The Effectiveness of Public Advisory Services: What are the Important Factors?

Abstract

During the Ninth Malaysia Plan (9MP), the development of the SMEs has been prioritized by the government.Various initiatives were provided in order to strengthen the SMEs, especially the new start-up and micro-sizefirm. The initiatives provided were in the form of financial and non-financial. Among the initiatives providedare advisory services. The objective of this study is to examine what are the factors that may influence theeffectiveness of advisory services offered by public institutions towards the SMEs clients. The primary data wascollected from 103 small-scale food processors operating in the State of Selangor, Malaysia. The data wasgathered through face to face interview using structured questionnaires. Both descriptive and exploratory factoranalysis had been used to analyze the data gathered. The result of the analysis showed that there are four factorsthat will influence the effectiveness of public advisory services, namely prompt service, communication skills,technology and facility. In order to be effective, it is possible for the public institution to take a look on thedelivery system practiced and if necessary make some improvement towards the certain elements beingidentified.

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