This study reports on a randomized field experiment conducted in the Netherlands to estimate the (long-term) effect of a short personalized tax training program on the performance and tax compliance of first-time entrepreneurs. The tax training was expected to have an impact on business performance and different aspects of tax compliance through better financial decision making and more relevant tax knowledge.
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.
The Growth Impact Pilot, launched in April 2014, is a research project on the impact of business advice (coaching), supported by the UK Government. The Growth Impact Pilot will assess whether the provision of Growth Accelerator coaching is the reason why firms on the service achieve high rates of growth, or whether this growth would have happened anyway. It is designed to assess the impact of coaching by comparing two groups:
Micro-entrepreneurs in developing countries are often constraint by inefficient supply chains, facing high travel costs and high prices in purchasing their inventory. At the same time, due to their small scale, they buy in small quantities, limiting their benefit from economies of scale, whether in bulk discounts or transport efficiencies. Small-scale food vendors in Bogotá, whose customers are residents of low-income neighborhoods, face these very issues.
By randomising the information sent to potential investors on AngelList over e-mail, this experiment finds evidence that the founding team of a startup has strong influence over the investor's decision to invest.
Programs targeting micro businesses have become increasingly common in developing countries, particularly because micro enterprises employ a substantial fraction of individuals in these economies (about 47 percent in Mexico) and because the majority of these micro enterprises tend to stay small and have low productivity Many programs aimed at fostering the growth of micro and small businesses have focused on providing credits or offering business and financial training, since access to credit and lack of managerial skills are believed to limit the success of this type of businesses (Bruhn e
Some firms say they care about the well-being and “happiness” of their employees. But are such claims hype or scientific good sense? We provide evidence, for a classic piece rate setting, that happiness makes people more productive. In three different styles of experiment, randomly selected individuals are made happier. The treated individuals have approximately 12% greater productivity. A fourth experiment studies major real-world shocks ðbereavement and family illnessÞ. Lower happiness is systematically associated with lower productivity.
The policy measure aims at an increased R&D and innovation capabilities of SMEs by fostering collaboration with public research institutions and RTOs, improving knowledge transfer and by strengthening quality and relevance of public R&D. The Innovation Voucher has been introduced to inspire SMEs to utilise the opportunities and potential of knowledge institutions. At the same time, the Innovation Voucher Scheme is expected to enhance the awareness at knowledge institutions of the need for knowledge and thus secure the quality and societal relevance of public research.
Firms may face short term barriers when deciding to become exporters. Their production costs may be too high to compete with international prices, or they may perceive quality standard testing to be too risky of an investment. At the same time, the Tunisian government is keen to see more firms become exporters, tapping into international markets for further growth. The government wishes to see its firms produce higher value-added goods.
We propose to implement and evaluate a soft-skills training program among mid- and upper-level managers in textile factories in India. The goal of the intervention and evaluation is to investigate constraints to firm performance due to managerial human capital, and to contribute to the understanding of how improved management can translate into better working conditions for workers. We will evaluate this program through a multi-step randomized controlled trial in 41 factories operated by a large textile firm based in Bangalore, India.
In the context of an online software development tournament, intermediate disclosure policy increased information and signaling in
the innovation environment. Final disclosure promoted higher levels of entry and effort and independent experimentation; while it generated a diversity of approaches, this led to considerable effort devoted to suboptimal approaches and overall performance achieved.
Workers who sort into institutional settings they prefer may work twice (or many more times) as hard in these preferred settings. This productivity effect is especially important in institutional settings where a taste for competition is strongest.
In this experiment we will investigate the influence of two online-based entrepreneurship programmes and compare the effects of a programme with experiential design with a programme which is based on lectures by entrepreneurial role models. During this process we will be able to assess in which way the educational dimensions of “mastery experience” and “vicarious learning” influence the entrepreneurial self-efficacy of young pupils as well as their inclination to participate in high-growth oriented entrepreneurial activities.
Is the GATE Programme/Entrepreneurship training a valid response to various forms of market failure (allocative inefficiency in credit, labour, insurance and human capital markets)? Can such a programme have an effect on business sales, earnings or employees?
