Facilitating business networks : considering the role of government

In 1993, following international trends, the Australian Government launched an initiative designed to encourage and facilitate networking among small and medium-sized enterprises (SMEs). The Business Network Program (BNP) primarily focuses on the establishment of 'hard' business networks. This program is backed by a substantive financial commitment of $24 million (AUD) over a five year period by the Federal Government. Even though there have been similar programs in a number of western countries, there has been limited research and review, both at an empirical and applied level, as to the form such interventions should take, particularly from the perspective of the private sector. With such a substantive commitment to the program it is appropriate that research is conducted to assess the adoption and performance of such programs. This paper gives an overview on the attitude of companies in both the manufacturing and service sector, to the involvement of government in the delivery of such programs. Program delivery issues and the form of support sought from the private sector are considered, suggesting substantive changes to the existing program