These businesses numbered over 300,000 in 2004 and accounted for  almost 45 percent of all U.S. manufacturing jobs. In  addition, multiple agencies may be tasked by the President to focus their  efforts on a specific topic of relevance to the business community. These  agencies may create interagency groups consisting of representatives from  multiple federal agencies to better coordinate their individual programs  and crosscutting activities. Few Federal Programs Target Small Businesses Engaged in Manufacturing, but Services Are Available through over 200 Federal Programs That Broadly Support the U.S. Business Sector

Of the 254 federal programs we identified that provide financial or  nonfinancial services or both to support the U.S. business sector, 5  programs provide services specifically to small businesses engaged in  manufacturing, while an additional 15 programs target manufacturers,  regardless of their size. Only 1 of the 5 programs offered financial assistance in addition to its  nonfinancial services. In addition, MTAPP provides hands on assistance with quality  assurance, improving the efficiency of manufacturing operations, sales and  marketing, information technology, and business planning. As shown in table 1, these 3  programs provided $3.8 million and served 95 small manufacturers on  average each year from fiscal years 2004 through 2006. Small Manufacturers May Obtain Services from 15 Federal Programs That Target Manufacturers, Regardless of Size

Agencies within Agriculture, Commerce, Defense, Energy, Health and  Human Services, Housing and Urban Development, and Labor  administered 15 programs that provided services specifically to  manufacturers, regardless of their size. Because  not all of these programs gather data on the size of the manufacturing  businesses they serve, we could not determine the extent to which small  manufacturers avail themselves of the services that each of these  programs offer. Small Manufacturers May Also Benefit from Many Federal Programs That Target Businesses, Regardless of Size or Type

We identified an additional 107 programs administered by 15 agencies  included in our review that offer financial or nonfinancial services or both  to businesses, regardless of the size or type of business. Six Interagency Efforts Support Manufacturing, and 14 Support All Businesses, Including Manufacturers

Of the 20 federal interagency efforts we identified that address the  concerns of the business sector, 4 specifically focus on the challenges  faced by small manufacturers, 2 focus on issues faced by manufacturers in  general, and the remaining 14 focus on issues of concern to small  businesses or businesses in general. Of the remaining 14 interagency efforts that we identified, 5 focus on the  concerns of small businesses and 9 focus on the concerns of all businesses  in general, both of which may address some issues that are also relevant to  small businesses engaged in manufacturing. All of the agencies except for the  Appalachian Regional Commission provided technical comments that we  have incorporated as appropriate. Appendix I: Objectives, Scope, and Methodology

We identified (1) those programs that provide services to support  manufacturing by U.S. small businesses and, for fiscal years 2004 through  2006, the services and funds these programs provided and their levels of  participation and (2) current federal interagency efforts that support  manufacturing by U.S. small businesses. In addition, we compiled a list of  studies that focuses on federal programs that support small businesses  engaged in manufacturing. Target businesses

Small Business Transportation Resource Centers: 1) disseminate information to  small and disadvantaged businesses on business opportunities in Transportation- direct and Transportation-funded activities; 2) carry out market research, and  business analyses, to identify the training and technical assistance needs of small  businesses to help them become better prepared to compete for and receive  transportation-related contracts; 3) design and carry out training and technical  assistance programs to encourage, promote, and help minority entrepreneurs and  businesses in obtain contracts, subcontracts, and projects related to business  opportunities in Transportation-direct and Transportation-funded activities; 4)  develop support mechanisms to help minority entrepreneurs and businesses take  advantage of those business opportunities; 5) assist minority entrepreneurs and  businesses by identifying opportunities for obtaining investment capital and debt  financing, including Transportation’s Short Term Lending Program; 6) participate in  and cooperate with federal and other programs designed to provide financial  management and other forms of support and assistance to minority entrepreneurs  and businesses; and 7) conduct outreach and disseminate information to small and  disadvantaged business across the nation at local, regional and national  transportation and business related conferences, seminars and workshops. Appendix XVII: National Science Foundation – Programs that Offer Services to Small Manufacturers and Types of Services

	Target businesses Agency description of program purpose

Appendix XVIII: Small Business Administration – Programs that Offer Services to Small Manufacturers and Types of Services

Appendix XVIII: Small Business  Administration – Programs that Offer  Services to Small Manufacturers and Types of  Services The Pollution Control Loans program is designed to provide financing to eligible small  businesses for the planning, design, or installation of a pollution control facility.
Why GAO Did This Study

Small businesses engaged in manufacturing, typically those with 500 or fewer employees, comprise about 90 percent of all U.S. manufacturers and employ 6 million workers. Recent studies have shown that small manufacturing businesses face a number of challenges in their efforts to remain competitive, including the inability to obtain operating and investment capital, a lack of familiarity with new business practices, and difficulty in finding independent advice and skilled employees. To help these businesses overcome such challenges, many federal agencies provide financial and nonfinancial technical services through targeted or general programs or create interagency work groups to better coordinate their efforts and more effectively support these businesses. In this context, GAO identified (1) federal programs that provide services to support small businesses engaged in manufacturing and (2) federal interagency efforts that focus on issues of concern to small manufacturing businesses. To identify these programs and efforts, GAO obtained documentation from 19 federal agencies. In commenting on a draft of this report, 18 of the 19 agencies made technical comments that we have incorporated as appropriate. GAO is not making recommendations in this report.

What GAO Found

GAO identified 254 federal programs that provide services to support the business sector, of which 5 provide services specifically to small businesses engaged in manufacturing and an additional 15 target manufacturers, regardless of their size. Seven of the 20 programs had data on the level of services provided to small manufacturing businesses, and between fiscal years 2004 through 2006 these programs provided over $35 million and served from about 8,000 small manufacturing businesses in 2004 to over 9,000 in 2006. The 5 programs that target small businesses engaged in manufacturing provide primarily nonfinancial technical assistance to help firms improve the efficiency of their manufacturing operations and their quality control processes as well as to solve specific manufacturing problems. These 5 programs also offer small manufacturing businesses general assistance with their strategic and business planning, accounting and financing, and sales and marketing. In addition, 1 of the 5 programs offers financial assistance. Of the 15 programs that provide services to manufacturers, regardless of their size, 9 offer only nonfinancial services similar to the 5 that target small manufacturing firms, and 6 also provide financial services. Small businesses engaged in manufacturing also can obtain services from 127 other federal programs that are available to all small businesses, regardless of their business type. Many of these programs provide general business and management services, and about 35 percent also offer financial services, such as loans or grants. Finally, small manufacturing businesses can obtain general business, export, and financial services from an additional 107 federal programs designed to help the business sector in general, regardless of the size or type of the business involved. Because not all of these programs gather data on the size of the businesses they serve, it is unclear how many small manufacturing firms received services from these general programs. GAO identified 20 federal interagency efforts that focus on supporting the business sector. Of these 20 efforts, 4 were created specifically to focus on the challenges that small businesses engaged in manufacturing face, and 2 were created to focus on issues relevant to manufacturers in general, regardless of their size. The agencies involved in 3 of the 4 interagency efforts that focus on the concerns of small manufacturing businesses collaborate to expand and coordinate their services through national networks of technical assistance centers. The 4th effort involves efforts to help small manufacturing businesses improve the efficiency of their operations. The 2 interagency efforts that focus on issues relevant to manufacturers in general focus on developing strategies to improve the competitiveness of manufacturers and resolving issues associated with manufacturing-related research and development policies, programs, and budgets. The remaining 14 interagency efforts that GAO identified focus on the concerns of small businesses or of all businesses in general, which may include some issues that also are of concern to small manufacturing businesses.