Identifying and Spurring High-Growth Entrepreneurship : Experimental Evidence from a Business Plan Competition

Almost all firms in developing countries have fewer than 10 workers, with the modal firm consisting of just the owner. Are there potential high-growth entrepreneurs with the ability to grow their firms beyond this size? And, if so, can public polic...

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Main Author: McKenzie, David
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2015/08/24899889/identifying-spurring-high-growth-entrepreneurship-experimental-evidence-business-plan-competition
http://hdl.handle.net/10986/22437
id okr-10986-22437
recordtype oai_dc
spelling okr-10986-224372021-04-23T14:04:09Z Identifying and Spurring High-Growth Entrepreneurship : Experimental Evidence from a Business Plan Competition McKenzie, David EQUIPMENT ACCOUNTING ENTERPRISE DEVELOPMENT CUSTOMER INSTALLATION CERTIFICATE MATERIALS SALES RADIO STATIONS E-COMMERCE MEDIUM ENTERPRISES BUSINESS SCHOOLS INFORMATION SELLING MONITORING ENTREPRENEURIAL SKILL BUSINESS NETWORKS IMPACT ASSESSMENT MEDIUM ENTERPRISE CONSULTANTS IMPACTS NEW PRODUCTS DISTRIBUTION BREAKEVEN ANALYSIS CASHFLOW BUDGET CONSTRAINTS COMPUTER TRAINING PRICE OWNERSHIP VERIFICATION RETAIL TRADE PLANNING TIME PERIOD ENTREPRENEURIAL SKILLS QUALITY PERSONAL INFORMATION REPORTING TRAINING COURSE REGISTRY COMPUTER OPEN ACCESS SATELLITE TELEVISION COST EFFECTIVENESS INSTITUTIONS DATA ADVERTISING TECHNICAL ASSISTANCE COMMERCE CONTROL SYSTEMS ACQUISITION BUSINESS INNOVATION IMPACT EVALUATION LICENSE LOGISTICS TARGETS BUSINESS OWNERSHIP PRODUCTIVITY BUSINESS OPERATION CRITERIA DIRECT COSTS MARKETING MARKETING STRATEGY PRIVATE SECTOR DEVELOPMENT BUSINESS INPUTS INVENTORIES EMPLOYMENT CREATION INVENTORY RADIO ACCOUNT BUSINESS ECONOMICS BUSINESS APPLICATIONS TELEPHONE BUSINESS ORGANIZATION RESOURCES MANUFACTURING PHONE TECHNOLOGY MARKET SEGMENTATION TRAINING COURSES INVENTORY LEVELS VERTICAL INTEGRATION BUSINESS PLAN TIME FRAME SOFTWARE CUSTOMER BASE RESULTS NETWORKS COST PRIVATE SECTOR BALANCE SHEET TRANSPARENT WAY QUALITY CONTROL MARKETING RESEARCH RESULT INNOVATION POLICY SECURITY BUSINESSES BUSINESS IDEAS BUSINESS NETWORK BUSINESS LEADERS PERFORMANCE PURCHASING BUSINESS PLANS FINANCIAL PLANNING INNOVATION INSTITUTION BUSINESS SECTORS PROFIT ACCOUNTS COMMUNICATION QUALITY ASSURANCE NEW TECHNOLOGY CUSTOMERS BUSINESS IDEA COST PER JOB COMMUNICATION TECHNOLOGY PROFITS CUSTOMER DEMAND BUSINESS RESEARCH GROWTH POTENTIAL IMPLEMENTATION TARGET USES CASH FLOW BUSINESS TRAINING Almost all firms in developing countries have fewer than 10 workers, with the modal firm consisting of just the owner. Are there potential high-growth entrepreneurs with the ability to grow their firms beyond this size? And, if so, can public policy help alleviate the constraints that prevent these entrepreneurs from doing so? A large-scale national business plan competition in Nigeria is used to help provide evidence on these two questions. The competition was launched with much fanfare, and attracted almost 24,000 entrants. Random assignment was used to select some of the winners from a pool of semi-finalists, with US$36 million in randomly allocated grant funding providing each winner with an average of almost US$50,000. Surveys tracking applicants over three years show that winning the business plan competition leads to greater firm entry, higher survival of existing businesses, higher profits and sales, and higher employment, including increases of over 20 percentage points in the likelihood of a firm having 10 or more workers. These effects appear to occur largely through the grants enabling firms to purchase more capital and hire more labor. 