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https://www.bea.gov/about/pdf/ESA_FY_2016_CJ_Final.pdf
Page "PROGRAM CHANGE:BIG DATA FOR SMALL BUSINESS ($1.9M / 9 FTE)Small businesses are a critical element of the overall economy and are often at the leading edge ofrisk-taking, entrepreneurship, and economic growth. Yet, unlike large corporations who have staffs ofeconomists, advisors, and consultants to assist in interpreting and understanding the economy andguiding investments, small businesses largely depend on limited publicly-available data.Recognizing this, and the Department’s role in supporting small business growth and decision-making,as well as the need for more insight into the health of the small business sector, BEA proposes a newsuite of small business data products. To inform policy, as well as Main Street decision-making, BEAproposes to expand data on small business by developing a Small Business Satellite Account includinga new Small Business GDP to track the overall growth and health of America’s small business sector.This will be a key new measure, offering insight into the leading edge of the economy, as smallbusinesses are often the first to react to growth or contraction in their sectors or regions, often reactingto changes in policy before larger corporations. Gaining such insight will also fulfill a key lesson learnedfrom the 2008 financial crisis in terms of expanding the granularity of data on business activity.In addition to the new Small Business GDP measure, the small business satellite account will presentnew data on the distribution of small businesses by size of employment and sales; legal form ofbusiness, taxes, and net income; by industry; and by region of the country. This data will providemeaningful descriptions and the ability to understand trends over time regarding the changes incomposition, industry, and geography of the small business sector. In addition to supporting goodpublic policy at the national level, these data will also be of substantial value to state and localgovernment as well as business development officials in understanding their regional economicdynamics.Coupled with BEA’s other products, such as GDP by State and Real State Personal Income, thesenew statistics will represent a wealth of new information to guide small business growth and policy.Beyond the public policy arena, expanding the Department’s data offerings to this essentialconstituency will only further enhance the ability of America’s entrepreneurs to innovate, grow, and leadsuccessful businesses.There are no risks to the development and production of new data, and particularly not as it relates to anew satellite account focusing on small businesses. In this case, particularly given that no new dataESA - 26 EXHIBIT 12 – 15collection is proposed (the new account will be built from existing, primarily administrative, data), andthus no additional burden will be placed on businesses to develop the necessary data.The opportunities presented by this proposal are considerable given the well-defined record ofaccomplishment of accurate, reliable, official statistical data providing the knowledge basis foreconomic growth as well as smart decisions in the above linkpublic policy sector.Further, the benefit of this initiative to the Department goes to the heart of the Department’s role ineconomic policy – the Department is the primary source of actionable statistics on the state of theeconomy. Along with the daily provision of weather information, the weekly issuance of economicindicators is one of the Department’s most important and visible functions. Expanding the Department’sdata offerings to such an important constituency is a highly valuable proposition for both theDepartment as well as policy and business sectors.The risk of not pursuing this proposal is perpetuating the continued lack of direct knowledge of theeconomic health of the small business sector and what that sector can tell us about the health of theoverall economy. There is a clear need and desire for this information, as demonstrated by multipleefforts over the years by SBA and various trade associations to develop similar data sets. BEA isuniquely suited to develop this data set given its role as the custodian of the nation’s economicaccounts. Further, data on small businesses published by BEA will have the official imprimatur of BEAas well as the full, symmetric, and broad access to the data that is true for all BEA data products.Also of importance is that, as a BEA data set, the Small Business Satellite Account will provide data ina consistent times series, as well as in a format and methodology consistent with all of BEA’s accountsthus allowing expanded analysis in full context.Given the role and importance of small businesses in economic growth and recovery, the addition ofnew and better information to assist small business decision-making and investment will only serve tosupport small business success. This is an outstanding opportunity for the Department to expand itsservice offering to this critical constituency.Costs are largely personnel in nature, with a $500k expected expenditure on data purchase.ESA - 27EXHIBIT 12 – 15Targets without increaseFY2016FY2017FY2018FY2019FY2020Score on Customer SatisfactionSurveyGreaterthan 4.0Greaterthan 4.0Greaterthan 4.0Greaterthan 4.0Greaterthan 4.0Complete all Major StrategicPlan milestones related toimproving the economicaccountsSuccessfully complete