Sources and uses of advice in small firms: an enquiry into small firms and their accountants and bank managers

Back, Robert (1978) Sources and uses of advice in small firms: an enquiry into small firms and their accountants and bank managers. Doctoral thesis, University of London: London Business School.

Abstract

The broad aims of the research described in this thesis were for the researcher to form an opinion on - The nature of the advice provided by accountants and bank managers to small firms. - The need for advice from accountants and bank managers as perceived by owner/managers of small firms . - Whether an "actual" advice gap exists between the advice actually provided to small firms by accountants and bank managers and the advice which should be provided. - If an "actual" advice gap exists the reasons for it and the steps needed to be taken to close it. The research included interviews with accountants, bank managers and owner/managers of small firms. The "actual" needs for advice in a set of small firms were determined. The purpose of these enquiries was to build a critical vantage point from which to appraise the research questions. Some of the major research conclusions are: - Accountants advise small firms on a wide range of subjects but there is considerable variation between accounting practices in the level of advice provided and the rfinge of topics discuGsed . Bank managers advise small Firms on a more limited range of topics. Small firms with borrowing facilities are more likely to receive advice from a bank manager than those who do not. -- Although the "perceived" advice gap is small the "actual" advice gap is large. - The major reasons why accountants fail to provide adequate advice include the attitude of some accountants to the giving of advice, time constraints experienced by accountants and accountants' lack of training in small business management. - The attitude of independence of owner/manager is the major factor constraining bank managers from providing more advice.