Developing Expertise in Small and Medium-Sized Enterprises: An Evaluation of Consultancy Support

Abstract

Enhancement of the management capabilities of small and medium-sized enterprises (SMEs) has attracted increasing policy attention in recent years. Many of the mechanisms used by government agencies involve the provision of external expertise in the form of advice, training, and subsidised consultancy. These schemes face various difficulties in addressing the diverse needs of SMEs effectively. Some of these difficulties are reflections of the different organisational cultures of the public and private sectors. The authors examine a major policy initiative in Scotland which constitutes an attempt to overcome some of them: the Expert Help Scheme. This scheme has achieved significant take-up through developing links with existing business support agencies and active promotion by consultants. The scheme's broad scope and flexibility have simplified this task. Client companies have generally been very satisfied with the quality of the service: it seems to have had a beneficial effect on some of their capabilities, and on the sales turnover and employment of several firms. There is scope for improvement through greater targeting and focusing of the scheme in order to enhance its additionality. There is also a case for closer integration with local business agencies in order to provide a more comprehensive package of support, enabling real developmental relationships to be created with companies.

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