Small firms and business advisory services: variations in small firms’ use of authorized accountants

The paper takes as its starting point the relatively high failure rate of small firms. It is argued that this might be lowered if small firms had improved access to external sources of business advice. It is further argued that authorized accountants are attempting to develop this role and that they are particularly well suited to fulfilling this role. The paper then analyses variations in the use small firms in Norway make of authorized accountants as business advisers. The analysis reveals that the quality, rather than the longevity, of the relationship is an important precondition for accountants being used as business advisers. However, the study also indicates that the firm has to have a competency orientation.