Advocacy Supporting Statement B

B. Collections of Information Employing Statistical Methods

The agency should be prepared to justify its decision not to use statistical methods in any case where such methods might reduce burden or improve accuracy of results. When Item 17 on the Form OMB 83-I is checked, "Yes," the following documentation should be included in the Supporting Statement to the extent that it applies to the methods proposed:

B1. Describe (including a numerical estimate) the potential respondent universe and any sampling or other respondent selection methods to be used. Data on the number of entities (e.g., establishments, State and local government units, households, or persons) in the universe covered by the collection and in the corresponding sample are to be provided in tabular form for the universe as a whole and for each of the strata in the proposed sample. Indicate expected response rates for the collection as a whole. If the

collection had been conducted previously, include the actual response rate achieved during the last collection.

1. The survey population includes U.S. firms in the Dun and Bradstreet database in high-technology industries (under a standard definition derived from that used by the Bureau of Labor Statistics) that doubled in revenues and employees between 2002 and 2006. These firms were identified in prior research funded by the SBA Office of Advocacy. They will be randomly sampled. The response rate for this survey is uncertain. Prior work with the same objective using different populations of firms had response rates between roughly 1% and 45%. We estimate the response rate for the population in this study in the lower to middle part of this range.

Total number of firms: 24017 Estd. response rate: 14.3%. Expected contacts: 7000

Service sector firms: 17099 “ “ Expected contacts: 4984

Manfg. sector firms: 6918 “ “ Expected contacts: 2016

B2. Describe the procedures for the collection of information including:

* Statistical methodology for stratification and sample selection,

* Estimation procedure,

* Degree of accuracy needed for the purpose described in the justification,

* Unusual problems requiring specialized sampling procedures, and

* Any use of periodic (less frequent than annual) data collection cycles to reduce burden.

2. We have stratified the sample into two groups, manufacturing and services. Prior work has focused primarily on manufacturing, but most firms in our population are in service sectors. We want to make sure that both groups are appropriately represented. The size of the sample (1000 completed responses) allows us to estimate the rate within +/-3%. We do not expect any unusual problems with the sampling. This survey is a one-time effort.

B3. Describe methods to maximize response rates and to deal with issues of non-response. The accuracy and reliability of information collected must be shown to be

adequate for intended uses. For collections based on sampling, a special justification must be provided for any collection that will not yield "reliable" data that can be generalized to the universe studied.

3. Other than the strata listed above (manufacturing and services), the firms selected for the survey are randomly selected, so the results should be generalizable to the population. Response rates will be maximized through utilization of the CATI software sample management function, which allows us to track the result code of each call and schedule call backs. Multiple callbacks will be made (a minimum of five attempts) to maximize our ability to reach each sampled business.

B4. Describe any tests of procedures or methods to be undertaken. Testing is encouraged as an effective means of refining collections of information to minimize burden and improve utility. Tests must be approved if they call for answers to identical questions from 10 or more respondents. A proposed test or set of test may be submitted for approval separately or in combination with the main collection of information.

4. A pre-test of the draft survey instrument will be performed in order to enhance the reliability and accuracy of the response and to reduce non-response. We seek approval to conduct a pre-test with 25 respondents.

B5. Provide the name and telephone number of individuals consulted on statistical aspects of the design and the name of the agency unit, contractor(s), grantee(s), or other

person(s) who will actually collect and/or analyze the information for the agency.

5. The George Mason University Survey Research Center will collect the data. Emily Zimmerman (703-993-2293), director, and Prof. Steve Vallas, faculty chair (703-993-1446), participated in the survey design. Profs. Zoltan Acs (703-993-1780) and David Hart (703-993-2279) of the George Mason University School of Public Policy serve as consultants to the project and participated in the survey design. Spencer Tracy, CEO of the Corporate Research Board (202-544-5138) is the manager of the contract.