Evaluation of the West Coast business outreach program

firms interested in business opportunities in developing countries. The WCBOP's activities have included executive briefing tours, seminars, and workshops on a variety of topics, individual business counseling, and information and referral services. According to the individuals interviewed for this evaluation, the WCBOP has produced significant benefits for its target audience, U.S. small and medium-sized firms, as well as for other U.S. government agencies, USAID Missions, and the developing countries in which they work. The WCBOP provides the following three services directly to U.S. firms: (1) information on trade and investment opportunities in developing countries; (2) assistance in working with USAID to develop new business opportunities in developing countries; and (3) information on USAID contracts, grants, and procurement opportunities and procedures. All of the individuals interviewed for this report believe that the WCBOP has played a vital role in disseminating trade and investment information to businesses on the West Coast; moreover, they believe that access to this type of information is the most valuable type of assistance a business can receive. The WCBOP has successfully introduced USAID to small and medium-sized businesses, resulting in increased awareness of USAID programs and the ways in which U.S. companies can benefit from them. Generally, these include a more positive view of USAID and foreign assistance and specific transactions between companies in the United States and developing countries. The WCBOP has familiarized companies with USAID procurement opportunities and procedures and helped address the inexperience of many West Coast businesses in dealing with Washington bureaucracy. The WCBOP has also produced benefits beyond the U.S. business community. In particular, the WCBOP has served to strengthen coordination among the West Coast offices of federal, state, and local government agencies, resulting in improved services by all agencies through increased knowledge of, and ability to refer businesses to other relevant government programs. The WCBOP has also interacted positively with trade development centers and increasingly with USAID Missions. USAID Missions have supported WCBOP activities because the program helps them meet their own development assistance objectives through improved access to U.S. expertise and technology. The WCBOP's success is founded on four key factors: (1) a local presence - the WCBOP's presence in California and Oregon makes it accessible and approachable for small and medium-sized businesses, due to which it can offer a personalized, hands-on approach that is extremely effective in reaching out to small businesses; (2) dynamic staff - the WCBOP's strongest asset is its people. The staff are perceived to be dynamic and aggressive in reaching out to small and medium-sized businesses, and eager to work closely with other organizations; (3) WCBOP is recognized for responding to businesses with the information they need in a timely manner; and (4) ability to network - the WCBOP works closely with a number of government agencies at the federal, state, and local levels as well as trade and business development centers in California and Oregon. As a result, the WCBOP has been able to successfully create a network of contacts for sharing information on business opportunities in developing countries. Part of what has made the WCBOP so successful is that it is small and flexible; moreover, the program has little structure, and hence, few bureaucratic constraints. This mode of operation has been effective in the start-up phase of the program. However, over the past few months, the number of businesses contacting the WCBOP has grown dramatically. The WCBOP staff are increasingly stretched thin due to the growing demand for assistance. The question remains: Can the WCBOP sustain its record in providing quick response and personalized services in light of the rapid and continued growth in requests for business assistance? The WCBOP's continued success hinges on a number of critical issues. The most important of these is the need for a commitment from USAID to the business outreach effort. At this time, the program's funding is scheduled to cease at the end of January 1993. This creates a great deal of uncertainty about the program's future, not only for the staff of the WCBOP, but also for the businesses they serve on the West Coast. The level of uncertainty is exacerbated by the fact that support for business outreach within USAID seems mixed. On the one hand, those who have had a chance to see the program "in action" have become strong supporters. On the other hand, some officials question whether U.S. business outreach is a legitimate function for a foreign assistance agency. The current uncertain and temporary nature of the program is understandable in light of the fact that the WCBOP is a pilot program. However, now that the pilot phase is coming to a close, it is important that USAID make a decision regarding its willingness to support business outreach. This evaluation recommends that USAID: (1) make a commitment to supporting the Business Outreach Program for at least two years; (2) institutionalize the WCBOP in the Bureau for Private Enterprise to reinforce linkages with its recently established Center for Trade and Investment Services; (3) consider an expansion of the program to one other location (but not at the expense of California or Oregon); and (4) authorize an increase in support staff and funding for the program so that the WCBOP can continue to provide the services that businesses have come to expect. (Author abstract)