Success and Failure in Helping SMEs

Abstract

This paper describes the outcomes of work conducted to help local small and medium-sized enterprises (SMEs) since 1999 by a unit attached to a university in the North East of England. It describes the pattern of help offered, the uptake rates, levels of assistance and the types of outcome measures achieved. Certain regions of Europe have been given special status as areas that are in need of varying degrees of funded assistance. The North East of England is one such area and has attracted several hundreds of millions of pounds in European-sponsored State Aid as a result. The paper describes briefly how some of this money has been used to help SMEs design products more quickly, reduce waste and re-work, and introduce continuous improvement to key business processes. It then details the numbers and types of companies concerned, how many companies dropped out of the project early, the patterns of work and the measured outcomes. The authors examine the uptake rates, and discuss possible reasons why some SMEs do not make full use of the facilities on offer. Anecdotal evidence of SME owner motivations and decision criteria is also presented. Reasons for the overall success of the unit's efforts are suggested, as are ways to improve the potential for SME engagement throughout the HE sector.