The Impact of Business Accelerators

Last registered on May 09, 2024
View Trial History

Pre-Trial

Trial Information

General Information

Title
The Impact of Business Accelerators
RCT ID
AEARCTR-0012372
Initial registration date
April 26, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
May 09, 2024, 1:49 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Primary Investigator

Name
Gaurav Chiplunkar
Affiliation
University of Virginia
Contact Primary Investigator

Other Primary Investigator(s)

PI Name
Namrata Kala
PI Affiliation
PI Name
Israt Jahan
PI Affiliation
University of Wisconsin La-Crosse
Contact Investigator
PI Name
Abu Shonchoy
PI Affiliation
Florida International University
Contact Investigator

Additional Trial Information

Status
In development
Start date
2023-09-01
End date
2025-12-31
Keywords
Firms & Productivity, Labor
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
Startups face high failure rates, with two thirds never generating a positive return. To facilitate growth of high potential startups, business accelerators have emerged in recent years. These accelerators provide a combination of networking opportunities with peer firms and potential funders, as well as some training in pitching and marketing products effectively. However, there is limited causal evidence on the impact of business incubation and accelerator programs on firm survival and growth, especially in developing countries where the marginal returns to these investments could be high. This project aims to test whether business accelerators causally impact firms’ outcomes using a randomized control trial in Bangladesh.
External Link(s)

Registration Citation

Citation
Chiplunkar, Gaurav et al. 2024. "The Impact of Business Accelerators." AEA RCT Registry. May 09. https://doi.org/10.1257/rct.12372-1.0
Sponsors & Partners

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information
Experimental Details

Interventions

Intervention(s)
The intervention is admission into a business acceleration program that consists of (i) mentoring, (ii) online training courses, and (iii) networking with investors and peer firms. It costs about $375 per firm and will be implemented by Startup Dhaka, a key player in this sector in Bangladesh. The intervention is aimed at helping firms move up a business ladder by solidifying their technical and business knowledge, setting up ambitious goals and viable business and financial plans, and connecting them to investors and business partners. The total duration of the intervention is 4 weeks.
Intervention Start Date
2023-10-01
Intervention End Date
2025-04-30

Primary Outcomes

Primary Outcomes (end points)
Total revenue, firm size, operating profit
Total number of customer base
Total debt and source of financing
Total investment and source of investment
Business expectations for the future
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Number of products and services offered; customers retained/acquired
Formation of horizontal and vertical networks with peers and mentors
Whether pitching to outside investors, and the quality of the pitch video as evaluated by external reviewers.
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
The project will randomize access to an accelerator program implemented by a key player in Bangladesh. Applicants who are deemed eligible to participate into the program by the implementation partner would be randomly allocated to treatment and control group.
Experimental Design Details
Not available
Randomization Method
Randomization done in office by a computer
Randomization Unit
Firm
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
200 eligible firms
Sample size: planned number of observations
200 eligible firms over multiple survey rounds
Sample size (or number of clusters) by treatment arms
100 firms in treatment and 100 firms in control
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
Massachusetts Institute of Technology
IRB Approval Date
2023-08-07
IRB Approval Number
2305000989
Analysis Plan