The Potential of Business Environment Institutions and the Support for the Development of Small and Medium-sized Enterprises

Abstract

Objective: The paper aims to assess the use of the potential of business environment institutions to support SMEs in the light of the author's own research.

Research, Design & Methods: The author's study was carried out in 2012-2014 in two stages: quantitative research (a survey on the sample of 590 SMEs) conducted with the use of the PAPI and CAWI methods based on a survey questionnaire and qualitative research conducted among 10 representatives of business environment institutions with the use of in-depth interviews (IDI) based on a questionnaire with a standard list of information sought.

Findings: The study results suggest that the role of business environment institutions in the development of small and medium-sized enterprises in the present conditions is small. This is a result of, on the one hand, little interest of SMEs in the support offered by these institutions, and, on the other hand, the fact that frequently the services offered do not meet the needs of enterprises.

Implications & Recommendations: To improve the situation, on the part of business environment institutions, it is necessary to update information on the scope of cooperation, undertake extensive promotional activities, adjust the offer to the needs of enterprises and expand cooperation, especially by providing financial support for enterprises.

Contribution & Value Added: The study can be used for in-depth analyses of support for the SMEs provided by business environment institutions. It can be also useful for decision-makers responsible for creating development policies.

Keywords

SMEs, business environment institutions, support for SMEs, potential of business institutions, entrepreneurship.

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