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Identifying and Spurring High-Growth Entrepreneurship: Experimental Evidence from a Business Plan Competition

The American economic review, 2017-08, Vol.107 (8), p.2278-2307 [Peer Reviewed Journal]

Copyright© 2017 American Economic Association ;CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank ;Copyright American Economic Association Aug 2017 ;ISSN: 0002-8282 ;EISSN: 1944-7981 ;DOI: 10.1257/aer.20151404

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Title:
Identifying and Spurring High-Growth Entrepreneurship: Experimental Evidence from a Business Plan Competition
Author: McKenzie, David
Subjects: Business ; Business entities ; BUSINESS ENVIRONMENT ; Business expansion ; Business models ; Business planning ; Business plans ; COMPETITION POLICY ; Control groups ; Developing countries ; Economic competition ; Employment ; Entrepreneurs ; ENTREPRENEURSHIP ; FIRM ENTRY ; Grants ; Job applicants ; LDCs ; MICROENTERPRISE ; Profits ; Public policy ; Sales ; Sample size ; Tracking ; Workers
Is Part Of: The American economic review, 2017-08, Vol.107 (8), p.2278-2307
Description: Almost all firms in developing countries have fewer than ten workers, with a modal size of one. Are there potential high-growth entrepreneurs, and can public policy help identify them and facilitate their growth? A large-scale national business plan competition in Nigeria provides evidence on these questions. Random assignment of US$34 million in grants provided each winner with approximately US$50,000. Surveys tracking applicants over five years show that winning leads to greater firm entry, more survival, higher profits and sales, and higher employment, including increases of over 20 percentage points in the likelihood of a firm having ten or more workers.
Publisher: Nashville: American Economic Association
Language: English
Identifier: ISSN: 0002-8282
EISSN: 1944-7981
DOI: 10.1257/aer.20151404
Source: Open Knowledge Repository

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Identifying and Spurring High-Growth Entrepreneurship: Experimental Evidence from a Business Plan Competition

Copyright© 2017 American Economic Association ;CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank ;Copyright American Economic Association Aug 2017 ;ISSN: 0002-8282 ;EISSN: 1944-7981 ;DOI: 10.1257/aer.20151404

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