Modelling the Effects of Public Support to Small Firms in the UK - paradise Gained?
for these differences would have given a false impression of the impact of Business
Links support in any subsequent econometric analysis.
Marked differences were also in the potential routes by which assisted and non-
assisted businesses in the survey might have come into contact with BL. This will be
important in identifying the ‘selection’ effect in the econometric analysis.
Table 2: External Financial Supports
|
Actions |
Controls |
All | |
|
N=137 |
N=196 |
N=333 | |
|
Small Firms Loan Guarantee Scheme |
29.9 |
___________9.2 |
17.7 |
|
A SMART or spur award____________ |
12.4 |
___________9.7 |
10.8 |
|
Teaching Company Scheme___________ |
13.1 |
____________5.1 |
________8.4 |
|
Assistance from the DTI with exports |
24.1 |
__________13.8 |
18.0 |
|
Small firm training loan scheme__________ |
29.9 |
____________7.1 |
16.5 |
|
Regional Selective Assistance___________ |
28.5 |
__________19.4 |
23.1 |
Source: Impact Indicators Survey (2000)
Nature and Intensity of Business Link Support
The primary aim here was to probe the relationship with Business Links. In
particular, the questionnaire identified ways in which firms might have come to use
BL support services and to profile the type of support received. The first point to
emerge was that there was substantial contamination, with both assisted businesses
and comparators having received support, or had contact with Business Links since
the samples were drawn. This was taken into account in the econometric analysis.
Other key points to emerge concerned the nature and estimated effects of support:
• Assisted businesses were significantly more likely to be familiar with other
businesses which had received help from BL, were more likely to be in
receipt of BL mailshots and were more likely to have had a direct
approach from BL staff.
• Assisted businesses were in receipt of a range of business support from
Business Links and it is clear from the analysis that a substantial number
were more likely to have used more than one element of the support
services on offer in the period from 1996
• Just over two-thirds of assisted businesses (owner-managers self-
assessment) reported that in the absence of assistance they would have
grown at the same rate over the period 1996-2000. A further 22.4 per cent
would have grown more slowly and 2.7 per cent would have declined.
• Of those assisted businesses that stated they would have grown more
slowly without assistance 68 per cent employed less than 20 employees in
1996.
Stephen Roper and Mark Hart
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