A Preliminary Assessment of Outsider Assistance as a Knowledge Resource: The Longer-Term Impact of New Venture Counseling

Abstract

Using resource-based theory to explain why outside assistance might influence new venture performance, we track the longer-term performance of two samples of entrepreneurs who received SBDC counseling and subsequently started businesses. Results indicate that the ventures had higher than expected rates of survival, growth, and innovation, suggesting that outsider assistance during the early stages of a venture's development can influence its subsequent development. Public policy implications of the SBDC's counseling strategy are discussed.