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.
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How do different types of proximity impact collaboration and knowledge generation? How should we design research campuses to maximize the probability of breakthrough innovation taking place? Although information and communication technology has substantially lowered the cost of remote interactions, physical space and geographic proximity still play a major role in inventive activity. This project will explore how a research-intensive academic campus should be designed to increase the probability of breakthrough innovations taking place.
Examines the effectiveness of a specific management production routine relying on knowledge transfer of managers in a Bangladeshi garment factory. 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.
An online platform for contract enforcement in the Peruvian textile sector. Results forthcoming.
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.
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.
The Innovation Voucher Program analyzed in this study operates as a randomized controlled trial (RCT). This allows estimating the causal effect of the voucher on innovation and growth measures of beneficiaries, as well as their business outcomes in general. As a result, the evidence might be used to enhance voucher schemes and to provide further policy advice on how to effectively support small and medium-sized enterprises and their innovation activities in the future.
A loan programme for SMEs in the Philippines. Results forthcoming.
This experiment in Colombia will test the impact of a business training programme. Results forthcoming.
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 the context of SME's in Colombia, researchers are evaluating the impact on firm performance of a legal reform which will provide a framework for the use and enforcement of movable collateral. Results forthcoming.
Evaluating a specific training program for youth in Uganda, recently graduated from secondary shool, aimed at identifying the differential importance of "hard" and "soft" skills. Results forthcoming.
Crowdfunding is a recent and rapidly growing method of raising funds for early-stage companies. It minimises the cost and effort involved in raising start-up funds compared to traditional equity funding methods such as venture capital investment. Very little systematic, non-survey research has been conducted into these methods of funding new ventures, however. ‘The wisdom of crowds in equity crowdfunding’ aims to fill this gap.
Evaluation of a training and consulting program for managerial staff in Bangladeshi garment factories to understand how new management practices are adopted and implemented and what determines their success.
A 5-day enterprise training programme for women in Kenya. Results forthcoming.
Examines the differential impacts of group management consulting versus individualised management consulting on firm performace in Colombia, and whether management practices are partially responsible for the gap in firm productivity in developing countries. Results forthcoming.
Why does growth stall in high-growth potential, second-stage companies, and can we intervene to overcome this? This research seeks to address why growth rates so often peter out in adolescent firms, and why so few make it to “grownup” status. The experimental trial will also seek to identify and test specific policy interventions to reinvigorate growth in these situations. The project will have three phases.
Entrepreneurship programmes have a strong positive effect on youths, particularly on labour-market activities and business-practice outcomes, and improve business knowledge and practice, particularly for existing entrepreneurs. However, there is no evidence that this translates into improved business performance and increased income.
Interpersonal effects of physical space indirectly affect performance for group engaged in knowledge work. Physical space shapes performance indirectly by affecting group members' arousal and territorial behaviour, which together influence information elaboration. The physical context in which a group works can shape interpersonal dynamics and ultimately group performance.
This particular management training was successful at improving knowledge and intangible skills that translated into successful organisational medium- to long-run outcomes for small businesses.
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.
Micro-entrepreneurs often lack the financial literacy required to make important financial decisions. We conducted a randomized evaluation with a bank in the Dominican Republic to compare the impact of two distinct programs: standard accounting training versus a simplified, rule-of-thumb training that taught basic financial heuristics. The rule-of-thumb training significantly improved firms' financial practices, objective reporting quality, and revenues.
The Paris School of Economics proposed a project to the Haut-Commissariat aux Solidarités Actives (French Minister for Active Solidarity against Poverty) to evaluate the impact of one of Adie’s programs, CréaJeunes. The “Association pour le droit à l’initiative économique” (Adie), is an NGO that aids people in creating their own business. The program is designed to encourage and support young people employment and entrepreneurship, particularly in poorer neighborhoods.
A programme offering marketing and sales training, and finance and accounting training in Cape Town, South Africa, was found to significantly improve firm survival as compared with the control group.
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.
For young firms, the effect of business training on hiring a first employee remains ambiguous, and more research is needed to understand the relationships behind job creation by entrepreneurs.
This entrepreneurship education programme with final year primary school students in the Netherlands showed significant effects on student's non-cognitive entrepreneurial skills following the intervention.
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.