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Paying fees for government business advice: an assessment of Business Link experience

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  • Paul Robson
  • Robert Bennett

Abstract

Business Link (BL) in Britain provides a unique opportunity to examine a government policy support to small firms which has targeted fee income as a major part of its management objectives in order to increase the 'sense of value' of the services offered. This article examines the influence of fees on client impact and satisfaction. It finds that fees have no significant relationship with client satisfaction or impact. Government targets and manager/advisor policies have, therefore, been wrong to pursue an explicit fee-based targeting strategy. Instead, satisfaction and impact are most significantly influenced by the character of the BL provider, being significantly higher for franchises managed by chambers of commerce and other agents, and being poorer for independent stand-alone providers. Service type has a significant influence on the propensity to charge a fee and on service impact. Small- and medium-sized enterprises characteristics have little influence on client evaluations. The policy implication is that advisors should focus on what they do best and can quality assure; in other cases, they should use referral to other professional advisors. The scope to raise fees from government advice services is, therefore, opportunistic and limited, and should not be incentivized.

Suggested Citation

  • Paul Robson & Robert Bennett, 2010. "Paying fees for government business advice: an assessment of Business Link experience," Applied Economics, Taylor & Francis Journals, vol. 42(1), pages 37-48.
    • Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:37-48
    DOI: 10.1080/00036840701579184
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    Citations

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    Cited by:

    1. Vivas-Augier, Carlos & Barge-Gil, Andrés, 2012. "Impact on firms of the use of knowledge providers: a systematic review of the literature," MPRA Paper 41042, University Library of Munich, Germany.
    2. Joan-Lluis Capelleras & Ignacio Contín-Pilart & Martin Larraza-Kintana, 2011. "Publicly Funded Prestart Support for New Firms: Who Demands it and How it Affects Their Employment Growth," Environment and Planning C, , vol. 29(5), pages 821-847, October.
    3. Sam Hampton, 2018. "‘It’s the soft stuff that’s hard’: Investigating the role played by low carbon small- and medium-sized enterprise advisors in sustainability transitions," Local Economy, London South Bank University, vol. 33(4), pages 384-404, June.
    4. Kevin Mole & Robert Baldock & David North, 2013. "Who Takes Advice? Firm Size Threshold, Competence, Concerns and Informality in a Contingency Approach," Research Papers 0009, Enterprise Research Centre.
    5. Kevin Mole & David North & Robert Baldock, 2017. "Which SMEs seek external support? Business characteristics, management behaviour and external influences in a contingency approach," Environment and Planning C, , vol. 35(3), pages 476-499, May.
    6. Arturo Vega & Mike Chiasson & David Brown, 2013. "Understanding the Causes of Informal and Formal Discretion in the Delivery of Enterprise Policies: A Multiple Case Study," Environment and Planning C, , vol. 31(1), pages 102-118, February.
    7. Carlos Vivas & Andrés Barge-Gil, 2015. "Impact On Firms Of The Use Of Knowledge External Sources: A Systematic Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 29(5), pages 943-964, December.
    8. Kevin F Mole & Mark Hart & Stephen Roper & David S Saal, 2011. "Broader or Deeper? Exploring the Most Effective Intervention Profile for Public Small Business Support," Environment and Planning A, , vol. 43(1), pages 87-105, January.

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