Youth entrepreneurship training programme in France. Results forthcoming.
The Good Exporting Practices program in Argentina aims to increase the success in the foreign markets of small and medium enterprises (SMEs) through supporting better practices in 7 core areas: i) strategy, ii) identification and segmentation of markets, iii) design and adaptation of the product, iv) production, v) communication, vi) distribution, and vii) administration. The Good Exporting Practices program targets firms that produce differentiated food products in various geographical regions in Argentina.
This on-going project explores how much market protection patents provide. This is being tested in a randomized control trial, where a partner company is abandoning or maintaining patent protection based on whether that patent is in the treatment or control group. We are then analyzing market outcomes for the related products.
Many innovative start-ups and SMEs have good ideas, but do not have these ideas fine-tuned to the stage where they can attract outside funding. Investment readiness programs attempt to help firms to become more ready to attract and accept outside equity funding through a combination of training, mentoring, master classes, and networking.
The income flows of micro and small business owners in developing countries are usually quite irregular and hard to predict. Microloans by microfinance institutions (MFIs) from around the developing world generally follow very rigid repayment schedules beginning immediately after the loan disbursement. Such repayment structures are unfit to support investments in technology or other solutions to expand the business, as these generally take longer to pay off.
While small and medium enterprises (SMEs) represent a large segment of activity and employment, there has been little research on how their growth is affected by financial constraints. Indeed, because the credit needs of SMEs are too big for microfinance products, but that they lack the collateral to borrow from the traditional banking sector, SMEs are in some way the “missing middle” of credit constraint research. This project addresses this evidence gap by evaluating the impact of a new loan product, designed specifically for SMEs, on firm growth and other market outcomes.
In this meta-analysis what particularly stands out is the effect of microcredit on female empowerment. With respect to entrepreneurship and economic development outcomes, microcredit appears to have the most value in deprived contexts, but overall, results are highly dependent on context.
Can internship programmes provide young entrepreneurs with valuable experiential learning on successful management practices? This pilot study confirms the viability of such a programme in promoting 'learning by doing', and builds the foundation for a full-scale internship experiment beginning in 2015.
For a non-technical summary, please click here.
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.
Evaluation comparing the impact of a managerial consulting program with training on export business models in Córdoba, Argentina. Results forthcoming.
In order to understand how managers respond to uncertainty when making research and development decisions, three experiments were conducted with master’s degree students in a program focused on the intersection of business and technology.
Small businesses that seek and obtain strategic business advice are more likely to thrive and grow. Advice can increase productivity, drive sales and improve the chance of survival in tough economic times. Yet as many as three in every ten small businesses in the UK may have an unmet need for business advice . And to date, available evidence does not establish a causal link between business advice and higher growth for small businesses.
This meta-analysis of field experimental evidence on firm-employee relationships finds strong evidence that financial incentive increase output, and that non-financial approaches and social relations also have important impacts. However, many important topics have not been studied yet using field experiments, including recruiting, worker promotion, and training.
A randomised field experiment in Kenya uses differing levels of subsidies for an innovative bed net to suggest that temporary subsidies help short-term adoption rates of new (health) technologies and can perhaps have an effect on long-term adoption rates due to the learning experience.
This trial focuses on micro-enterprises in Kenya which have low productivity, surveying firms weekly about lost sales.
In the context of a semiconductor factory in Israel, experimenting with different types of incentives yielded results that provide some guidance for organisations trying to motivate their employees, showing that incentives of small magnitude can motivate employees to perform better at low or insignificant cost. Also, simply allowing employees to choose their preferred form of incentive can neutralize the possible negative effect of cash bonuses on intrinsic motivation.
This paper explores the effectiveness of goal setting and accountability within group-based entrepreneurship initiatives in creating human capital. The study uses a randomized cluster trial to compare the experimental and control groups of entrepreneurs. The results suggest that frequent goal setting and accountability in group settings provides a greater number of learning experiences and human capital development opportunities available to entrepreneurs than those that did not engage in the same level of goal setting.