Tools for Grantees

Examples of Outcome Measurement Indicators for Small Business Assistance Providers

Start New Business: Business opened AND business sales/revenue over a minimum of a continuous three month period:

• Obtained working capital
• Bought an existing business
• Acquired new equipment or products (inventory)
• Obtained a lease
• Created a new legal entity
• Created marketing/advertising materials, designed a website
• Built out commercial space

Maintain/Stabilize Business: Business still in operation at end of reporting period AND one of following indicators:

• Improved cash flow
• Obtained working capital
• Renegotiated better lease terms/moved to better location (w/ better lease terms)
• Refinanced or consolidated existing debt/loan with better terms in order to break even
• Got up to date on rent
• Successful resolution of legal, tax, regulatory, licensing or other problem
• Bought existing business/transfer of ownership

Business Growth:

• Increased gross business revenue
• A net increase of total FTEs from previous year/intake
• Additional business location or increase in square footage
• Purchase of commercial space
• New product line/service/expanded inventory or new (additional, larger, better) equipment
• Rebranding business & marketing materials to increase clients/contracts

Business Capitalization:

• $ value of business loan (direct or indirect) as a result of service intervention
   

Job Creation and Job Retention

Job Creation: Job Creation is the process of providing new jobs, especially for people who are unemployed (applies to business startups and growth). Based on business owner estimate and verification of jobs.

Indicators:

• Increase in FTEs from prior to TA service to post intervention
• Verified FTEs jobs created for startups and/or growing businesses post TA intervention
• Verified jobs to be created according to business startup and/or growing plan when the business opens or expands by the end of of a given fiscal year or contract period

During a given Fiscal Year grantees must report to MGCC on:

1. FTEs jobs created for startups and/or growing businesses post TA intervention
2. If a client served by the end of the current Fiscal Year or if the client opens or expand the business by the end of that FY-- report on those jobs created and those jobs to be created according to the business startup and/or growing plan during the coming months.
   1. Those jobs reported once during the current FY and when the client receives service cannot be reported twice for the next FY to avoid duplication. Grantee will decide when to report the potential jobs to be created during the current FY or when they are effective and verified for the next FY.
   2. If client creates more jobs than projected and/or reported during a given FY—report on those additional jobs during the next FY.
   3. If client creates fewer jobs than projected or reported during a given FY—Reduce from your jobs reported or report on those jobs reductions during the next FY.

Job Retention: Jobs maintained at business that would have been lost without service intervention (applies to business stabilization). Based on business owner estimate and verification of jobs.

Indicators:

• Verified FTEs retained for startups and/or growing businesses from prior TA service to post intervention
• Verified jobs to be retained according to business stabilization plan when the business stabilizes by the end of a given fiscal year or contract period

During a given Fiscal Year grantees must report to MGCC on:

1. FTEs jobs retained for existing businesses post stabilization TA intervention
2. If a client served by the end of the current/or given Fiscal Year or if the client stabilizes the business by the end of that FY-- report on those jobs retained and those jobs to be retained according to the business stabilization plan during the coming months. Grantee must be certain about the # of jobs that will be retained several months after the service was provided.
   1. Those jobs reported once during the current FY and when the client receives service cannot be reported twice or for the next FY to avoid duplication. Grantee will decide when to report the potential jobs to be retained during the current FY or when they are effective and verified for the next FY.
   2. If client can retain more jobs than projected and/or reported during a given FY—report on those additional jobs during the next FY.
   3. If client can only retain fewer jobs than projected or reported during a given FY—Reduce from your jobs reported or report on those jobs reductions during the next FY.

Definition of Terms for Small Business Assistance Outcome Measures

Participant Groups: MGCC support is intended for business owners from underserved communities in Massachusetts. Clients who are prospective business owners, meaning more than 12 months from establishing a business, are counted as businesses that did not report positive outcome. Businesses with more than 20 FTE employees are ineligible for support.

• Low/Moderate-Income Individual: business owner’s income falls within HUD guidelines for geographic area
• Low/Moderate Income Community: location of business as defined by HMDA/CRA – use: www.ffiec.gov/geocode to capture data
• Underserved population: Business owner who is Black/African American, Hispanic or Latino, Asian, Native American, immigrant/ non-native English speaker, or woman, US military veteran, or individual who wishes to start a business as a result of unemployment
• Pre-start-up: a client whose business is estimated to be within 12 months of opening and generating revenue
• Start-up: business that is open and generating revenue but has not yet experienced significant growth
• Established business: business that is (or was) profitable and employs at least 1 FTE 
• Woman or Minority Owned Business: 50%+ ownership of business by woman or minority (Black/African American, Hispanic or Latino, Asian, Native American)
• Cooperative: A business or organization owned by and operated for the benefit of those using its services. Profits and earnings generated by the cooperative are distributed among the members, also known as user-owners

Status Outcomes: Measurable changes in the status of a business. Measurement is based on a baseline assessment of business status and a comparison with the business status after a substantive intervention/activity. The status outcome should be reasonably attributable to the intervention/ activity of the business assistance provider.

• Start business: new business created or acquired with help from service provider
• Stabilize business: client whose business was experiencing losses or other problems who are now financially or legally stable
• Grow business: business that improved or expanded as a result of service intervention

Activities:  Requires 5+ hours of direct service over the course of the reporting period. This suggests a minimum of an additional 5 hours of indirect service (pre- and post- training or counseling). MGCC funds activities that result in measurable status outcomes (not just learning or behavioral outcomes).

• 1:1 counseling: direct service beyond intake and assessment that includes advising, advocacy, and/or intervention on behalf of an individual business client
• Group training: classes that meet for a minimum of 5 hours that teach business skills that result in measurable changes in business status
• Loan packaging: assisting a client in acquiring capital from one or more lenders (includes loan guarantees)
• Direct Lending: loan origination and portfolio management that results in business capitalization leading to business status outcome

Full-Time Employee:

• Full-time equivalent includes employees who work 30 hours per week or more
• Volunteers ARE NOT considered employees

Part-Time Employees:

• Part-time equivalent includes employees who work less than 30 hours per week
• Volunteers ARE NOT considered employees