Attracting Firms to Government Programs: Theory and Evidence from Randomized Controlled Trials in Tunisia
Florian Münch, Fabian Scheifele, Amira Bouziri, Kaïs Jomaa, Teo Firpo
October 2024
Governments spend over a billion US dollars annually on firm support programs, yet application rates are low and outcomes modest. Attracting enough and the right firms may alter the program’s effect and statistical power to detect it. Yet, we document that most firm program evaluations don’t report recruitment strategies. We conduct two email experiments involving 5000 SMEs while recruiting for two export support programs in Tunisia, tracking each communication channel’s contribution to registrations. In experiment 1, we find goal-specific messages targeting firms’ supply or demand side constraints attract fewer but better-performing firms. In experiment 2, we find an influencer video emphasizing program benefits attracts better-performing female-led firms, while reducing participation costs via free childcare attracts less-performing firms managed by younger female entrepreneurs with children. Finally, we show open communication channels attract more underrepresented firms. In general, the findings suggest recruitment strategies substantially impact sample size and composition.
Keywords:Firms;Recruitment;Sampling; Experiment; Export; Female
