This paper investigates the need for providing follow up business development instruments to small rural businesses that have benefited from grant aid assistance schemes. A sample of 76 small rural businesses in lagging areas of insular Greece is included in the present survey, and ranks thirteen possible business growth instruments. It is found that business development instruments are ranked according to each firm's economic and human capital characteristics. Furthermore, most firms need the concurrent provision of more than one instrument. Likewise, a mixture of business specific schemes, regulatory interventions and infrastructure projects, better serves their business development needs. Results from the present survey indicate that an integrated business development strategy in lagging areas of Greece should be supported by modern, flexibly tailored combinations of assistance, using complex, multi-instrument sets of support to development efforts.
Small Business Economics – Springer Journals
Published: Oct 8, 2004
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