Survival of the fittest: Technical assistance, survival and growth of small businesses and implications for public policy

•There is a positive relationship between firm size (in revenues) and financial outcomes (i.e., sales, profits, employment, hiring, cash flow).•There are positive relationships between hours of counseling received and both financial outcomes as well as overall survival.•Those receiving counseling on business/marketing plans, or financial strategies are more likely to report positive financial outcomes than other firms.•Counselor experience increases the effectiveness of the assistance being provided, so training programs to increase experience would be justified.

Concerns about the value of government programs that provide management and technical assistance have been the subject of debate among researchers and policymakers. Based on an analysis of a multiyear survey sponsored by the U.S. Small Business Administration's Office of Entrepreneurial Development, we examine the relationship between managerial and technical assistance and firm survival, as well as the relationship between the characteristics of technical assistance and financial and employment growth. Overall, findings suggest that managerial and technical assistance have a positive effect on both survival and growth, but these effects depend on the size of the firm, characteristics of the counseling experience, as well as age and other demographic differences. Implications for public policy are discussed.