2015-08-17T18:07:20Z 2015-08-17T18:07:20Z 2015-08 Working Paper http://documents.worldbank.org/curated/en/2015/08/24899889/identifying-spurring-high-growth-entrepreneurship-experimental-evidence-business-plan-competition http://hdl.handle.net/10986/22437 English en_US Policy Research working paper,no. WPS 7391,Impact Evaluation series; Policy Research Working Paper;No. 7391 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Nigeria
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic EQUIPMENT
ACCOUNTING
ENTERPRISE DEVELOPMENT
CUSTOMER
INSTALLATION
CERTIFICATE
MATERIALS
SALES
RADIO STATIONS
E-COMMERCE
MEDIUM ENTERPRISES
BUSINESS SCHOOLS
INFORMATION
SELLING
MONITORING
ENTREPRENEURIAL SKILL
BUSINESS NETWORKS
IMPACT ASSESSMENT
MEDIUM ENTERPRISE
CONSULTANTS
IMPACTS
NEW PRODUCTS
DISTRIBUTION
BREAKEVEN ANALYSIS
CASHFLOW
BUDGET CONSTRAINTS
COMPUTER TRAINING
PRICE
OWNERSHIP
VERIFICATION
RETAIL TRADE
PLANNING
TIME PERIOD
ENTREPRENEURIAL SKILLS
QUALITY
PERSONAL INFORMATION
REPORTING
TRAINING COURSE
REGISTRY
COMPUTER
OPEN ACCESS
SATELLITE
TELEVISION
COST EFFECTIVENESS
INSTITUTIONS
DATA
ADVERTISING
TECHNICAL ASSISTANCE
COMMERCE
CONTROL SYSTEMS
ACQUISITION
BUSINESS INNOVATION
IMPACT EVALUATION
LICENSE
LOGISTICS
TARGETS
BUSINESS OWNERSHIP
PRODUCTIVITY
BUSINESS OPERATION
CRITERIA
DIRECT COSTS
MARKETING
MARKETING STRATEGY
PRIVATE SECTOR DEVELOPMENT
BUSINESS INPUTS
INVENTORIES
EMPLOYMENT CREATION
INVENTORY
RADIO
ACCOUNT
BUSINESS ECONOMICS
BUSINESS APPLICATIONS
TELEPHONE
BUSINESS ORGANIZATION
RESOURCES
MANUFACTURING
PHONE
TECHNOLOGY
MARKET SEGMENTATION
TRAINING COURSES
INVENTORY LEVELS
VERTICAL INTEGRATION
BUSINESS PLAN
TIME FRAME
SOFTWARE
CUSTOMER BASE
RESULTS
NETWORKS
COST
PRIVATE SECTOR
BALANCE SHEET
TRANSPARENT WAY
QUALITY CONTROL
MARKETING RESEARCH
RESULT
INNOVATION POLICY
SECURITY
BUSINESSES
BUSINESS IDEAS
BUSINESS
NETWORK
BUSINESS LEADERS
PERFORMANCE
PURCHASING
BUSINESS PLANS
FINANCIAL PLANNING
INNOVATION
INSTITUTION
BUSINESS SECTORS
PROFIT
ACCOUNTS
COMMUNICATION
QUALITY ASSURANCE
NEW TECHNOLOGY
CUSTOMERS
BUSINESS IDEA
COST PER JOB
COMMUNICATION TECHNOLOGY
PROFITS
CUSTOMER DEMAND
BUSINESS RESEARCH
GROWTH POTENTIAL
IMPLEMENTATION
TARGET
USES
CASH FLOW
BUSINESS TRAINING
spellingShingle EQUIPMENT
ACCOUNTING
ENTERPRISE DEVELOPMENT
CUSTOMER
INSTALLATION
CERTIFICATE
MATERIALS
SALES
RADIO STATIONS
E-COMMERCE
MEDIUM ENTERPRISES
BUSINESS SCHOOLS
INFORMATION
SELLING
MONITORING
ENTREPRENEURIAL SKILL
BUSINESS NETWORKS
IMPACT ASSESSMENT
MEDIUM ENTERPRISE
CONSULTANTS
IMPACTS
NEW PRODUCTS
DISTRIBUTION
BREAKEVEN ANALYSIS
CASHFLOW
BUDGET CONSTRAINTS
COMPUTER TRAINING
PRICE
OWNERSHIP
VERIFICATION
RETAIL TRADE
PLANNING
TIME PERIOD
ENTREPRENEURIAL SKILLS
QUALITY
PERSONAL INFORMATION
REPORTING
TRAINING COURSE
REGISTRY
COMPUTER
OPEN ACCESS
SATELLITE
TELEVISION
COST EFFECTIVENESS
INSTITUTIONS
DATA
ADVERTISING
TECHNICAL ASSISTANCE
COMMERCE
CONTROL SYSTEMS
ACQUISITION
BUSINESS INNOVATION
IMPACT EVALUATION
LICENSE
LOGISTICS
TARGETS
BUSINESS OWNERSHIP
PRODUCTIVITY
BUSINESS OPERATION
CRITERIA
DIRECT COSTS
MARKETING
MARKETING STRATEGY
