Mixed Consequences of Government Aid for New Venture Creation: Evidence from Italy

Vincenzo Maggioni, Mario Sorrentino () and Mary Williams

Journal of Management & Governance, 1999, vol. 3, issue 3, 287-305

Abstract: Most countries have designed programsto stimulate the birth and development of new firms.One of the most important issues in evaluating theimpact of public entrepreneurial policies is toanalyze their influence on the post-entry performanceof the new ventures. This paper examines how the mostimportant government program to encourageentrepreneurship in Italy (the Law 44 program) affectsseveral aspects of the early performance of new firms.A sample of new firms receiving government aid iscompared to a matched sample of new firms notreceiving public assistance, i.e., ``control'' firms. The control firms were born in the same year, launchedtheir business in the same geographical area andoperate in the same industry classification. Resultsshow that the public program produces mixed effects.Government aid allows firms to have a higher level oftechnology. However, government funding gives rise toentrepreneurial start-ups, which are not fullyefficient. A discussion of these findings andsuggestions for future research are presented. Copyright Kluwer Academic Publishers 1999

Keywords: aided and non-aided new firms; new venture creation; post-entry performance; public programs for entrepreneurship; start-up (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://hdl.handle.net/10.1023/A:1009922725925 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jmgtgv:v:3:y:1999:i:3:p:287-305

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/10997/PS2

DOI: 10.1023/A:1009922725925

Access Statistics for this article

Journal of Management & Governance is currently edited by Lino Cinquini

More articles in Journal of Management & Governance from Springer, Accademia Italiana di Economia Aziendale (AIDEA) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().