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Preliminary Analysis:

First 2000 Survey Respondents

Workforce Innovations 2005

Research Showcase

Jacob Benus, Project Director Sheena McConnell, Principal Investigator

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GATE Quick Facts GATE is a demonstration project established through a partnership between the

DOL/ETA and the SBA.

GATE was created to develop a replicable microenterprise model to help create, sustain and expand small businesses.

GATE provides microenterprise training, counseling and technical assistance to access funding.

GATE has been implemented in seven rural and urban sites: PA – Philadelphia & Pittsburgh MN – Minneapolis/St. Paul & Duluth ME – Portland, Bangor & Lewiston

Community outreach and participant processing began in August 2003 and ended in June 2005.

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GATE Design

Registration

Community Outreach

Assessment

Classroomtraining

Application

IndividualCounseling SBA Loan

Random Assignment

Orientation

Program Group Control Group

Registration by phone, postcard,GATE website, or kiosk

Registrants are invited toattend an Orientation at

One-Stop Centers

GATE participants areindividually assessed formicroenterprise service

needs

Control Group members arenot offered GATE services

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Participant Enrollment(as of May 31, 2005)

Minnesota…………….….. 932 Minneapolis/St. Paul Duluth

Pennsylvania …………….. 890 Philadelphia Pittsburgh

Maine …………………….. 265 Portland Lewiston Bangor

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Data Collection - Surveys6-Month Follow-Up

Start – April 2004

End – January 2006

18-Month Follow-UpStart – March 2005

End – January 2007

Surveys Completed (as of May 31, 2005)

6-Month = 2039

18-Month = 157

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Survey Dataset(Select first 2000

Respondents)

PTS Dataset(Matched by

Participant_ID)

Sample Dataset(Merged by GATE ID)

6-Month Follow-up Survey

Participant Tracking System (PTS)

Data Collection and Retrieval Systems

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Source: 6-Month Follow-Up Survey Sample: First 2000 Survey Respondents.

Sample Distribution By State

48.7%

35.6%

15.7%

ME (N=315) MN (N=973) PA (N=712)

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Source: GATE PTS Sample: First 2000 Survey Respondents.

Random Assignment

49.6% 50.4%

0%

10%

20%

30%

40%

50%

60%

Program (N=993) Control (N=1,007)

Per

cent

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Source: GATE PTS and 6-Month Follow-up Survey

Sample: First 2000 Survey Respondents.

Sample Distribution By State

140

500

353

175

473

359

0

100

200

300

400

500

600

ME MN PA

Com

plet

es

Program Control

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Source: GATE Application (PTS)

Sample: First 2000 Survey Respondents.

Age

2.7% 1.9%

18.4%16.2%

29.6% 30.5%

35.4% 34.9%

12.6%15.8%

1.2% 0.8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Program (N=993) Avg = 43.5 Control (N=1,007) Avg = 44.2

Per

cent

18-24 25-34 35-44 45-54 55-64 65+

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Source: GATE Application (PTS)Sample: First 2000 Survey Respondents.

Education

2.6%

21.3%

36.6%39.5%

3.1%

17.3%

41.7%37.9%

0%5%

10%15%20%

25%30%35%

40%45%

0-11 12 13-15 16-18

Per

cent

Program (N=993) Avg = 14.6 Control (N=1,007) Avg = 14.7

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Source: 6-Month Follow-Up Survey

Question (C2): Prior to random assignment had you been self-employed, that is, owned your own business?

Self-Employment Prior to Random Assignment

60.1% 57.9% 59.0%

0.1% 0.2% 0.2%

39.8% 41.9% 40.9%

0%

10%

20%

30%

40%

50%

60%

70%

Program (N=993) Control (N=1,007) Total (N=2,000)

Per

cent

Yes No Don't Know

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Source: 6-Month Follow-Up Survey

Question (C1): Why were you interested in being self-employed?

Top Five Reasons for Interest in Self-Employment

33.0%

12.6%9.8% 11.5%

9.2%

14.2% 13.1%

7.6%9.7%

32.6%

0%

10%

20%

30%

40%

(1) Wanted tobe own boss

(2) Flexibility indaily schedule

(3) To increaseincome

(4) Being self-employed was

my dream

(5) To bringnew ideas to

market

Per

cent

Program (N=993) Control (N=1,007)

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Source: 6-Month Follow-Up Survey

Question (C54): What would you say were the most difficult challenges you faced when you started (this business/ these businesses)?

Top Five Challenges (respondents in business)

26.2%

23.1%

6.6%4.2% 3.3%

23.3%20.3%

4.9% 4.9% 4.6%

0%

10%

20%

30%

(1) Lack ofCapital

(2) FindingClients

(3) InsufficientCash Flow

(4) Regulationsand Licenses

(5) Amount oftime and work

Per

cent

Program (N=454) Control (N=390)

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Evaluation Components Process Analysis

Can GATE be replicated? The process evaluation will identify what it takes for Project GATE to be successful, so that others who wish to replicate the program in the future will be able to draw on lessons learned from this demonstration.

Impact Analysis Does GATE work? The impact analysis is designed to evaluate

whether the program is effective in improving outcomes for program participants and the community.

Benefit-Cost Analysis Is GATE cost effective? Even if the program is effective, its

impacts may not be large enough to justify the resources spent on the program. To address its cost-effectiveness, we will measure all the benefits of the program and compare them with the costs.

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Future Project DeliverablesProcess Analysis

Draft – June 2006

Final – July 2006

Impact AnalysisDraft – May 2007

Final – June 2007

Benefit-Cost AnalysisDraft – May 2007

Final – June 2007