Missing Information : Why Don't More Firms Seek Out Business Advice?
Seeking out business advice, for example through classroom training or consulting, can be a profitable investment. Previous research has found that obtaining business advice through classroom training or one-on-one consulting can increase profits and sales, and firms can recover the cost of training in one to three years. Yet, many firms do not take up business training, even when it is heavily subsidized. Anecdotal evidence suggests that one reason for this low take-up is lack of information on business practices and on the benefits of improving these practices. The authors collaborated with the Parana office of the Brazilian Micro and Small Business Support Service (SEBRAE-PR), to test empirically whether providing more information on business practices can lead firms to seek out advice and improve their performance