PRIVATE SECTOR DEVELOPMENT
BUSINESS INPUTS
INVENTORIES
EMPLOYMENT CREATION
INVENTORY
RADIO
ACCOUNT
BUSINESS ECONOMICS
BUSINESS APPLICATIONS
TELEPHONE
BUSINESS ORGANIZATION
RESOURCES
MANUFACTURING
PHONE
TECHNOLOGY
MARKET SEGMENTATION
TRAINING COURSES
INVENTORY LEVELS
VERTICAL INTEGRATION
BUSINESS PLAN
TIME FRAME
SOFTWARE
CUSTOMER BASE
RESULTS
NETWORKS
COST
PRIVATE SECTOR
BALANCE SHEET
TRANSPARENT WAY
QUALITY CONTROL
MARKETING RESEARCH
RESULT
INNOVATION POLICY
SECURITY
BUSINESSES
BUSINESS IDEAS
BUSINESS
NETWORK
BUSINESS LEADERS
PERFORMANCE
PURCHASING
BUSINESS PLANS
FINANCIAL PLANNING
INNOVATION
INSTITUTION
BUSINESS SECTORS
PROFIT
ACCOUNTS
COMMUNICATION
QUALITY ASSURANCE
NEW TECHNOLOGY
CUSTOMERS
BUSINESS IDEA
COST PER JOB
COMMUNICATION TECHNOLOGY
PROFITS
CUSTOMER DEMAND
BUSINESS RESEARCH
GROWTH POTENTIAL
IMPLEMENTATION
TARGET
USES
CASH FLOW
BUSINESS TRAINING
McKenzie, David
Identifying and Spurring High-Growth Entrepreneurship : Experimental Evidence from a Business Plan Competition
geographic_facet Africa
Nigeria
relation Policy Research working paper,no. WPS 7391,Impact Evaluation series;
description Almost all firms in developing countries have fewer than 10 workers, with the modal firm consisting of just the owner. Are there potential high-growth entrepreneurs with the ability to grow their firms beyond this size? And, if so, can public policy help alleviate the constraints that prevent these entrepreneurs from doing so? A large-scale national business plan competition in Nigeria is used to help provide evidence on these two questions. The competition was launched with much fanfare, and attracted almost 24,000 entrants. Random assignment was used to select some of the winners from a pool of semi-finalists, with US$36 million in randomly allocated grant funding providing each winner with an average of almost US$50,000. Surveys tracking applicants over three years show that winning the business plan competition leads to greater firm entry, higher survival of existing businesses, higher profits and sales, and higher employment, including increases of over 20 percentage points in the likelihood of a firm having 10 or more workers. These effects appear to occur largely through the grants enabling firms to purchase more capital and hire more labor.
format Working Paper
author McKenzie, David
author_facet McKenzie, David
author_sort McKenzie, David
title Identifying and Spurring High-Growth Entrepreneurship : Experimental Evidence from a Business Plan Competition
title_short Identifying and Spurring High-Growth Entrepreneurship : Experimental Evidence from a Business Plan Competition
title_full Identifying and Spurring High-Growth Entrepreneurship : Experimental Evidence from a Business Plan Competition
title_fullStr Identifying and Spurring High-Growth Entrepreneurship : Experimental Evidence from a Business Plan Competition
title_full_unstemmed Identifying and Spurring High-Growth Entrepreneurship : Experimental Evidence from a Business Plan Competition
title_sort identifying and spurring high-growth entrepreneurship : experimental evidence from a business plan competition
publisher World Bank, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/08/24899889/identifying-spurring-high-growth-entrepreneurship-experimental-evidence-business-plan-competition
http://hdl.handle.net/10986/22437
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