Do capital grants improve microenterprise productivity? We use the lens of a production function to re-examine two previous randomised controlled trials that allocated capital to microenterprises. We find that productivity is higher for treated firms, and accounts for about 20-30 percent of the revenue effects of capital grants. Although long-run estimates are noisy, point estimates indicate that these productivity effects are sustained six years after the grants.
IGL Trials Database
IGL curates a database with randomised controlled trials in the field of innovation, entrepreneurship and growth. Browse our list of topics, see it as a map, or use the search function below.
This paper studies the medium-term impacts of the Skills for Effective Entrepreneurship Development (SEED) program, an innovative in-residence 3-week mini-MBA program for high school students modeled after western business school curricula and adapted to the Ugandan context.
Design thinking remains mired in controversy. Its proponents claim that it enhances not just confidence but also creativity, while the opponents question whether it does anything beyond building unfounded confidence. To bring rigorous evidence to this debate, we designed a randomised field experiment amongst school children served by a major non-governmental organisation in rural India.
This trial measures the impact of an edutainment program specifically designed to promote entrepreneurship among young adult viewers in Egypt.
This study investigates the extent to which training can be remotely taught to small groups via Zoom sessions, with a sample of female microenterprise owners recruited from throughout Mexico and Guatemala.
This trial proposes to evaluate a model for scaling up affordable access to effective STEM education through national online education platforms.
This trial investigates the best way to help agents perform better, as firms providing products and services to low income Base of the Pyramid (BOP) customers are increasingly utilizing independent contractor agents rather than employees in their distribution models.
Many Start Ups and Small & Medium Enterprises (SME) have an immature methodological approach to innovation and half of them present a clear deficit in innovation know-how, pointing towards a need for extra support. The efficacy of two approaches to building knowledge and increasing awareness of non-technical innovation among Start Ups and Small and Medium Enterprises (SME) will be tested.
Identifying the most promising business ideas is key to the introduction of novel firms, but predicting their success can be difficult. It is argued that if entrepreneurs adopt a scientific approach by formulating problems clearly, developing theories about the implications of their actions, and testing these theories, they make better decisions.
This paper investigates the impact of management training programs on garment clusters in Vietnam and Tanzania.
In this study, we empirically examine the effect of sharing information with close or distant competitors as part of an incubation program. There is recent evidence of substantial heterogeneity in acceleration programs, with qualitative research highlighting that the main benefit for participants to these programs is the increased exposure to information and the feedback they obtain. Such exposure helps balance the bounded rationality of founders.
The study is an impact evaluation of a training program that induced SMEs to adopt broadband connections, establish presence on online retail and potentially export their goods or services.
This paper asks to what extent firms are aware of readily available information on key competitor decisions, and how this information impacts firms’ strategic choices.
Expansion of e-commerce presents new opportunities for small and medium enterprises (SMEs) to enter broader market at lower costs, but the SMEs face barriers to growth after entry. To facilitate new entrants to overcome these barriers, this paper explores implementing a training program as a randomized controlled experiment with over two million new sellers on a large e-commerce platform.
We assess whether imperfect knowledge of labor regulation hinders job creation at small and medium-sized firms. We partner with a labor law expert in South Africa that provides information to local firms about major topics regarding labor regulation via newsletters and access to a specialized website. We randomly assign 1800 firms to receive free access to this information service for a 21-week period. Three-quarters of the firms offered the service took it up.
This study is a randomized controlled trial (RCT) on the effects of mentoring on SMEs in Norway. We aim to get a better understanding of firm development and dynamics in the presence of public interventions. Does mentoring affect firm performance and firm-survival? Does it matter what type of state aid a firm is granted; mentoring versus the financial equivalent of the service?
Does growth training help entrepreneurs to scale-up new ventures? This field experiment answers this question using a sample of 181 startup founders from the population of Singapore based entrepreneurs in 2017.
A classical approach to collecting and elaborating information to make entrepreneurial decisions combines search heuristics such as trial and error, effectuation, and confirmatory search. This paper develops a framework for exploring the implications of a more scientific approach to entrepreneurial decision making. The panel sample of our randomized control trial includes 116 Italian startups and 16 data points over a period of about one year.
This paper analyses the impact of a large scale randomized experiment that targets firm labor demand by supporting its recruitment practices.
This paper explores whether skills training in business performance and customer practices was a promising way to increase business outcomes among self-employed workers who operate small businesses in developing countries.
Unlike many other studies, this trial is an impact assessment of training programs that covered quality control and production management as the training topics in addition to entrepreneurship, marketing, and record keeping.
This study conducted two randomized controlled trials to evaluate the effect of mindset-oriented business trainings on the performance of women-owned micro and small enterprises in Ethiopia.
This paper examines a training intervention aimed at boosting leadership and communication skills among employees of a large Latin American retailer. The identification exploits an experimental design in the context of a difference-in-difference strategy. Using longitudinal information obtained from the firm and two skills surveys, we document large positive effects of the training on store- and individual- level productivity. The intervention was more effective in boosting leadership than communication skills.
This field experiment involved more than 2,000 secondary school students, where the treatment group was incentivised to watch an edutainment show.
Research confirms that business coaching is core to most incubation and acceleration programmes. Business coaching combines aspects of teaching, training, mentoring, and consulting and creates a general support approach for early-stage technology ventures. It has been identified as a key attribute to the impact of an early-stage venture team’s performance.
This paper examines the impact of improvements in marketing skills relative to finance skills among small-scale entrepreneurs. It addresses three important questions: (1) What is the impact of marketing or finance skills on business profits? (2) How do improvements in marketing and finance skills respectively affect different business outcomes? (3) When are increases in marketing relative to finance skills more beneficial?
We investigate the impact of a program providing asset transfers and business training to low income individuals in Chile, and asked whether a larger asset transfer would magnify the program's impact. We randomly assigned participation in a large scale, publicly run micro-entrepreneurship program and evaluated its effects over 45 months. The program improved business practices, employment, and labor income. In the short run, self-employment increased by 14.8/25.2 percentage points for a small/large asset transfer.
Examines a program in Benin that drastically reduces costs to formalize a business, while also offering tax mediation and training. Results forthcoming.
We use a randomized controlled trial to demonstrate that inexperienced female microenterprise owners in a Kenyan slum benefit from mentorship by an experienced entrepreneur in the same community. Mentorship increases profits by 20 percent on average with initially large effects that fade as matches dissolve. We conduct a formal business education intervention, which has no effect on profits despite changes in business practice.
This paper studies whether small-scale businesses can learn and adopt protable practices of their successful peers. We identify such practices through a detailed business survey in urban Indonesia and disseminate the information to a randomly selected sample of small retailers through a professionally developed handbook. An orthogonal subgroup is provided additional support through business role models, and another through individualized business counseling. We find a significant increase in the adoption of profitable practices in all sub-groups of retailers.