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Small Businesses Do Appear To Benefit From State/Local Government Economic Development Assistance

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  • Timothy Bates

Abstract

This study analyzes traits of small businesses that received state/local government aid in such forms as managerial, technical assistance, help in obtaining loans or bonding, and procurement assistance. Over 13 percent of small firms nationwide were found to be involved in selling goods/services to state/local government. Among firms owned by nonminorities, aid recipients tend to be the larger small businesses, but this pattern did not typify minority-owned firms. Among the nonminority businesses, furthermore, those aided by state/local government are more likely than nonassisted firms to remain in operation, even when various form and owner characteristics are controlled for statistically; this pattern did not typify minority-owned firms. State/local government aid flows disproportionately to women- owned businesses and to firm owners who lack managerial experience. No evidence was found indicating targeting of assistance to specific industry groups.

Suggested Citation

  • Timothy Bates, 1995. "Small Businesses Do Appear To Benefit From State/Local Government Economic Development Assistance," Working Papers 95-2, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:95-2
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    File URL: https://www2.census.gov/ces/wp/1995/CES-WP-95-02.pdf
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    Cited by:

    1. Ollinger, Michael & Fernandez-Cornejo, Jorge, 1998. "Innovation and Regulation in the Pesticide Industry," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(1), pages 15-27, April.
    2. Douglas W Dwyer, 1995. "Whittling Away At Productivity Dispersion," Working Papers 95-5, Center for Economic Studies, U.S. Census Bureau.
    3. Cadogan, Godfrey, 1994. "Do Public Sector Contracts And Policy Towards Small Firms Matter?: Evidence From Women Business Enterprises," MPRA Paper 26595, University Library of Munich, Germany, revised 14 Sep 2010.
    4. Laura Orobia & Gerrit Rooks, 2011. "Risk Taking and Start-up Capital: Exploring Gender differences in Uganda, through an International Comparison," Journal of Economics and Behavioral Studies, AMH International, vol. 3(2), pages 83-93.
    5. Brian Headd, 1999. "The Characteristics of Business Owners Database, 1992," Working Papers 99-8, Center for Economic Studies, U.S. Census Bureau.
    6. Greene, Francis, 2012. "Should the focus of publicly provided small business assistance be on start-ups or growth businesses?," Occasional Papers 12/2, Ministry of Economic Development, New Zealand.
    7. Lovgren Adam & Ross R. Brent & Leschewski Andrea & Peterson H. Christopher, 2020. "Do Entrepreneurial Assistance Programs Create Value for Agri-Food Entrepreneurs?," Entrepreneurship Research Journal, De Gruyter, vol. 10(1), pages 1-14, January.
    8. Mohamed Dahlan Ibrahim & Abdullah Al Mamun & Norasmah Othman & Mohd Nor Hakimin Yusoff & Naresh Kumar Samy & Suria Baba & Ahmad Syakir Junoh Ismail & Tengku Mohd Azizuddin Tuan Mahmood & Nik Nor Hafiz, 2019. "The Development of an Entrepreneurship Index for Low-Income Households," Business Perspectives and Research, , vol. 7(1), pages 16-29, January.

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