IDEAS home Printed from https://ideas.repec.org/p/cbr/cbrwps/wp167.html
   My bibliography  Save this paper

Business Advice: The Influence of Distance

Author

Listed:
  • Robert Bennett
  • William Bratton
  • Paul Robson

Abstract

This paper examines the external advisors used by small businesses to help them solve their problems, focusing on distance between client and advisor. The analysis is based on a new stratified random sample survey of small businesses in manufacturing and services in five representative locations in Britain. The paper reports the distance between client and advisor, cost and extent of site visits by the advisor, focusing on differences between types of advisor, fields of advice, types of firm by size and sector, and types of location. The analysis demonstrates the importance of localization: 60.5% of advisors are drawn from within 10km of the client, and 81.5% from within 25km. The high degree of localization is shown to be chiefly dependent on accessibility and advisor location. The general pattern of client-advisor relations is demonstrated to be modelled accurately by a standard spatial interaction model. A key finding is that the spatial pattern of the location of the supply of advisors, particularly the size of the business centres in which they are located, must be taken into account simultaneously with the role of distance in order to explain the pattern of choice of business advisors.

Suggested Citation

  • Robert Bennett & William Bratton & Paul Robson, 2000. "Business Advice: The Influence of Distance," Working Papers wp167, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp167
    Note: PRO-1
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Barry Lentnek & Alan MacPherson & David Phillips, 1995. "A Market Coverage Model For Producer Services," Papers in Regional Science, Wiley Blackwell, vol. 74(4), pages 389-399, October.
    2. D Phillips & A D MacPherson & B Lentnek, 1998. "The Optimum Size of a Producer Service Firm Facing Uncertain Demand," Environment and Planning A, , vol. 30(1), pages 129-141, January.
    3. Robert J. Bennett & Daniel J. Graham, 1998. "Explaining Size Differentiation of Business Service Centres," Urban Studies, Urban Studies Journal Limited, vol. 35(9), pages 1457-1480, August.
    4. Steven Pinch & Nick Henry, 1999. "Paul Krugman's Geographical Economics, Industrial Clustering and the British Motor Sport Industry," Regional Studies, Taylor & Francis Journals, vol. 33(9), pages 815-827.
    5. J H J van Dinteren, 1987. "The Role of Business-Service Offices in the Economy of Medium-Sized Cities," Environment and Planning A, , vol. 19(5), pages 669-686, May.
    6. Robert Bennett & Paul Robson, 1999. "Intensity of Interaction in Suppy of Business Advice and Client Impact: A Comparison of Consultancy, Business Associations and Government Support Initiatives for SMEs," Working Papers wp142, Centre for Business Research, University of Cambridge.
    7. N M Coe, 1998. "Exploring Uneven Development in Producer Service Sectors: Detailed Evidence from the Computer Service Industry in Britain," Environment and Planning A, , vol. 30(11), pages 2041-2068, November.
    8. D M W N Hitchens & P N O'Farrell & C Conway, 1994. "Business Service Use by Manufacturing Firms in Mid Wales," Environment and Planning A, , vol. 26(1), pages 95-106, January.
    9. B Lentnek & A MacPherson & D Phillips, 1992. "Optimum Producer-Service Location," Environment and Planning A, , vol. 24(4), pages 467-479, April.
    10. J N Marshall, 1983. "Business-Service Activities in British Provincial Conurbations," Environment and Planning A, , vol. 15(10), pages 1343-1359, October.
    11. T J Fik & G F Mulligan, 1990. "Spatial Flows and Competing Central Places: Towards a General Theory of Hierarchical Interaction," Environment and Planning A, , vol. 22(4), pages 527-549, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saurabh A. Lall & Li-Wei Chen & Dyana P. Mason, 2023. "Digital platforms and entrepreneurial support: a field experiment in online mentoring," Small Business Economics, Springer, vol. 61(2), pages 631-654, August.
    2. Anna Bottasso & Maurizio Conti & Simone Robbiano & Marta Santagata, 2022. "Roads to innovation: Evidence from Italy," Journal of Regional Science, Wiley Blackwell, vol. 62(4), pages 981-1005, September.
