Improving SMEs’ performances: Lessons from a purely non-financial support program

The French public investment bank has launched a specific business support program targeted for small and medium-sized enterprises that has the rare feature of being strictly non-financial, combining advices, training, and networking opportunities. We evaluate the effects of this program based on a panel dataset containing information on businesses over the period 2010–2017, considering a difference-in-differences identification strategy where we address the problem of selection in this support program. It positively impacts revenue, corporate investment, and firm workforce. Such purely non-financial support programs for SMEs tend to reduce uncertainty regarding the quality and viability of the firm’s project, thus leading to an expansion of its activity. They also show that this type of support may be considered by politicians as an alternative program to financial aid and may encourage business managers to participate in such programs to improve the organization of their companies.