Small Business

Building evidence about how to support small business growth and success

Background

Nearly half of American employees work for a business with fewer than 500 employees. There are thirty million of these small businesses in the U.S., and they create the majority of new jobs each year. Many government agencies have a focus on supporting small businesses, to promote community development (Housing and Urban Development), develop technology (National Aeronautics and Space Administration), or enhance job creation (Department of Commerce).

Portfolio

Projects in this portfolio have focused on improving access to economic and non-economic resources for small businesses, such as encouraging farmers to apply for microloans. Some projects focused specifically on how to connect groups that have faced higher barriers in establishing and growing a business, like women, with the resources they need for business success.

During COVID-19, OES worked with the Small Business Administration to evaluate the impact of relief funding disbursed by local governments, to identify barriers to getting this funding to businesses owned by members of historically underserved groups, and to evaluate methods to overcome those barriers.

Relevant OES Guides

Lessons Learned from the OES Portfolio on Equity and Small Business Recovery (PDF)

How documentation burdens affect the equitable distribution of small business relief funding

A city small business relief program that reduced documentation requirements subsequently received a higher share of completed applications from historically underserved businesses

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Who receives access to small business relief? A simulation-based approach

Simulations using application data from three cities showed how outcomes for historically underserved businesses depend on the allocation method

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Dallas small business continuity fund impact evaluation

Analysis of a pre-existing lottery for small business grants and loans was unable to determine impact on business resilience

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Evaluation of San Diego Small Business Relief Fund

A selection on observables analysis was unable to determine the effect of funding for small businesses on business outcomes during the pandemic

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Encouraging microloan applications from women-owned farms

A single direct mailer had no statistically reliable effect on the likelihood that female farmers who received it would apply for microloans

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Increasing enrollment in the Small Business Administration's Learning Center

Simplifying a registration form increased learning course completion and data collection

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Increasing farmer microloan applications

A new letter increases farmers' access to credit by 22%

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Challenges and opportunities for pursuing equitable distribution of small business relief

Summarizing promising approaches taken by local governments disbursing COVID-19 relief

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Increasing access to small business grant and loan programs for historically underserved groups

Documenting approaches and challenges in ensuring access to small business grant and loan programs during COVID-19

Read more about Increasing access to small business grant and loan programs for historically underserved groups