Public Assistance Programs And Small Business Performance  

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Shapiro et al. 'S (1996) states that the implementation of aid programs begins to transfer data from the client assistance program and through a series of intermediate steps, measures taken by the customer and then drive to the company and the results economic development. It is therefore possible to consider the assistance program (ie the consultant), the GIST and the entry as one of the parties, if the other party understands that the customer (eg company), their capabilities, aspirations and will. The effectiveness of the assistance program is based on two parts and the quality of interaction between them.

Program and Results

Several studies have investigated the effect of the program to improve the performance of the company and says the same thing, in general, that the only difference between small businesses that receive assistance and those who have no self-help (Felsenstein et al, 1999 ;. Chrisman, 1999, Chrisman and McMullan, 2000). Chrisman (1999) found that the quality of the service companies that have received assistance for the Small Business Development Center (SBDC) in the United States was significantly better than the performance of enterprises belonging to the control group who did not participate in any program assistance.

Numerous studies have examined the components of the grant assistance provided by the program. Jang and Lee (1998) have demonstrated the ability of the consultant, and how the consultation: the objectives defined and structured procedures. Kaplan et al. (2000) considered the following: a full day seminar on business were set aside, a series of seminars, visits, granted to the firms and the number of formal and informal negotiations. Rice (2002) considered the following: the nature of teaching, the time allocated to help, the intensity of care (for example, the frequency and length of each meeting), a selection made in support and advice on whether a responsive or proactive. Wren and History (2002) found that the three service components - the rate of aid available to the company, the cost of the day of consultation and the number of days of hearing - the latter has had a significant impact performance.

Some studies examine the distinction between different types of courses to help. Ehlen (2001) presents three possible routes for the aid program: consultation activity focused technical consultation on new products and procedures, training of personnel. The components used to support different media in progress include: improving the process, quality improvement, financial planning and implementation of electronic commerce. Luria and Wiarda (1996) note that the improved performance achieved by companies participating in the ongoing consultation support (three were tested), but again statistical significance was low.

The studies reviewed distinguish between technical and material properties. Specifications may define a list, identify the type of assistance. These tasks can generate from its own course of business, alternatively, because the incorporation of the assistance program, for example - through loans, tax consulting, insurance consulting, consulting for government agencies . Characteristic of the material can be called such if it is able to specify how aid is given, for example - the time for assistance, the aid intensity, the range of support activities completed, the counseling skills.

The possible effect of an aid program has on business performance is more evident that there are differences in the characteristics of the component materials of assistance from one course to another. It is possible that the findings of previous studies are different bar concluding comments of assistance that were not sufficiently detailed to determine the integrity of the parameters that affect business performance.

Characteristics of material assistance program can be distinguished in two dimensions. Quantitative components of the aid - evaluating the degree of support components, such as the number of days devoted to the care, aid intensity and range of activities covered by the aid program. Using qualitative components - evaluates the quality of aid, such as the ability to fashion consulting consultant, the location of the query.

It is possible to predict the extent of assistance quantitative components have a positive effect on company performance. More help from foreign aid to strengthen the areas where small business does not raise the level of performance. Moreover, it is likely that there is a positive correlation between the degree of assistance components qualitative performance and small businesses. The higher the quality of the consultant and the consultation process is more precise, orderly, well-defined and active, the higher the performance.

Customers and performance

A theoretical study of Jang and Lee (1998) lists three basic parameters that affect the successful management of hearing: The capabilities of consultants; consultations track and organizational characteristics of the customer. According to Fleming (1989), the key to a successful consultation process, the successful implementation of the results of the consultation and the opportunity for the customer. Shapiro et al. (1993) argue that the successful implementation of the assistance program will depend on the degree of cooperation between the consultant and client. Rice (2002) found that entrepreneurs who have shown a greater willingness to cooperate was more affected than others in the process of the company.

The client's goal is a successful consultation process and its derivatives, which contributes to a higher level of performance. The quality of practice management is the means to that end.

The customer interaction and performance program

According to Rice (2002), an interaction between client and consultant is the result of quantitative and qualitative content provided by each party involved in the process of the assistance program. Therefore, to consider whether a review of quantitative and qualitative content is sufficient for the purpose of learning about the effectiveness of the aid process?

The answer to this question can be found in research focusing on the interaction between psychological and sociological consultant and client. Luborskt et al. (1997) found that measuring the strength of interaction depends on the analysis of the interaction and its outcomes. It 'impossible to know the intensity of interaction is measured only on the content provided to it the parties involved (Smith and Glass, 1977, Garfield, 1988; Shapiro, Firth-Cozens, and Stiles, 1989).

How do you measure an interaction? Sharpley at all. (2000) uses in the report that customers have experienced. The basis for the selection of this estimate is a broad consensus in the literature, where the therapeutic alliance is crucial in assessing the client consultation a success.

Horvath and Greenberg (1989) removed from the therapeutic alliance in three components: Bond is one of them - the degree of trust and emotional closeness experienced by the client and the consultant.

As the subject under discussion is a relationship driven by human parameters that are important for the intensity of this relationship, from both the affinity and the friction between the participants in the aid process, the greater the intensity ratio The best assess the quality and intensity of interactions in the process.

Chrisman and McMullan (2004) found a significant positive correlation between the number of hours of consultation to small businesses in the early stages of their establishment and their ability to survive. Chrisman et al. (2005) found a positive correlation, weak correlation between the importance of consultation hours provided and performance.


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