Economic effects of Entrepreneurship Training
Last registered on March 22, 2019

Pre-Trial

Trial Information
General Information
Title
Economic effects of Entrepreneurship Training
RCT ID
AEARCTR-0004013
Initial registration date
March 16, 2019
Last updated
March 22, 2019 11:42 AM EDT
Location(s)

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Primary Investigator
Affiliation
Massachusetts Institute of Technology
Other Primary Investigator(s)
PI Affiliation
Asia School of Business - MIT Sloan
PI Affiliation
Asia School of Business - MIT Sloan
Additional Trial Information
Status
In development
Start date
2019-03-18
End date
2020-03-14
Secondary IDs
Abstract
We will be conducting a randomized controlled trial on the Rapid Youth Success Entrepreneurship Program (RYSE).

The RYSE Program is a research and social outreach project that aims to improve youth unemployment rates by equipping low-income individuals aged 18-24 who currently enrolled at polytechnic institutions in Malaysia with the skills to plan, design, and run their own business or startup from scratch. The RYSE Program builds on ASB and MIT’s strengths in entrepreneurship and innovation as well as relying on the experience of local partners and successful entrepreneurs in Malaysia. The RYSE Program takes in uninitiated participants from “zero” to “entrepreneur”. This intensive (hence “rapid” program), will be held at 4 polytechnics in Klang Valley (i.e. Central Region) involving 420 participants for just over 6 months from mid March-December 2019.
External Link(s)
Registration Citation
Citation
Egana del Sol, Pablo, Samuel Flanders and Melati Nungsari. 2019. "Economic effects of Entrepreneurship Training." AEA RCT Registry. March 22. https://www.socialscienceregistry.org/trials/4013/history/43800
Sponsors & Partners

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Experimental Details
Interventions
Intervention(s)
The RYSE Program is a research and social outreach project that aims to improve youth unemployment rates by equipping low-income individuals aged 18-24 who currently enrolled at polytechnic institutions in Malaysia with the skills to plan, design, and run their own business or startup from scratch. The RYSE Program builds on ASB and MIT’s strengths in entrepreneurship and innovation as well as relying on the experience of local partners and successful entrepreneurs in Malaysia. The RYSE Program takes in uninitiated participants from “zero” to “entrepreneur”. This intensive (hence “rapid” program), will be held at 4 polytechnics in Klang Valley (i.e. Central Region) involving 420 participants for just over 6 months from mid March-December 2019.



Intervention Start Date
2019-03-25
Intervention End Date
2019-08-23
Primary Outcomes
Primary Outcomes (end points)
Risk Taking behavior and Quality, Impulsiveness, Grit, Creativity, Entrepreneurial Intentions.




Primary Outcomes (explanation)
All measures will be measured using self-reported test.

Creativity will be classified into three dimensions: flexibility, fluidity and originality as described by Egana-delSol (2016).
Fluid Intelligence will be measured using progressive matrices Raven’s test.

See the complete survey attached to this registry.

Secondary Outcomes
Secondary Outcomes (end points)
Matching Intention and quality.
Equity Split intention
Secondary Outcomes (explanation)

Matching
Students will be encouraged to form partnerships via a “speed dating” exercise where the students sequentially meet potential partners to discuss possible collaboration. For each meeting, students will evaluate potential partners’ quality on a Likert scale of very low, low, medium, high, very high:
Personal compatibility
Shared vision for business
Partner’s Ability to execute
Partner’s Resources
Fit between your skills/resources and your partner’s
Overall interest


Empirical Strategy

Equity split Arrangement Game/Exercises and Matching Outcomes

The treatments will be short video lectures presenting one of two perspectives on equity splits in startups. The equal-splits treatment will feature a video advocating the “1/N rule”—that each founder should receive an equal stake in the company and its profits. Students will be provided with the arguments frequently cited for this division rule: that equity is an incentive so small stakes should be avoided, that uncertainty about future roles and productivity make it hard to predict appropriate shares, and that unequal splits go against basic notions of fairness and can sour your relationship with your cofounder from the beginning.

The unequal-splits treatment will feature a video advocating a formal pie slicing approach—that the founders should give a numerical score to their value added along several dimensions—initial idea, business plan development, domain expertise, commitment & risk, and day-to-day responsibilities—assign weights to each dimension, and use the averaged scores as a starting point to discuss an equity split. Students will be provided with the arguments frequently cited for this division rule: that effort and value added will rarely be equal, so equal splits can create friction as asymmetries become clear; that founders often bring capital to the table or work without pay while the other founder keeps their day job, rationalizing a greater share.

The unequal-splits treatment video will illustrate an excel implementation of the pie slicing activity, which the students in this treatment will perform with their partner later in the program.


Finally, we will estimates heterogeneous effects based on race, work-related dimensions and personality (using the big five taxonomy).

Experimental Design
Experimental Design

Random assignment into program based on oversubscription at individual level. We will assign randomly students into classes that provide the RYSE program. In this sense, the randomization is at individual level, but the treatment will be at class level.

The treatment is the participation in the RYSE during 6 months.

We will also subselect a random subsample of participating students to conduct some games related to matching and equity split between potential business partners.
Experimental Design Details
Not available
Randomization Method
randomization done in office by a computer,
Randomization Unit
individual
Was the treatment clustered?
No
Experiment Characteristics
Sample size: planned number of clusters
420 students
Sample size: planned number of observations
420 students
Sample size (or number of clusters) by treatment arms
The expected sample size is 420 polytechnic students as follows:

40 students from Politeknik 1
150 students from Politeknik 2
80 students from Politeknik 3
150 students from Politeknik 4
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Power Calculations Using previous evidence of Egana-delSol (2016), the expected effect of an intervention aimed at improving creative skills of adolescents participating in a similar program is around 0.13 standard deviations on different indices related to socio-emotional skills. From this data, we also use mean and standard deviations of these dimensions from the control group and correlations between baseline and follow-up. For instance, regarding creativity and assuming power of 0.80, a serial correlation of 0.22 (from Egana-delSol, 2016), and a reliability of 0.95, and individual assignment to treatment (i.e. no clusterization of treatment) we will require a sample with size of 366 students, 122 in the control group and 244 in the treatment group. However, estimating an attrition of 10%, the final sample should be 407 students, following the same proportion of treated and controls. These values are slightly different if we consider cognitive skills using Rave’s Test. Based on data from Egana-delSol (2016), which only considered follow up measurement, we have an estimated sample of 581 students, 194 in the control group and 387 in the treatment group. Considering a 10% of attrition, we would need 645 students in total. According our estimated sample we will be underpowered to estimate impact on Raven. Indeed, our minimum detectable effect for Raven is around .16 standard deviations given our restrictions and sample size.
Supporting Documents and Materials

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IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
IRB Approval Date
IRB Approval Number
Analysis Plan

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