To counter these disadvantages, the US government created the 8(a) business development program. The program is administered by the Small Business Administration (SBA). The main target of this program is to help small businesses in crises which are owned by minorities and socially or economically disadvantaged people in the marketplace.
The 8(a) business development program is an assistance program created via legislation. Its name derives from the section of the Small Business Investment Act of 1958. The act and section was made under the thought that federal contracts can be used as a tool to encourage growth in minority-owned businesses. The section authorizes the SBA to provide procurement assistance by releasing and granting prime and subcontractor contracts to its target businesses.
The program offers a lot of advantages. It helps the owners gain a foothold into the market, receive government contracts, expert advice and mentoring, counseling and training, financial assistance and other forms of assistance in technical and managerial areas.
The program runs during nine years and dived into two phases. The first phase runs for four years concentrating on development while the second stage is the transition phase, which comprises of the remaining five years. The first four years centers on helping business to develop using financial assistance. After four years, the development phase takes over. By this time, the business economic problems should be solved and ...
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...firms with one acting as a mentor and the other the protégé. Mentor firms can offer a lot thing from development or operating assistance to financial and even procurement (with the protégé as a subcontractor on a contract).
During that period of nine years, checks will be made to ensure that the enlisted firms are doing well and making progress. Firms will be annual reviews for their performance, undergo systematic evaluations and submit a business planning for the future.
In a Nutshell
The program, like many other government assistance programs, is definitely a big help for many struggling businesses. It gives an opportunity for any disadvantages firms to get back on track and receive some badly-needed assistance. To sum, the 8(a) business development program is a great business package assistance for any business and perhaps, unrivaled on its own.
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