IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v32y2000i13p1675-1688.html
   My bibliography  Save this article

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

Author

Listed:
  • P. J. A. Robson
  • R. J. Bennett

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.

Suggested Citation

  • P. J. A. Robson & R. J. Bennett, 2000. "The use and impact of business advice by SMEs in Britain: an empirical assessment using logit and ordered logit models," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1675-1688.
    • Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1675-1688
    DOI: 10.1080/000368400421020
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421020
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/000368400421020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bryson, John R & Keeble, David & Wood, Peter, 1997. "The Creation and Growth of Small Business Service Firms in Post-industrial Britain," Small Business Economics, Springer, vol. 9(4), pages 345-360, August.
    2. Robert J. Bennett & Paul J. A. Robson, 1999. "The use of external business advice by SMEs in Britain," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(2), pages 155-180, April.
    3. Robert J. Bennett, 1998. "Business associations and their potential contribution to the competitiveness of SMEs," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 10(3), pages 243-260, January.
    4. David A. Kirby & JONES-EVANS DYLAN, 1997. "Small Technology-based Professional Consultancy Services in the United Kingdom," The Service Industries Journal, Taylor & Francis Journals, vol. 17(1), pages 155-172, January.
    5. Robert Bennett & Paul Robson, 1999. "The Market for External Business Advice Services in Britain," Working Papers wp123, Centre for Business Research, University of Cambridge.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Norin Arshed & Colin Mason & Sara Carter, 2016. "Exploring the disconnect in policy implementation: A case of enterprise policy in England," Environment and Planning C, , vol. 34(8), pages 1582-1611, December.
    3. Luminița Nicolescu & Mariana Nicolae & Irina Ion, 2014. "Factors influencing the consultancy services used in Romanian family businesses," Management & Marketing, Economic Publishing House, vol. 9(2), Summer.
    4. Kevin Mole, 2002. "Street-Level Technocracy in UK Small Business Support: Business Links, Personal Business Advisers, and the Small Business Service," Environment and Planning C, , vol. 20(2), pages 179-194, April.
    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. 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.
    7. 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.
    8. Venetoklis, Takis, 2001. "Business Subsidies and Bureaucratic Behaviour," Research Reports 79, VATT Institute for Economic Research.
    9. Maurizio Cisi & Francesco Devicienti & Alessandro Manello & Davide Vannoni, 2016. "The impact of formal networking on the performance of SMEs," Carlo Alberto Notebooks 490, Collegio Carlo Alberto.
    10. Barge-Gil, Andrés & Vivas-Augier, Carlos, 2019. "Does Cooperation with Universities and KIBS Matter? Firm-level Evidence from Spain," MPRA Paper 96949, University Library of Munich, Germany.
    11. Maria Gaia Soana & Doriana Cucinelli & Beatrice Ronchini, 2025. "Advisors for micro-entrepreneurs: is one as good as another in accessing alternative finance?," Small Business Economics, Springer, vol. 64(3), pages 989-1033, March.
    12. Anoosheh Rostamkalaei & Mark Freel, 2017. "Business advice and lending in small firms," Environment and Planning C, , vol. 35(3), pages 537-555, May.
    13. Colin Wren, 2002. "Evaluating the effect of soft business support upon small firm performance," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 334-365, April.
    14. Parker, Simon C., 2008. "The economics of formal business networks," Journal of Business Venturing, Elsevier, vol. 23(6), pages 627-640, November.
    15. Jeremy Phillipson & Matthew Gorton & Marian Raley & Andrew Moxey, 2004. "Treating Farms as Firms? the Evolution of Farm Business Support from Productionist to Entrepreneurial Models," Environment and Planning C, , vol. 22(1), pages 31-54, February.
    16. Idris, Bochra & Saridakis, George, 2018. "Local formal interpersonal networks and SMEs internationalisation: Empirical evidence from the UK," International Business Review, Elsevier, vol. 27(3), pages 610-624.
    17. 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.
    18. 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.
    19. Robert Bennett & Paul Robson, 2000. "The Small Business Service: Business Support, Use, Fees And Satisfaction: Econometric Estimates," Working Papers wp181, Centre for Business Research, University of Cambridge.