related milestonesTargets with increaseFY2016FY2017FY2018FY2019FY2020Score on Customer SatisfactionSurveyGreaterthan 4.0Greaterthan 4.1Greaterthan 4.1Greaterthan 4.1Greaterthan 4.1Complete all Major StrategicPlan milestones related toimproving the economicaccountsSuccessfully complete additional milestonesspecifically tied to initiative goalsStatement of Need and Economic BenefitsThe additional economic statistics resulting from the implementation of this proposal will provide policymakers, the Administration, and the Department of Commerce with key information to assess theeconomic health and capacity of the small business sector to engage in economic activity. Smallbusinesses comprise a large portion of the business sector in the U.S. and are often the leading edgeof economic growth and contraction; yet no current Federal statistical programs exist to provide acomplete picture of the small business sector. While some features of the sector are measured invarying ways, this proposal will pull them together into a concise picture, allowing policy makers andbusiness leaders to assess and anticipate small business economic capacity and respond accordingly.Specific economic benefits of this investment:• As has been demonstrated repeatedly since the introduction of regular, consistent, publicsectoreconomic data in the 1930s, detailed and quality economic statistics contributesignificantly to the overall stability of the economy, which itself contributes to economic growth.Specific cost savings:• While this proposal will not result in cost savings to BEA, it will result in significantly improvedeconomic statistics. These improved and expanded statistics will provide the right informationto develop policies and affect business investments that will improve U.S. competitiveness andcreate new jobs. ESA - 28EXHIBIT 12 – 15Possible return on investment:• The return on investment to the Bureau, and the nation, is significant, as this initiative will serveto fill notable existing gaps in official government statistics and will provide highly valuable newdetail on the small business sector, its composition, employment, and growth by region andindustry. Of great value to economic policy makers, this new data will also be of high value tothe business community, in particular small businesses. Major corporations have staffs ofeconomists, advisors, and consultants assisting in interpreting and understanding the economyand guiding investments – small businesses do not.• Better statistics allow policies to be more accurately calibrated and optimized by permitting amore accurate assessment of their costs and benefits. The potential gains from this initiativewill certainly far exceed the relatively small cost.Schedule and Milestones:FY16: Research and develop methodology; conduct outreach to stakeholders to gain additionalinformation; and expand collaboration with other Federal agency stakeholders.FY17: Publish methodology papers and develop initial estimates; present and secure endorsement ofmethodology and initial estimates from BEA Advisory CommitteeFY18: Publish prototype satellite accountFY19: Publish official data seriesDeliverables:Papers, prototype data series and final official data series published on an annual basis.ESA - 29EXHIBIT 12 – 15PROGRAM CHANGE PERSONNEL DETAIL(Actual Dollars)Budget Program: Bureau of Economic AnalysisSub-program: National Economic AccountsProgram Change: Big Data for Small BusinessTitle Band Interval NumberAnnualSalary Total SalarySenior Economist V 1 1 152,087 152,087Senior Economist IV 1 2 128,575 257,150Economist III 1 3 87,411 262,233Economist II 1 4 64,633 258,532IT Specialist III 1 2 92,802 185,604Total 12 1,115,606Less Lapse (3) (278,902)Total Full-time permanent (FTE) 9 836,7042015 Pay Adjustment (1.0%) 8,3672016 Pay Adjustment (1.3%) 10,986Total 856,057Personnel DataFull-time Equivalent Employment:Full-time permanent 9Other than full-time permanent 0Total 9Authorized Positions:Full-time permanent 12Other than full-time permanent 0ESA - 30EXHIBIT 12 – 15PROGRAM CHANGE DETAIL BY OBJECT CLASS(Dollars in Thousands)Budget Program: Bureau of Economic AnalysisSub-program: National Economic AccountsProgram Change: Big Data for Small BusinessFY 2016 FY 2016Object Class Increase Total Program11.0 Personnel compensation11.1 Full-time permanent 856 85611.3 Other than full-time permanent 0 011.5 Other personnel compensation 0 011.8 Special personnel services payments 0 011.9 Total personnel compensation 856 85612.0 Civilian personnel benefits 242 24213.0 Benefits for former personnel 0 021.0 Travel and transportation of persons 9 922.0 Transportation of things 0 023.1 Rental payments to GSA 0 023.2 Rental Payments to others 0 023.3 Communications, utilities and miscellaneous charges 7 724.0 Printing and reproduction 0 025.1 Advisory and assistance services 0 025.2 Other services 58 5825.3 Purchases of goods & services from Gov't accounts 582 58225.4 Operation and maintenance of facilities 0 025.5 Research and development contracts 0 025.6 Medical care 0 025.7 Operation and maintenance of equipment 0 025.8 Subsistence and support of persons 0 026.0 Supplies and materials 39 3931.0 Equipment 125 12599.0 Total obligations 1,918 1,918" Page 26-31 of [https://www.bea.gov/about/pdf/ESA_FY_2016_CJ_Final.pdf this] report.
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=='''Big Data for Small Business'''==
=='''Survey Respondents on Small Business Issues'''==
