2017
DOI: 10.1177/2399654417691514
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Take-up and variation of advice for new firm founders in different local contexts

Abstract: Although business advice has been linked to entrepreneurial outcomes, it is subject to information asymmetries and market failure. We argue that the knowledge concerning from whom to take advice before starting a new firm is more easily accessed in areas with high start-up rates which therefore ameliorates market failure. The study is based on surveys of 599 new firm founders in England and 381 new firm founders in Catalonia. A series of probit and heteroskedastic probit models are employed to investigate not … Show more

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Cited by 5 publications
(7 citation statements)
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References 96 publications
(206 reference statements)
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“…The knowledge capabilities component was evident in Case A, the intermediary, local council model of business support and Case B, the regional Government agriculture department. In both cases the advisor's knowledge and capacity for delivering real benefits impacted upon personal trust in the advisor (Mole and Capelleras, 2018). The findings thus support Huggins' (2000) assertion that the energy, enthusiasm and experience of intermediaries or brokers is key in generating effective interaction and exchange between participants.…”
Section: Discussionsupporting
confidence: 60%
“…The knowledge capabilities component was evident in Case A, the intermediary, local council model of business support and Case B, the regional Government agriculture department. In both cases the advisor's knowledge and capacity for delivering real benefits impacted upon personal trust in the advisor (Mole and Capelleras, 2018). The findings thus support Huggins' (2000) assertion that the energy, enthusiasm and experience of intermediaries or brokers is key in generating effective interaction and exchange between participants.…”
Section: Discussionsupporting
confidence: 60%
“…by individual consultants, through business development centres, or integrated with the services of business incubators and accelerators. Furthermore, policy support for business development services is commonly combined with financial support to firms in the expectation of positive synergies (Piza et al, 2016;Mole and Capelleras, 2018;Fraser et al, 2002).…”
Section: The Nature and Role Of Business Development Services And Polmentioning
confidence: 99%
“…There is various research evidence suggesting that taking advice and participating in training programmes benefits SMEs and start-ups (Mole and Capelleras, 2018;Mole et al, 2011;Seo et al, 2014). This might not come as a surprise when considering the complexities of running and growing a business.…”
Section: The Characteristics Of Entrepreneurs May Constrain Advice Tamentioning
confidence: 99%
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“…In addition, the conditions for entering a market are usually viewed as being more favorable in densely populated regions (Audretsch and Fritsch 1994) because of the closer proximity to a consumer market, the relatively more developed business infrastructure, and the presence of specialized suppliers and a more skilled workforce (Rotefoss and Kolvereid 2005;Pe'er et al 2014). Networking and collaboration with potential customers, suppliers, and other organizations are also more likely to occur in regions with a greater population density (Liao and Welsch 2005;Kibler et al 2014;Mole and Capelleras 2017). Together these various effects stimulate the creation of new firms in densely populated regions.…”
Section: Introductionmentioning
confidence: 99%