An emerging theory of outsider assistance as a knowledge resource suggests that new ventures obtain a unique blend of tacit and explicit knowledge through the judicious use of outside assistance. Using data from a longitudinal study of one outsider assistance program at a point in time four to eight years beyond the provision of startup counseling assistance, we present evidence supporting the theory. Results suggest that the ventures studied enjoyed survival rates in excess of those in the general population. More importantly, logistic regression analysis indicates a positive, curvilinear relationship between survival and the time spent in venture preparation under the direction of an outside counselor, a proxy measure of new knowledge acquired. We conclude with a discussion of the directions future research should take to test more fully the relationships implied by the theory.

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Using resource-based theory to explain why outside assistance might Influence new venture performance, we track the longer-term performance of two samples of entrepreneurs who received SBOC counseling and SUbsequently started businesses. Results Indicate that the ventures had higher than expected rates of survival, growth, and Innovation, suggesting that outsider assistance during the early stages of a venture's development can Influence Its SUbsequent development. Public policy Implications of the SBOC's counseling strategy are discussed.1. Long-term pre-venture clients in the state studied receive over 20 hours of counseling on average. 2. Although each state SBDC program has unique features, all share a number of common attributes in terms

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