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Public funding for startups in Argentina: an impact evaluation

Inés Butler, Gabriela Galassi and Hernán Ruffo

Small Business Economics, 2016, vol. 46, issue 2, 295-309

Abstract: A broad literature has found that the misallocation of entrepreneurial talent has strong effects on productivity. To investigate whether the government can improve entrepreneurial activity, we analyze a policy aimed at promoting innovative startups through the provision of funding and technical assistance to potential entrepreneurs in Buenos Aires, Argentina. We conduct a survey and use regression discontinuity methods to identify the effects of the policy. We find significant effects on enterprise creation and survival as well as on employment. Overall, we show that small-scale public policy can help entrepreneurs overcome a wide variety of barriers to firm entry and improve the allocation of their entrepreneurial talent. Copyright Springer Science+Business Media New York 2016

Keywords: Innovation; Entry; Exit; Cash grants; Impact evaluation; Argentina; C31; H25; L26; O31 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (10)

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DOI: 10.1007/s11187-015-9684-7

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