Publication

What do we know about the effectiveness of business advice?

Published: 17 April 2023

ERC SOTA Review No 57

Associated Themes

• 
  Productivity and performance

---

This review considers the evidence on the effectiveness of business advice at the firm level. There is a sizeable market for business assistance delivered by both the public and the private sectors, although business advice to small firms is a very fragmented, opaque industry. Under certain circumstances advice can be a cheap and effective way to boost growth. Assuming that SME manager can find a quality adviser whose style suits the business, then advice can be part of firm development, and more advice can enable the adviser and business to work together more effectively. Yet, once they are established, many firms do not use external advice. Several questions might need to be answered as to why so few take advice.

Downloads

---