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Can business counselling help SMEs grow?: evidence from the Swedish business development grant programme
Swedish Agency for Growth Policy Analysis.
Linnaeus University, School of Business and Economics, Department of Economics and Statistics. (Nationalekonomi och Statistik)
2015 (English)In: Journal of Small Business and Enterprise Development, ISSN 1462-6004, E-ISSN 1758-7840, Vol. 22, no 4, 652-665 p.Article in journal (Refereed) Published
Abstract [en]

Purpose– The purpose of this paper is to evaluate the state funded business counselling on firm growth.

Design/methodology/approach– A quasi-experimental difference-in-difference estimation of treatment effects, using a matched sample of comparable untreated firms.

Findings– Firms that have been granted counselling vouchers have a higher growth in value added than comparable untreated firms. This effect is mainly due to increased use of labour and capital, rather than increased efficiency. Results are upwardly biased due to sample selection among treated firms.

Research limitations/implications– An improved strategy for identifying potential comparison firms from the pool of all firms may be necessary for further impact evaluations on business development programmes.

Social implications– Policy makers may have to reconsider the programme design, since the programme currently suffer from a large potential for crowding-out, and low additional value of business counselling.

Originality/value– The paper uses a matching procedure in order to infer causal effects of business counselling and compares the effect of, respectively, contamination and selection on estimated impact on firm growth and survival. The data used are an original, rich micro-level data set on state investment support to businesses.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2015. Vol. 22, no 4, 652-665 p.
Keyword [en]
Evaluation, Matching, Heterogeneity, Contamination, Selection, Business counselling
National Category
Economics
Research subject
Economy, Economics
Identifiers
URN: urn:nbn:se:lnu:diva-50548DOI: 10.1108/JSBED-06-2012-0073OAI: oai:DiVA.org:lnu-50548DiVA: diva2:910713
Available from: 2016-03-10 Created: 2016-03-10 Last updated: 2016-03-14Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf