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Accountability of Venture Support Agencies: Do They Really Help?

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  • Jagoda Kalinga

    (Department of Management, College of Business and Economics, University of Guelph, 50 Stone Road East, Guelph, Ontario, N1G 2W1, Canada)

  • Lin Xiaohua

    (Ted Rogers School of Management, Ryerson University, 575 Bay Street, Toronto, Ontario, M5G 2C5, Canada)

  • Calvert Victoria

    (Bissett School of Business, Mount Royal University, 4825 Mount Royal Gate, SW, Calgary, Alberta T3E 6K6, Canada)

  • Tao Shaw

    (SM Research, Markham, Ontario, Canada)

Abstract

There is widespread recognition of the vital role small and medium enterprises (SME) play in the sustainability of the Canadian rural landscape. However, rural entrepreneurs face barriers and challenges throughout the start-up and growth stages of their ventures. The rapid development of e-commerce, coupled with increasing big-box competition and shifting demographics challenge the sustainability of rural SMEs. The literature recognizes gaps in SME owner capability, pertaining to business planning, the use of financial information, the implementation of Information Technologies, and funding. It should be noted that the effectiveness of Government policies regarding support for training in these areas through publically funded agencies is well documented. However, research regarding the effectiveness of these agencies in reaching and meeting the needs of rural venture owners is primarily restricted to funding requirements. This paper examines the utilization and satisfaction of venture support agencies and community organizations by rural SME owners in 14 communities through a Business Expansion and Retention (BR&E) research project conducted in Alberta, Canada. The results indicated that agency usage can be effectively predicted by firm size, degree of localization, and planning. Results indicate that while many owners identified the need for assistance in training and funding, the utilization of support agencies, underscored by the lack of user satisfaction, may hinder rather than enhance venture viability and growth. The implications for government policy are discussed in the context of enhancing the effectiveness of support agencies, thereby contributing to the viability of ventures and the sustainability of rural communities.

Suggested Citation

  • Jagoda Kalinga & Lin Xiaohua & Calvert Victoria & Tao Shaw, 2016. "Accountability of Venture Support Agencies: Do They Really Help?," Entrepreneurship Research Journal, De Gruyter, vol. 6(2), pages 175-206, April.
    • Handle: RePEc:bpj:erjour:v:6:y:2016:i:2:p:175-206:n:2
    DOI: 10.1515/erj-2014-0038
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    References listed on IDEAS

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    1. Akgun, A.A. & Baycan, T. & Nijkamp, P., 2011. "Repositioning rural areas as promising future hot spots," Serie Research Memoranda 0013, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. Terry L. Besser & Nicholas Recker & Matthew Parker, 2009. "The Impact of New Employers From the Outside, the Growth of Local Capitalism, and New Amenities on the Social and Economic Welfare of Small Towns," Economic Development Quarterly, , vol. 23(4), pages 306-316, November.
    3. Mark Drabenstott & Jason Henderson, 2006. "A new rural economy: a new role for public policy," Main Street Economist, Federal Reserve Bank of Kansas City, issue 4.
    4. T A Lyson & C M Tolbert, 1996. "Small Manufacturing and Nonmetropolitan Socioeconomic Well-Being," Environment and Planning A, , vol. 28(10), pages 1779-1794, October.
    5. Shanklin, William L. & Ryans, John Jr., 1998. "Stoking the small business engine," Business Horizons, Elsevier, vol. 41(1), pages 27-33.
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    1. Michael Darger & Alan Barefield & Brent D. Hales, 2017. "Business retention and expansion (BRE) today – research, application, and evaluation: Introduction to the special issue," Community Development, Taylor & Francis Journals, vol. 48(2), pages 160-169, March.

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