The University of Tulsa project under the 1959 grant has been published. It is entitled "A Study of Opportunities for Small Business in Lake Recreational Areas in Eastern Oklahoma." The Oklahoma State University project studied was entitled "Case Studies in Business Success and Failure." The manuscript for this publication has been in Washington in the SBA office for the past several months awaiting their review before publication. I believe that the University of Oklahoma project is also in this stage.

The Congress did not appropriate funds for fiscal 1961, and I have been informed that the primary reason was that they wanted to have some time to study the completed research projects made under the 1959 grants. In view of the fact that the cost of this research program exceeds $1.5 million each year, the decision was perhaps wise. However, we believe that money should be appropriated immediately for fiscal 1962. One of the problems which we have faced as universities is the necessity of developing research proposals in a relatively short period of time. We should have more time to think about the proposals, and this means that we must have continuity in the program in Washington. There are several factors which, I believe, should be brought to the attention of our congressional delegation:

1. The three universities have worked cooperatively and effectively, with the State department of commerce and industry serving efficiently as the recipient of the grant.

2. We have learned some lessons the hard way regarding research in this area. If the program is continued, the dividends should be even greater in the future than they have been in the past.

3. Although the grants under the first 2 years of this program total over $3 million, this amount of money is almost insignificant relative to the value of small business to the American economy. Needless to say, almost any one large business in America would regard an expenditure of $3 million on research as a fairly minor item.

4. The research which is undertaken under this grant is characterized by the fact that no single small business would ever be able to undertake this research because the value which it would gain as an individual firm would be relatively small. In agriculture, it has been widely accepted for many years that the return to society is many times the cost of agricultural research. But in general, no one farmer can afford to engage in this research because his productive unit is too small to allow him to exploit the knowledge which is gained.

It is becoming widely recognized that the consumers of agricultural products have probably benefited as much or more from agricultural research than have the producers of agricultural products. In the same way, research designed to improve the managerial efficiency of small business will in my opinion result in lower cost to consumers as well as increased profitability to small businesses.