In This Section
Definition of Terms for Small Business Assistance Outcome Measures
Participant Groups: MGCC support is intended for business owners from underserved communities in Massachusetts. Clients who are prospective business owners, meaning more than 12 months from establishing a business, are counted as businesses that did not report positive outcome. Businesses with more than 20 FTE employees are ineligible for support.
- Low/Moderate-Income Individual: business owner’s income falls within HUD guidelines for geographic area
- Low/Moderate Income Community: location of business as defined by HMDA/CRA – use: www.ffiec.gov/geocode to capture data
- Underserved population: Business owner who is Black/African American, Hispanic or Latino, Asian, Native American, immigrant/ non-native English speaker, or woman, US military veteran, or individual who wishes to start a business as a result of unemployment
- Pre-start-up: a client whose business is estimated to be within 12 months of opening and generating revenue
- Start-up: business that is open and generating revenue but has not yet experienced significant growth
- Established business: business that is (or was) profitable and employs at least 1 FTE
- Woman or Minority Owned Business: 50%+ ownership of business by woman or minority (Black/African American, Hispanic or Latino, Asian, Native American)
- Cooperative: A business or organization owned by and operated for the benefit of those using its services. Profits and earnings generated by the cooperative are distributed among the members, also known as user-owners.
Status Outcomes: Measurable changes in the status of a business. Measurement is based on a baseline assessment of business status and a comparison with the business status after a substantive intervention/activity. The status outcome should be reasonably attributable to the intervention/ activity of the business assistance provider.
- Start business: new business created or acquired with help from service provider
- Stabilize business: client whose business was experiencing losses or other problems who are now financially or legally stable
- Grow business: business that improved or expanded as a result of service intervention
Activities: Requires 5+ hours of direct service over the course of the reporting period. This suggests a minimum of an additional 5 hours of indirect service (pre- and post- training or counseling). MGCC funds activities that result in measurable status outcomes (not just learning or behavioral outcomes).
- 1:1 counseling: direct service beyond intake and assessment that includes advising, advocacy, and/or intervention on behalf of an individual business client
- Group training: classes that meet for a minimum of 5 hours that teach business skills that result in measurable changes in business status
- Loan packaging: assisting a client in acquiring capital from one or more lenders (includes loan guarantees)
- Direct Lending: loan origination and portfolio management that results in business capitalization leading to business status outcome