Advanced Search
MyIDEAS: Login

Evaluating the effect of soft business support upon small firm performance

Contents:

Author Info

  • Colin Wren
Registered author(s):

    Abstract

    The paper applies robust econometric techniques to assess the impact of publicly-provided subsidised 'soft' business support on the performance of small and medium-sized enterprises (SMEs). It considers the assistance for consultancy advice provided towards marketing under the UK Enterprise Initiative, looking at its effect on sales turnover, employment and survival, and making explicit allowance for selection effects. It is found that the policy has no impact on the survival of smaller SMEs, and that it is most effective in the mid-range SMEs, where it raises survival rates by about 4% over the longer run and growth rates in surviving firms by up to 10% per annum. Overall, the scheme has a substantial impact, but the paper draws attention to the possible displacement effects. Copyright 2002, Oxford University Press.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by Oxford University Press in its journal Oxford Economic Papers.

    Volume (Year): 54 (2002)
    Issue (Month): 2 (April)
    Pages: 334-365

    as in new window
    Handle: RePEc:oup:oxecpp:v:54:y:2002:i:2:p:334-365

    Contact details of provider:
    Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
    Fax: 01865 267 985
    Email:
    Web page: http://oep.oupjournals.org/

    Order Information:
    Web: http://www.oup.co.uk/journals

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Heckman, J.J. & Hotz, V.J., 1988. "Choosing Among Alternative Nonexperimental Methods For Estimating The Impact Of Social Programs: The Case Of Manpower Training," University of Chicago - Economics Research Center 88-12, Chicago - Economics Research Center.
    2. Cressy, Robert, 1996. "Are Business Startups Debt-Rationed?," Economic Journal, Royal Economic Society, vol. 106(438), pages 1253-70, September.
    3. O'Higgins, Niall, 1994. "YTS, Employment, and Sample Selection Bias," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 605-28, October.
    4. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "The Growth and Failure of U.S. Manufacturing Plants," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 671-98, November.
    5. McCloughan, Patrick & Stone, Ian, 1998. "Life duration of foreign multinational subsidiaries: Evidence from UK northern manufacturing industry 1970-93," International Journal of Industrial Organization, Elsevier, vol. 16(6), pages 719-747, November.
    6. Takis Venetoklis, 1999. "Process Evaluation of Business Subsidies in Finland. A Quantitative Approach," Research Reports 58, Government Institute for Economic Research Finland (VATT).
    7. Dolton, Peter J & Makepeace, Gerald H & Treble, John G, 1994. "The Youth Training Scheme and the School-to-Work Transition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 629-57, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Colin Wren & Jonathan Jones, 2003. "Re-investment, Survival and the Embeddedness of Foreign-Owned Plants," ERSA conference papers ersa03p19, European Regional Science Association.
    2. Verena Eckl & Michael Rothgang & Friederike Welter, 2009. "Public Policy and Success of Business Start-ups in Germany," Ruhr Economic Papers 0143, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Dimara, Efthalia & Skuras, Dimitris & Tsekouras, Kostas & Tzelepis, Dimitris, 2008. "Productive efficiency and firm exit in the food sector," Food Policy, Elsevier, vol. 33(2), pages 185-196, April.
    4. Cueto Iglesias, Begoña, 2008. "Políticas de fomento del autoempleo y creación de empleo. Un estudio de caso," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 26, pages 195-210, Septiembr.
    5. Elisabeth Mueller, 2008. "Benefits of control, capital structure and company growth," Applied Economics, Taylor & Francis Journals, vol. 40(21), pages 2721-2734.
    6. Greene, Francis, 2012. "Should the focus of publicly provided small business assistance be on start-ups or growth businesses?," Occasional Papers 12/2, Ministry of Economic Development, New Zealand.
    7. Girma, Sourafel & Gorg, Holger & Strobl, Eric, 2007. "The effects of government grants on plant survival: A micro-econometric analysis," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 701-720, August.
    8. Bah, El-hadj & Brada, Josef C. & Yigit, Taner, 2011. "With a little help from our friends: The effect of USAID assistance on SME growth in a transition economy," Journal of Comparative Economics, Elsevier, vol. 39(2), pages 205-220, June.
    9. Onji, Kazuki, 2009. "The response of firms to eligibility thresholds: Evidence from the Japanese value-added tax," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 766-775, June.
    10. Bernd Ebersberger, 2011. "Public funding for innovation and the exit of firms," Journal of Evolutionary Economics, Springer, vol. 21(3), pages 519-543, August.
    11. Sourafel Girma & Holger Görg & Aoife Hanley & Eric Strobl, 2010. "The effect of grant receipt on start-up size: Evidence from plant level data," Journal of International Entrepreneurship, Springer, vol. 8(4), pages 371-391, December.
    12. Charles Dannreuther, 2007. "EU SME policy: On the edge of governance," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 8(2), pages 7-13, 07.
    13. Andreas Georgiadis & Christos N. Pitelis, 2008. "HRM practices and knowledge processes outcomes: empirical evidence from a quasi-experiment on UK SMEs in the tourism hospitality and leisure sector," LSE Research Online Documents on Economics 19636, London School of Economics and Political Science, LSE Library.
    14. Douhan, Robin & Henrekson, Magnus, 2007. "The Political Economy of Entrepreneurship: An Introduction," Working Paper Series 688, Research Institute of Industrial Economics.
    15. Andrés Barge-Gil & Aurelia Modrego, 2011. "The impact of research and technology organizations on firm competitiveness. Measurement and determinants," The Journal of Technology Transfer, Springer, vol. 36(1), pages 61-83, February.
    16. José García-Quevedo & Francisco Mas-Verdú, 2008. "Does only size matter in the use of knowledge intensive services?," Small Business Economics, Springer, vol. 31(2), pages 137-146, August.
    17. Rotger, Gabriel Pons & Gørtz, Mette & Storey, David J., 2012. "Assessing the effectiveness of guided preparation for new venture creation and performance: Theory and practice," Journal of Business Venturing, Elsevier, vol. 27(4), pages 506-521.
    18. Capelleras, Joan-Lluis & Mole, Kevin F., 2012. "How ‘buzz’ reduces uncertainty for new firm founders," MPRA Paper 38170, University Library of Munich, Germany.
    19. Robert Bennett & Paul Robson, 2003. "Changing Use of External Business Advice and Government Supports by SMEs in the 1990s," Regional Studies, Taylor & Francis Journals, vol. 37(8), pages 795-811.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:54:y:2002:i:2:p:334-365. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.