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Here I come to save the day? Reassessing the efficacy of small business development centers in the Internet Era

Author

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  • M. Garrett Roth
  • Ryan Morris

Abstract

Purpose - This paper assesses the efficacy of the 18 small business development centers (SBDCs) located throughout the state of Pennsylvania during 2013–2016 as a proxy for publicly funded, small business consulting services in general. Design/methodology/approach - The paper compares the sales growth of SBDC clients, as reported in postconsultation surveys, to comparable growth measures for the corresponding business population using one- and two-samplet-tests. Findings - The results show that respondent clients with existing businesses clearly outperform the broader population following consultation, both in aggregate and when decomposed by region and industry. Research limitations/implications - Although the best available data, the results are tempered by low response rates and self-reporting. Originality/value - The paper empirically demonstrates that SBDC clients experience higher growth in sales and employment following their consultation than the broader business population. The net benefit of such services is, however, impossible to determine.

Suggested Citation

  • M. Garrett Roth & Ryan Morris, 2020. "Here I come to save the day? Reassessing the efficacy of small business development centers in the Internet Era," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 9(3), pages 319-328, July.
    • Handle: RePEc:eme:jepppp:jepp-12-2019-0095
    DOI: 10.1108/JEPP-12-2019-0095
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    More about this item

    Keywords

    Entrepreneurial education; Small business consulting services; State-level economic policy; H76; L26; L38;
    All these keywords.

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy

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