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A user perspective on business advisory service for entrepreneurs of new and young companies in Sweden
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation.ORCID iD: 0000-0001-8430-5714
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Purpose: The paper uses the construct of the liability of newness to identify how entrepreneurs of new and young companies use business advisory service in the start-up process of their micro-companies.

Design/methodology/approach:

Various statistical techniques were used to analyze aA sample of 2832 new and young companies were analysed. The empirical data derive from a survey of micro-companies in Sweden and their use of 20 kinds of business advisory services.

 Findings: Despite some similarities in the use of business service areas, the paper finds that new companies use more and different business advisory service areas than young companies. The paper examines these similarities and differences in detail.

Practical implications: This research adds to our knowledge on how business service providers (public and private) can tailor their offerings to new and young companies. In particular, these findings may be of interest to government policy makers and other relevant stakeholders as they allocate funds to publicly funded organizations that provide business advisory service.

Originality/value: The paper analyzes a broad range of business service areas used by new and young companies. This paper, which takes a user-perspective, contributes to the rather sparse research in this field because it examines business advisory service from the demand side rather than the supply side.

Keyword [en]
Business advisory service, Liability of newness, micro-companies, start-ups, new and young companies.
National Category
Social Sciences
Research subject
Industrial Economics and Organisations
Identifiers
URN: urn:nbn:se:mdh:diva-35285OAI: oai:DiVA.org:mdh-35285DiVA: diva2:1092992
Available from: 2017-05-04 Created: 2017-05-04 Last updated: 2017-05-29Bibliographically approved
In thesis
1. Heterogeneity in the level and handling of the Liability of Newness: Female and immigrant entrepreneurs’ need for and use of business advisory service
Open this publication in new window or tab >>Heterogeneity in the level and handling of the Liability of Newness: Female and immigrant entrepreneurs’ need for and use of business advisory service
2017 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

In the start-up entrepreneurs face the Liability of Newness when problems and challenges often threaten business survival. Business advisory service, provided by public and private supplier contacts, can offer important knowledge and information, accompanied by various forms of assistance, and thereby decrease the entrepreneurs’ risk of failure and reduce their Liability of Newness. However, it is difficult to match the entrepreneurs’ need for such advice with the available advice. The support must meet the need. Most nations in the European Union have programs and projects that provide such support for entrepreneurs and SMEs. Special programs often support female entrepreneurs and/or immigrant entrepreneurs.

This thesis examines the level and handling of the Liability of Newness with special focus on female entrepreneurs and immigrant entrepreneurs in Sweden. The four papers of this thesis take the perspective of these entrepreneurs. The research is based on a sample of 2 832 entrepreneurs who were interviewed (in a telephone survey) on their impressions and recollections on their need for and use of business advisory service in the start-up processes of their companies. Fulfilment of need is achieved when the need for business advisory service is matched with the right use of business advisory service.

Heterogeneities as far as the level and handling of the Liability of Newness exist related to female entrepreneurs (vs. male entrepreneurs) and immigrant entrepreneurs (vs. non-immigrant entrepreneurs). Female entrepreneurs have a higher need for business advisory service than male entrepreneurs and also use more business advisory service than male entrepreneurs. As a result, female entrepreneurs can decrease the hazard rate for their companies and also reduce the Liability of Newness as their companies move toward the standard risk in their industry. Immigrant entrepreneurs also have a higher need for business advisory service than non-immigrant entrepreneurs. However, because immigrant entrepreneurs use business advisory service to the same extent that non-immigrant entrepreneurs do, immigrant entrepreneurs are unable to decrease the hazard rate for their companies or to reduce the Liability of Newness.The thesis makes both theoretical, methodological and practical contributions.

The thesis may be of interest to government policy makers with its attention to the need and use of business advisory service by female entrepreneurs and immigrant entrepreneurs.

Place, publisher, year, edition, pages
Västerås: Mälardalens högskola, 2017. 70 p.
Series
Mälardalen University Press Dissertations, ISSN 1651-4238 ; 230
Keyword
Entrepreneurship, Business advisory service, female and male entrepreneurs, immigrant entrepreneurs
National Category
Social Sciences Economics and Business
Research subject
Industrial Economics and Organisations
Identifiers
urn:nbn:se:mdh:diva-35288 (URN)978-91-7485-331-5 (ISBN)
Public defence
2017-06-19, Paros, Mälardalens högskola, Västerås, 09:15 (Swedish)
Opponent
Supervisors
Available from: 2017-05-05 Created: 2017-05-05 Last updated: 2017-07-10Bibliographically approved

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Citation style
  • apa
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