    3. Robbiano, Simone, 2022. "The innovative impact of public research institutes: Evidence from Italy," Research Policy, Elsevier, vol. 51(10).
    4. Sandeep Goyal & Bruno S. Sergi & Amit Kapoor, 2017. "Evaluating the BDS Providers and MSMEs: Challenges and Strategic Actions," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(4), pages 725-744, August.
    5. Zouheir El-Sahli & Joakim Gullstrand & Karin Olofsdotter, 2022. "The external effects of offshoring on job security in SMEs," Small Business Economics, Springer, vol. 59(4), pages 1613-1640, December.
    6. Anoosheh Rostamkalaei & Mark Freel, 2017. "Business advice and lending in small firms," Environment and Planning C, , vol. 35(3), pages 537-555, May.
    7. Wolfram Elsner, 2005. "Real-World Economics Today:The New Complexity, Co-ordination and Policy," Review of Social Economy, Taylor & Francis Journals, vol. 63(1), pages 19-53.
    8. Vásquez-Urriago, Ángela Rocío & Barge-Gil, Andrés & Modrego Rico, Aurelia, 2016. "Science and Technology Parks and cooperation for innovation: Empirical evidence from Spain," Research Policy, Elsevier, vol. 45(1), pages 137-147.
    9. Izushi, Hiro, 2003. "Impact of the length of relationships upon the use of research institutes by SMEs," Research Policy, Elsevier, vol. 32(5), pages 771-788, May.
    10. Robbiano, Simone, 2021. "The innovative impact of public research institutes: evidence from Italy," MPRA Paper 106386, University Library of Munich, Germany.
    11. Peng Gao & Dan He & Zhijing Sun & Yuemin Ning, 2020. "Characterizing functionally integrated regions in the Central Yangtze River Megaregion from a city‐network perspective," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1357-1379, September.
    12. Schwartz, Dafna & Bar-El, Raphael, 2002. "Targeted consultancy services as an instrument for the development of rural SMEs - a brazilian case," ERSA conference papers ersa02p200, European Regional Science Association.
    13. Edward Shinnick, 2002. "Identifying Spatial Markets for Personal Legal Services in Ireland," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 147-155.
    14. Charisia Vlachou & Olga Iakovidou & Panagiota Sergaki & Georgios Menexes, 2021. "The Entrepreneurial Environment in Greek Rural Areas: The Entrepreneur’s Viewpoint," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    15. El-Sahli, Zouheir & Gullstrand, Joakim & Olofsdotter, Karin, 2017. "The Internal and External Effects of Offshoring on Job Security," Working Papers 2017:14, Lund University, Department of Economics.
    16. Robert J. Bennett & Colin Smith, 2004. "SPATIAL MARKETS FOR CONSULTANCY TO SMEs," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(4), pages 359-374, September.
    17. Kuhn, Kristine M. & Galloway, Tera L. & Collins-Williams, Maureen, 2017. "Simply the best: An exploration of advice that small business owners value," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 33-40.
    18. Piet H. Pellenbarg & Paul J. M. Van Steen, 2004. "The Netherlands in Maps," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(3), pages 355-355, July.
    19. Björn Thor Arnarson & Joakim Gullstrand, 2022. "Linking local services to global manufactures," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(1), pages 3-34, January.
    20. Wouter Jacobs & Hans Koster & Peter Hall, 2011. "The Location and Global Network Structure of Maritime Advanced Producer Services," Urban Studies, Urban Studies Journal Limited, vol. 48(13), pages 2749-2769, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert J. Bennett & Colin Smith, 2004. "SPATIAL MARKETS FOR CONSULTANCY TO SMEs," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(4), pages 359-374, September.
    2. Piet H. Pellenbarg & Paul J. M. Van Steen, 2004. "The Netherlands in Maps," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(3), pages 355-355, July.
    3. John Bryson & David Ingram & Peter Daniels, 1999. "Evaluating the Impact of Business Service Expertise and Business Links on the Performance of SMEs in England," Working Papers wp124, Centre for Business Research, University of Cambridge.
    4. Tom Hashimoto & Vladimír Pažitka & Dariusz Wójcik, 2022. "The spatial reach of financial centres: An empirical investigation of interurban trade in capital market services," Urban Studies, Urban Studies Journal Limited, vol. 59(6), pages 1255-1274, May.
