The Impact of Consulting on Small Business: A Further Examination

Abstract

The present study focuses on the impact of consulting on small businesses and identifies the reasons why small businesses do not implement some of the recommendations that they receive from consultants. A mail survey of 126 businesses that had sought assistance from the SBDC at the University of Utah was conducted. Results obtained from 106 respondents (84% response rate) indicate that overall, business manager/owners were highly satisfied with the services they received and that they found them useful. They also reported that the consulting had a positive impact on their business. Appropriateness and lack of consultant expertise were cited as primary reasons for not implementing some of the recommendations. The results are discussed in terms of areas in which the SBDCs could improve the assistance they provide small businesses and future directions for research.

Public advisory services - theory and practice

“…Chrisman and Katrishen (1995) found that the clients of the Small Business Development Center (SBDC) programme in the USA increased sales and employment significantly more than they would have done if no assistance had been received. Similarly Nahavandi and Chesteen (1988) reported that business managers were highly satisfied with the services received from a particular SBDC and that consulting had a positive impact on their business. Incubators for start-up businesses linked to universities are often mentioned as a measure that facilitates business development.…”

The influence of guided preparation on the long-term performance of new ventures

“…It provides free, comprehensive managerial planning assistance to owner-managers of new and small firms, as well as continuing education seminars and workshops, small business research, government procurement assistance, export services, and minority support programs. Several studies have indicated that the SBDC program contributes economic value to entrepreneurs (e.g., Chrisman, 1999;Chrisman et al, 1987;Chrisman and Katrishen, 1994;Chrisman and McMullan, 2000;Nahavandi and Chesteen, 1988;Pelham, 1985;Robinson, 1982).…”

Outsider Assistance as a Knowledge Resource for New Venture Survival

“…Over the last 20 years, a considerable body of research has accumulated in the United States that suggests outsider assistance can have a substantial impact on new venture startup, survival, and performance (Chrisman and Katrishen 1994;Nahavandi and Chesteen 1988;Pelham 1985;Robinson 1982). For example, outsiders may assist entrepreneurs to develop an effective network (Hansen 1995), to build a management team (Rice 2002), to raise capital (Bygrave and Timmons 1992), and to prepare a business plan (Smeltzer, Van Hook, and Hutt 1991).…”