SME perspectives on business support services

Abstract

Purpose -From a literature review and a comprehensive survey aims to analyze how small to medium-sized enterprises (SMEs) use existing support systems. The analysis is specifically on focusing different size groups within the SME category, the role of industrial sector, and regional location. Design/methodology/approach -The combination of macro-economic theory and entrepreneurial perspectives constitutes the theoretical framework for this study. Empirical data are collected via a survey to over 1,000 Swedish SMEs with one to 49 employees, from both manufacturing and service industries, and from three different regions. Descriptive as well as multivariate statistical techniques are used in the analysis. Findings -The results indicate low participation rates of available support services and the largest manufacturing companies with a location in sparsely populated areas are the most frequent users. Vague arguments from neo-classical theory and lack of clarity in definitions of small firms pose an obstacle to the production of empirical results as well as theoretical development. Support users are mainly positive to the services and, although the "take-up rate" has increased in recent years, a better match between demand and supply of support services must be undertaken. Originality/value -This paper gives understanding of how the business support programs are received among small companies. The results generated via a large sample size, 1,022 companies, combined with theoretical considerations, give a solid platform for research and policy conclusions.

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“…Panel A shows that expert advice and technical skills are significantly associated with more employees (coefficient 0.17, p< 0.001). This implies that access to these services is important in enabling an enterprise to grow (Matlay, Boter and Lundström, 2005). Panel B provides more support for our hypothesis.…”

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

“…Small business seeks support to overcome myriad internal business weaknesses for being small enterprise. At the same, large enterprises use the support services at better rate when they are able to exploit the internal advantages to have better plan on the services (Håkan & Anders, 2005;Ramsden & Bennet, 2005). However, with reference to frequency of usage, the larger the firm the more it uses the services (O'Farrell, Moffatt, & Hitchens, 1993 Vol.…”

The Public Business Support Services: Does It Really Works?

“…In the study conducted by Berry, Sweeting and Goto (2006) in UK, the study used scale from always being used to never being use in measuring the effectiveness of the services provided by a range of services suppliers. In other study, Boter and Lundstrom (2006), exploited scale of used regularly to never being used to measure the usage of the services. The services are considers effective and 'working' when the utilisation rate is satisfactory.…”