BDP EVALUATION Presentation to Canadian Evaluation Society Darlene Jones Manager, Evaluation - ACOA June 2003

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BDP EVALUATION Presentationto Canadian
Evaluation Society Darlene JonesManager,
Evaluation - ACOA June 2003
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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 ACOAs 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
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FINDINGS Outcomes andImpact 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 andImpact 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 21

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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 gt50 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 ANDLESSONS 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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