engleski

Why not to use the service of business advisers? Some evidence from Croatia

Business advisers and their impact on the performance of small and medium-sized companies (SMEs) are in the focus of many researchers. SMEs are reporting increasing interest in business advice, but they are not using all the services available on the market. This article analyses the supply and demand of the business advice sector and the nature of the available wide range of business advice. For the purpose of the analysis we have used secondary data - results of a study conducted on 303 SMEs and 60 companies registered for consultancy services. Our findings show that owners/managers of SMEs are familiar with the supply of business advice services, but are trying to solve problems by themselves rather than use services of business advisers. Those who have used services of business advisers are satisfied with their advice and knowledge, but only half of them will use their services again. These findings suggest that owners/managers in this relationship are seeking a different approach. Business support organizations, funded by the state, are not seen as providers of valuable business advice for SMEs. The goal of this research is to identify the reasons for not using business advice despite the fact that it can help company to survive or to become more competitive on the market. Results of this article can be important for accountants, entrepreneurs, but also academics interested in providing advice for to SMEs. Further research is needed in order to understand if and how advice was implemented. Implementation is necessary for the creation of the relationship between consultants and entrepreneurs and can minimize agency problems.

business advisers ; supply of consultancy services ; small and medium-sized companies ; business support organisations

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