A needs assessment was conducted in early 1998 on the behalf of the
Missouri Small Business Development Centers by an independent research
firm (Pathfinder Marketing Services, Inc.). A survey was issued to Missouri
small businesses with the goal of better aligning SBDC services, products
and programs to the businesses' needs. More information about the overall
process and methodology
are available.
Conclusions
The results of this study indicate that the small businesses located
across the State of Missouri are not a homogeneous group when it comes
to the type of programs they perceive will help their business. While
substantial differences have been shown to exist between the client
status, perceived program value, and by type of industry, some opportunity
still exists for shared programs across various groups. The most obvious
program opportunity would be oriented around "Business growth and expansion,"
since it was ranked as having the greatest need for each of the five
industries. Another program option that appealed to respondents from
all five industries was "Strategic planning." A third General Management
Topic, "Business plan development," had moderate levels of need for
all industries except Manufacturers. However, other opportunities exist.
For example, several marketing topics had appeal across multiple industries.
A program directed toward "Finding customers" was of particular interest
to all industries except Construction Companies. Manufacturers, Service
Firms and Wholesalers all indicated substantial need for programs on
"Identifying target markets" and one for determining "Market potential."
Retailers, Service Firms, and Wholesalers all indicated need for a "Promotion/advertising
program." This widespread need concentrated in the marketing area suggests
the possibility of developing a series of marketing-related programs.
This program series would likely achieve and maintain a high subscription
rate across the series because of the widespread perceived need.
Program Issues Ranked by Mean
Score
All Respondents (statewide)
| ranking |
response |
N |
mean |
| 1 |
Business growth & expansion |
1000 |
3.89 |
| 2 |
Finding customers (customer prospecting) |
1002 |
3.69 |
| 3 |
Strategic planning |
981 |
3.59 |
| 4 |
Tax-related issues |
997 |
3.52 |
| 5 |
Promotion/advertising |
1000 |
3.49 |
| 6 |
Cashflow management/budgeting |
1009 |
3.49 |
| 7 |
Identifying target markets |
987 |
3.49 |
| 8 |
Computer applications in business |
1003 |
3.48 |
| 9 |
Market potential/feasibility |
989 |
3.48 |
| 10 |
Business plan development |
991 |
3.48 |
| 11 |
Financial analysis |
992 |
3.48 |
| 12 |
Internet applications |
986 |
3.44 |
There were two of the Financial Topics that had strong perceived need
in more than one industry. "Financial analysis" was important to the
Construction and Service industries and "Cashflow management" drew moderate
interest from respondents from the Construction, Retail and Service
industries. Two Regulation Topics also interested respondents from several
industries. "Tax related issues" had relatively high levels of interest
for those operating in the Construction and Retail industries and moderate
levels of interest for Manufacturers and Wholesalers. Construction firms
and Retailers indicated moderate to high levels of need for "Computer
applications in business." While appealing to multiple industries would
be helpful in increasing subscription rates for programs, it is important
to not lose sight of the fact that Retail and Service Firms make up
the largest percentage of small businesses in the state.
Perhaps as important as the program options which drew high levels of
interest across multiple industries are those for which limited need
was indicated. For example, in the Operations Topics area, there was
little interest demonstrated across all of the industries. In the international
Topics area, there was almost an absence of need perceived for programs.
Other areas for which very limited need for programs was expressed occurred
in the Selling and Sales management areas, the Purchasing, Outsourcing
and Materials management program areas and in the Marketing Topic areas
of Pricing, Logistics and distribution, and Product line mix.
The results also demonstrated that a perceived program need may be very
narrow in its application. For example, both Manufacturers and respondents
in the Construction industry indicated a relatively high demand for
a program dealing with "OSHA regulations/requirements," but perceived
there to be a much more limited need for the closely related topics
of "Hazardous materials" and "Other environmental regulations/requirements."
The breakdown between Client/Non-Client needs demonstrates the value
of this analysis as a basis for segmentation between the two groups.
While there were some areas of commonality, such as "Business growth
and expansion" and "Finding customers (customer prospecting)," there
was one area that represented a glaring difference in the needs noted
by the Non-Client respondents. This group placed a much greater emphasis
on Human Resource Topics. This significant difference may provide an
opportunity for the development of a program that would be primarily
directed at and marketed to small businesses that were not Clients of
the SBDC. Programs of this nature could possibly help to expand the
Missouri SBDC client base.
Results from the analysis of the respondents' perceptions regarding
the Missouri SBDC's ability to provide valuable programs should be viewed
favorably. The high percentage of respondents with a positive view suggests
that many firms are generally receptive to subscribing to SBDC programs,
provided they feel that offered programs are consistent with their needs.
In the analysis on the mode of program delivery, there was no single
mode that stood out. This finding could be explained if the different
modes addressed different learning styles. Regardless, there were very
few areas in which a particular mode seemed to be favored. A larger
percentage of respondents seemed to favor individual counseling for
Financial Topics and for business-specific topics ("Business plan development"
and "Business growth and expansion" programs). A higher percentage of
respondents seemed to favor the various self-study methods for Regulation-oriented
issues. However, again, there was no single mode of delivery that was
the overwhelming choice of respondents.
The fact that no differences were found to exist among Missouri SBDC
regions should be encouraging. Programs that are developed in a particular
region can likely be transported into other regions and should probably
find a similar level of success. Had regional differences been found,
it would have placed more pressure on each individual region to develop
programs that were consistent with needs of businesses in their specific
region.
Finally, this report has demonstrated that program needs are not uniform
across Missouri small businesses. Under these conditions, it places
greater emphasis on a Small Business Development Center to understand
the target market for a particular program. If this is the case, then
the likely result will be programs that will be heavily subscribed.
Conversely, the absence of this level of understanding runs the danger
of developing programs that do not match the needs of the intended market.
The difference in the two situations will likely result in a lower number
of program registrations in the short run and possible dissatisfaction
with the Missouri SBDC in the long run. It is hoped that this report
and the companion analysis will provide the necessary input to allow
the Missouri SBDC to tailor programs that meet the needs of its targeted
businesses.
needs assessment | process/intro
| methodology
