Assessing the Effectiveness of Business Support Services in England

Abstract

Abstract:In England, publicly supported advisory services for small firms are organised primarily through the Business Link (BL) network. Based on the programme theory underlying this business support services we develop four propositions and test these empirically using data from a new survey of over 3,000 English small firms. Our empirical results provide a broad validation of the programme theory underlying BL assistance for small firms in England during 2003, and more limited support for its effectiveness. More specifically, we find strong support for the value of BL operators maintaining a high profile as a way of boosting take-up. We also find some support for the approach to market segmentation adopted by BL allowing more intensive assistance to be targeted on younger firms and those with limited liability status. In terms of the outcomes of BL support, and allowing for issues of sample selection, we find no significant effects on growth from 'other' assistance but do find positive and significant employment growth effects from intensive assistance. This provides partial support for the programme theory assertion that BL support will lead to improvements in business growth performance and stronger support for the proposition that there would be differential outcomes from intensive and other assistance. The positive employment growth outcomes identified here from intensive assistance, even allowing for sample selection, suggest something of an improvement in the effectiveness of the BL network since the late 1990s.

Policy Support for SMEs

“…Such findings tend to support other analyses of the impact of support where additionality has been difficult to identify (Norrman and Bager-Sjo« gren, 2010). This contrasts to the results of the most recent evaluation of Business Link services, which found a significant positive effect of intensive Business Link assistance on employment growth, whilst allowing for additionality (Mole et al, 2009). Perhaps one of the reasons for the result in the German study is the difficulty of effectively delivering strategic advice to small companies, because in practice it may challenge the judgement and test the skills-base of the owner-manager.…”

Antecedents to the Utilisation of the Government Business Support Services: A Literature Review

“…Berry, Sweating, & Gotu, 2006;Colin & David, 2002;Dyer & Ross, 2008;Jay & Schaper, 2003;Josee & Etienne, 2007;Mole, Hart, Roper, & Saal, 2009;Ramsden & Bennet, 2005;Watson, 2003). outlined two major sources of support; government and private.…”

Public Business Advice in the Founding Process: An Empirical Evaluation of Subjective and Economic Effects

“…In contrast to strategically-oriented assistance, less intensive operational assistance is unlikely to impact on long-run business performance (Mole et al, 2009). Furthermore, operational services are hardly affected by ex-ante information asymmetries regarding the benefits of their use.…”