Identifying and Spurring High-Growth Entrepreneurship: Experimental Evidence from a Business Plan Competition
David McKenzie ()
American Economic Review, 2017, vol. 107, issue 8, 2278-2307
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.
JEL-codes: D22 L11 L26 L53 M13 O14 (search for similar items in EconPapers)
Note: DOI: 10.1257/aer.20151404
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
https://www.aeaweb.org/articles/attachments?retrie ... z0RKYLNhp6Loi1RWhTrh (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... GlWX_4AiCcAUyMcvD0Hb (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... 2UYTUE-qVaqXTv2ZvYH8 (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.
Working Paper: Identifying and spurring high-growth entrepreneurship: experimental evidence from a business plan competition (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:107:y:2017:i:8:p:2278-2307
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Pinelopi Koujianou Goldberg
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Series data maintained by Jane Voros ().