SMEs and Public Authorities: On the Information and Communication Gap

Abstract

Rik Donckels is the director of the SME Research Institute, UFSAL University College, Brussels, Belgium. Jan Degadt is a senior researcher at the same institute. In the first part of the paper, some theoretical considerations are given. Public authorities are considered as being a multi-dimensional component of the external environment. The distance problem between SMEs on the one hand and public authorities on the other hand is described, and attention is paid to the existing communication lines and information flows. The second part of the paper is based on empirical research for Belgium, the results of which are compared to findings for other countries. The bottom-up communication line from SMEs to public authorities comes first. Afterwards the top-down communication line is studied. In the last section of the paper some conclusions can be found. The most important conclusions are:

-SMEs and PAs should make special efforts to shorten the distance between them and to bridge the communication and information gap.

-There is a need for a standardised "Bank of SME-knowledge" on an international scale.

-The administration burden involved by information gathering by PAa is considered to be annoying and a rather unproductive type of work. SME-people ask for a feedback relevant to them and useful for their particular business.

-The information-awareness of SME-managers should be increased. There is no systematic search for information and the attitude towards information varies as a function of the individual characteristics of the entrepreneur, the content of the information and the dimension of the firm.

-Bridging the communication and information gap is also a matter of how to procure information and how to ask for data. The diffusion of modern communication techniques will go on. One has to take advantage from this evolution in order to increase effectivity and efficiency as well. There is a need for a fundamental change, which is to be based on personal motivation, insight, education and training.

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