    20. Venetoklis, Takis, 2001. "Business Subsidies and Bureaucratic Behaviour - A Revised Approach," Research Reports 83, VATT Institute for Economic Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert Bennett & Paul Robson, 1999. "The Market for External Business Advice Services in Britain," Working Papers wp123, Centre for Business Research, University of Cambridge.
    2. Robert Bennett & Paul Robson, 1999. "Intensity of Interaction in Suppy of Business Advice and Client Impact: A Comparison of Consultancy, Business Associations and Government Support Initiatives for SMEs," Working Papers wp142, Centre for Business Research, University of Cambridge.
    3. John Bryson & David Ingram & Peter Daniels, 1999. "Evaluating the Impact of Business Service Expertise and Business Links on the Performance of SMEs in England," Working Papers wp124, Centre for Business Research, University of Cambridge.
    4. Severin Oesterle & Arne Buchwald & Nils Urbach, 2022. "Investigating the co-creation of IT consulting service value: empirical findings of a matched pair analysis," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 571-597, June.
    5. Liang Wang & Justin Tan, 2019. "Social Structure of Regional Entrepreneurship: The Impacts of Collective Action of Incumbents on De Novo Entrants," Entrepreneurship Theory and Practice, , vol. 43(5), pages 855-879, September.
    6. Rob Janssens & Maarten Corten & Nadine Lybaert & Jelle Schepers & Anneleen Michiels, 2025. "Matching entrepreneurial orientations: a new perspective on the external accountant’s advisory role towards entrepreneurs," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-25, December.
    7. Samad Sarminah, 2020. "Achieving innovative firm performance through human capital and the effect of social capital," Management & Marketing, Sciendo, vol. 15(2), pages 326-344, June.
    8. Mehmet Turker & Zafer Konakli, 2016. "Influence of Nongovernmental Organizations on Forming Country Image and Developing the Country Brand Using Public Diplomacy," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(1), pages 221-235, January.
    9. Turner, S. & Lourenço, A., 2010. "Competition and Public Service Broadcasting: Stimulating Creativity or servicing Capital?," Working Papers wp408, Centre for Business Research, University of Cambridge.
    10. Robert A. DESMAN, 2009. "Firm capital: the obscure organizational assets," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(1), pages 19-33, March.
    11. Suma Athreye & David Keeble, 2002. "Sources of Increasing Returns and Regional Innovation in the UK," Regional Studies, Taylor & Francis Journals, vol. 36(4), pages 345-357.
    12. Francesco Bavagnoli & Giangiacomo Buzzoni & Corrado Mandirola & Ernesto Salinelli, 2022. "Exploring market multiples accuracy for professional practices: sales is the value anchor but profitability and location matter too," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1409-1442, December.
    13. Carlos Alberto Restrepo Rivillas & Edna Carolina Sastoque Ramírez & Isidro Hernández Rodríguez, 2021. "Proceso de Industrialización en colombia. Desempeño y condiciones institucionales," Books, Universidad Externado de Colombia, Facultad de Administración de Empresas, number 56, htpr_v3_i.
    14. 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.
    15. Dennis Hanlon & Chad Saunders, 2007. "Marshaling Resources to Form Small New Ventures: Toward a More Holistic Understanding of Entrepreneurial Support," Entrepreneurship Theory and Practice, , vol. 31(4), pages 619-641, July.
    16. Petrit Gashi & Iraj Hashi & Geoff Pugh, 2014. "Export behaviour of SMEs in transition countries," Small Business Economics, Springer, vol. 42(2), pages 407-435, February.
    17. David Irwin, 2015. "Kenya’s Business Networks," SAGE Open, , vol. 5(1), pages 21582440145, January.
    18. Ma, Darren & Fisher, Richard & Nesbit, Trevor, 2021. "Cloud-based client accounting and small and medium accounting practices: Adoption and impact," International Journal of Accounting Information Systems, Elsevier, vol. 41(C).
    19. Bertrand, Olivier & Betschinger, Marie-Ann & Brea-Solís, Humberto, 2022. "Export barriers for SMEs in emerging countries: A configurational approach," Journal of Business Research, Elsevier, vol. 149(C), pages 412-423.
    20. Larrain Aylwin, M.J. & Prüfer, J.O., 2014. "Business Associations, Lobbying, and Endogenous Institutions," Other publications TiSEM 99d2d002-87d2-4d8e-b1d9-8, Tilburg University, School of Economics and Management.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1675-1688. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.