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Discouraged Advisees? The Influence of Gender, Ethnicity, and Education in the Use of Advice and Finance by UK SMEs

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  • Jonathan M Scott

    (Queen's University Management School, Queen's University Belfast, 25 University Square, Belfast BT7 INN, Northern Ireland)

  • David Irwin

    (Irwin Grayson Associates, Unit 3, Hindley Hall, Stocksfield, Northumberland NE43 7RY, England)

Abstract

We investigate the influence of gender, ethnicity, and education in the use of external advice and finance by UK small and medium-sized enterprises (SMEs). A conceptual model of ‘discouraged advisees’ was developed as a framework for analysis of the results of a telephone survey of 400 SMEs. We found an association between the use of external advice and the ability to raise bank finance. Furthermore, both men and black and minority ethnic (BME) participants were more likely to use family and friends for advice, whilst women were twice as likely as men to use Business Link. BME business owners were discouraged from using less ‘trusted’ sources, such as Business Link, possibly believing them insufficiently tailored or that they would provide inappropriate advice. Therefore, the findings provide support for our conceptual model of discouraged advisees and have implications for the provision of advice for business owners from BME communities.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:envirc:v:27:y:2009:i:2:p:230-245
    DOI: 10.1068/c0806b
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    References listed on IDEAS

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    Cited by:

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    3. Colin Mason, 2009. "Policy as a Focus for Small Business Research," Environment and Planning C, , vol. 27(2), pages 191-194, April.
    4. Daniela Rodica Silivestru(Popescu), 2012. "Bank Loans And Small Firm Financing In Romania," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(14), pages 1-15.
    5. 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.
    6. Anoosheh Rostamkalaei & Mark Freel, 2017. "Business advice and lending in small firms," Environment and Planning C, , vol. 35(3), pages 537-555, May.
    7. Leonel Prieto & Tagi Sagafi-nejad & Balaji Janamanchi, 2013. "A Bourdieusian Perspective on Acculturation: Mexican Immigrants in the United States," Administrative Sciences, MDPI, vol. 3(4), pages 1-16, December.
    8. 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.
    9. Capelleras, Joan-Lluis & Mole, Kevin F., 2012. "How ‘buzz’ reduces uncertainty for new firm founders," MPRA Paper 38170, University Library of Munich, Germany.
    10. Lee, Neil & Brown, Ross, 2016. "Innovation, SMEs and the liability of distance: the demand and supply of bank funding in peripheral UK regions," LSE Research Online Documents on Economics 66215, London School of Economics and Political Science, LSE Library.
    11. 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.
    12. Kanayo K. Ogujiuba & Maria Eggink & Ebenezer Olamide, 2023. "Interaction and Main Effects of Finance Support and Other Business Support Services on the Entrepreneurial Ecosystem: A Case Study of the Mpumalanga Province, South Africa," Economies, MDPI, vol. 11(6), pages 1-23, May.
    13. 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.
    14. 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.
    15. Malcolm Brynin & Mohammed Shamsul Karim & Wouter Zwysen, 2019. "The Value of Self-Employment to Ethnic Minorities," Work, Employment & Society, British Sociological Association, vol. 33(5), pages 846-864, October.
    16. 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.
    17. Nyanzu, Frederick & Quaidoo, Matthew, 2017. "Access to Finance Constraint and SMEs Functioning in Ghana," MPRA Paper 83202, University Library of Munich, Germany, revised Dec 2017.
    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. 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.
    20. Katarzyna Łobacz & Paweł Głodek & Edward Stawasz & Piotr Niedzielski, 2016. "Utilisation of Business Advice in Small Innovative Firms: the Role of Trust and Tacit Knowledge," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(2), pages 117-138.

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