Can the government foster entrepreneurship and help create new jobs on a cost efficient basis? The answer is yes. There is at least one organization that receives US government funding, which has a great track record of helping entrepreneurs and small businesses succeed. That organization is the SCORE Association which has just turned 50 years old.
Over the last five years, the Small Business Administration (SBA) has given grants to SCORE of between $5 and $8 million per year. This covers around half of the organization’s expenses. With this money, SCORE provides business mentoring and education to several hundred thousand Americans per year. This works out to be less than $25 per client in each of the last five years. Given that clients of SCORE’ receive on average around 3 hours of counseling per year, the cost to the government is well less than $10 per hour.
Click Here to get our FREE Google advertising guide and discover the 6 steps you can use to show up #1 in Google search
How can SCORE provide these services so cheaply?
- Amazing volunteers. There are more than 11,000 volunteers which provide counseling. These volunteers usually have decades of business experience to draw upon when talking to business owners. The paid full-time staff of SCORE is only 17 in number.
- Low Costs. SCORE has over 320 local chapters which are housed in SBA office space, inside Chambers of Commerce, and even in the community focused local banks. Furthermore, the need for office space is reduced because meetings between mentors and business owners can occur at local coffee shops or neighborhood parks.
How effective is SCORE at delivering services?
- SCORE sends out surveys those that take advantage of its services. Over 30,000 Americans participated in the last survey, and they reported impressive results. Extrapolating the survey results, SCORE estimates that the organization played a role in starting 38,630 new businesses and 67,319 new jobs. How many of these jobs would have been created without SCORE’s involvement is unknown. If only 10% of these jobs would not have existed without SCORE, it’s a great job creation engine. Using the 10% number, a very low arbitrary number, government funding of SCORE creates new jobs at a cost of a little over $1,000 per job!