An investigation of micro-small and medium enterprises" engagement of business advisory and support services during COVID-19

Introduction The proposed paper is framed in the context of micro-small and medium enterprises (MSMEs) traditionally operating in a resource-constrained environment, limiting their capacity and ability to access resources such as business advisory services. This challenge was potentially amplified during the Covid19 pandemic in Greater Western Sydney, where MSMEs account for most formal employment (ABS, 2020). MSMEs had various options of advisory sources to utilise during Covid, including the Business Connect programme funded by the NSW government. Purpose The study aims to assess the role of business advisors on MSME performance during a disruption such as the Covid-19 pandemic. It will identify the business advisory services available to SMEs, their perceptions of formal and informal advisory services and the factors affecting them. Literature Review Deficiencies in in-house knowledge and diverse resources are critical reasons MSMEs utilise business advisory services such as business advisors and business enterprise centres to improve performance and survival (Chikweche and Bressan, 2022). MSMEs use a combination of government-funded and private sector programmes that provide support mechanisms (Carey and Tanewski 2016). The fact that there are broad incentives for the use of advisory services is supported by agency theory (Mole et al., 2009). Methodology The exploratory study uses an online survey of 238 MSMEs in Greater Western Sydney. Justification The study is well-positioned to address a relevant gap in investigating how SMEs utilise business advisory services considering the changing needs of SMEs operating in a dynamic and changing environment such as during the Covid and post-Covid era. Extant literature indicates that business advisory services play an essential part in the development and growth of SMEs (Carey and Tanewski, 2016; Chikweche and Bressan, 2022; Cumming et al., 2015). Expected results The study will identify the individuals, professionals, and organisations; SMEs rely on for business advice. These advisory service providers include accountants, banks, solicitors, Chambers of Commerce, unions, councils, relatives, and friends. The proportion of SMEs that sought assistance from Business Connect and the services that were found to be helpful and unhelpful will be assessed. A profile of those who sought advice will be developed in terms of industry sector, company size, the impact of Covid-19 on operations, and recovery plans. The implications of these findings on government policy and programs will be discussed.