Assessing the effectiveness of business support services in england: evidence from a theory based evaluation

Assessing the effectiveness of business support services in england: evidence from a theory based evaluation
Document type
Working Paper
Author(s)
Mole, Kevin; Hart, Mark; Roper, Stephen
Publisher
Warwick Business School
Date of publication
1 March 2008
Series
Warwick Business School’s Small and Medium Sized Enterprise Centre Working Papers
Subject(s)
Small business & enterprise: the practicalities of running a small business and the theory of entrepreneurship, Management & leadership: including strategy, public sector management, operations and production
Collection
Business and management
Material type
Reports

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This paper considers advisory and support services to small businesses in England, where they are organised primarily through the Business Link (BL) network. Based on the programme theory underlying this business support services, the authors develop four propositions and test these empirically using data from a new survey of over 3,000 English small firms. The 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, the paper finds strong support for the value of BL operators maintaining a high profile as a way of boosting take-up. It also finds 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,  the paper finds 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.

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