    5. Izushi, Hiro, 2003. "Impact of the length of relationships upon the use of research institutes by SMEs," Research Policy, Elsevier, vol. 32(5), pages 771-788, May.
    6. Makoto Okumura & Makoto Tsukai, 2014. "Business service location with spatially stochastic demands: agglomeration economies generated by interaction costs and localized uncertain demand – an optimal stock location model approach," Chapters, in: Charlie Karlsson & Börje Johansson & Kiyoshi Kobayashi & Roger R. Stough (ed.), Knowledge, Innovation and Space, chapter 7, pages 160-179, Edward Elgar Publishing.
    7. Robert J. Bennett & Daniel J. Graham, 1998. "Explaining Size Differentiation of Business Service Centres," Urban Studies, Urban Studies Journal Limited, vol. 35(9), pages 1457-1480, August.
    8. Max-Peter Menzel, 2010. "Sources of ‘Second Generation Growth’: Spin-off Processes in the Emerging Biochip Industries in Jena and Berlin," Chapters, in: Dirk Fornahl & Sebastian Henn & Max-Peter Menzel (ed.), Emerging Clusters, chapter 10, Edward Elgar Publishing.
    9. Marta Gancarczyk, 2010. "System wsparcia dla przedsiębiorców - doświadczenia brytyjskie," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5-6, pages 41-60.
    10. Scott Tainsky & Jie Xu & Brian M. Mills & Steven Salaga, 2016. "How Success and Uncertainty Compel Interest in Related Goods: Playoff Probability and Out-of-Market Television Viewership in the National Football League," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 48(1), pages 29-43, February.
    11. Adarsh Anand & Mohini Agarwal & Gunjan Bansal & A. H. S. Garmabaki, 2016. "Studying product diffusion based on market coverage," Journal of Marketing Analytics, Palgrave Macmillan, vol. 4(4), pages 135-146, December.
    12. Ron Boschma & Riccardo Cappelli & Anet Weterings, 2017. "Labour mobility, skill-relatedness and plant survival over the industry life cycle: Evidence from new Dutch plants," Papers in Evolutionary Economic Geography (PEEG) 1731, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2017.
    13. Gitlesen, Jens Petter & Thorsen, Inge & Ubøe, Jan, 2004. "Misspecifications due to aggregation of data in models for journeys-to-work," Discussion Papers 2004/13, Norwegian School of Economics, Department of Business and Management Science.
    14. Bram Timmermans & Ron Boschma, 2014. "The effect of intra- and inter-regional labour mobility on plant performance in Denmark: the significance of related labour inflows," Journal of Economic Geography, Oxford University Press, vol. 14(2), pages 289-311.
    15. Dirk Meissner, 2012. "The Economic Impact of Spillovers from R&D and Innovation," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 6(4), pages 20-31.
    16. Jones, Calvin & Jordan, Declan, 2014. "Competitiveness in Soccer Leagues: An ordinal time series approach with evidence from the Premier League 1993 to 2014," MPRA Paper 61193, University Library of Munich, Germany, revised Dec 2014.
    17. L Sanders & D Pumain & H Mathian & F Guérin-Pace & S Bura, 1997. "SIMPOP: A Multiagent System for the Study of Urbanism," Environment and Planning B, , vol. 24(2), pages 287-305, April.
    18. Stamatis Kalogirou, 2012. "Testing local versions of correlation coefficients," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 32(1), pages 45-61, March.
    19. F. Xavier Molina-Morales & M. Teresa Martínez-Fernández, 2008. "Shared Resources in Industrial Districts: Information, Know-How and Institutions in the Spanish Tile Industry," International Regional Science Review, , vol. 31(1), pages 35-61, January.
    20. Gordon Mulligan & Mark Partridge & John Carruthers, 2012. "Central place theory and its reemergence in regional science," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 405-431, April.

    More about this item

    Keywords

    Business services; Business consultancy; Business networks; Localization;
    All these keywords.

    JEL classification:

    • R19 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Other
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
    • L89 - Industrial Organization - - Industry Studies: Services - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbr:cbrwps:wp167. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ruth Newman (email available below). General contact details of provider: http://www.jbs.cam.ac.uk .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.