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The use and impact of business advice by SMEs in Britain: an empirical assessment using logit and ordered logit models

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  • P. J. A. Robson
  • R. J. Bennett
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    Abstract

    This study assesses the effect of differences in types of client on the use and impact of business advice by SMEs in Britain using new survey evidence from the Cambridge ESRC Centre for Business Research Survey of 1997. The survey, covering over 2500 respondents, is the largest and most definitive assessment available in Britain. Moreover, the survey allows an assessment of the full range of providers of external advice, the private sector, business associations and various public sector bodies, as well as the fields of advice. Using multivariate logit models it is found that size of firm, rate of growth and innovation appear to be the main variables influencing the likelihood of firms seeking external advice, both from different sources and from different fields. Other variables which are investigated include, age, profitability, skill levels, manufacturer/services, and exporter/nonexporter. Ordered logit models of the impact of the advice demonstrate that there are significant differences between clients' perceived impact of advice and the sources of advice they use, chiefly as a result of firm size, and to a lesser extent for growth, innovation and export levels.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 32 (2000)
    Issue (Month): 13 ()
    Pages: 1675-1688

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    Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1675-1688

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    Cited by:
    1. Robert Bennett & Paul Robson, 2000. "The Small Business Service: Business Support, Use, Fees And Satisfaction: Econometric Estimates," ESRC Centre for Business Research - Working Papers wp181, ESRC Centre for Business Research.
    2. 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.
    3. Vivas-Augier, Carlos & Barge-Gil, Andrés, 2012. "Impact on firms of the use of knowledge providers: a systematic review of the literature," MPRA Paper 41042, University Library of Munich, Germany.
    4. Takis Venetoklis, 2001. "Business Subsidies and Bureaucratic Behaviour," Research Reports 79, Government Institute for Economic Research Finland (VATT).
    5. Parker, Simon C., 2008. "The economics of formal business networks," Journal of Business Venturing, Elsevier, vol. 23(6), pages 627-640, November.
    6. Takis Venetoklis, 2001. "Business Subsidies and Bureaucratic Behaviour - A Revised Approach," Research Reports 83, Government Institute for Economic Research Finland (VATT).

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