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Broader or Deeper? Exploring the Most Effective Intervention Profile for Public Small Business Support

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  • Kevin F Mole

    (Warwick Business School, University of Warwick, Gibbett Hill Road, Coventry CV4 7AL, England)

  • Mark Hart

    (Aston Business School, Aston Triangle, Birmingham B4 7ET, England)

  • Stephen Roper

    (Warwick Business School, University of Warwick, Gibbett Hill Road, Coventry CV4 7AL, England)

  • David S Saal

    (Aston Business School, Aston Triangle, Birmingham B4 7ET, England)

Abstract

Most advanced economies offer publicly financed advice services to start-up firms and SMEs. In England, local or regional Business Links organisations have provided these services, and divided their support into nonintensive one-off contacts providing information or advice and more intensive support involving a diagnostic process and repeated interaction with firms. A key choice for Business Link managers is how to shape their intervention strategies, balancing resources between intensive and nonintensive support. Drawing on resource dependency theory, we develop a typology of intervention strategies for Business Links in England which reflects differences in the breadth and depth of the support provided. We then test the impacts of these alternative intervention models on client companies using both subjective assessments by firms and econometric treatment models that allow for selection bias. Our key empirical result is that Business Links' choice of intervention strategy has a significant effect both on actual and on perceived business outcomes, with our results emphasising the value of depth over breadth. The implication is that where additional resources are available for business support these should be used to deepen the assistance provided rather than extend assistance to a wider group of firms.

Suggested Citation

  • Kevin F Mole & Mark Hart & Stephen Roper & David S Saal, 2011. "Broader or Deeper? Exploring the Most Effective Intervention Profile for Public Small Business Support," Environment and Planning A, , vol. 43(1), pages 87-105, January.
    • Handle: RePEc:sae:envira:v:43:y:2011:i:1:p:87-105
    DOI: 10.1068/a43268
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    References listed on IDEAS

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    Cited by:

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    3. Caloffi, Annalisa & Freo, Marzia & Ghinoi, Stefano & Mariani, Marco & Rossi, Federica, 2022. "Assessing the effects of a deliberate policy mix: The case of technology and innovation advisory services and innovation vouchers," Research Policy, Elsevier, vol. 51(6).
    4. Arash Kordestani & Setayesh Sattari & Kaveh Peighambari & Pejvak Oghazi, 2017. "Exclude Me Not: The Untold Story of Immigrant Entrepreneurs in Sweden," Sustainability, MDPI, vol. 9(9), pages 1-22, September.
    5. Kevin Mole & Robert Baldock & David North, 2013. "Who Takes Advice? Firm Size Threshold, Competence, Concerns and Informality in a Contingency Approach," Research Papers 0009, Enterprise Research Centre.
    6. Afred Suci & Sri Maryanti & Hardi Hardi & Nining Sudiar, 2022. "Embedding Design Thinking Paradigm in a University’s Business Assistance to Small Business," Systemic Practice and Action Research, Springer, vol. 35(2), pages 177-201, April.
    7. Kevin Mole & David North & Robert Baldock, 2017. "Which SMEs seek external support? Business characteristics, management behaviour and external influences in a contingency approach," Environment and Planning C, , vol. 35(3), pages 476-499, May.
    8. Henderson, Dylan, 2020. "Demand-side broadband policy in the context of digital transformation: An examination of SME digital advisory policies in Wales," Telecommunications Policy, Elsevier, vol. 44(9).
    9. Polina Baranova & Fred Paterson & Bruno Gallotta, 2020. "Configuration of enterprise support towards the clean growth challenge: A place-based perspective," Local Economy, London South Bank University, vol. 35(4), pages 363-383, June.
    10. Ross Brown & Colin Mason, 2012. "Raising the batting average: Re-orientating regional industrial policy to generate more high growth firms," Local Economy, London South Bank University, vol. 27(1), pages 33-49, February.
    11. Monder Ram & Kiran Trehan & John Rouse & Kassa Woldesenbet & Trevor Jones, 2012. "Ethnic Minority Business Support in the West Midlands: Challenges and Developments," Environment and Planning C, , vol. 30(3), pages 504-519, June.
    12. Kristine M. Kuhn & Tera L. Galloway, 2015. "With a Little Help from My Competitors: Peer Networking among Artisan Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 39(3), pages 571-600, May.
    13. Neil Lee, 2014. "What holds back high-growth firms? Evidence from UK SMEs," Small Business Economics, Springer, vol. 43(1), pages 183-195, June.
    14. Capelleras, Joan-Lluis & Mole, Kevin F., 2012. "How ‘buzz’ reduces uncertainty for new firm founders," MPRA Paper 38170, University Library of Munich, Germany.
    15. Alex Coad & Julian S. Frankish & Richard G. Roberts & David J. Storey, 2016. "Predicting new venture survival and growth: Does the fog lift?," Small Business Economics, Springer, vol. 47(1), pages 217-241, June.
    16. Kevin Mole & Joan-Lluís Capelleras, 2018. "Take-up and variation of advice for new firm founders in different local contexts," Environment and Planning C, , vol. 36(1), pages 3-27, February.
    17. Yongseok Jang & Woo Jin Lee & Brandy Hadley, 2020. "Interactive Effects of Business Environment Assessment and Institutional Programs on Opportunity Entrepreneurship," Sustainability, MDPI, vol. 12(13), pages 1-18, July.
    18. Neil Lyee & Marc Cowling, 2015. "Do Rural Firms Perceive Different Problems? Geography, Sorting, and Barriers to Growth in UK SMEs," Environment and Planning C, , vol. 33(1), pages 25-42, February.
    19. Kuhn, Kristine M. & Galloway, Tera L. & Collins-Williams, Maureen, 2017. "Simply the best: An exploration of advice that small business owners value," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 33-40.
    20. Ross Brown & Suzanne Mawson, 2016. "The geography of job creation in high growth firms: the implications of ‘growing abroad’," Environment and Planning C, , vol. 34(2), pages 207-227, March.

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