Another study on entrepreneurship – from the US

Quoting from David McKenzie’s Development Impact blog:

Rob Fairlie, Dean Karlan and Jon Zinman presented preliminary results from a long-term evaluation of the Growing America through Entrepreneurship (GATE) business training program in the U.S. This is a quite large randomized experiment, with 4200 participants getting randomly allocated into equal groups of treatment and control – with the treatment groups getting classroom training and individual counseling on setting up and running a business. A very nice feature of the study is that follow-up surveys were conducted at 6 months, 18 months, and 60 months, allowing short and medium-term outcomes to be measured.  The program seems to have sped up the rate of business start-ups, especially among the unemployed, but by 5 years those who participated in the program were not any more likely to be owning a business, and the program showed no significant impacts on sales, employment, or other business outcomes. Fairlie at all look carefully at heterogeneity of impacts, attempting to test whether particular market failures might justify the program for particular groups, but don’t find much in the way of heterogeneity of effects.

There are interesting statistics collected by the Kaufmann foundation that I’ll dig up for comparison…

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This entry was posted in Business management training, Micro-enterprises & rural businesses, Research studies and surveys and tagged , , . Bookmark the permalink.

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