Modelling the Effects of Public Support to Small Firms in the UK - paradise Gained?
Differences between the two groups in respect of 'conditioning' variables
How do the assisted and non-assisted samples differ in respect of the 'conditioning'
variables included in the survey? Comparison of those interviewed suggested a
number of statistically significant differences between the two groups of businesses:
• Interviewed assisted businesses include a larger proportion of partnerships
and a lower proportion of limited companies
• New and improved products are more important for assisted businesses
and a larger proportion of assisted businesses have ISO 9000 quality
certification.
• Owner-managers of assisted businesses were more likely to have an
ownership stake in the business and be more willing to share power and
ownership to achieve business growth.
• Assisted businesses were more likely to see export growth as an important
business objective than the non-assisted comparators. Joint ventures were
seen by assisted businesses as a more important element of business
strategy than by comparators.
• Assisted businesses were also more likely than comparators to have a
formal written business plan.
□Actions (n=137) UControls (n=196) ∣
Figure 1: Use of External Advice: Assisted Businesses and Matched Comparators
An illustration of the further differences between assisted and non-assisted businesses
is provided in Figure 1 which presents data on the use of external advice by the two
groups of businesses. Assisted businesses were more likely to use external
consultants and also were more likely to have accessed the Small Firms Loan
Guarantee Scheme (although not significant at 0.05 level - see Table 2). These
differences - some of which are undoubtedly linked to business performance -
highlight the value of the additional survey element of the study. Failing to account
Stephen Roper and Mark Hart
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