Business advice for entrepreneurship and small firms

This paper reviews issues and trends in business advice policies for business start-ups and existing SMEs, including public support for business consultancy and mentoring. Business advice policies aim to improve the growth, survival and productivity performance of new and small firms by strengthening their strategic management capabilities. The paper examines the rationale for government policies in this field, different policy delivery models, recent policy trends - such as increased use of third party delivery and performance management systems - and evidence on policy impacts. It focuses in particular on three key issues faced by policy makers - how to stimulate demand for business development services from firms and entrepreneurs who could benefit; how to target and segment support provided to different types of firms and entrepreneurs; and how to introduce digital business diagnostic tools into the advice system.