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Over the last few years, research on customer behaviour in both industrial markets and service environments has caused some academics to posit that in many situations, the application of traditional transactional marketing concepts is ineffective. Most of the research on identification of factors influencing the supplier‐customer relationship has been concerned with the commercial sector. The aims of this study, therefore, are to determine the influence of relationship factors in the not‐for‐profit sector by examining the situation of advisory assistance offered to small businesses by government‐funded support agencies. Interviews with advisors and owner/managers have been used to construct a qualitative model of factors influencing the client/advisor relationship. The implications of the study are discussed in relation to the future operation of not‐for‐profit support agencies.

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