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Changing Use of External Business Advice and Government Supports by SME's in the 1990's

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Listed:
  • R Bennett
  • P Robson

Abstract

This paper uses cross-sectional surveys of 1991 and 1997, and a panel survey of firms surviving between 1991 and 1997, to compare the levels of use by SMEs of external business advice. The analysis demonstrates only modest changes over time in aggregate use, and these are not statistically significant. This suggests that earlier growth in external business advice services may now have plateaued. There are some significant changes of use by source (increasing for advertising, personnel and recruitment, new technology and computer services; and decreasing for taxation and financial management advice). The paper is one of the first to assess sector patterns. Publishing, manufacturing and other business activities are the largest users of advice. Sector differences are shown to be considerable and need to be taken account of in future analyses. For government advice services, the shift from a centralised structure (Small Firms Service and Enterprise Initiative) to a decentralised structure (training and Enterprise Councils and Business Link) had no impact on greater market penetration except for the greater participation by the larger SMEs in use of Investors in People. Increased use of government sources has occurred, however, through enterprise agencies and regional development bodies. Further comparison in 1999 suggests a decline in use of Business Link and stronger focus of use of government support services. This indicates that the Small Business service and Learning Skills council may struggle to meet their market penetration targets.

Suggested Citation

  • R Bennett & P Robson, 2001. "Changing Use of External Business Advice and Government Supports by SME's in the 1990's," Working Papers wp210, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp210
    Note: PRO-1
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    References listed on IDEAS

    as
    1. Robson, Paul J A & Bennett, Robert J, 2000. "SME Growth: The Relationship with Business Advice and External Collaboration," Small Business Economics, Springer, vol. 15(3), pages 193-208.
    2. David Keeble & Lilach Nachum, 2001. "Why Do Business Service Firms Cluster? Small Consultancies, Clustering and Decentralisation in London and Southern England," Working Papers wp194, Centre for Business Research, University of Cambridge.
    3. Rink, David R. & Swan, John E., 1979. "Product life cycle research: A literature review," Journal of Business Research, Elsevier, vol. 7(3), pages 219-242, September.
    4. P. J. A. Robson Shaw & R. J. Bennett, 2000. "Central Government Support to SMEs Compared to Business Link, Business Connect and Business Shop and the Prospects for the Small Business Service," Regional Studies, Taylor & Francis Journals, vol. 33(8), pages 779-787.
    5. 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.
    6. 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.
    7. Steven Tolliday (ed.), 1991. "Government And Business," Books, Edward Elgar Publishing, number 521, March.
    8. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Small business; business advice; consultancy; Business Link; Small Business Service; sectors; Learning and Skills Council; Investors in People.;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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