Using Experimental Evidence to Inform Firm Support Programs in Developing Countries [electronic resource] / Arti Grover.

Grover, Arti.
Other Title:
World Bank working papers.
Washington, D.C. : The World Bank, 2020.
Policy research working papers
World Bank e-Library
Government document
1 online resource (34 p.)
Local subjects:
Access To Finance
Business Development Services
Business Incubator
Business Support
Enterprise Development and Reform
Firm Capability
Firm Performance
Knowledge Gap
Market Access
Organizational Management
Private Sector Development
Private Sector Economics
Randomized Control Trials
Skills Development and Labor Force Training
Social Protections and Labor
Countries design programs for supporting firms, with varying levels of success. Firm growth is constrained by several factors, such as low firm capabilities (e.g. management), availability of finance, and access to markets. Based on the available experimental evidence on firm support programs in developing countries, this paper makes three broad observations. First, there are huge knowledge gaps in understanding the success of instruments that alleviate firm constraints. Various instruments, such as early-stage equity finance, incubators, and accelerators, remain untested due to the lack of good design, results framework, or monitoring and evaluation systems and so on. Second, since these interventions are expensive, policy makers expect such programs to be designed more effectively to pursue their objectives. However, evidence provides little guidance on the criterion for firm selection because the existing evaluations of instruments reveal little information on the heterogeneous impact by firm characteristics, such as the age, size, sector, and location of firms. Third, most interventions seek to address only one of the broad constraints faced by firms. To this end, the paper concludes with a novel proposal for a firm support program that attempts to sequentially address multiple constraints to firm growth. This program will be implemented in Malawi through the "Financial Inclusion and Entrepreneurship Scaling" project.
Imbruno, Michele.
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Print Version: Grover, Arti Using Experimental Evidence to Inform Firm Support Programs in Developing Countries
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Restricted for use by site license.
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