BusinessOnly 20% of Businesses on Government Entrepreneurship Schemes reach...

Only 20% of Businesses on Government Entrepreneurship Schemes reach their First Growth Milestone

-

- Advertisment -sslate

Only 20% of businesses on Government entrepreneurship schemes achieve any growth milestones, according to new research by emlyon business school.

The study, conducted by Greg Croidieu, an associate professor in entrepreneurship and innovation at emlyon, alongside colleagues from Aalto University School of Business, Babson College, and Economic Development Collaborative, investigated whether innovative businesses ventures achieved growth outcomes from government programs and found that growth is less than likely.

The researchers conducted three sets of analyses on data from the Small Business Development Centre in Southern California addressing biases, unobserved factors, and using different measures of growth. The analysis was on over 1,700 business, from sectors ranging from technology to manufacturing.

The research found that in most cases, public support programs lack sufficient resources and they often misallocate resources away from clients who need it the most.

Entrepreneurship

The findings also show that innovative ventures are not guaranteed to grow more than other ventures, unless support is targeted directly for them.

If additional government support is explicitly targeted at innovative ventures, they have more opportunity to receive in-depth advice, learn from experts, and translate this into productive growth outcomes., as long as the participants are willing to learn and the correct treatment design is used.

The researchers observed that treatment design is more crucial than selection for innovative firms to achieve growth but selection ensures the right participants are chosen.

“The research determined that for innovative ventures to achieve more growth milestones, they need sufficient advising support. This depends first on having the formal criteria used to allocate support, therefore innovativeness must be included as part of the criteria to ensure these ventures receive sufficient support,”

says Professor Croidieu.

Entrepreneurship

The study highlights that policymakers play a vital role in allocating resources to promote innovative entrepreneurship as a means of spurring economic growth in regions.

This research can be applied to other specific sectors, as long as those sectors are explicitly included in any formal criteria used to allocate support, to ensure businesses are recruited correctly and matched with qualified advisors.

Sunshine Slate
Sunshine Slatehttps://www.sunshineslate.com
Sunshine Slate is your news, entertainment, music fashion website. We provide you with the latest breaking news and videos straight from the United States of America.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Why is sociology on the chopping block in Florida?

Florida's education system is a proposal to drop sociology, the study of social life and the causes and consequences of human behavior

Marriott Homes and Villas vs. Apartments by Marriott: A Comprehensive Comparison

Marriott International, a global hospitality leader, offers two distinct vacation rental programs: Marriott Homes and Villas and Apartments by Marriott

Unlocking the Ultimate NFL Experience: Why StubHub Reigns Supreme for Season Tickets

When it comes to purchasing NFL season tickets, one platform stands out among the rest: StubHub.

Nurturing Ideas, Shaping Policy: The Vital Role of Think Tanks and Research Institutions in the USA

This article explores the crucial role that think tanks and research institutions play in the USA, delving into their functions, impact, and the challenges they face.
- Advertisement -

Best Apps and Games for your New Mobile Phone

We can install any app from the google play store very quickly. Let’s take a look at some most amazing apps for android mobile phones.

Florida Student groups defend Palestinian rights with lawsuits against state officials

The Students for Justice in Palestine chapters at the University of Florida and the University of South Florida are filing lawsuits against the deactivation orders
edealo.com
- Advertisement -sslate
transformerscon

Must read

Nurturing Ideas, Shaping Policy: The Vital Role of Think Tanks and Research Institutions in the USA

This article explores the crucial role that think tanks and research institutions play in the USA, delving into their functions, impact, and the challenges they face.

Best Apps and Games for your New Mobile Phone

We can install any app from the google play store very quickly. Let’s take a look at some most amazing apps for android mobile phones.
- Advertisement -
- Advertisement -sslate

You might also likeRELATED
Recommended to you