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Public budgets are submitted to various aid programs, whose purpose is to promote economic activity in small businesses. It is often asked if these programs actually serve their purpose, or perhaps these budgets are wasted? At the forefront of research by the University Ben Gurion and conducted by the Ministry of Industry, Trade and Labour illustrates this problem. Researchers Dr. Rami Schayek Professor Dov Dvir and have developed an innovative model that the effect of state assistance programs for small business measures, the main components identified in the assistance program during which determines This should, measures of management and operations aimed at changing behavior are, in order to improve business performance. The research included 135 small businesses in the Ministry of Industry, Trade and Labour participated Standard coaching project. This project is part of several projects of business coaching from the Ministry of ITL is executed, and it is designed for small and medium enterprises 500-100 employees. A company of nine fifty-five employees appointed for a hundred hours of training. A firm 11-100 employees appointed for a maximum of 150 hours. The coaching project funded 75% of the cost of training. 25% are funded by industry. The results show that there is a return to the taxpayers’ money! The results show that participation in public assistance program has a positive effect on the performance of small businesses. The base model, which considered that the direct effect of the assistance program is the performance of small businesses shows that the more involved quantitative components (consultation hours after the consultation meetings; series of questions to the consultation) , and higher quality components (level of professional understanding of the consultant to the respective themes of the consultation, the level of organization and planning of the consultation process, levels of trust, commitment and mutual understanding between the consultant and owner of a small company), the higher the level of performance in small businesses. If you click on the model of an inquiry into the indirect effects are presented Utilities, Small Business Performance in the first instance by the impact on small business consultant, who will be their motivation to express, to take measures provided by attention to the sales department, understanding the fluctuation in customer preferences and the operating environment of small business and need for measuring and analyzing customer reach and respond to complaints customers, or the service or the product available to small businesses. The consultant has to handle an impact on business owners in terms of capacity, business opportunities through the use of competitors’ weaknesses and understanding how small businesses can come as a benefit of all customers. Councils believe it is the level of small business owner’s awareness of the need for innovation by taking risks, and increase the level of activity, both in the implementation of changes in services or products , which he sees in terms of behavior and competition. In fact, because the consultation of small businesses in actions that increase the level of market orientation and entrepreneurship in small enterprises and to engage as a result of an increase in performance. How is it possible to achieve even greater returns? The results of Dr. thesis of Professor Dov Dvir Schayek followed the recommendation to facilitate a number of issues that could intensify the effect of public funding on performance in small businesses. It is therefore important that the consultant for the client before delivery to emphasize that reliable and comprehensive information is obtained for the consultant and the willingness of entrepreneurs to make changes in accordance with the decisions as a result of collaboration with the consultant to implement a crucial prerequisite for the success of the process and help improve performance in small businesses. Based on the research design provides the customer an integral part of the aid program. The more actively and will be in the process of coaching, the more support the program a positive impact on the performance of small businesses. In addition, research shows that efforts by the consultant should be to improve the client’s ability to raise capital are made. Improving the capacity of customer capital, which are modeled as parameters in improving the standard of performance is when the customer receives an explanation of how the existing financing mechanisms and how they should approach and present to provide small business with the requirements of potential funding sources (such as banks, companies or credit).

Westhead, Wright and Usbasaran (2001) proposed that the human and financial resources to those who must be incorporated into the research model, they had built. The small business “owner-contractor is also highlighted as a resource of paramount importance. According to Story (1994), entrepreneurs of experience, expertise and skills in general as a major influence on the parameters of business survival and development. Mullins (1996) argues that the entrepreneur is the decision-making and action influenced the organizational processes that are the basis of competitive advantage and growth. Rangone (1999) defines the entrepreneur as a “unique” resource that supports the remaining resources. Several studies have been conducted to learn more about the relationship between the human and financial resources, and small business performance. Cooper, Gimeno-Gascon have and Woo (1994) states that human resources and in particular the owner of education, correlated with growth. In addition, industry knowledge and financial resources to contribute to growth and the survival of the company. After Westhead (1995), the founder of the performance and experience influenced survival in hi-tech companies over a period of six years from the date of incorporation. Brush and Chaganti (1999) examined the small businesses and service-oriented businesses. Their study identifies two dimensions of human resources – the owners of the resources and commitment owner. A significant positive correlation between the two dimensions and found the net cash flows. No correlation was found in the record of employment growth. Westhead et al. (2001) results support the hypothesis that if the founder of the company before a significant knowledge of industry expectations that the company would return to save the resources of its competitors. Premaratne (2001), suggesting a link between the subsidies granted to the company and increased sales. However, there is no correlation between grants and profitability. Wiklund and Shepherd (2005) found a significant positive correlation between access to capital and performance. Pena (2004) examined the relationship between human resources (management experience in education, business experience, parents contractors, implementation of ideas in the past acquired jobs) and increased profits, sales growth and increasing the number of employees. A positive correlation between education and the implementation of ideas learned in previous years have found jobs and an increase in the number of employees and turnover. Chrisman, McMullan and Hall (2005) used education and previous experience as control variables. A correlation between previous experience and an increase in the number of employees and turnover found. No correlation was found with these studies.