant programs. Appendix V provides more information on each program evaluation. However, navigating these overlapping and  fragmented programs can be an ongoing challenge for some  entrepreneurs. While the agencies have a number of interagency  agreements in place, our review found that agency field staff do not  consistently collaborate and may not be able to help entrepreneurs  navigate the large number of programs available to them. Moreover, without enhanced collaboration  and coordination, agencies may not be able to make the best use of  limited federal resources and may not reach their intended beneficiaries  in the most effective and efficient manner. This practice is not consistent with government standards  for internal controls. GPRAMA requires  agencies to set and measure annual performance goals, and recognizes  the value of program evaluations because they can help agencies assess  programs’ effectiveness and improve program performance. Recommendations

To help improve the efficiency and effectiveness of federal efforts to  support entrepreneurs, we make the following recommendations:
The Director of the Office and Management and Budget, the  Secretaries of the Departments of Agriculture, Commerce, and  Housing and Urban Development, and the Administrator of the Small  Business Administration should work together to identify opportunities  to enhance collaboration among programs, both within and across  agencies. Commerce,  HUD, and USDA provided written comments. First, we recommended that OMB,  Commerce, HUD, SBA, and USDA work together to identify opportunities  to enhance collaboration among programs, both within and across  agencies. Finally, we recommended that  Commerce, HUD, SBA, and USDA conduct more evaluations to better  understand why programs have not met performance goals and their  overall effectiveness. Appendix I: Objectives, Scope and Methodology

This report discusses (1) the extent of overlap, fragmentation, and  duplication and their effects on entrepreneurs, and agencies’ actions to  address them; and (2) the extent to which agencies collect information  necessary to track program activities and whether these programs have  met their performance goals and been evaluated. To determine the extent of overlap and fragmentation among federal  programs that fund economic development activities, we focused our  analyses on 52 programs administered by the Departments of Agriculture  (USDA), Commerce, and Housing and Urban Development (HUD) and  the Small Business Administration (SBA) that are authorized to support  entrepreneurs. We also  interviewed agency officials to determine reasons why goals were not met  (see app. To describe results from program evaluations related to the effectiveness  of the 52 economic development programs that we reviewed, we  requested all studies that have been conducted on these programs from  the four agencies that administer the programs. 2.
Why GAO Did This Study

Economic development programs that effectively provide assistance to entrepreneurs may help businesses develop and expand. GAO focused on 52 economic development programs, with an estimated $2.0 billion in funding, at Commerce, HUD, SBA, and USDA that support entrepreneurs. In response to a statutory requirement, this report discusses (1) the extent of overlap and fragmentation, the effects on entrepreneurs, and agencies' actions to address them; and (2) the extent of tracked program information and whether these programs have met their performance goals and been evaluated. To address these objectives, GAO analyzed program information and interviewed agency officials in headquarters and selected field offices, entrepreneurs, and third-party entities, such as nonprofits, that use federal grants to provide assistance directly to entrepreneurs.

What GAO Found

Federal efforts to support entrepreneurs are fragmented--including among 52 programs at the Department of Agriculture (USDA), Commerce, and Housing and Urban Development (HUD) and the Small Business Administration (SBA). All overlap with at least one other program in terms of the type of assistance they are authorized to offer, such as financial (grants and loans) and technical (training and counseling), and the type of entrepreneur they are authorized to serve. Some entrepreneurs struggle to navigate the fragmented programs that provide technical assistance. For example, some entrepreneurs and technical assistance providers GAO spoke with said the system can be confusing and that some entrepreneurs do not know where to go for assistance. Collaboration could reduce some negative effects of overlap and fragmentation, but field staff GAO spoke with did not consistently collaborate to provide training and counseling services to entrepreneurs. The agencies have taken initial steps to improve how they collaborate by entering into formal agreements, but they have not pursued a number of other good collaborative practices GAO has previously identified. For example, USDA and SBA entered into a formal agreement in 2010 to coordinate their efforts to support businesses in rural areas; however, the agencies' programs that can support start-up businesses--such as USDA's Rural Business Enterprise Grant program and SBA's Small Business Development Centers--have yet to determine roles and responsibilities, find ways to leverage each other's resources, or establish compatible policies and procedures. Without enhanced collaboration and coordination agencies may not be able to make the best use of limited federal resources in the most effective and efficient manner.
Agencies do not track program information on entrepreneurial assistance activities for many programs, a number of programs have not met their performance goals, and most programs lack evaluations. In particular, the agencies do not generally track information on the specific type of assistance they provide or the entrepreneurs they serve, in part because they do not rely on this information to administer the programs. Rather, agencies may rely, for example, on data summaries in narrative format, which cannot be easily aggregated or analyzed. According to government standards for internal control, this information should be available to help inform management in making decisions and identifying risks and problem areas. GAO also found that 19 programs failed to meet their annual performance goals related to entrepreneurial assistance, including USDA's Rural Business Opportunity Grants, Commerce's Economic Development/Support for Planning Organizations, HUD's Indian Community Development Block Grants, and SBA's 504 loans to finance commercial real estate. Programs could potentially rely on results from program evaluations to determine the reasons why they have not met their goals, as well as to gauge overall effectiveness. However, the agencies lack program evaluations for 32 of the 52 programs. Therefore, information on program efficiency and effectiveness is limited, and scarce resources may be going toward programs that are less effective. In addition, without more robust program information, agencies may not be able to administer programs in the most effective and efficient manner. GAO recommends that the agencies and the Office of Management and Budget explore opportunities to enhance collaboration among programs, both within and across agencies; track program information; and conduct more program evaluations. Commerce, HUD, and USDA provided written comments and each neither agreed nor disagreed with the recommendations. However, USDA commented that the recommendations were not explicit. In the report, GAO provides specific actions that agencies can take to address each recommendation.

What GAO Recommends

GAO recommends that the agencies and the Office of Management and Budget explore opportunities to enhance collaboration among programs, both within and across agencies; track program information; and conduct more program evaluations. Commerce, HUD, and USDA provided written comments and each neither agreed nor disagreed with the recommendations. However, USDA commented that the recommendations were not explicit. In the report, GAO provides specific actions that agencies can take to address each recommendation.