The Impact of Public Assistance Programs on Small Businesses: Strategic Planning, Entrepreneurship Resources Usage, and Market Orientation as Mediating Variables
AbstractThis paper draws upon a quantitative empirical longitudinal study of small trade and service businesses that participated in a coaching program initiated by the Ministry of Industry, Trade and Labor in Israel. The purpose of the study is to improve our understanding of the ways public assistance programs affect small businesses and improve their business results. A mediating model developed during the research enables the evaluation of the direct and indirect effects of public assistance programs on small businesses. Findings show that public assistance programs have a significant direct positive effect on small businesses performance. The indirect effect is mainly due to the reinforced market orientation induced by the assistance program, and to a lesser degree the result of the level of entrepreneurship demonstrated by the business owner.
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