Conference Proceeding

An Effectiveness Evaluation of a Publicly Funded Support Project for Micro-Enterprises

Muhos, Matti, Simunaniemi, Anna-Mari, Saarela, Martti, Sirviö, Anu

2017

Overview

The public sector uses abundant resources for small- and medium-sized enterprise (SME) policies. Microenterprises, those with less than ten employees, account for a large majority of SMEs, and they are regarded as engines of growth. Micro-enterprises face many difficulties such as compensating for the 'liability of smallness'. Despite microenterprises' significant role in the economy, effectiveness evaluations of the public support activities directed toward them are relatively scarce. The objective of this study is to provide an evaluation of the actual effects of a publicly funded support project's activities for micro-enterprises. The purpose of the small-scale pilot project analysed in this study was to advance micro-enterprises' occupational welfare, profitability and collaboration. This study's research problem can be condensed into the following research question: What are the project-produced impacts perceived by entrepreneurs? Methodologically, qualitative data were utilized in conducting the present study. The data were collected from six semi-structured thematic interviews of micro-enterprise owners. Moreover, a survey targeted at micro-enterprises participating in the support project was utilized as a support data. The effectiveness evaluation was carried out in the middle phase of the pilot project. The results indicate that entrepreneurs perceive the project's activities to be well targeted. In relation to the starting point, entrepreneurs' wellbeing and willingness to collaborate were particularly improved during the project. Micro-enterprises involved in the project were networking and cooperating more actively with other companies and public advisory services. In addition, the project's activities contributed to the generation of new ideas, more enthusiasm and tools aiding business development from the perspective of micro-enterprises. However, its impact on profitability - the third object of the project - was not as apparent. This may be explained by the need for a longer timeframe to see results and the on-going status of the project. In addition to the original project context, the results of this study provide fresh ideas for public advisory services to improve on-going support actions and to plan new actions aimed at supporting micro-enterprises.

• Publisher: Academic Conferences International Limited
• Subject: Collaboration / Cooperation / Employees / Entrepreneurial finance / Entrepreneurs / Entrepreneurship / Environmental impact / Industrialized nations / Intervention / Meetings / Peer tutoring / Pilot projects / Small & medium sized enterprises-SME / Small business / Students / Studies / Subsidies / Vocational schools