Small Business Issues and Government Support Structures

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Small Business Issues and Government Support
Structures

• Business 6610
• Sean McCarthy

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What we will talk about

• General Discussion 1
• Small Business Issues
• Research
• Research Purpose Questions
• Research Framework
• Survey Results
• Conclusions
• General Discussion 2
• Government Response

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Discussion 1 Small Business Issues

• What issues do small business have to deal with?
• Which is the more important lets do a survey?
• Do support needs change as the company changes

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Discussion 2 Government/Industry Supports

• Who provides supports
• What types of supports exist
• Geographic/Sectoral Supports

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Research Review

• Social Sciences Human Research Council Grant
• Multi-Disciplinary, 3 Year Study
• Research Team Dr. Gary Gorman Sean McCarthy

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PURPOSE

• To determine the support requirements of KBBs at
  various stages in the business development cycle,
  and
• To assess the level of support presently
  available to KBBs in the Province.

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Research Questions

• What are the types and sources of support
  utilized by KBBs and do they differ from more
  traditional firms?
• Do support requirements change as KBBs progress
  through the business development cycle?
• Do support gaps exist and are they more prevalent
  in peripheral areas?

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Research Framework

• Literature Review
• Knowledge-based Economy
• Models of Business Development Growth
• Business Development Support Systems
• Focus Groups
• Support Organizations,
• Government Departments/Agencies
• Entrepreneurs

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Research Framework

• Semi-structured Interviews
• Support Organizations
• Case Studies
• Entrepreneurs
• Survey
• Entrepreneurs Two Stages

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Step 1 Defining KBBs

• No standard definition
• Knowledge as an input and/or output in all firms
• KBBs exist in traditional sectors and non-KBBS
  exist in new economy sectors
• Utilized a knowledge-intensity approach (Lee
  Has, 1996)

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Knowledge-Intensity
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Step 2 - Business Development Support A
Demand-Side Perspective

• Initial Stage Survey
• Without reference to specific programs or
  organizations, please identify the kinds of
  support and assistance you have used.
• Are there additional kinds of support and
  assistance you have not used that you feel would
  have been helpful to you and your business?

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Initial Stage Survey

• Without reference to specific programs or
  organizations, please identify the kinds of
  support and assistance you have used.
• Are there additional kinds of support and
  assistance you have not used that you feel would
  have been helpful to you and your business?

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SAMPLING PROCEDURE

• Purposive
• Zone lists
• Targets
• Random selection

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SAMPLE TARGETS
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PROFILE OF RESPONDENTS
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Profile of Respondents (n260)

• Gender
• Male 70
• Female 30
• Knowledge-level
• High 31 Low/Medium 69
• Stage of development
• Start-up 3
• Early development 17
  
• Growth/expansion 37
• Maturity 43

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Survey Profile Continued

• Years in operation
• Mean 15.6, Median 11.5
• Number of employees
• Mean 8.3, Median 4.0
• Location
• Labrador 10
• Western 14
• Central 21
• Avalon Rural 15
• St. Johns 40

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Types of Support and KBBs
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Financial Support KBBs
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Support Sources KBBs
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Step 3 Support Needs the Business Life Cycle
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Support Needs by Stage of Development
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Support Sources Used by KBBs
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PRE-STARTUP SUPPORT
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STARTUP SUPPORT
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EARLY DEV. SUPPORT
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GROWTH SUPPORT
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SUPPORT DURING MATURITY
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Support Gaps
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Perception of Support( Rating Very or Extremely
Helpful)
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Usage, Familiarity Satisfaction with Support
Organizations by KBBs
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(No Transcript)
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Types of Support Lacking
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Conclusions
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Types Sources of Support

• Sig. diff. exist in support used by KBBs, in the
  areas of product development, market access
  training
• Sig. diff. exist in financial support utilized by
  KBBs including RD, project export financing
• KBBs rely more on networks, including industry
  experts/contacts, professionals consultants

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Support the Life Cycle

• Support needs and support sources change as KBBs
  move through the life cycle
• Mature companies seek minimal support
• The need for financial support dominates across
  all business stages

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Support Gaps

• Perception that support beyond the start-up stage
  is lacking
• Low levels of familiarity with support
  organizations, especially by firms in peripheral
  regions but KBBs more aware
• No sig. diff. in support gaps identified by KBBs,
  although regional differences exist
• No sig. diff. in satisfaction levels across zones

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Discussion Governments Role

• Who believes Government has a role?
• How does Government Intervene but
• Not provide unfair advantage
• Locally, nationally, internationally
• Be responsive, but have checks and balances
• Respond when an initiative fails
• Apply broadly but strategically
• Pick Winners
• Be perceived as fair/impartial
• Does Government Support come with a Cost