MO SBDC main page  

Needs Assessment for MO SBDC
Methodology

Because of the variation in the nature of categories of small businesses, Pathfinder Marketing Services determined that a single survey instrument for all types of small businesses would not be appropriate. The differences that exist for program needs across the five industries would force a single instrument to be so general that the corresponding findings would be of limited strategic value. As a result, a separate questionnaire was developed for each of the five major categories of small businesses. Members of the Strategic Planning Committee were extremely helpful in the determination of possible areas of program interest for each of the five industry groups. After the five questionnaires were initially developed, a matrix was constructed to ensure consistency across the research instruments. The possible program areas were grouped into eight topic areas: General Management, Operations, Human Resources, Financial, International, Marketing, Regulation and Other Topics. The final iteration in the development of the questionnaires ensured that where program interest was examined across two or more industries, then consistent terminology would be used for each of the questionnaires. This allowed for the results from the various industries to be combined so that program interest could be determined across all industries, where appropriate. Five questionnaires were utilized.

As can be noted from the questionnaires, respondents indicated their view of the value of each program option on a five-point scale. The first, or left hand point on the scale allowed respondents to indicate that they were uncertain about the value of a particular program. Moving to the right on the scale, respondents were able to indicate successively higher levels of perceived need. Without adjustment, responses in the "Uncertain" category would tend to understate the mean value for those who evaluated the benefit of a particular program option. For purposes of this analysis, uncertain responses were recoded as missing values so that the uncertain response would not be included in the calculation of mean scores for each of the program options. Thus, responses that were included in the analysis had values ranging from 2 to 5 representing "Little Need" to "Great Need" respectively.

A second major area of interest was whether differences existed between small businesses that were Clients of the Small Business Development Centers versus those who were not. Crosstabulation analysis, using the chi-square statistic to determine if significant differences exist, was utilized. In this analysis, two variables are examined simultaneously to determine if they are independent or whether a possible relationship or association between the two is suggested. The relationship is determined when the two variables form a matrix. That is, if variable A has two possible responses and variable B has three possible responses, a 2 x 3 matrix is formed that results in six cells that represent all of the possible combinations of responses between the two variables. The basis for the analysis is to determine the expected value for each of the cells in the matrix. The expected value represents the proportionate number of respondents that would be expected to fall in that cell if the two variables being studied were perfectly independent of one another. Also recorded in each cell is the actual number of respondents who answered in that particular combination of responses between the two variables. The analysis, chi-square statistic, and corresponding p-value are the result of a comparison of the expected value and actual value for each of the cells in the matrix. Significance is measured in terms of the p-value. A dependent relationship between the two variables is most often suggested when the corresponding p-value is less than the .05 value. An even stronger dependent relationship between the two variables is suggested when the p-value is less than the .01 value.

In the Client/Non-Client analysis, if no differences were found to exist between the two groups, then future promotional materials could be distributed without regard to Client status. However, if a substantial number of differences were found to exist, then the differences might be used as a basis to segment the large Non-Client market.

Each of the 2,687 small businesses that were shown as current SBDC Clients were sent a questionnaire that corresponded to their business type. (Surveys were sent to 509 Manufacturers, 90 Wholesalers, 660 Retailers, 1,296 Service Firms and 132 Construction Companies.) The overall response rate for this group was 13.2 percent.

needs assessment | process/intro | methodology