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Making Policy Choices in Nonfinancial Business Support: An International Comparison

Author

Listed:
  • Kevin F Mole

    (Centre for Small and Medium Sized Enterprises, Warwick Business School, University of Warwick, Coventry CV4 7AL, England)

  • George Bramley

    (Small Business Service, 9-11 London Road, Sheffield S2 4LA, England)

Abstract

The paper reports an international literature review of advisory business support. Most industrialised countries provide a degree of business support to small and medium-sized firms, such as information and advice. It is normal for programmes to be justified using arguments about market failure and programme designers tend to weight different aspects of market failure leading to different policy choices. The paper was based upon a literature review of business support in OECD countries conducted in 2004. A visual analogue scale was developed based on the choices made by policy makers across OECD countries which developed a taxonomy of business support choices to enable both a more systematic comparison of, and to differentiate, programmes. There are a considerable number of choices that can be made regarding how a programme is designed and delivered for a specific set of market failures. The key result of the research is to suggest a hierarchy of policy choices. At the top are four choices: Who delivers? What ‘type’ of support? How is it rationed? And how is it funded? At a point in time when there are significant institutional changes in English business support the paper has the opportunity to contribute by making more explicit the policy choices in the area of business advice to small firms.

Suggested Citation

  • Kevin F Mole & George Bramley, 2006. "Making Policy Choices in Nonfinancial Business Support: An International Comparison," Environment and Planning C, , vol. 24(6), pages 885-908, December.
    • Handle: RePEc:sae:envirc:v:24:y:2006:i:6:p:885-908
    DOI: 10.1068/c0621
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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. 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.
    3. Knut Koschatzky & Joost Heijs, 2018. "Technology transfer from polytechnics and universities in Germany. Some «best practices»," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 94(02), pages 156-177.
    4. D.J. Webber & S. Johnson & S. Fargher, 2010. "Sector Variations in SMEs’ Use of External Business Advice," Local Economy, London South Bank University, vol. 25(4), pages 339-355, June.
    5. 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.
    6. Philippe Van Cauwenberge & Heidi Vander Bauwhede & Bilitis Schoonjans, 2013. "An Evaluation of Public Spending: The Effectiveness of a Government-Supported Networking Program in Flanders," Environment and Planning C, , vol. 31(1), pages 24-38, February.
    7. Joan-Lluis Capelleras & Ignacio Contín-Pilart & Martin Larraza-Kintana, 2011. "Publicly Funded Prestart Support for New Firms: Who Demands it and How it Affects Their Employment Growth," Environment and Planning C, , vol. 29(5), pages 821-847, October.
    8. Kevin Mole & Mark Hart & Stephen Roper & David Saal, 2008. "Differential Gains from Business Link Support and Advice: A Treatment Effects Approach," Environment and Planning C, , vol. 26(2), pages 315-334, April.
    9. Anoosheh Rostamkalaei & Mark Freel, 2017. "Business advice and lending in small firms," Environment and Planning C, , vol. 35(3), pages 537-555, May.
    10. 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.
    11. Nick Williams, 2013. "Entrepreneurship and the Role of Policy," Environment and Planning C, , vol. 31(1), pages 1-4, February.
    12. Ross Brown & Suzanne Mawson, 2016. "Targeted support for high growth firms: Theoretical constraints, unintended consequences and future policy challenges," Environment and Planning C, , vol. 34(5), pages 816-836, August.
    13. Capelleras, Joan-Lluis & Mole, Kevin F., 2012. "How ‘buzz’ reduces uncertainty for new firm founders," MPRA Paper 38170, University Library of Munich, Germany.
    14. Liang Han & Alan Benson, 2010. "The Use and Usefulness of Financial Assistance to UK SMEs," Environment and Planning C, , vol. 28(3), pages 552-566, June.
    15. 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.
    16. Jonathan M Scott & David Irwin, 2009. "Discouraged Advisees? The Influence of Gender, Ethnicity, and Education in the Use of Advice and Finance by UK SMEs," Environment and Planning C, , vol. 27(2), pages 230-245, April.
    17. Gilles Eric Fombasso Toyem & Michele Cincera, 2016. "Effectiveness of Government intervention in the SME sector: Evidence from the Brussels-Capital Region," Working Papers TIMES² 2016-17, ULB -- Universite Libre de Bruxelles.
    18. 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.
    19. Bob Ritchie, 2006. "Small Business Policy," Environment and Planning C, , vol. 24(6), pages 795-798, December.
    20. 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.

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